Comprehensive Case - Group A - 19222254

DIGITAL EGYPT:
TRANSFORMATION INTO A
DIGITAL ECONOMY
ARAB ACADEMY FOR SCIENCE,
TECHNOLOGY AND MARITIME TRANSPORT
GRADUATE SCHOOL OF BUSINESS – CAIRO
MASTER OF BUSINESS ADMINISTRATION - GENERAL
19222254
Comprehensive Exam
May 2022
TABLE OF CONTENTS
Introduction ................................................. 3
Vision ........ Error! Bookmark not defined.5
Mission ...................................................... 7
Core values ................................................ 8
External environment assessment .............. 9
Internal environment assessment ............. 27
Quadatic analysis ..................................... 34
Qualitative goals ....................................... 42
Strategy selection .................................... 43
Strategy implementation ........................... 44
Strategy evaluation ................................... 46
Business plan ........................................... 48
References .............................................. 55
ii
Digital Egypt: transformation into a digital economy
INTRODUCTION
Inspired from our ancient civilization, linking the present to future, aligning with each of the
17 Sustainable Development Goals (SDGs) and contributing to the achievement of Agenda
2063, the Government of Egypt (GoE) has formulated a comprehensive vision, EGYPT
VISION 2030.
Sustainable development is the development that meets the needs of the present without
compromising the ability of future generations to meet their own needs. Each of the 17
SDGs has specific targets to be achieved by 2030. In order to reach those goals all
partners need to collaborate; government, civil society, private sector and the people. Each
should have a clear role in the plan in order to achieve the set goals. (Abdel Latif, A. et al,
2018)
Figure 1: The Sustainable Development Goals (SDGs)

Source: UNDP 2022
Stemming from Egypt Vision: 2030 in line with Egypt’s commitment towards Sustainable
Development Goals (SDGs), the Government of Egypt (GoE) has formulated a
comprehensive vision that includes the fundamentals related to transforming Egypt into a
digital society where all technologies in almost all fields of life can be integrated.
Within context, the Government has worked on promoting and developing the infrastructure
of communications and information technology. It has also covered improving digital
services at all ministries and government agencies and raising the efficiency of
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governmental services by providing a better work environment and necessary support to

government agencies.
Figure 2: THE SUSTAINABLE DEVELOPMENT STRATEGY (SDS): EGYPT VISION 2030

- MAIN PILLARS
Source: Ghoneim, A., 2021
H.E. President Abdel Fattah El-Sisi launched the digital transformation initiative for the
Egyptian GOVT.. in 2018. It is to reengineer the processes, move GOVT.. institutions to
new business models, so that the citizen receives the E-services through Omni channels
including mobile Apps, Govt.. E-Portals, digital Egypt E-platform, post offices, service
centers and kiosks, the citizen can access these platforms through the citizen’s Digital
Identity and can pay the expenses of the E-services through E-Payments Gateways, credit
cards and POS, within 2 years will reach 550 E-services to all ministers and localities in a
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smart, efficient and effective digital way,

as the citizen is the core business of the
comprehensive sustainable development,
implement Governance, elimination of
corruption, increase citizen satisfaction
and saves time and money.
The Digital technologies represent an
unprecedented opportunity for the G to
reinvent itself. The Egyptian GOVT.. is
working as a participatory digital Govt.. to
implement financial inclusion and FinTech
Apps towards secured cashless,
paperless digital knowledge society.
The Govt.. is transforming to Digitalization
and to the Digital Economy, the Egyptian
Govt.. investments USD 1.9B, to develop
informational digital infrastructure, create technological innovation pools in the

Governorates, and established Hi Tech industries in the economic zone of the Suez Canal,
where most of the submarine cables that carry communications and internet between Asia
and Europe pass through the Suez Canal.
In addition, the Government has taken significant steps towards transformation into a digital
economy. This came in line with its valiant attempts to accelerate the development pattern
and improve the quality of life for citizens via developing infrastructure and investing in
human capital. (Ghoneim, A., 2021)
Increasing digitalization of the economy and society is changing the ways people act and
interact. One of the distinguishing features of various digital transformations has been the
exponential growth in machine-readable information, or digital data, over the Internet
(UNCTAD, 2019a). Such data are core to all fast-emerging digital technologies, such as
data analytics, artificial intelligence (AI), blockchain, Internet of Things (IoT), cloud
computing and all Internet-based services – and they have become a fundamental
economic resource. The COVID-19 pandemic has accelerated digitalization processes, as
more and more people have continued, to the extent possible, with their activities through
online channels – for example, for working, studying, communicating, selling and buying, or
entertainment. (UNCTAD, 2021a)
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1.1. VISION
Egypt vision 2030
By 2030, the new Egypt will achieve a competitive, balanced, diversified and knowledge
based economy, characterized by justice, social integration and participation, with a
balanced and diversified ecosystem, benefiting from its strategic location and human capital
to achieve sustainable development for a better life to all Egyptians.
Figure 3: 2015 values of different vision’s indicators

Source: Ghoneim, A., 2021
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I.I.II. The vision of the Egyptian Digital Transformation strategy
A digital Govt. connected, participatory and sustainable, centered on serving the citizen and
increasing competitiveness through building an integrated secured digital society, and the
message is empowering the Govt., citizens, and industry transact in a sustainable manner,
through Strategic goals and initiatives. (Ghoneim, A., 2021)
I.I.III. Egypt ICT strategy for 2014-2020
Achieve the digital economy through ICT, to provide prosperity, freedom and social equity
for all.
I.I.IV. First pillar’s vision: Economic development
By 2030, the Egyptian economy is a balanced, knowledge-based, competitive, diversified,

market economy, characterized by a stable macroeconomic environment, capable of
achieving sustainable inclusive growth. An active global player responding to international
developments, maximizing value added, generating decent and productive jobs, and a real
GDP per capita reaching high-middle income countries level. (Ghoneim, A., 2021)
I.I.V. Egypt’s Digital Economy vision (Proposed):
For Egypt to have a globally-active, regionally-leading, digitally-enabled, knowledge-based

economy, opening outlooks for innovation and sustainable growth.
I.II. MISSION
I.II.I. The mission of the Egyptian Digital Transformation:

Accelerating digital transformation is core to Egypt’s objectives to achieve vibrant economic
growth, foster productivity, and advance human capital development. Digitization of public
services can lead to efficiency gains for the public administrations, citizens and businesses
alike, where paperless and electronic means are the norm. MCIT is cooperating with the
government agencies to achieve a transition from closed, top-down, bureaucratic, and
paper-based transactional models towards online, integrated digital offerings that
encourage a new kind of interaction between citizens and the state.
Therefore, MCIT has launched several projects, implemented within the framework of
building Digital Egypt to make digital government services available to citizens through five
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outlets; namely, Digital Egypt platform, mobile applications, call centers, post offices and
citizen service centers.
I.II.II. The mission of the Digital Egypt:
Aspiring to create a digital society, in which everything runs on digital technology,

the Ministry of Communications and Information Technology (MCIT) has embarked on
building Digital Egypt.
To realize its potential, digitalization needs to be complemented with stronger
digital infrastructure across the country that would ensure business continuity and
uninterrupted availability of essential digital government services. Universal access to
high quality Internet, promotion of digital literacy and skills, and ensuring an overall
legal and regulatory framework are all crucial foundations for building Digital Egypt,
allowing for the large-scale adoption of the digital services offered by the government.
To this end, MCIT endeavors to continuously develop the ICT infrastructure, improve
public service delivery, and provide a legislative and regulatory framework. Enhancing
human capacity building; fostering digital inclusion; promoting innovation and
entrepreneurship, and developing the ICT industry are Digital Egypt core pillars. MCIT
also seeks to promote ICT-related agendas through fostering regional and international
cooperation, to help achieve Egypt’s vision 2030.
I.II.III. Egypt’s Digital Economy mission (Proposed):
Paving the way for continuous increase the efficiency and attractiveness of economic
environment dependent on innovation and knowledge and based on justice, social integrity
and participation via using latest technology to modify, enhance and automate financial
services for both businesses and consumers with balanced and diversified ecological
collaboration system, investing the ingenuity of place and humans to continue improving the
quality of life of Egyptian citizens.
I.III. CORE VALUES
EGITAL
Excellence
Growth
Innovation
Transparency
Accountability
Leadership
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II. EXTERNAL ENVIRONMENT

