On July 26, the Information Technology Industry Development Agency announced the disbursement of the 2019 Export-IT cash rebate on ICT exports supplied by local ICT companies. The total amount for the rebate’s 11th round is $4.5M (70m EGP) – paid to 131 companies of 137 that have made applied this year.
Amr Mahfouz, ITIDA’s CEO described the Export IT program as part of ITIDA’s strategy of boosting Egypt’s IT exports, increase competitiveness, and enable expansion and access to global markets. He pointed out the governments’ commitment to boosting the country’s exports and earnings of foreign currency in the wake of the pandemic.
At the request of Egypt’s ICT companies, the government has reopened documents for Export IT” 2020 rebate disbursement in the next 2 weeks. This looks to expand the base of beneficiary export companies that meet the criteria. Early this year ITIDA launched exceptional rounds on its annual export-IT program to help in coping with Covid-19 challenges.
ITIDA received 33 applications for the first program. This year, 22 startups have also joined in. Now in its 11th round, the program has attracted participation from areas as far as Alexandria, Ismailia, and Dakahlia. Export transactions are first audited, then reviewed, and further cross-validated by an external auditor.
The Export IT program accepts ICT companies (with over 50% local ownership) headquartered in Egypt. According to the terms and conditions of this program, firms get direct incentives of up to 10% with a 20% limit on value-added exports.
The incentives also touch across companies in e-commerce, e-Health, e-Design, and e-Gaming. Additional incentives were also offered to companies operating in the country’s new tech parks.