The Information Technology Industry Development Agency (ITIDA) has launched a new round of its annual Export IT program, in its keenness to boost the IT industry in Egypt and provide cash fund to small and medium enterprises.
ITIDA took an unprecedented step of granting IT export incentives on proceeds of value-added exports for two consecutive years, 2019 and 2020. This step is considered the first of its kind since the launch of the program with the aim of supporting local IT companies to develop their resources, enhance competitiveness, and reduce export overheads.
The approved stimulus comes as part of ITIDA relief plan to ensures more aid for small businesses and local IT companies, boost exports and mitigate the economic impact of COVID-19.
The new program round will help ITIDA obtain updated indicators and data on Egyptian ICT exports, encouraging local companies to boost exports, secure their position in existing markets, and increase market penetration capabilities.
ITIDA stated that the companies that participated in the program in the previous 10 years must register under the category Export IT 2019 and/or 2020. There is no minimum or maximum for the company's export revenues, size, or number of employees. All eligible companies that meet the program criteria will be able to join the program.
According to the program’s terms and conditions, approved companies receive direct cash incentives up to 10%, and with a maximum limit of 20% of value-added exports based on the company size, with a maximum amount of EGP 2.5 million for each company, or EGP 3 million for companies operating or having a branch in one of the new technology parks.
The program offers additional incentives to companies exporting e-commerce, e-gaming, e-health, or e-design services. Further incentives are also granted to companies operating in new technology parks, new comers of the program, and companies operating in governorates other than Cairo, Giza, and Alexandria.
In another move to encourage exports of emerging technologies, such as Artificial Intelligence (AI), data science, and Robotic Process Automation (RPA), ITIDA announced that it exceptionally accepts medium companies with annual revenues exceeding EGP 50 million and export such services or have succeeded in penetrating new markets. Thus, these companies will get the full export support on the total value added of their exports and not only on the growth of its value-added.
The program accepts local ICT companies with more than 50% of Egyptian ownership, headquartered in Egypt, and are exporting ICT services, IT-enabled services such as call center services, and IT-related consultation and training services.
ITIDA has excluded the Egyptian IT startup companies that were founded in 2016 or later from the “headquartered in Egypt” condition.
In the previous ten rounds of the program, ITIDA granted more than EGP 400 million of export incentives, boosting the growth of more than 200 local IT companies.