ASSESSMENT
II.I. PESTEL
II.I.I. Political factors
Being the leading regional anchor of stability boosted diversifying Egypt’s foreign relations
and balancing ties with the US, EU and the regional allies UAE and KSA, and cultivate
diplomatic and economic engagement with Russia and China despite the recent Russia-
Ukraine war.
High political stability as the presidential popularity is extremely high, 2018 election results
reached 97.08%. (Elections.eg. 2022.). H.E. the president, Abdel Fattah El-sisi is
expected to maintain his political dominance following recent constitutional amendments.
Improved governance, since 2014, stability and security have improved, leading to greater
attention being paid to social and economic development and the achievement of justice,
inclusion and equality.
Egypt has clear historical rights to the Nile River, veto power has been given to Egypt to
approve or disapprove any projects on this river such as Grand Ethiopian Renaissance
Dam.
Egypt does not interfere in any countries domestic or foreign affairs, likewise Egypt does
not allow any other country, policymaker, or whoever to interfere in its internal or foreign
affairs, Egypt consider this as an infringement of sovereign rights.
Egypt has undertaken notable steps to prevent corruption and abuse of power. The
mandate of the Central Authority for Accounts has been strengthened, and Parliament
exercised its constitutional power of reviewing and voting on the Authority’s annual reports.
Also the mandate of the Administrative Control Authority was extended in terms of scope
and powers.
Increasing level of separation of powers and checks and balances, Egypt has a presidential
system of government, in which the President nominates the Prime Minister who forms the
Government. The 2014 Constitution emphasizes the separation of powers, with significantly
broadened prerogatives to the Parliament. Parliament is bicameral, in which the Lower
House, the legislature, grants confidence to the Government.
The government’s decisions on countermeasures were largely taken without transparency
and without the participation of interest groups. (Bertelsmann Stiftung, BTI 2022)
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Egypt has a sizeable and active civil society. Over 57,000 NGOs operate in the country,
active in addressing problems in education, healthcare, access to services, among other
social concerns. Civil society plays a prominent role in cultural activities, and increasingly
many operate in environmental domains, including resources and waste management,
nature protection, and others.
The Constitution provides that the press will be free and operate without censorship. It
prohibits the executive from censoring, confiscating, suspending, or shutting down any
media outlet. It also specifies that no jail time would be imposed as a result of published
material. The Constitution also allows for the issuance of publications after only notification,
as opposed to requiring governmental approval. And, it has also given several powers to
the independent Supreme Council for the Regulation of the Media, which is composed of
media professionals.
Egypt has a long tradition of diverse media. Over two hundred newspapers, magazines,
and tv stations operate in the country, where a wide range of views on social, political, and
economic issues are aired, and where the government is normally criticized.
The Law incorporates social media accounts with more than 5000 followers as subject to its
oversight. The Law also authorizes the Supreme Council for the Regulation of the Media to
block content that is deemed to violate “public order or morals”. The Law provides for the
right to appeal before the Administrative Court.
Egypt has also been hosting over 250,000 refugees, in addition to, what the Egyptian
authorities estimate to be circa 5 million residents, most of whom fled conflicts in
neighboring countries and who prefer not to be identified as refugees. They live outside any
forms of camps and have equal access to services available to Egyptians including all
subsidies. (2022. Egypt Country Strategy)
Obtaining accurate information on developments in Sinai in particular is impossible, as the
regime does not allow observers to enter the area, and tightly controls the narrative on its
anti-terrorism fight.
Egypt is divided into 27 governorates, which are partially further subdivided into regions,
towns and villages. Yet the administrative structure is highly centralized. (Bertelsmann
Stiftung, BTI 2022)
Due to its centralized, hierarchical and bureaucratic coordination style, horizontal
communication between different departments of the state administration yet to improve,
which in many cases led to a lack of coordination and inefficiency, redundancies, and
conflicting and counterproductive policies. (Bertelsmann Stiftung, BTI 2022)
II.I.II. Economic factors
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The impact of Russia-Ukraine war on Egypt’s economy is especially significant. $15bn had
been pulled out of Egypt since the end of January as a result of the war. (Ft.com. 2022)
Egypt is the world’s top wheat importer; around 80 percent of its wheat imports come from
Russia (about 70%) and Ukraine (around 11%). Since the beginning of the war, food prices
have risen significantly. The prices of the basic commodities such as food, sunflower oil,
and fuel have soared for the past few weeks. According to official figures, Egypt imported
around 12.9 million tons of wheat at a cost of $3.2 billion in 2020. Since the beginning of the
war on Ukraine, the price of a ton of wheat has almost doubled from $230 to $450. The
government is now searching for other alternative suppliers in order to avoid a catastrophic
food crisis over the coming months. (Sharaf, N., 2022)
Figure 4: Price of Wheat per ton in EUR

Source: markets.businessinsider.com. 2022
Loss of visitors from Russia and Ukraine — the two biggest tourism markets — is a blow to
a sector that had just started to recover from the pandemic. (Ft.com. 2022)
Before the outbreak of COVID-19, the government took measures to reduce Egypt’s debt
level, the budget deficit and inflation rates, while increasing foreign-currency reserves.
Macroeconomic reforms have helped stabilize the economy in recent years, allowing the
country to enter the COVID-19 crisis with improved fiscal accounts and a relatively ample
level of foreign reserves. (Bertelsmann Stiftung, BTI 2022)
Due to pandemic, the economic support packages implemented mainly sought to shield
large businesses, while the interests of SMEs and regular citizens were given less
consideration. (Bertelsmann Stiftung, BTI 2022)
Egypt’s economy slipped into deep crisis after the 2011 movement but has gradually
recovered since that time.
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Figure 5: Egypt GDP Growth Rate

Source: Tradingeconomics.com. 2022
Figure 6: Egypt Growth Decomposition, Demand Side

Source: 2021. Egypt economic Monitor.
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Figure 7: Public and Private Investments

Source: 2021. Egypt economic Monitor.
Figure 8: Contribution to GDP Growth, by Sector

Source: 2021. Egypt economic Monitor
The informal sector generates between 40% and 50% of GDP. With regard to employment,
an estimated 63% of all Egypt’s labor is informal, and it accounts for almost 50% of all non-
agricultural employment. (Bertelsmann Stiftung, BTI 2022)
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Heavy borrowing has been necessary to fund continued budget deficits. (Bertelsmann
Stiftung, BTI 2022)
The debt-to-GDP ratio has also declined significantly but remains high at 87.5% of GDP at
end-June 2020 and is expected to have increased further during FY2021/2022. (2022.
world bank)
Figure 11: Egypt Government Debt to GDP

Figure 12: Overall Budget and Primary Balances Total Revenues and Expenditures
Despite the narrowing overall deficit-to-GDP ratio and improved budget structure, fiscal
space remains rather limited, mainly due to the still-elevated interest payments and
constrained revenue-mobilization. (2021. Egypt economic Monitor)
Significant progress in fiscal and debt reporting is underway, yet the current administrative
structure within the public sector necessitates further clarity about the stock of arrears,
deficit financing and the drivers of debt accumulation. (2021. Egypt economic Monitor)
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Table1: Drivers of Egypt’s Government Debt Accumulation (On-Budget vs. Extra-Budget)

