Gov’t targets EGP 138.9 bn in ICT investment, mostly from private capital

The Communications Ministry is targeting EGP 115.4 bn in private and foreign investment in the ICT sector in FY 2026/27, accounting for 83.1% of the EGP 138.9 bn in total investment targeted for the sector, according to a government document seen by EnterpriseAM. The focus on private capital follows a sharp cut in public ICT investment, which fell to EGP 13 bn in FY 2025/26 from EGP 85 bn a year earlier.

Why it matters: ICT has become one of Egypt’s fastest-growing sectors, accounting for 6% of GDP in 2024 and expanding at annual rates of 14-16%, then-communications minister Amr Talaat told us last year.

Outsourcing leads digital exports: The ministry is targeting USD 6 bn in outsourcing exports by the end of the current fiscal year, up from USD 5.2 bn in FY 2025/26, a government official tells EnterpriseAM. The plan targets USD 8 bn in digital exports by June 2027 and USD 10 bn by 2030. The targets build on a strong 2025, when Egypt’s digital exports reached USD 7.4 bn, including USD 5.2 bn from outsourcing — an updated figure from the USD 4.8 bn we previously reported. Egypt also signed 55 MOUs with local and international firms in November to expand offshoring and digital exports, while more than 240 companies now operate over 270 outsourcing centers nationwide, according to the document.

Electronics and AI are the next priorities: The ministry aims to attract up to USD 1 bn in electronics manufacturing and mobile phone localization investment by 2030. It is also targeting between USD 420 mn and USD 860 mn in national AI funding for infrastructure, data centers, skills, and governance.

The strategy targets more than USD 150 mn in AI venture capital, over 250 local AI companies, and AI adoption by more than 10% of businesses by 2030. It also calls for additional cloud and data center capacity, wider 5G coverage, and average download speeds above 60 Mbps. These priorities are consistent with the government’s National AI Strategy 2.0, which centers on governance, infrastructure, data, investment, and talent.

Meanwhile, the government is preparing to market data center and cloud computing sites to global technology firms. The country had only 14 data centers by mid-2025, or 5.5% of the regional total. Hassan Allam’s digital infrastructure arm has already allocated USD 400 mn for the first phase of a new data center.

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