Egypt is Powering Up Digitally! Huge Investments Boost Phones, Outsourcing, and Telecom

Egypt's Minister of Communications and Information Technology, Engineer Raafat Hendy, announced that the country's telecom sector achieved remarkable growth of 18.9% during the third quarter of the current fiscal year. This is the highest quarterly growth rate the sector has seen in years, clearly showing how well this vital economic area is performing.

The Minister explained that Egypt has successfully attracted specific investments aimed at localizing strategic industries within the ICT sector. This includes, most notably, mobile phone manufacturing and cross-border outsourcing services. This aligns with the government's direction to boost technological manufacturing and increase local added value.

Regarding mobile phone manufacturing, he noted that production volume has jumped from 3.3 million devices in 2024 to about 10 million devices currently. It's expected to exceed 15 million devices annually by 2027. He confirmed that Egypt has already started exporting phones to several Arab markets and the United States since 2025, which shows the improved quality and competitiveness of local products.

In the outsourcing sector, the Minister clarified that the value of cross-border service exports reached approximately $5.2 billion last year, with expectations to hit nearly $6 billion this year. This growth is driven by global companies' trust in Egyptian talent.

He also mentioned that several international companies are setting up specialized artificial intelligence research centers in Egypt, which strengthens the country's position as a regional hub for advanced technology.

Engineer Raafat Hendy emphasized that developing digital skills is a top priority. Programs have been launched to build capabilities, aiming to train about 800,000 individuals this year. This is part of the government's strategy to invest in human capital as a fundamental pillar for development.

In a related context, the Minister revealed that the telecom sector has attracted investments estimated at $3.5 billion since the beginning of the year. These investments come through agreements with global companies spanning five years. Additionally, 410 MHz of spectrum has been allocated to support the deployment of 5G services and expand coverage.

He also highlighted the expansion of digital services through the "Digital Egypt" platform, which offers around 220 services used by 11.5 million citizens. There's a plan to add 50 new services this year to further boost government digital transformation.

In the field of artificial intelligence, he explained that Egypt advanced 14 global ranks in indicators for using this technology last year. It also topped African countries in fixed internet speed, reflecting an overall improvement in technological infrastructure indicators.

The Minister concluded by mentioning the efforts of the National Telecommunication Regulatory Authority (NTRA) to improve service quality and balance cost with efficiency. Requests from telecom companies were carefully reviewed, leading to approval of limited price adjustments that were less than the proposed increases. Companies were also mandated to offer additional packages to support digital inclusion.

These measures included introducing a fixed internet package for 150 EGP instead of 210 EGP, along with a mobile internet package for 5 EGP. Furthermore, free access to government educational and service platforms is now available without deducting from data bundles, even if they run out. This greatly enhances the availability of digital services for citizens.