On September 2, the Egyptian government called on Indonesian companies to invest in the country’s burgeoning tech sector, particularly in data centers and digitalization. This move is part of Egypt’s broader strategy to accelerate its digital transformation.

On September 6, the Egyptian Information Technology Industry Development Agency (ITIDA) signed a memorandum of understanding with China's state-owned Tsinghua Unigroup. The collaboration aims to establish a $300 million fund to facilitate Chinese investments in Egypt’s tech sector.

Under the agreement, Tsinghua Unigroup and its subsidiaries will provide 60 to 70% of the fund’s capital. While the specific areas of investment were not disclosed, the agreement includes plans to build a data center, establish a research and development center for chip and system design, and develop an AI-based Arabic language model.

This initiative aligns with Egypt’s goal to attract foreign investment to boost its technology sector. In December 2023, Egypt signed an MoU with the United Arab Emirates to build data centers with a combined capacity of up to 1,000 megawatts. Additionally, Telecom Egypt secured a $600 million fiber optic investment from 4iG Group. During the 2nd Indonesia-Africa Forum on September 2, Egypt also invited Indonesian companies to invest in data centers and digitalization projects.

These investments are set to support Egypt's "Digital Egypt 2030" strategy, which aims to advance the country’s ICT sector and modernize its telecom infrastructure, positioning digital technology as a driver of socioeconomic development.

Isaac K. Kassouwi