In an unprecedented step, Information Technology Industry Development Agency (ITIDA) cashed the financial aid as one shot for the companies benefiting from Export IT program. Unlike Export IT program first phase where companies used to receive the financial support in the form of three installments, companies of the program’s second phase receive their payments as one shot.
This bid aims to revive the market and provide financial liquidity to help these companies maintain operations and put into force their future plans.
ITIDA’s CEO, Mr. Yasser El-Kady says that the total amount of financial aid reached about 29 million EGP, with an increase of 23% comparing to the program’s first phase budget of 21.5 million EGP.
Mr. Yasser El-Kady adds that 76 companies benefit from the program, with an increase of 33% comparing to the first phase where only 57 companies were able to contribute.
The program enables the Egyptian companies operating in the sector to receive direct support on their exports amounting to a maximum of 10% of the added value linked to the exports.
88 companies wishing to benefit from the program finalized all the required documents. ITDA received all applications. Accredited auditors analyzed the documents before presented to the program’s committee. Then ITIDA collected the approved applications, decided the percentage of support that shall be allocated for each company, and cashed it all at once.
As per the program terms and conditions, the amount of aid is calculated from the export operations for which the companies received their fees throughout the year 2010. The maximum limit for the financial aid dedicated for each company is $500,000 paid in cash.
The products and services provided by the IT companies include software programming, training, application development and consultancy. They also enclose business process outsourcing, international and regional support centers, e-content, Arabization, contact centers and customer support.
Based on the data provided by the companies enrolled in the program, it seems that contact centers are on top of the exported services at a 28.05% rate, offered by three companies out of a total number of 76.
Application development services came in the second place at a 21.47% rate offered by 26 of the program companies. The technical support and consultancy services occupied the third place at an 18.75% rate provided by 34 companies.
Software programming and development came on the fourth place at a 12.5% rate offered by 26 companies. Moreover, information system management and infrastructure came in the fifth place offered by 13 companies.
Arabization services come at the end of the list and are provided by six companies.
The process of corporate data analysis revealed that the revenue of 73 companies’ exports to Asia represented the highest among the 76 companies with a rate of 42.67%.
Exports to Europe came in the second place at a 2524.73% rate through the exports of 44 companies followed by North Africa at a 17.25% rate, through the exports of 25 companies.
North America came in the fourth place at an 11.81% ratre through the exports of 32 companies.
Africa came in the last place at a 1.84% rate through the exports of 15 companies benefiting from direct support.