Around 30% of the population lived below the national poverty line. (2022. world bank)
Standard & Poor's credit rating for Egypt stands at B with stable outlook. Moody's credit
rating for Egypt was last set at B2 with stable outlook. Fitch's credit rating for Egypt was last
reported at B+ with stable outlook.
Table 2: Egypt Credit rate

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Figure 12: Domestic Credit by Sector Public and Private Sector Credit
With the number of public sector employees reaching 6.4 million, Egypt is among the top
ranked countries in terms of the number of employees in the public sector. The cost of
wages for these civil servants is around EGP 126 billion per year (USD 16.5 billion).
(Tamimi.com)
Inflation has recently increased, reflecting food price inflation, upward adjustments to
energy prices (fueled by the increase in international commodity prices), compounded with
unfavorable base effects.
Figure 13: Egypt Inflation rate

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Figure 14: Global Energy Prices Energy Prices in Egypt

Egypt was ranked 142nd out of 180 countries in the Index of Economic Freedom 2020.
(Bertelsmann Stiftung, BTI 2022)
Figure 15: Egypt’s ranking on the Ease of Doing Business Index, 2010-2020
Source: undp.org. 2022
Figure 16: Egypt and MENA countries’ rankings on the Ease of Doing Business Index, 2020
Source: undp.org. 2022
Egypt has well-established economic relations with neighboring regions, The EU, with
which Egypt has an association agreement, remains Egypt’s main source of FDI and its
largest trade partner by far. MENA states’ importance as economic partners has increased
in recent years, and Egypt is a member of the Agadir Agreement and the Greater Arab Free
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Trade Area (GAFTA). The government has also paid increasing attention to the African
continent, not least in the context of Egypt’s presidency of the African Union (AU) in 2019.
Egypt is a member of COMESA, and the AfCFTA was launched on January 1, 2021.
II.I.III. Social factors
Egypt's population will reach 103 million people on Tuesday 22/2/2022 domestically, by an
increased rate of a child born every 20 seconds. (CAPMAS) on Monday 21/2/2022.
In 2019, the enrollment rate was 106% at the primary level, 88% at the secondary level and
35% at the tertiary level. Accordingly, the literacy rate increased from 55.6% in 1996 to
71.2% in 2017. (Bertelsmann Stiftung, BTI 2022)
Enormous youth population, with 61% of the country’s citizens being below the age of 30.
This in turn places huge stress on the education and health systems as well as the labor
market. (Bertelsmann Stiftung, BTI 2022), The median age in Egypt is 24.6 years.
(Wolrdmeters.info 2022)
Figure 17: Total population of Egypt as of 2021, by age group

Source: statista.com. 2022
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Source: Wolrdmeters.info 2022

The population density in Egypt is 103 per Km2 (266 people per mi2). 43.0 % of the
population is urban (44,041,052 people in 2020). (Wolrdmeters.info 2022)
Figure 18: Egypt urban-rural

Source: britannica.com 2022
Figure 19: Egypt’s GDP per capita
19

Unemployment declined to 7.5 percent by Q1-FY2021/22, compared to 9.6 percent at the
height of the COVID-shock in Q4-FY2019/20.
Figure 20: Unemployment Rate in Egypt – quarterly

The COVID-shock has also led to dropouts from the job market, notably by women whose
labor force participation rate was recorded at 15.4 percent in Q1- FY2021/22; below the
pre-COVID levels
Figure 21: Unemployment Rates Labor Force Participation & Employment Rates
The number of marriage contracts and divorce certificates in Egypt declined by 5.6 percent
and 5.3 percent, respectively, from 2019 to 2020. The number of marriage contracts in
2020 reached 876,000, while divorce cases of the same year reached 213,000. (Barakat
K.-CAPMAS, Egypttoday.com 2021)
The Egyptian political leadership is taking leap to change public sector system into merit
system rather than spoil system which was dominant for several decades as Egypt had
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made insufficient use of human, financial and organizational resources, favoring loyalty
over competences and remits, and favoring patriarchal dominance over equality between
the sexes, generations and social classes.
While H.E. President El-Sisi has repeatedly called on all social forces to help solving the
country’s numerous challenges, civil society participation is still broadly absent.
II.I.IV. Technological factors
There were 75.66 million internet users in Egypt in January 2022.
Figure 22: Number of internet users in Egypt in June 2020, by type

Source: Statista.com 2022
Average time an Egyptian spends online is 7:36 hours. Around 4:20 hours are via mobile.
Of the web traffic, the share of mobile phones (excluding use of apps) is about 68% of total
browsing.
Egypt ranks number 9th globally in Facebook advertising reach with 45,000,000 users as
audience, 15th globally for reach of YouTube advertising with an audience of 40.5 million,
7th globally in Facebook messenger advertising reach with an audience of 33 million, 13th
globally in Snapchat advertising reach with an audience of 10.7 million, 18th globally in
Twitter advertising reach with an audience of 3.7 million. Advertisers can reach about 8.4%
of Egyptians on LinkedIn. (egypt-business.com, 2021)
46.2% of internet users in Egypt use social media for work purposes. (egypt-business.com,
2021)
18.4% of internet users use mobile banking or financial services apps monthly. (egypt-
business.com, 2021)
3.3% of the population over 15 years old has a credit card. (egypt-business.com, 2021)
Spending on R&D amounted to 0.6% of GDP in 2019, which is clearly below the global
average of 2.3%, and also below the 1.0% target mentioned in the constitution. Private
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sector R&D investment in particular is very low, accounting for only 6% of total investment.
Figure 23: Digital Skills in Egypt Compared with the Middle East and North Africa Average
II.I.V. Environmental factors
Population growth is also straining natural resources to their limits. (Bertelsmann Stiftung,
BTI 2022)
Egypt is as more of a victim than a cause of global pollution, particularly considering the risk
that rising sea levels pose for its coastal areas. Yet Egypt is among the countries with the
fastest CO2 emissions growth rates worldwide, even though it signed the Paris Climate
Agreement and environmental protection is cited as a national duty in the 2014 constitution.
However, implementation is weak, and environmental protection is subordinated to the
generation of economic growth, a fact illustrated by the sidelining of environmental
considerations in most state-orchestrated mega-projects. (Bertelsmann Stiftung, BTI 2022)
River Nile, the main source of water, is highly polluted by industrial dumping.
About 96 percent of Egypt’s total area is desert. Lack of forests, permanent meadows, or
pastures places a heavy burden on the available arable land, which constitutes only about 3
percent of the total area. Egypt’s biological resources, centered around the Nile, have long
been one of its principal assets. (britannica.com)
Almost 90% of energy production is still based on fossil fuels. According to the Vision 2030
plan, the government wants to reduce the share to 27%. A new Renewable Energy Law
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came into effect in 2014, which seeks to attract investment and introduced feed-in tariffs.
II.I.VI. Legal factors
Employment law in Egypt is primarily governed by the Egyptian Labour Law No. 12 of 2003
(Labour Law). The Labour Law governs nearly all employment relationships in Egypt, where
the employer is an Egyptian person or entity, including both Egyptian and foreign
employees. On a wider scale, employment relationships are also governed by the Egyptian
Civil Code for matters not regulated by the Labour Law. Furthermore, part of the
employment relationship is governed by the Egyptian Social Insurance Law No. 79 of 1975.
Law No. 18 of 2015 concerning the Civil Service.
Given the huge changes Egypt is witnessing in the provision of telecommunications
services and the transition into a digital society, the government gave priority to developing
the ICT sector, coping up with technological leaps and creating a new state-of-the-art
ecosystem through issuing a number of laws that regulate this sector.
The Egyptian State has issued the following laws and legislations to provide a good
environment to safe protection and privacy for data, institutions and individuals from piracy
acts and to encourage investment in the field of ICT for the digital, knowledge-based
society
1. The Data Privacy Protection Law No. 151 of 2020

