The Minister of Communications and Information Technology Amr Talaat has delivered a speech during the meeting of the Micro, Small and Medium-sized Enterprises (MSMEs) Committee of the House of Representatives. The Committee is chaired by Representative Mohamed Kamal Marei.
The ICT Minister reviewed the Ministry of Communications and Information Technology (MCIT) plan to support entrepreneurship and MSMEs.
Talaat highlighted MCIT keenness to enhance the participation of MSMEs in Digital Egypt projects. He pointed out that MSMEs are the mainstay of the development of the ICT sector. He commended MSMEs role in providing and exporting innovative technological solutions and providing distinguished and several job opportunities for entrepreneurs and youth.
In his speech, the ICT Minister indicated that MCIT has implemented an ambitious plan to deploy CREATIVA Innovation Hubs in each governorate to create and develop startups’ capabilities. This is in addition to implementing integrated programs to foster digital creativity in all stages, starting from providing specialized training to reaching incubation and networking between entrepreneurs and investors. Furthermore, events are organized inside CREATIVA Innovation Hubs, bringing together entrepreneurs, and innovation and creativity partners from local and international companies, universities and research institutions.
Talaat added that the first phase of the project was implemented in 2020 and 2021 and included the establishment of eight Hubs in Menoufia, Mansoura, Minya, Sohag, Qena, Aswan, Ismailia, and Cairo. Currently, the second phase of the project is being implemented, which includes the establishment of 15 Hubs in different governorates during the next year.
Talaat also explained that cooperation is established with major international companies specialized in technology incubators and business accelerators to manage CREATIVA Innovation Hubs. These companies include Plug and Play Tech Center (Plug and Play) as an operator of CRETIVA Innovation Hub in Sultan Hussein Kamel Palace in Cairo.
The ICT Minister pointed out that Egypt is a regional leader in the entrepreneurship and startups sector, in light of the growth and prosperity that the sector is continuously witnessing. He added that the growth rate in investments in startups reached about 157%, doubling from $190 million with 117 deals in 2020, to $490 million with 147 deals in 2021.
The ICT Minister explained that Egypt ranked second in the Middle East and North Africa (MENA) in terms of the number of investments in startups, according to a MAGNiTT report, and second in terms of the entrepreneurial climate in MENA, according to a Wamda report.
Talaat added that the Knowledge City is being established in the New Administrative Capital as an integrated hub for all pillars of technological capacity building and digital innovation. The City includes Applied Innovation Center (AIC), Egypt University of Informatics (EUI), the Center of Excellence (CoE) for Universal Design and Assistive Technologies (AT), as well as a training facility that includes the Information Technology Institute (ITI) and the National Telecommunication Institute (NTI).
Talaat referred to the directives of the President of the Republic on introducing a set of structural reforms to improve the work environment and investment in startups. These reforms include the establishment of companies through digital notices via a platform created for this purpose. This is within the framework of removing all obstacles facing startups and entrepreneurs, and allowing the opening of virtual companies without being bound by the necessity of having physical premises to save expenses and facilitate procedures for these companies.
Moreover, the requirements of establishing a one-person company and expanding the establishment of free investment technology zones as well as tax exemptions for startups are to be facilitated. Also, a whitelist to import electronic components for specialized companies is to be applied.
