The fast-growing market in Egypt for IT and telecommunications could provide huge opportunities for Irish firms, the Egyptian Minister of Communications and Information Technology, Dr Ahmed Mahmoud Nazif, has said.
Speaking to The Irish Times during an official visit to the Republic, Dr Nazif said that the relatively low penetration of the IT and telecommunications markets in Egypt offered tremendous potential for joint ventures between Egyptian business and Irish technology companies. "We know that we can complement each other in a number of ways," he said.
Dr Nazif said Egypt had a high proportion of university graduates and there was a need for them to broaden their focus beyond the local market. He said Irish firms could provide expertise and know-how, while Egypt could provide a conducive environment for investment with its high-quality human resources and infrastructure.
Dr Nazif is fulfilling a series of engagements in the Republic, including meetings yesterday with the Taoiseach, Mr Ahern, the Tanaiste, Ms Harney, and a presentation to an Enterprise Ireland business forum. The minister will also be meeting Irish technology firms including Baltimore Technologies, Eircom and Parthus Technologies.
Dr Nazif said he hoped to learn more about the "amazing effect" of the IT sector on the success of the State's economy. He said there are many similarities between the Republic and Egypt in the development of their IT economies. Just as the Republic has positioned itself as a gateway to Europe from the US, Egypt is the northern gateway to the Middle East and Africa, he said. Dr Nazif, who has a distinguished career track record in IT, has played a large part in plans to make IT a focus for the Egyptian economy. His ministry is a newly established one, created as part of a national programme for economic development announced two years ago by the Egyptian president, Mr Hosni Mubarak.
The country has invested heavily in economic infrastructure over the past five years, building new roads, power systems and telecommunications networks. Dr Nazif said the country had doubled the number of telecommunications subscribers and the rate of foreign investment since the programme was started over a year ago.
Yet, in a country of 65 million people, with 58 per cent of the population under 25, penetration rates for telecommunications and IT are extremely low. For example, a need has been identified for between 1.5 and five million new telephone lines to be built using fixed wireless technology, which is more suitable because the geography prevents the easy installation of telephone cables. "We are not asking people to sell us the technology but to come and operate your own business," he said.
Dr Nazif also pointed to the advantages of Egypt as a base for software localisation for the Arabic-speaking world. "We like to think of ourselves as the Arabic cultural capital of the world," he said.
The Egyptian government believes in the value of tax incentives. New foreign investors in IT and telecommunications can avail of tax-exemption on profits for up to 10 years. "In fact, if you have your business set up as exports - 100 per cent exports - you don't pay tax at all," Dr Nazif said.