2. The National Council for the Artificial Intelligence of 2019
3. Law of Combating Information Technology Crimes No. 175 of 2018
4. The National Payment Council Law No 89 of 2017, chaired by the President.
5. The Supreme Council for the Digital Society Law No 501 of 2017.
6. The Supreme Council for Cyber security 2017.
7. Investment Law No. 72 of 2017.
8. Electronic Signature Law No. 15 of 2004.
II.II. Porter’s 5 forces analysis:
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II.III. External Factor Evaluation (EFE) Matrix:
Weighted
Weight Rating
Score
Opportunities
Egypt's leading regional role and balanced foreign
O1 0.03 4 0.12
relations
O2 High political stability 0.04 4 0.16
Improved governance rate and steps to prevent
O3 0.04 3 0.12
corruption and abuse of power
Increasing level of separation of powers and
O4 0.02 4 0.08
checks and balances
Macroeconomic reforms that stabilized the
O5 0.04 3 0.12
economy in recent years
Significant progress in fiscal and debt reporting
O6 0.05 4 0.2
and declined debt-to-GDP ratio
S&P's credit rating for Egypt stands at B with
O7 0.04 3 0.12
stable outlook
Well-established economic relations with
O8 0.025 4 0.1
neighboring regions
O9 Increased literacy rate 0.055 4 0.22
O10 Enormous youth population 0.05 4 0.2
O11 Unemployment declined 0.025 2 0.05
Egyptian political leadership is taking leap to
O12 change public sector system into merit system 0.05 4 0.2
rather than spoil system
O13 75.66 million internet users in Egypt 0.05 3 0.15
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O14 New civil service law 0.03 4 0.12

Weighted
Weight Rating
Score
Threats
Government’s decisions on countermeasures were
T1 largely taken without the participation of interest 0.03 3 0.09
groups
T2 Egypt's diverse media 0.025 2 0.05
Centralized, hierarchical and bureaucratic
coordination style, inefficient horizontal
T3 0.04 3 0.12
communication between different departments of
the state administration
The impact of Russia-Ukraine war on Egypt’s
T4 0.03 2 0.06
economy
The impact of outbreak of COVID-19 pandemic
T5 0.02 3 0.06
on Egypt’s economy
The informal sector generates between 40% and
T6 0.035 2 0.07
50% of GDP
High proportion of population lived below the
T7 0.045 2 0.09
national poverty line
T8 High cost of wages for civil servants 0.035 2 0.07
T9 Only 43 % of the population is urban 0.04 2 0.08
Decreased women labor force participation rate
T10 0.02 2 0.04
after COVID-19 outbreak
Small proportion of internet users use mobile
T11 0.05 3 0.15
banking or financial services apps
Tiny proportion of the population over 15 years
T12 0.03 2 0.06
old has a credit card
T13 Low spending on R&D 0.055 3 0.165
Total weighted score 3.065
Egypt’s digital transformation strategy is well-adapted to current external
environment.
III. INTERNAL ENVIRONMENT

ASSESSMENT
III.I. Managerial capabilities:

In alignment with Egypt Vision 2030 and Egypt’s digital transformation strategy, the Ministry
of Communications and Information Technology (MCIT) has embarked on building Digital
Egypt. Digital Egypt is an all-encompassing vision and plan, laying the foundations for the
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transformation of Egypt into a digital society. To usher this transition to a digital society and
build a strong digital economy, "Digital Egypt" is built on three main planks:
(mcit.gov.eg)
Long-term strategic goal till 2030 and objectives are measurable and well communicated.
The mangers at all hierarchical levels plan effectively in a tightly compliant manner with
Egypt’s vision 2030 and Egypt’s digital transformation strategy.
MCIT is one of the first public sector entities to adapt 360-evaluation system to measure
employee’s performance.
Digital Transformation
Accelerating digital transformation is core to Egypt’s objectives to achieve vibrant economic

growth, foster productivity, and advance human capital development. Digitization of public
services can lead to efficiency gains for the public administrations, citizens and businesses
alike, where paperless and electronic means are the norm. MCIT is cooperating with the
government agencies to achieve a transition from closed, top-down, bureaucratic, and
paper-based transactional models towards online, integrated digital offerings that
encourage a new kind of interaction between citizens and the state.
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III.II. Organizational structure
Cabinet
As the chief executive body of Egypt, the Cabinet consists of the Prime Minister, his
deputies, the Cabinet Ministers, and their deputies. In addition to its management of daily
affairs and setting strategies for development and reform in all areas, it has a role in
shaping the agenda of the houses of Parliament by proposing laws to Parliament, as well
as amendments during parliamentary meetings. It may also make use of procedures to
speed up parliamentary deliberations. (nyulawglobal.org 2022)
ICT sector in Egypt is adapting matrix organizational structure that Takes advantage of
both the function and the project or the department structures leading to flexibility in
responding to change.
The ICT industry in Egypt is managed by MCIT.

It oversees the following organizations:
National Telecom Regulatory Authority – NTRA
IT Industry Development Agency – ITIDA
Egypt Post
Information Technology Institute – ITI
National Telecommunication Institute – NTI
Center for Documentation of Cultural and Natural Heritage – CULTNAT
The Technology Innovation and Entrepreneurship Center – TIEC
Smart Villages
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Silicon Waha
Technology Development Fund
Digital Egypt
Digital Transformation
Institutional Development
Decent Life
Artificial Intelligence
III.III. Organizational culture:
As the public sector is widely adapting hierarchy culture that is defined by structure,
established procedures, and levels of authority. Employees in this culture know precisely
where they fit in the chain of command – who’s accountable to them, who they report to,
and what the rules are. Duties are clearly defined, and operations tend to be
streamlined. Financial institutions, health insurance organizations, and oil and gas
companies all have a hierarchy culture. This type of culture enables them to manage risk
better, be stable and be operationally efficient. However, it may hinder them from being
innovative, agile, and responsive to sudden changes in their markets and industries. They
might lack the flexibility needed in today’s and future markets. As a part of Egypt’s HR
reform in the public sector, Egypt’s ICT is tending to stud the culture with market culture by
encouraging results-oriented direction with a strong external focus to ensure customers are
satisfied, the public administrations, citizens and businesses alike.
28
All implementation, control and regulation are affiliated to the same entity.
III.IV. Organizational functions:
III.IV.I. Finance
ICT industry is known to be the fastest growing sector in Egypt with a growth of 16%
creating 280K jobs (30%+ women participation). This has been fueled by the increased
number of MNCs setting up in Egypt and the exponential growth of ICT exports reaching
$4.5B in 2021. Capitalizing on the pivotal location, abundant talent pool (low attrition rates
10-15%), cost-competitiveness and government support, high growth companies are
directing their attention to the rising ICT powerhouse in the region. (itida.gov.eg)
Egypt is home to 500 Fortune companies with the likes of Amazon, Microsoft, IBM, Uber as
well as tech-powered startups like Instabug, Vezeeta and Swvl. The country is leading the
innovation scene in the region. It is attracting business moguls on the hunt for innovations
and tech-powered solutions to today’s global challenges. Today, Egypt has established
150+ export delivery centers serving 100+ countries across North America, Europe, Middle
East, Africa and Asia catering for ITS, BPS, KS and ER&D global demand.
29
III.IV.II. MIS:
Early 2000s, Oracle Corporation, the world’s largest enterprise software company, provides
Government organizations special pricing terms and technical consulting services for E-
Government projects. Oracle products such as Oracle Database, Application Server,
Development Tools, Collaboration Suite classified under Information Infrastructure or
Oracle ERP, SCM or CRM that is classified under the Ready Made applications are used
by Government entities.
In 2021, signing of an agreement of cooperation between AOI and Iken Technology, in
digital transformation projects. Iken Technology has expertise in digital transformation,
Artificial Intelligence (AI), Internet of Things (IoT), integrated systems solutions and data
center security, which can be utilized through combining them with AOI manufacturing and
operational expertise and capabilities to create added value using the Fourth Industrial
Revolution technologies.
Egypt’s Ministry of Finance, with channel partner IBM, and E-Tax, a company affiliated with
the Ministry, to fully automate its core taxation system with SAP solutions. The Ministry
aims to streamline tax management, improve tax administration performance, transform the
Egyptian Tax Authority into the digital arena, and foster Egypt’s economic growth.
(Minafn.com, 2022)
III.IV.III. Marketing:
30
Digital transformation services extend across every area of e-governance: G2C, G2B, G2G,
and G2E. Governmental ICT sector is positioned as the one and only service provider for all
these sectors, yet public sector needs to shift its image from authority to service offering to
both businesses and citizens. Lacking an effective promotion, advertising, and publicity
strategy resulted in Poor offered services branding and usability.
Growing omni-channel service centers offering digital services to citizens.
III.IV.IV. Human resources:

