The Information Technology Industry Development Agency (ITIDA) has announced disbursing of its Export-IT program’s 2019 cash rebate on ICT exports of local ICT companies.
The total amount of export rebate for the 11th round of the program reached EGP 70 million, and have been paid for a total number of 131 companies out of 137 companies that applied for the program this year. The rebate was disbursed in full to small- and micro-sized companies, while large- and medium-sized companies received different amounts, based on the available budget of the program.
Export-IT is part and parcel of ITIDA strategy that primarily aims at boosting Egyptian IT exports, increasing competitiveness, and enabling local companies to expand and access global markets. ITIDA also attaches great importance to the program, in light of the challenges imposed by the pandemic and the unprecedented government support and commitment to boost exports as one of the main sources of foreign currency for the Egyptian economy.
According to ITIDA, 33 companies applied for the program for the first time, while 22 startups from governorates such as Alexandria, Dakahlia and Ismailia, joined the program this year. All export transactions and supporting documents were audited, reviewed, and cross-validated by ITIDA and an external auditor.
Earlier this year, ITIDA launched an exceptional round of Export-IT program to help cope with the challenges imposed by the pandemic through granting local IT companies cash incentives on proceeds of value-added exports for two consecutive years, 2019 and 2020. The 2020 cash rebate is expected to be disbursed before the end of this year.
Furthermore, in response to the companies’ request, ITIDA has reopened the submission of documents for Export-IT 2020 rebate disbursement for a period of two weeks, until the end of July, aiming to expand the base of beneficiary exporting companies.
According to the terms and conditions of the program, accepted companies receive direct cash incentives up to 10%, and with a maximum limit of 20% of value-added exports, based on the company size (micro, small, medium or large), with a maximum amount of EGP two and half million for each company or EGP three million for companies operating in or having branches in one of the technology parks.
Moreover, in line with ITIDA new strategy to promote and encourage exports of disruptive and emerging technologies, such as Artificial Intelligence (AI), data science, and Robotic Process Automation (RPA), ITIDA has exceptionally accepted medium-sized companies with annual revenues exceeding EGP 50 million, exporting emerging technologies services, or those who have succeeded in penetrating new markets.
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, the new entrants to the program, and the companies operating in governorates other than Cairo, Giza, and Alexandria.
Export-IT accepts local ICT companies with more than 50% of Egyptian ownership, headquartered in Egypt, and exporting ICT services, IT-enabled services, such as call center services, consultation, and training services related to the IT industry. ITIDA has excluded the Egyptian IT startup companies that were founded in 2016 or later from the “headquarter in Egypt” condition.
It is worth mentioning that throughout the eleven previous rounds of Export-IT, ITIDA provided support to more than 230 Egyptian companies, with a total value amounting to EGP 480 million.
