File Photo: Information Technology Industry Development Agency headquarter Photo courtesy of ITIDA official Facebook page
Under this programme, the eligible micro, small, and medium-sized enterprises (MSMEs) will receive a direct export incentive on the collected proceeds of their value-added exports, according to the ITIDA.
Accordingly, micro companies are to receive a 35 percent incentive, small-sized companies a 15 percent incentive, and medium-sized companies a 10 percent 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 1 million for micro-companies; a value exceeding EGP 1 million and a capital of EGP 20 million for small companies; and a value exceeding EGP 20 million and a capital of EGP 150 million for medium companies.
The programme also offers an additional 5 percent incentive to support companies specialised in emerging technologies, including the internet of things (IoT) and blockchain, cyber security, embedded software, chipset design, Robotics Process Automation (RPA), Data Science, and Artificial Intelligence (AI).
An additional 5 percent incentive is also 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 percent incentive is given to companies with IPR Certificates, and companies operating in tier two cities or governorates other than Cairo, Giza, and Alexandria.
“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 micro and small companies, as well as develop a mechanism to govern the support provided to companies and avoid duplication of support with other programmes,” CEO of ITIDA Amr Mahfouz stated.
Mahfouz added that the ITIDA is keen on boosting 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 with more than 50 percent of Egyptian ownership that 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 150 million are not eligible for participation in the programme.
In the previous rounds of its Export IT programme, the ITIDA disbursed EGP 550 million to 250 local Egyptian companies. The programme supports ICT exports, channels exporters to increase their competitiveness, and helps reduce export-related costs.