HRM in the Public Sector used to be hierarchical, unified, and non-meritocratic structures,
in ICT sector it’s taking a huge leap toward meritocratic structure.
People eager to learn IT skills.
Lack of enough HR specialized in ICT.
III.V. Resource-based view (RBV):
Tangible resources and capabilities

High implemented and secured investment
Financial
Booming growth rate
Ability to raise external fund
Up to 30% of the global population’s internet connectivity transits through
Physical
Egypt
Omni-channel and widely distributed service centers offering digital services
to citizens
The Egyptian Govt. spent around EGP 6B to develop the technological
infrastructure to establish a new network of fiber optic cables to connect
around 32,000 Govt. buildings over Egypt, for providing a more resilience
service, the average of the internet speed is 40 Mbps in 2021 and in the
new smart cities the internet speed ranges from 100 Mbps to 200Mbps, and
launched the Egyptian satellite “TIBA-1” for the broadband high-speed
internet and telecommunications to improve the E-services in Sinai, New
Valley and south Egypt, and to be backup and alternative network.
Good planning, command and control system in digital transformation
Organizational
process
Integrated MIS
Intangible resources and capabilities
Highly talented and experienced managers and leads
Human
Digital Egypt Builders Initiative, a capacity-building program that will
annually train 1,000 engineering and computer science graduates in the
fields of data science, AI, cybersecurity, robotics and automation, and
digital arts.
31
Egypt Future Work is Digital (FWD), to train and connect 100,000 graduates
with digital technologies, local market opportunities and remote working
skills.
Good perception about reliability of services offered to citizens.
Reputational
Figure : Countries connected by cables to Egypt

Source: ITIDA.gov.eg
III.V. Internal Factor Evaluation (IFE) Matrix:
32
Weight Rating Weighted Score
Strengths
High implemented and secured investment for

S1 0.08 4 0.32
transformation into digital economy
ICT industry is known to be the fastest growing

S2 sector in Egypt with a growth of 16% creating 280K 0.07 4 0.28
jobs
S3 Ability to raise external fund 0.06 3 0.18
Omni-channel and widely distributed service

S4 0.06 4 0.24
centers offering digital services to citizens
Good planning, command and control system in

S5 0.08 4 0.32
digital transformation process
S6 Integrated MIS 0.07 3 0.21
Highly talented and experienced managers and

S7 0.06 3 0.18
leads
Learning and development initiatives for both

S8 0.05 3 0.15
engineers and free lancers
Good perception about reliability of services offered

S9 0.04 3 0.12
to citizens.
Transformation of Egyptian Tax Authority into the

S10 0.07 4 0.28
digital arena
ICT sector it’s taking a huge leap toward

S11 0.05 3 0.15
meritocratic structure
Egypt is home to 500 Fortune companies as well as

S12 0.04 3 0.12
tech-powered startups
Weight Rating Weighted Score
Weaknesses
33
All implementation, control and regulation are

W1 0.07 1 0.07
affiliated to the same entity
Lacking an effective promotion, advertising, and

W2 publicity strategy resulted in Poor offered services 0.06 2 0.12
branding and usability
Public sector needs to shift its image from authority

W3 0.06 1 0.06
to service offering to both businesses and citizens
W4 Lack of enough HR specialized in ICT 0.03 1 0.03
W5 Illegalization of cryptocurrency 0.05 2 0.1
Total weighted score 2.93
Egypt’s Digital transformation process executed by ICT sector is now in a good

internal position putting Egypt’s economy on track.
IV. SWOT MATRIX
Strengths Opportunities
High implemented and secured investment for Egypt's leading regional role and balanced
transformation into digital economy foreign relations
sector in Egypt with a growth of 16% creating High political stability
280K jobs
Improved governance rate and steps to
Ability to raise external fund
prevent corruption and abuse of power
Omni-channel and widely distributed service Increasing level of separation of powers and
centers offering digital services to citizens checks and balances
Good planning, command and control system in Macroeconomic reforms that stabilized the
digital transformation process economy in recent years
Significant progress in fiscal and debt
Integrated MIS
reporting and declined debt-to-GDP ratio
Highly talented and experienced managers and S&P's credit rating for Egypt stands at B with
leads stable outlook
Learning and development initiatives for both Well-established economic relations with
engineers and free lancers neighboring regions
Good perception about reliability of services
Increased literacy rate
offered to citizens.
34
Transformation of Egyptian Tax Authority into the

Enormous youth population
digital arena
Unemployment declined
Egypt is home to 500 Fortune companies as well
change public sector system into merit system
as tech-powered startups
75.66 million internet users in Egypt
New civil service law
Weaknesses Threats
Government’s decisions on countermeasures
were largely taken without the participation of
interest groups
Lacking an effective promotion, advertising, and
publicity strategy resulted in Poor offered services Egypt's diverse media
branding and usability
Public sector needs to shift its image from
authority to service offering to both businesses and
communication between different
citizens
departments of the state administration
Lack of enough HR specialized in ICT
economy
The impact of outbreak of COVID-19
Illegalization of cryptocurrency
pandemic on Egypt’s economy
The informal sector generates between 40%
and 50% of GDP
High cost of wages for civil servants
Only 43 % of the population is urban
Decreased women labor force participation
rate after COVID-19 outbreak
Tiny proportion of the population over 15
years old has a credit card
Low spending on R&D
35
V. IE MATRIX
VI. SPACE MATRIX
Despite lacking of accurate position and the need to experts to fill SPACE
questionnaire, I tried to apply SPACE matrix to just to show how to use that tool
36
VI.I. Internal strategic dimensions:
VI.I.I. Financial strength (Average score) = + 4.5

VI.I.II. Competitive advantage (Average score) = - 1.5
VI.II. External strategic dimensions:
VI.II.I. Environmental stability (Average score) = - 1

VI.II.II. Industry strength (Average score) = + 5
37
X-Axis dimension = CA + IS = (-1.5) + (+5) = 3.5

