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Struggling Egypt looks to African neighbours for ICT growth

By , Editor, ITWeb Africa
Egypt , 25 Aug 2014

Struggling Egypt looks to African neighbours for ICT growth

A high level partnership plans to boost Egyptian technology companies’ exposure in high-growth African markets.

On Monday, the International Data Corporation (IDC) announced the launch of a programme with Egypt's Information Technology Industry Development Agency ( ITIDA) dubbed 'Africa Together '.

The initiative is geared at helping Egyptian information and communications technology (ICT) firms access African markets as well as help boost Egypt’s own flagging economic growth.

Egypt’s economy has been beset by political instability ever since the overthrow of President Hosni Mubarak in 2011. The World Bank says that “amid the political turmoil, economic growth remains weak with a high fiscal deficit and gross public debt “ in Egypt.

Conversely, Sub-Saharan Africa is experiencing strong strong economic growth as the World Bank forecasts that regional gross domestic product (GDP) growth is to reach 4.7% in 2014, strengthening to 5.1% in 2015 and 2016

Amid this strong economic growth, the IDC forecasts that IT spending across Africa (excluding South Africa) is expected to reach $26.4 billion by 2018, expanding at a compound annual growth rate (CAGR) of 7.03%.

"The considerable demand that exists across the wider African continent for skills and knowledge transfer makes it an extremely appealing prospect for Egyptian ICT companies, as does the ability to introduce innovative, cost-effective, and relevant IT solutions to these markets," says Jyoti Lalchandani, IDC's group vice president and regional managing director for the Middle East, Turkey, and Africa.

To help start the Africa Together programme, the IDC plans bringing Egyptian ICT players to two three-day events to be held in Lagos and Nairobi towards the end of 2014.

The IDC, in a statement, says it further plans hosting an exclusive chief information officer (CIO) Forum in Cairo next year where it expects to attract 50 African CIOs to interact with more than 100 Egyptian ICT leaders.

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