Empowering E-Business in Egypt: Facing the Challenges! Dr. Sherif Hashem Information Society Development Office (ISDO), Director shashem@mcit.gov.eg

Outline The Digital Divide CIT in Egypt E-commerce in Egypt Cyber Laws The Road Ahead

The Digital Divide

The Digital Divide “The Digital Divide is the socio-economic gap between industrialized & lesser developed communities due to the rapid and efficient deployment of digital technologies”

Number of Fixed Lines Worldwide by Region Source: ITU (internet host data: Network Wizards, Ripe 2000

Worldwide Internet Users by Region Source: ITU (internet host data: Network Wizards, Ripe 2000

Source: Forrester Report 2001 Projection of E-Business Worldwide by 2004 Source: Forrester Report 2001

The Digital Divide

CIT In Egypt

Internet Access in Egypt 1.2M users (estimated) compared to 544M WW (NUA Survey – Feb`02) Most access is in the capital & major cities Internet utilization rate of 1 in 57 compared to a WW rate of 1 in 11 60+ ISPs Cost: FREE Internet  in 15 Governorates, the rest will be covered by the end of 2002

Some Key CIT Challenges Infrastructure Access to computers Access to the Internet Access to software Access to technical expertise Local content Culture Language Human Resources/skills Awareness/understanding Local business models

National CIT Plan (Dec 1999) CIT Industry Development Human Resource Development Communication Infrastructure Development Information Infrastructure Development

National CIT Plan: Mission and Objectives Community awareness. Education. Development of CIT professionals Infrastructure development. Regulatory framework.

From 2D to 3A Awareness Access Affordability A Model For Bridging the Digital Divide From 2D to 3A Awareness Access Affordability

To date, there are 350 clubs nation wide IT Clubs Awareness Access Affordability Government subsidized Internet Cafés Created in youth centers, public libraries, schools and NGOs. Focusing on deprived and low income communities. To date, there are 350 clubs nation wide

96 hours – 6 weeks – hands-on training Basic IT Training Program Awareness Access Affordability Word Processing Data Entry Spread Sheets Internet Presentation Skills Language Skills 96 hours – 6 weeks – hands-on training More than 60,000 graduates

Professional Development Program Awareness Access Affordability Certified professional training by major technology providers including: Cisco, Microsoft, Lucent, Nortel, Qualcomm, Ericsson, IBM and Oracle. More than 8,550 graduates

Diversification of services Expanding the Network Access Affordability Deregulation Private sector participation. Alliances. Investment opportunities. Competitive environment Diversification of services

Stimulating the Information Society E-government program & projects. E-commerce and e-payment projects. Community telecenters project. Telemedicine projects. Affordable PCs project. Incubators project. Cultural documentation & dissemination projects.

Facing the Challenges: Telephony* Fixed Lines: 9.3M lines up from 6.4M lines, and 7.3M subscribers up from 4.9M subscribers. Mobile phones: 3.9M subscribers up from 655K subscribers· Public pay phones: 42K pay phones up from 13K public pay phones. * Current figures are compared with the situation when the national CIT was adopted late 1999

Facing the Challenges: Internet Access* International links: 500 MB/Sec up from 20MB/Sec. Users: Over 1.2M users up from 300K users. Access cost: Access is almost Free  (in 15 Governorates) compared to US $20/month. Access Points: Over 350 IT clubs and community telecenters. * Current figures are compared with the situation when the national CIT was adopted late 1999

Facing the Challenges: Skills Development* Basic CIT Skills: Over 60K trained. Professional Training: Over 8500 highly skilled professionals. National Telecommunication Institute. Technological University. * Current figures are compared with the situation when the national CIT was adopted late 1999

Facing the Challenges: Industry Development* ICT Companies: 722 companies up from 266 companies. ICT Professionals: Over 25K highly skilled professionals up from 10K professionals. Smart Villages. ICT Incubators. ICT Industry Development Organization. * Current figures are compared with the situation when the national CIT was adopted late 1999

E-Commerce in Egypt

E-commerce in Egypt Oct’97 ISE-Ecommerce Committee formed Aug’98 1st meeting of the National E-commerce Committee Sep’98 1st National Seminar on Ecommerce Sep’99 Ecommerce initiative declared Oct’99 Ecommerce in the National CIT Plan 2000-02 Cyber laws (e-signature, e-payment, ..); Government Pilots; Private Portals

Some Key Issues Legislation (cyber laws): Electronic Signature & Electronic Contracting Customs & Taxes Jurisdiction Encryption, IPR, privacy, security, consumer protection, domain names, trade marks, etc. Regulation (Certificate Authorities, etc.) Banking infrastructure (e-payment) E-Insurance (financial, commerce, etc.) E-Education & E-Knowledge

Some Key Questions Who is responsible for E-commerce? How can government empower the use of E-commerce? How can SMEs understand the challenges and opportunities of E-commerce? How to help create, empower, and support Egyptian E-business models? Where do we go from here?

Cyber Laws in Egypt

Drafting an E-Signature Act: The Process National Electronic Signature Committee (entities): Ministry of Communications and Information Technology Ministry of Justice Ministry of Economy and Foreign Trade Ministry of Finance Ministry of Foreign Affairs Ministry of Interior Ministry for Administrative Development Central Bank of Egypt Cabinet Information & Decision Support Center

Drafting an E-Signature Act: The Process (Cont.) National Electronic Signature Committee (legal and technology experts): Governmental, Private sector, and Academic

Drafting an E-Signature Act: Key Issues Amending existing laws vs. creating a “new” law Recognition of electronic/digital documents and signatures Creation of a state organization for regulatory, licensing, and supervisory roles General awareness and training programs Protecting IPR and privacy

E-Signature Act: The Main Points Recognizing electronic/digital signatures and document Scope: Commercial, Administrative, Civil Sectors Technology Independence Establishing a regulatory body for Certificate Authority (CAs) Recognizing “foreign” CAs

The Road Ahead National white paper on: The Egyptian information society Four sub-committees: Electronic contracting E-payment Customs and taxes CyberCrime

For More Information Visit Ministry of Communications and Information Technology http://www.mcit.gov.eg/ or E-mail: shashem@mcit.Gov.eg Thank You ……