Y-Axis dimension = FS + ES = (+4.5) + (-1) = 3.5
Egypt’s digital transformation has a strong competitive position it the market with
rapid growth. It needs to use its internal strengths to develop a market penetration
and market development strategy. This can include product development, integration
with other companies, and so on.
VI. TOWS MATCHING MATRIX
Strengths Weaknesses
- High implemented and secured - All implementation, control and
investment for transformation into regulation are affiliated to the same
digital economy entity
- ICT industry is known to be the - Lacking an effective promotion,
fastest growing sector in Egypt with a advertising, and publicity strategy
growth of 16% creating 280K jobs resulted in Poor offered services
- Omni-channel and widely distributed branding and usability
service centers offering digital services - Public sector needs to shift its
to citizens image from authority to service
- Good planning, command and control offering to both businesses and
system in digital transformation citizens
process - Lack of enough HR specialized in
38
- Transformation of Egyptian Tax ICT

Authority into the digital arena Illegalization of cryptocurrency
- Integrated MIS
Opportunities 1. Using budget allocated from 1. Acceleration of G2G services

- High political stability, leading the political leadership in an to decrease corruption
regional role and balanced foreign effectively and efficiently to 2. Rebrand public sector as
relations extend scope of financial customer-centric
- Improved governance rate and inclusion 3. Qualify potential young
steps to prevent corruption and 2. Investment in preparing business professional
abuse of power qualified competent youth to fit specialized in ICT's HR
- Macroeconomic reforms that in DT jobs 4. Develop legal framework to
stabilized the economy in recent 3. Using the good strategic regulate use of cryptocurrency
years
planning to improve public sector
- Significant progress in fiscal and
debt reporting and declined debt-
performance
to-GDP ratio 4. Educate internet users about
- Increased literacy rate all E-government services either
- Enormous youth population businesses or citizens
- Egyptian political leadership is
taking leap to change public sector
system into merit system rather
than spoil system
- 75.66 million internet users in
Egypt
Threats 1. Accelerate financial inclusion 1. Increase transparency and
- Government’s decisions on process and the transformation of involve concerned parties
countermeasures were largely e-finance services to control 2. Better communicating and
taken without the participation of informal, parallel market updated press releases
interest groups 2. Using strategic planning and 3. Hold on public sector hiring
- Egypt's diverse media implementation of digital and train and develop current
- Centralized, hierarchical and transformation to increase public servants to do digitally-
bureaucratic coordination style, decentralization and bureaucracy enabled jobs
inefficient horizontal 3. Offer training and qualifying
communication between different
economic class C citizens
departments of the state
administration
4. Use easy and simple tone of
- The impact of Russia-Ukraine voice to engage illiterate citizens
war on Egypt’s economy 5. Continue offers digital services
- The impact of outbreak of through widely distributed Post
COVID-19 pandemic on Egypt’s offices
economy 6. Increase allocated budget to
- The informal sector generates R&D and improve its efficient
between 40% and 50% of GDP usage
- High proportion of population 7. Train and develop public
lived below the national poverty sector servant to easily and
line
efficiently use of cross-functional
- High cost of wages for civil
servants
IS
- Only 43 % of the population is 8. Use online competitive
urban advantage in banking sector
- Small proportion of internet users services and e-payment
use mobile banking or financial
39
services apps
- Low spending on R&D
VII. QUANTITATIVE STRATEGIC

PLANNING MATRIX (QSPM)
Market Product
penetration development
Strengths Weight AS TAS AS TAS
High implemented and secured investment for
0.08 4 0.32 4 0.32
transformation into digital economy
sector in Egypt with a growth of 16% creating 0.07 4 0.28 4 0.28
280K jobs
Ability to raise external fund 0.06 3 0.18 3 0.18
Omni-channel and widely distributed service
0.06 3 0.18 4 0.24
centers offering digital services to citizens
Good planning, command and control system
0.08 2 0.16 4 0.32
in digital transformation process
Integrated MIS 0.07 2 0.14 2 0.14
Highly talented and experienced managers and
0.06 3 0.18 3 0.18
leads
Learning and development initiatives for both
0.05 3 0.15 3 0.15
engineers and free lancers
Good perception about reliability of services
0.04 4 0.16 4 0.16
offered to citizens.
Transformation of Egyptian Tax Authority into
0.07 4 0.28 4 0.28
the digital arena
0.05 2 0.1 3 0.15
Egypt is home to 500 Fortune companies as
0.04 3 0.12 4 0.16
well as tech-powered startups
Weaknesses Weight
0.07 2 0.14 1 0.07
Lacking an effective promotion, advertising,
and publicity strategy resulted in Poor offered 0.06 1 0.06 1 0.06
services branding and usability
40
Public sector needs to shift its image from

authority to service offering to both businesses 0.06 2 0.12 1 0.06
and citizens
Lack of enough HR specialized in ICT 0.03 3 0.09 2 0.06
Illegalization of cryptocurrency 0.05 4 0.2 4 0.2
Opportunities Weight
Egypt's leading regional role and balanced
0.03 3 0.09 3 0.09
foreign relations
High political stability 0.04 3 0.12 4 0.16
Improved governance rate and steps to prevent
0.04 3 0.12 3 0.12
corruption and abuse of power
Increasing level of separation of powers and
0.02 1 0.02 1 0.02
checks and balances
Macroeconomic reforms that stabilized the
0.04 3 0.12 4 0.16
economy in recent years
Significant progress in fiscal and debt reporting
0.05 2 0.1 3 0.15
and declined debt-to-GDP ratio
S&P's credit rating for Egypt stands at B with
0.04 2 0.08 3 0.12
stable outlook
Well-established economic relations with
0.025 2 0.05 3 0.075
neighboring regions
Increased literacy rate 0.055 4 0.22 4 0.22
Enormous youth population 0.05 2 0.1 2 0.1
Unemployment declined 0.025 2 0.05 2 0.05
change public sector system into merit system 0.05 3 0.15 3 0.15
75.66 million internet users in Egypt 0.05 4 0.2 4 0.2
New civil service law 0.03 1 0.03 2 0.06
Threats Weight
Government’s decisions on countermeasures
were largely taken without the participation of 0.03 2 0.06 2 0.06
interest groups
Egypt's diverse media 0.025 1 0.025 1 0.025
0.04 2 0.08 2 0.08
communication between different departments
of the state administration
0.03 4 0.12 4 0.12
economy
41
The impact of outbreak of COVID-19

0.02 2 0.04 2 0.04
pandemic on Egypt’s economy
The informal sector generates between 40%
0.035 3 0.105 3 0.105
and 50% of GDP
0.045 1 0.045 1 0.045
High cost of wages for civil servants 0.035 2 0.07 2 0.07
Only 43 % of the population is urban 0.04 2 0.08 1 0.04
Decreased women labor force participation rate
0.02 3 0.06 3 0.06
after COVID-19 outbreak
0.05 2 0.1 2 0.1
Tiny proportion of the population over 15 years
0.03 3 0.09 3 0.09
old has a credit card
Low spending on R&D 0.055 2 0.11 1 0.055
5.295 5.575
VIII. DIGITAL ECONOMY’S QUALITATIVE

STRATEGIC GOALS TILL 2030
Individualized goals shall be set for each digital economy context
G1: Development and continuous improvement of connectivity in internet ecosystem and

infrastructure for digital economy
G2: Enhancing public institutions, private sector and citizens’ readiness for digital
transformation
G3: Assuring cybersecurity and trust of digital economy
G4: Securing the availability and diversity of local and external funds
G5: Creating an effective legal environment to enhance certainty for citizens, entrepreneurs
and both local and international investments.
42
IX. STRATEGY SELECTION DESICION
IX.I. Organizational level strategies:
Both market penetration and product development strategies are relatively close with
slight advantage for product development strategy. Both can be used at certain services
to maximize the value offer to all business sectors, G2G, G2B and G2C.
IX.I.I. Foundation pillars:
IX.I.I.I. Digital infrastructure

