2013-10-17 16:19:13 - New Consumer Goods market report from Business Monitor International: "Egypt Tourism Report Q4 2013"
Egypt's IT market has a bright medium-term outlook, but is facing constraints in 2013 as fiscal consolidation, currency depreciation and credit shortages limit spending. However, even in this difficult climate, we expect overall spending increase as a share of GDP. Market fundamentals support growth momentum, with low penetration of products and services in the retail and enterprise market meaning there is significant potential. Further, the government's ICT strategy supports the market and initiatives such as tablets for education and promotion of Egypt as an outsourcing destination, boosting development. We forecast IT market value will increase to EGP11.303bn in 2013, and growth will then move to a higher trajectory once economic conditions ease from 2014 onwards.
Headline Expenditure Projections
* Computer Hardware
Sales: EGP6.175bn in 2012 to EGP6.737bn in 2013, +9.12% in local currency terms. Retail sales have been negatively impacted by currency depreciation and credit shortages, but we expect growth for the market in local currency terms due to positive trends such as government procurement initiatives and widening availability of low-cost tablets.
* Software Sales: EGP1.408bn in 2012 to EGP1.673bn in 2013, +18.8% in local currency terms. Enterprise software demand is strong, while sales of Windows 8 and the medium-term potential of small and medium-sized enterprise investments are pushing up the growth rate.
* IT Services Sales: EGP2.474bn in 2012 to EGP2.894bn in 2013, +16.9% in local currency terms. The growth of the local outsourcing industry is key to IT services growth, while demand from government, finance and telecoms sectors domestically also important growth drivers.
Full Report Details at
Egypt's score is 45.6 out of 100.0, as it dropped one position to 12th in our latest Middle East and Africa Risk/Reward Ratings table, below Ghana, but ahead of Kenya.
Key Trends And Developments
The MCIT announced the launch of Egypt's national ICT strategy for 2013-2017 in April 2013. The strategy aims to attract foreign investment, create jobs and establish Egypt as an ICT hub in North Africa through the development of technology infrastructure, updating of legislation and promotion of Egyptian companies. Key initiatives under the plan include the development of the outsourcing industry to extend its run of high growth in recent years as well as the attraction of FDI into key areas such as cloud computing and mobile application development. Further, between 2013 and 2017, the MTIC plans to invest EGP450mn (US$64mn) in Egyptian ICT companies and EGP20mn (US$2.8mn) in small and medium-sized enterprises (SMEs) in the mobile and open source applications fields. By 2018 the MTIC expects to have doubled the ICT sector's 2014 output to EGP120bn (US$17bn) and to have created more than 100,000 direct jobs.
The government is also moving to procure tablets for education, and in the process provide a boost to domestic manufacturing. The MCIT plans to invest up to EGP300mn (US$42.7mn) in manufacturing tablets and hopes to roll-out nationwide tablets in education programmes in 2014. On June 4 2013, the Minister of Communications and Information Technology, Atef Helmy, and the Minister of Military Production visited a Bahna Electronics plant, home of the first fully Egyptian manufactured tablet. A preliminary production of 10,000 tablets was set to be distributed exclusive to Egyptian university students starting June 25 2013. The exact pricing or government subsidy was not confirmed, although Helmy said they would be affordably priced.
Report Table of Contents:
BMI Industry View
- BMI Industry View
- Wireline SWOT
- Business Environment
- Industry Forecast
- Table: Egypt IT Industry - Historical Data And Forecasts (EGPmn)
- Table: Telecoms Sector - Internet - Historical Data & Forecast
- Economic Analysis
- Household Consumption
- Government Consumption
- Gross Fixed Capital Formation
- Net Exports
- Positive Long-Term Outlook
- Table: Egypt - Gdp By Expenditure, Us$ Terms Breakdown
Industry Risk Reward Ratings
- Industry Risk Reward Ratings
- Table: Middle East And Africa Risk/Reward Ratings Q413
- Market Overview
Industry Trends And Developments
- Industry Trends And Developments
- Regulatory Development
- Table: Government Authorities
- Raya Holding
- Table: IBM Acquisitions, 2012 (Total Value, US$3.964bn)
- Oracle Corp
- Table: Oracle: Selected Acquisitions
- Regional Overview
- PC Market Feels The Squeeze
- Table: Egypt's Population By Age Group, 1990-2020 ('000)
- Table: Egypt's Population By Age Group, 1990-2020 (% of total)
- Table: Egypt's Key Population Ratios, 1990-2020
- Table: Egypt's Rural And Urban Population, 1990-2020
- IT Industry Forecasts
- IT Risk/Reward Ratings - Methodology
- Table: IT Business Environment Indicators
- Table: Weighting Of Components
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