Chinese firms boost Egypt’s tech, outsourcing sectors
CAIRO, EGYPT — In a landmark development to enhance Egypt’s digital infrastructure, Egypt’s Minister of Communications and Information Technology Amr Talaat, announced the signing of five strategic agreements with leading Chinese companies.
These collaborations are set to initiate major projects aimed at transforming the country’s technological landscape.
Fiber optic production expansion
A key component of these agreements is the establishment of two cutting-edge factories dedicated to producing fiber optic cables. Each facility will have a production capacity of 3 million core kilometers annually.
The output will be strategically split to meet both domestic needs and export demands in neighboring regions.
This initiative aligns with Egypt’s broader strategy to replace outdated copper cables, thereby improving service quality and advancing the nation’s digital transformation efforts.
Growth in outsourcing centers
In addition to manufacturing projects, three crucial agreements focus on establishing and expanding outsourcing centers across Egypt. These centers are expected to significantly support Egypt’s burgeoning IT sector and create numerous job opportunities for skilled professionals.
One notable agreement involves Huawei, which plans to expand its existing outsourcing center in Egypt. Currently employing 800 specialists, the center aims to double its workforce over the next two years. This expansion underscores Huawei’s commitment to strengthening its presence in Egypt and contributing to the local economy.
This initiative aligns with the remarkable growth seen in Egypt’s outsourcing sector. During the fiscal year 2022-2023, the sector experienced a substantial boom, achieving a 54.2% growth rate. According to a report by the Information and Decision Support Center (IDSC) reviewed by Prime Minister Mostafa Madbouly, the sector’s added value increased to approximately $3.7 billion, up from $2.4 billion in the previous fiscal year.
Tsinghua Unigroup’s major investments
Another key player, Tsinghua Unigroup, entered into two significant agreements. The first involves setting up a new outsourcing center focused on designing electrical circuits and semiconductors—fields recognized for their high-value specializations. This center is expected to attract top talent and position Egypt as a hub for advanced technological development.
Furthermore, Tsinghua Unigroup is spearheading the creation of an investment fund with an initial capital of $300 million. The fund will be predominantly financed by the Chinese company, with over 80% of the investment coming from Tsinghua Unigroup itself, in collaboration with Egyptian investors. This financial commitment highlights the confidence Chinese companies have in Egypt’s potential as a burgeoning tech hub.
A promising future for China-Egypt relations
During a press conference at the Global Digital Public Infrastructure (DPI) Summit, Minister Talaat emphasized the importance of these collaborations in achieving Egypt’s digital transformation goals.
He noted that the goal of fostering a local fiber optic cable industry is to replace copper cables to improve service quality for citizens, highlighting the strategic vision driving these initiatives.
These agreements mark a new chapter in China and Egypt’s relationship, promising technological advancements and economic growth for both nations. The collaboration not only strengthens bilateral ties but also positions Egypt as a pivotal player in the regional tech industry landscape.
