The Information Technology Industry Development Agency (ITIDA) launched the 13th round of its annual ‘Export IT Programme’ on Tuesday.
The programme aims to support Egyptian IT companies in developing their resources, leveraging their competitiveness, and reducing their export-related costs.
Eligible micro-, small-, and medium-sized enterprises (MSMEs) receive a direct export incentive on the collected proceeds of their value-added exports. Micro companies will receive a 35% incentive, small-sized companies a 15% incentive, and medium-sized companies a 10% incentive.
In this edition of the programme, the ITIDA classifies the companies based on a single criterion, which is the total annual revenue, with a ceiling value of EGP 1m for micro companies; a value exceeding EGP 1m and a cap of EGP 20m for small companies; and a value exceeding EGP 20m and a cap of EGP 150m for medium companies.
Export IT also offers an additional 5% incentive as more support to companies specialised in emerging technologies, including IoT and blockchain, cyber security, embedded software, chipset design, robotics process automation, data science, and artificial intelligence (AI).
An additional 5% incentive is similarly given to companies that have realised growth in their approved value-added exports and to companies holding level three CMMI-DEV or CMMI-SVC certificates.
An extra 10% incentive is given to companies with IPR certificates and companies operating in tier tow cities or governorates other than Cairo, Giza, and Alexandria.
CEO of ITIDA Amr Mahfouz noted that “the ITIDA formed a committee to thoroughly update and develop the programme’s terms and conditions to realise its objective, maximise the support presented to MSMEs, as well as develop a mechanism to govern the support provided to companies and avoid duplication of support with other programmes.”
Mahfouz added that the ITIDA is keen to boost the growth of the IT market in Egypt and help local MSMEs operating in this field to develop their resources, enhance their competitiveness, and help them reduce their export-related costs.
The programme accepts local ICT companies which are more than 50% owned by Egyptians, have a headquarter in Egypt, and export ICT services and IT-enabled services such as contact centre services, consultation, and training services related to the IT industry.
Companies, as per the ITIDA’s classification, whose total annual revenue exceeds EGP 150m are not eligible for participation in the programme.
In the previous rounds of its Export IT Programme, the ITIDA disbursed an amount of EGP 550m to 250 local Egyptian companies.
The programme supports ICT exports, channels exporters to increase their competitiveness, and helps reduce export-related costs.