By increasing efficiency, reliability and accessibility of all MIS components, hardware,
software, networks, databases and public sector’s knowledge-based capital.
IX.I.I.II. Policies and Regulations

A must-developed pillar to define framework promoting growth, development and innovation
and regulating transactions between service providers and businesses and consumers and
protecting their rights.
IX.I.I.III. Digital skills

A wide spectrum of skills is required either technical or interpersonal skills.
IX.I.I.IV. Financing and capital

Government shall allocate an appropriate budget for applying digital technologies and
determine the proper timeframe to receive its benefits in a result-based budgeting.
IX.I.I.V. Governance
Both formal and informal institutions to oversee the process of digital transformation.
IX.I.II. Technologies and Digital Concepts as catalysts of digital economy
43
The digital economy is based on a set of emerging technologies that disrupt the traditional
business model and introduce new innovative alternatives. Below is a description of eight
examples of these emerging innovations such as:
Blockchain
Big data analytics
Internet of things
Cloud computing
Artificial intelligence
Biometric technologies
Augmented/virtual reality
Open application programming interface (APIs)
X. STRATEGY IMPLEMENTATION
X.I. Short-term objectives
Goal 2023 objectives

100 % of homes to have electricity
75% of homes to get a broad-band
100 % mobile data (3G, 4G) users
Connectivity and infrastructure 50 % Expansion of high-speed internet
70 % internet access at schools
30 % English literacy
40 % digital literacy
Readiness for digital 5,000 post offices offering digital services to
transformation citizens
Cybersecurity Achieving cyber-security index 0.3
Increase allocated portion of public budget for
Securing local and external DT to 4 %
funds Fund 100 Startups Tech-related
X.II. Internal policies considerations
X.II.I. Connectivity and infrastructure
44
Continue to invest in power infrastructure

Improve operations of government’s integrated telecommunication service provider, TE,
and engage private sector investment in telecommunications infrastructure
Establish a national-level internet exchange points
Intensive development of local data, cloud computing centers
X.II.II. Readiness for digital transformation
Establish initiatives to enhance English and digital literacy

Benefit from digitally-trained citizens to share their knowledge with digitally-illiterate rural
areas
Portrait public heroes of digital entrepreneurship from marginalized groups (women, youth,
disabled, etc.)
X.II.III. Cybersecurity
Develop firm cybersecurity utilization and data protection framework

Support legal recognition of digital signatures
Invest and support innovative and next-generation secured systems
Ensure coordination between cybersecurity and privacy policies
X.II.IV. Securing local and external funds
Direct development finance to investments in the digital economy

Support digital economy innovation through direct funding, subsidy and tax breaks
Attract foreign entrepreneurial investments
Allocate special funding for tech SMEs and startups
Support digital economy enterprises through incentives
Expand investment in incubators supporting digital entrepreneurship
X.II.V. Effective legal environment

Update competition laws and regulation
45
Update legalization regulating digital platforms

Update labor law considering emerging digital-based jobs
Update taxation laws considering emerging private sector’s digital-based service providers
Support legal recognition of digital signatures
XI. STRATEGY EVALUATION
XI.I. KPIs:
Goal 2023 objectives KPIs

100 % of homes to have % of households with
electricity electricity
75% of homes to get a % of households with
broad-band internet
100 % mobile data (3G, Number of mobile data
Connectivity 4G) users users
and 50 % Expansion of high- % high-speed-internet user
infrastructure speed internet boosted by TIBA-1
% of schools with stable
internet access
% of English-literate
citizens
% of digital- literate
70 % internet access at citizens
schools Number of post offices
30 % English literacy offering digital services to
Readiness for 40 % digital literacy citizens
digital 5,000 post offices offering Egypt's E-participation
transformation digital services to citizens index
Achieving cyber-security Egypt's score on Global
Cybersecurity index 0.3 cybersecurity index
46
Increase allocated portion

of public budget for DT to
Securing local 4% % of public budget
and external Fund 100 Startups Tech- Number of startups related
funds related to tech industry
XI.I. Balanced scorecard:
47
EGYPT’S TRANSFORMATION INTO A

DIGITAL ECONOMY BUSINESS PLAN
1. DIGITAL EGYPT OVERVIEW
The Govt.. is transforming to Digitalization and to the Digital Economy, the Egyptian Govt..
investments USD 1.9B , to develop informational digital infrastructure, create technological
innovation pools in the Govt..ernorates, and established Hi Tech industries in the economic
zone of the Suez Canal, where most of the submarine cables that carry communications
and internet between Asia and Europe pass through the Suez Canal.
Digital Egypt is an all-encompassing vision and plan, laying the foundations for the
transformation of Egypt into a digital society. To usher this transition to a digital society and
build a strong digital economy, "Digital Egypt" is built on three main planks:
The vision of the Egyptian Digital Transformation strategy
A digital Govt. connected, participatory and sustainable, centered on serving the citizen and
increasing competitiveness through building an integrated secured digital society, and the
message is empowering the Govt., citizens, and industry transact in a sustainable manner,
through Strategic goals and initiatives. (Ghoneim, A., 2021)
Egypt’s Digital Economy vision (Proposed):
For Egypt to have a globally-active, regionally-leading, digitally-enabled, knowledge-based

economy, opening outlooks for innovation and sustainable growth.
The mission of the Digital Egypt:
48
Aspiring to create a digital society, in which everything runs on digital technology,

the Ministry of Communications and Information Technology (MCIT) has embarked on
building Digital Egypt.
To realize its potential, digitalization needs to be complemented with stronger
digital infrastructure across the country that would ensure business continuity and
uninterrupted availability of essential digital government services. Universal access to
high quality Internet, promotion of digital literacy and skills, and ensuring an overall
legal and regulatory framework are all crucial foundations for building Digital Egypt,
allowing for the large-scale adoption of the digital services offered by the government.
To this end, MCIT endeavors to continuously develop the ICT infrastructure, improve
public service delivery, and provide a legislative and regulatory framework. Enhancing
human capacity building; fostering digital inclusion; promoting innovation and
entrepreneurship, and developing the ICT industry are Digital Egypt core pillars. MCIT
also seeks to promote ICT-related agendas through fostering regional and international
cooperation, to help achieve Egypt’s vision 2030.
Egypt’s Digital Economy mission (Proposed):
Paving the way for continuous increase the efficiency and attractiveness of economic
environment dependent on innovation and knowledge and based on justice, social integrity
and participation via using latest technology to modify, enhance and automate financial
services for both businesses and consumers with balanced and diversified ecological
collaboration system, investing the ingenuity of place and humans to continue improving the
quality of life of Egyptian citizens.
Egypt’s Digital Economy history
Stemming from Egypt Vision: 2030 in line with Egypt’s commitment towards Sustainable
Development Goals (SDGs), the Government of Egypt (GoE) has formulated a
comprehensive vision that includes the fundamentals related to transforming Egypt into a
digital society where all technologies in almost all fields of life can be integrated.
Within context, the Government has worked on promoting and developing the infrastructure
of communications and information technology. It has also covered improving digital
services at all ministries and government agencies and raising the efficiency of
governmental services by providing a better work environment and necessary support to
government agencies.
H.E. President Abdel Fattah El-Sisi launched the digital transformation initiative for the
Egyptian GOVT.. in 2018.
49
It is to reengineer the processes, move GOVT.. institutions to new business models, so that
the citizen receives the E-services through Omni channels including mobile Apps, Govt.. E-
Portals, digital Egypt E-platform, post offices, service centers and kiosks, the citizen can
access these platforms through the citizen’s Digital Identity and can pay the expenses of
the E-services through E-Payments Gateways, credit cards and POS, within 2 years will
reach 550 E-services to all ministers and localities in a smart, efficient and effective digital
way, as the citizen is the core business of the comprehensive sustainable development,
implement Governance, elimination of corruption, increase citizen satisfaction and saves
time and money.
Digital Economy market
Operational structure
As the public sector is widely adapting hierarchy culture that is defined by structure,
established procedures, and levels of authority. Employees in this culture know precisely
where they fit in the chain of command – who’s accountable to them, who they report to,
and what the rules are. Duties are clearly defined, and operations tend to be
streamlined. Financial institutions, health insurance organizations, and oil and gas
companies all have a hierarchy culture.
50
2. MARKET ANALYSIS
Industry type:
Digital transformation itself is considered a multiplier that pave the way for various
industries to flourish and achieve sustainable competitive advantage.
Market segmentation:
G2G: The development of the ICT infrastructure and improve digital services in government
agencies, to enhance the performance of ministries and other government agencies, and
raise the quality and efficiency of services, by improving the work environment, providing
support for the decision-making process and finding solutions to major issues in society.
G2B: Banks, insurance providers and other companies, including non-traditional payment
service providers, increasingly enable customers to manage their finances, conduct
transactions and access new products on line, although they still continue to support branch
networks for operations. Better use of data also allows growth in customer insights and
associated products, such as personalized spending analysis, which can be used to
generate advertising revenue.
G2C: Digitizing governmental services presented to citizens and integrating the largest
number of citizens into the banking system, joining the informal sector into the formal
sector.
Competition:
Egypt’s digital transformation especially G2G and G2B services is monopoly. Competition is
limited regarding part of G2C services like E-payment.
SWOT analysis:
Mentioned above (Section IX)
51
3. OPERATING PLAN
Organizations:
Horizontal and vertical coordination between governmental sector entities such as,
Ministry of finance and its affiliated organization and authorities, Ministry of
education, Ministry of higher education, The ICT industry in Egypt is managed by
MCIT.
It oversees the following organizations:

