Taking a closer look at the government’s Digital Pioneers initiative: The CIT Ministry launched a new initiative last week aimed at enhancing training and entrepreneurship in AI and information technology under its Digital Pioneers initiative. The program is designed to boost the competencies of young people and graduates in the job market.

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Initiative goals: The initiative seeks to equip citizens with modern digital skills, whether they are graduates of technology faculties or students from other disciplines. Even current students are eligible to apply. The program is open to everyone — including those over 30 years old — and is entirely free, with the government covering all training costs, according to CIT Minister Amr Talaat. He noted that the ministry is currently mapping out training locations and specialized curricula to meet market demands, particularly in software development, where demand is surging.

Graduates of all disciplines can apply: The initiative will focus on selecting top graduates, regardless of their academic backgrounds, meaning non-tech graduates will have just as much of a shot as their tech-specialized peers. Training will cover crucial areas such as digital marketing, software development, and data analytics, aligning with market demand studies, a source at the CIT Ministry told EnterpriseAM.

With a growing industry comes a growing demand for talent: Several major global tech firms have chosen Egypt as a hub for their technical operations, which support their regional branches, the source said. The source pointed to what they described as Egypt’s strong digital infrastructure, quality internet services, and the advantage of lower operational costs following the float of the EGP. Egypt has witnessed a 300% rise in outsourcing firms in recent years, with over 180 outsourcing companies now operating in the country, we were told.

We’ve heard of quite a few big-ticket digital outsourcing investments in Egypt recently: Madrid-based business process outsourcing firm Konecta announced last month it’s setting up a regional HQ in Egypt as part of a USD 100 mn three-year investment plan that will see it provide AI solutions, digital transformation, IoT, data analytics, and multilingual customer support. A little before this, global consulting firm Deloitte also announced it’s launching its new innovation hub in Cairo and pledged a three-year USD 30 mn investment to employ 5k of the country’s “top-tier talent” working in AI, data analysis, marketing, commerce, cloud computing, cybersecurity, and resource planning.

REMEMBER- The government wants to see digital exports bring in USD 9 bn into the economy annually as of 2026 and then up to USD 13 bn by 2030. We’re yet to hear the most recent figures for 2024, but Egypt’s digital exports brought in USD 6.2 bn in 2023, up 26.5% y-o-y. The figure includes outsourcing exports — think call centers and human resource centers — which accounted for over half of the digital exports in 2023, standing at USD 3.7 bn, up 54% y-o-y.

But there’s a talent gap that needs filling: The same source pointed out that the main challenge for the industry remains a lack of sufficiently skilled graduates ready to work in these global tech centers. The strategy? Training and preparing local youth — especially fresh graduates — to become the backbone of these expanding global tech hubs.

Some skills are needed more than others in the tech industry: Web development topped the list of the most in-demand tech jobs, accounting for 11.9% of hiring activity, according to industry data reviewed by EnterpriseAM. Other highly sought-after roles include design engineers, mobile app developers, and CRM systems engineers. Back-end web developers and software testing engineers also made the list. Interestingly, 77% of employers favored hiring junior candidates over experienced ones — likely due to lower salary expectations.

But salaries in the sector are very good — even for trainees: The Digital Pioneers initiative should put its graduates on the path to securing jobs with salaries starting at USD 1k per month, our source at the CIT Ministry told us.

Hefty investment in the initiative: The government has allocated a significant EGP 3 bn budget to develop the initiative’s necessary infrastructure. This will cover a diverse range of training tracks tailored to different specialties and career paths in a bid to prepare a new generation of workers capable of developing tech-driven solutions to meet both local and global market needs. The program will be implemented in partnership with the Egyptian Military Academy.

Not the first of its kind: “This isn’t Egypt’s first digital training push,” Digital Egypt Cubs initiative head Walid Al Engbawy told us. Digital Pioneers differs from school-focused programs, as it focuses on preparing graduates for the job market and supplying well-trained talent to multinational firms operating in Egypt, Al Engbawy said.

We’re taking steps in the right direction, but there's still a long way to go: While government efforts in launching training initiatives for school students, university graduates, and young professionals are commendable, Egypt still has a way to go before becoming a regional outsourcing powerhouse, Cairo Chamber of Commerce’s digital economy head Karim Ghoneim told EnterpriseAM. Ghoneim pointed to India as a prime example of what Egypt should try to replicate, where a well-trained workforce has made the country a global leader in outsourcing services and handling projects for multinational firms worldwide.

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