Egypt’s first locally manufactured routers are on the way: In a step to bolster the country’s local manufacturing capabilities and connectivity, the Information Technology Industry Development Agency (ITIDA) signed contracts with Telecom Egypt and three private companies to design and develop locally made high-speed internet routers last March. “We aim to thoroughly localize the electronics industry to achieve self-sufficiency in the local market, boosting the export of Egyptian electronic products on a global scale,” CIT Minister Amr Talaat said at the time.

The players involved: The private sector companies included El Sewedy Electrometer, ElAraby Group, local electro-medical and electronic equipment manufacturer BioBusiness, and fiber optic cabling solutions manufacturer HitekNOFAL OPTIX.

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But not all of the companies may end up actually producing routers: Designs for the routers are expected to be finalized by January 2025. From the three companies presenting, one of the designs will be chosen as the winner — with possibility of more than one being chosen if multiple companies present suitable designs.

We should see locally made routers from Telecom Egypt in the market around 3Q 2025: The winning company will be given a three-month grace period after completing the design to sign the official agreement and finalize the initial quantities and production stage, a government source told Enterprise. Under the agreement, the winning company will deliver the first batch of routers to Telecom Egypt within six months of the contract signing.

It’s all part of a larger plan: The router manufacturing plan is part of the government’s EgyptMakes Electronics initiative, which aims to deepen local manufacturing and reduce imports of electronic products. Since 2015, the CIT Ministry has been working to localize the country’s electronics manufacturing industry under the initiative with an initial focus on mobile phones, tablets, GPS tracking devices, LED lighting, smart meters, LED TVs and displays, and solar energy systems.

There’s a big market for routers in Egypt: As of January 2024, Egypt had 82 mn internetusers, representing a penetration rate of 72.2%, some 45.4 mn social media users and over 110 mn mobile phone users — accounting for 97.3% of the population— according to DataReportal.

And it’s only growing: Internet users grew by 1.3 mn or 1.6% y-o-y from January 2023, according to data from Kepios cited by DataReportal.

But the infrastructure and tech isn’t quite up to the job: The high demand is unfortunately not met with the necessary digital infrastructure, with Egypt’s average mobile internet speed coming in at 22.11 Mbps, while fixed internet speeds average 64.53 Mbps. The country ranks 91 globally for mobile internet speed and 73 for fixed broadband.

The domino effect: Following the ITIDA’s project, several internet service providers have initiated their own programs to manufacture routers for their customers, signaling a broader industry trend toward local production.

Vodafone Egypt was quick off the mark to join in: Vodafone Egypt reportedly inked a partnership with Al Safy Group and Malaysian tech company Green Packet back in September to localize high-speed home router production in an agreement that will see it produce 1 mn routers a year, according to local media reports. Vodafone Egypt also partnered up with ElSewedy Electric to begin producing advanced communications equipment in the country as part of the telecoms company’s efforts and strategy to support the localization of electronic manufacturing to help promote Egyptian-made products, Vodafone Egypt told Enterprise.

As were e& Egypt: The Egyptian arm of UAE state-owned telecoms company e& in collaboration with Sico Egypt recently announced the start of local production for Egypt’s first 4.5G router. Sico Egypt Chairman Mohamed Salem highlighted that the company’s focus is to enhance local manufacturing capabilities and provide advanced technological products that meet market needs with high quality and competitive prices. He noted that Sico was the first company to offer a locally made smartphone and is now delivering Egypt’s first 4.5G router, designed and manufactured entirely in Egypt.

It’s about more than meeting local demand: The initiative aims to localize the manufacturing of routers so that they can stop relying on imports by the start of 2026, our government source told us. However, the plan is to also start exporting them as well, with a particular focus on Africa, the source added.

Your top industrial development stories for the week:

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