The Information Technology Industry Development Agency (ITIDA) has launched the 13th round of its annual “Export IT” program. The program aims to support Egyptian IT companies in developing their resources, leveraging their competitiveness, and reducing their export-related costs.
Eligible MSMEs receive a direct export incentive on the collected proceeds of their value-added exports. Micro companies are to receive a 35% incentive, small-sized companies are to receive a 15% incentive, while medium-sized companies receive a 10% incentive.
In this edition of the program, ITIDA classifies the companies based on a single criterion which is the total annual revenue with a ceiling value of EGP1 million for micro-companies; a value exceeding EGP 1 million, and a cap of EGP 20 million for small companies; and a value exceeding EGP 20 million and a cap of EGP150 million for medium companies.
Export IT also offers an additional 5% incentive as more support to companies specialized in emerging technologies including IoT & blockchain, cyber security, embedded software, chipset design, Robotics Process Automation (RPA), Data Science, Artificial Intelligence (AI).
An additional 5% incentive is similarly given to companies that have realized growth in their approved value-added exports, and to companies holding CMMI-DEV or CMMI-SVC certificates, level 3. An extra 10% incentive is given to companies with IPR Certificates, and companies operating in tier 2 cities or governorates other than Cairo, Giza, and Alexandria.
Amr Mahfouz, CEO of ITIDA, noted: “ITIDA formed a committee to thoroughly update and develop the program’s terms and conditions to realize its objective, maximize the support presented to Micro and Small companies as well as develop a mechanism to govern the support provided to companies and avoid duplication of support with other programs”.
Mahfouz added that 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 program accepts local ICT companies with more than 50% of Egyptian ownership, have a headquarter in Egypt, and export ICT services& IT-enabled services such as Contact center services, consultation, and training services related to the IT industry. Companies, as per ITIDA’s classification, whose total annual revenue exceeds EGP150 million are not eligible for participation in the program.
In the previous rounds of its Export IT program, ITIDA has disbursed an amount of EGP550 million, to 250 local Egyptian companies. The program supports ICT exports, channels exporters to increase their competitiveness, and helps reduce export-related costs.
Discussion about this post