National Telecom Regulatory Authority – NTRA
IT Industry Development Agency – ITIDA
Egypt Post
Information Technology Institute – ITI
National Telecommunication Institute – NTI
Center for Documentation of Cultural and Natural Heritage – CULTNAT
The Technology Innovation and Entrepreneurship Center – TIEC
Smart Villages
Silicon Waha
Technology Development Fund
Facilities:
Having one of the largest subsea cables operators in the region. TE is building Egypt's
largest international data center facility. Wide spread more than 4,000 post offices providing
services to citizens. Smart village, a mandate to establish and manage a
branded chain of Technology Clusters and Business park.
Payments:
Through eFinance has cemented itself as an integral partner in the Egyptian government’s
push for digitization and has propelled the nationwide strategy forward by developing
integrated platforms that are leading Egypt’s digital revolution.
52
4. MARKETING
Key messages:
Easier life
Targeted segments:
Mentioned above as it includes all business sectors and citizens.
Tactics:
Product
Price
Infrastructure for
digitally enabled Place
Egypt’s public
services
budget to cover
Digital services to Post offices
G2G services
Government, Digital platforms
Skimming pricing to
Business and
business
Citizens
Penetration to
citizens
Promotion: based on targeted segment different communication channels and tone of

voice shall be used.
G2G G2B G2C

Direct mails Media (Newspapers, Media (Newspapers,
magazines, TV, radio) magazines, TV, radio)
Business conferences
Business conferences Social media
Joint advertising with other Sponsoring of local and

governmental entities international sports and
community events
Direct mails
53
5. FINANCIAL PLAN
As per the financial system of Egypt, the fiscal year starts from July 1 st to June 30th.
Out of 2021/2022 Egypt’s public budget, MCIT invested 60 bn on Data center in NAC,
Digital Egypt and 1st and 2nd phases of Knowledge city in NAC.
The application of the Government Financial Information System (GFMIS) to budget entities
and link it to the collection and payment system (CPS) and the Treasury Single Account
(TSA) contributed to closing the final accounts of the budget that ended on the same day as
the end of the fiscal year. The new budget will be effective starting from the first day for the
new fiscal year.
The value of the Egyptian sovereign receipts of taxes and customs amounted to about EGP
1.54trn. The value of receipts through citizens’ payments was EGP 158bn and EGP 67bn
from government electronic collection points. The value of receipts through the
government’s electronic payment portal was estimated to be EGP 5bn, and the value of
electronic payment services such as payments for salaries, suppliers, and others is about
EGP 3trn.
54
REFERENCES:
https://www.statista.com/statistics/1230371/total-population-of-egypt-by-age-group/
2021. Egypt economic Monitor. 2021 International Bank for Reconstruction and Development / The
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Comprehensive Case - Group A - 19222254

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DIGITAL EGYPT:

Figure 1: The Sustainable Development Goals (SDGs)

governmental services by providing a better work environment and necessary support to

Figure 2: THE SUSTAINABLE DEVELOPMENT STRATEGY (SDS): EGYPT VISION 2030

smart, efficient and effective digital way,

informational digital infrastructure, create technological innovation pools in the

Egypt vision 2030

Figure 3: 2015 values of different vision’s indicators

I.I.II. The vision of the Egyptian Digital Transformation strategy

I.I.III. Egypt ICT strategy for 2014-2020

I.I.IV. First pillar’s vision: Economic development

By 2030, the Egyptian economy is a balanced, knowledge-based, competitive, diversified,

I.I.V. Egypt’s Digital Economy vision (Proposed):

For Egypt to have a globally-active, regionally-leading, digitally-enabled, knowledge-based

I.II.I. The mission of the Egyptian Digital Transformation:

I.II.II. The mission of the Digital Egypt:

Aspiring to create a digital society, in which everything runs on digital technology,

I.II.III. Egypt’s Digital Economy mission (Proposed):

I.III. CORE VALUES

II. EXTERNAL ENVIRONMENT

II.I.I. Political factors

II.I.II. Economic factors

Figure 4: Price of Wheat per ton in EUR

Figure 5: Egypt GDP Growth Rate

Figure 6: Egypt Growth Decomposition, Demand Side

Figure 7: Public and Private Investments

Figure 8: Contribution to GDP Growth, by Sector

Figure 11: Egypt Government Debt to GDP

Table1: Drivers of Egypt’s Government Debt Accumulation (On-Budget vs. Extra-Budget)

Table 2: Egypt Credit rate

Figure 13: Egypt Inflation rate

Figure 14: Global Energy Prices Energy Prices in Egypt

II.I.III. Social factors

Figure 17: Total population of Egypt as of 2021, by age group

Source: Wolrdmeters.info 2022

Figure 18: Egypt urban-rural

Figure 19: Egypt’s GDP per capita

Source: Tradingeconomics.com. 2022

Figure 20: Unemployment Rate in Egypt – quarterly

II.I.IV. Technological factors

There were 75.66 million internet users in Egypt in January 2022.

Figure 22: Number of internet users in Egypt in June 2020, by type

II.I.V. Environmental factors

II.I.VI. Legal factors

1. The Data Privacy Protection Law No. 151 of 2020

II.II. Porter’s 5 forces analysis:

II.III. External Factor Evaluation (EFE) Matrix:

O14 New civil service law 0.03 4 0.12

III. INTERNAL ENVIRONMENT

III.I. Managerial capabilities:

Accelerating digital transformation is core to Egypt’s objectives to achieve vibrant economic

III.II. Organizational structure

The ICT industry in Egypt is managed by MCIT.

III.III. Organizational culture:

III.IV.IV. Human resources:

III.V. Resource-based view (RBV):

Tangible resources and capabilities

Figure : Countries connected by cables to Egypt

III.V. Internal Factor Evaluation (IFE) Matrix:

Weight Rating Weighted Score

High implemented and secured investment for

ICT industry is known to be the fastest growing