Egypt is optimistic about welcoming more visitors this year with numbers increasing steadily since January to around half a million tourists a month, Tourism and Antiquities Minister Khaled El-Enany told Reuters.
Tourism revenue, an important source of foreign currency for Egypt, plunged by 70% in 2020 due to the coronavirus pandemic. Tourism usually accounts for up to 15% of the country's gross domestic product.
Monthly tourism revenues stood at about $500,000, half of what they were before the pandemic. But Egypt hopes for a recovery by the end of the year when it aims to have vaccinated tourism staff in resorts along the Red Sea and name the area a COVID-free destination, Enany said.
More than 65% of (tourists) are coming to the Red Sea and South Sinai governorates because they are open air spaces and (there are) water activities. It is exactly what the tourist is seeking after COVID," the minister told Reuters in an interview.
Egypt and Russia in April agreed to resume all flights between the two countries in a call between their presidents, Abdel Fattah al-Sisi and Vladimir Putin, Egypt's presidency said in a statement.
"As you know the Russian market was a very important one to Egypt. Until 2015 they were ranking number one, around 3.5 million tourists a year."
Flights from Russia to resort destinations Sharm al-Sheikh and Hurghada were suspended after a Russian passenger plane crashed in Sinai in October 2015, killing 224 people.
source: zawya
CAIRO: The value of foreign investments in Egyptian government debt instruments in the first quarter of the current fiscal year amounted to about $29 billion, according to a government official.
Egypt’s portfolio of foreign investors in its treasury bills and bonds includes sovereign funds and large Arab financial institutions, the official said.
The country has one of the highest interest rates in the world but, according to the Egyptian Central Bank, in 2020 rates fell from 12.25 percent to 8.25 percent, making it more attractive for potential investors.
The official explained that foreigners exited the government debt market at the beginning of last year, when the impact of the coronavirus pandemic began to take hold in March, but they were enticed back when some stability returned during the first quarter of the current fiscal year.
During the period of the pandemic, about $18 billion of foreign investment exited Egypt’s government debt market, seeing it drop to about $10 billion. The peak of investment was recorded in Feb. 2020, at $27.8 billion.
source: Arabnews
Egypt’s Minister of Trade and Industry Nevine Gamea announced that investors applying for industrial units in the seven new industry clusters will be granted a six-month reprieve from rent.
The six-month reprieve will come into effect once the investors receive their units at the industry clusters recently offered by the Industrial Development Authority (IDA).
Gamea said that the decision aims to relieve the burdens on small enterprises and investors, whilst giving them the opportunity to start their projects.
The minister also announced a two-week extension on the submission period for applications to obtain industrial units in the seven new clusters. The period will now come to a close on 12 December, to give investors an opportunity to prepare feasibility studies for their projects.
Gamea said that the rent set for new units are very affordable for small manufacturers and investors, and that the state has been keen to provide these units at a lower price than the cost. The governmental move aims to support young people, as these clusters were not launched for making a profit.
She also said that the executive regulations under the Micro, Small and Medium-Sized Enterprise Development Law are being drawn up. This represents a significant improvement in terms of facilities, advantages, and investment opportunities that will provide help for young investors working in this promising sector to develop their projects.
Moreover, IDA Chairperson Mohamed Al-Zalat said that the authority is keen to constantly communicate with investors working in all industrial areas and complexes. This aims to help them overcome all the obstacles they may face, and to ensure collaboration to solve their problems.
Al-Zalat said that the IDA is committed to providing all necessary facilities to help investors in the new industrial complexes to obtain all necessary licences for their projects.
He added that units available in the new industry custers will be very distinctive, with each unit equipped with all utilities, including sanitation and water networks.
source: zawya
beltone Financial Investment bank expects the real estate sector to decelerate in 2020 as real estate sales have lost pace or are coming flat, driven by continued oversupply risks in upper middle and high-end project offerings, and slower price increases due to slower inflation readings and stabilisation in the cost base.
Beltone analysts continue to list tier-1 developers, namely TMG Holding (TMGH), Palm Hills Developments (PHDC), Emaar Misr (EMFD), Orascom Development (ORHD), Sodic (OCDI), and Madinet Nasr Housing (MNHD), as they capitalise on their names and track record to drive new sales versus the small and medium sized new entrants.
These tier-1 developers also deliver 7k-10k units per annum combined, which is relatively low compared to the target client segment, representing 2%-3% of Egypt’s growing population as well as the number of marriages of up to 900k per annum.
Real estate sales grew by 2% year over year (YoY) during 1H19 to EGP 31.7bn, compared to 53% YoY growth in the first half of 2018 (1H18) versus 1H17, which looks to be the only slight growth due to existing projects nearing completion, thus slowng down tier-1 developers YoY from launching new real estate. However, Beltone analysts expect 2H19 to be stronger, driven by new project launches toward the end of the year, reaching total sales of EGP 67.2bn, higher by 18% y-o-y.
Throughout 2019, the Central Bank of Egypt’s (CBE) Monetary Policy Committee (MPC) cut interest by 650 basis points , followed by another expected 300 bps cut in 2020, according to Beltone analysts’ expectation.
This led tier-1 to extend payment schemes to reach an average of eight years in 2H19, up from seven years in 2018, to fuel new sales, maintain current growth, and avoid lower prices YoY.
Most importantly, Beltone analysts believe that lower interest rates will push the resale market out of stagnation, which has been pressured by lower disposable income since the Egyptian pounds floatation. The plan is to offer affordable mortgage products for real homebuyers who intend to buy delivered homes in cash.
Beltone analysts added that reviving the resale market therefore should stabilise the local real estate market by attracting new buyers for the primary market.
They also positively view that the latest joint venture including TMGH, EFG Hermes (HRHO), and GB Capital (AUTO) to fund ready-for-sale units in TMGH’s Madinty and Al Rehab Projects, to be followed by funding units in other projects with target sales of EGP 450m-EGP 500m in 2020, to capitalise on lower interest rates and offer a new product to the market.
They also believe that, the beneficiaries from interest rates cuts in 2H19 and 2020 based on size of debt on their balance sheet are PHDC, TMGH, ORAS, OCDI, HELI, MNHD, ORHD, and PORT.
On the other hand, EFG Hermes Investment Bank expected real estate stocks to have underperformed in the general market indices in Egypt.
Market conditions have been challenging, with companies facing difficulties to increase their contracted sales, selling prices, with developers offering extended payment terms, if possible, to encourage sales along with new product offerings across various projects.
They added that a number of macro initiatives failed to reflect positively on the sector’s activity and in turn respective stock prices.
In Egypt, a series of interest rate cuts did not encourage more activity or demand on new launches, given the insignificance of the mortgage activity in the sector’s performance.
Moreover, there have been extended payment terms for new projects across most developers, with a minimal positive impact seen.
They expect real estate stocks in general to underperform the general market index in Egypt 2020, with a few expectations that they will relatively outperform their peers.
Although they have a cautious outlook on the real estate sector and think the stocks will reflect the operating environment, they think that there will be some outperformers and underperformers, on a relative basis in 2020.
They prefer exposures to companies with solid recurring income stream asset bases and strong balance sheets, with a significant debt and local obligation dues. Their key ideas for the year are Orascom Development Egypt and Emaar Misr Egypt.
Moreover, Pharos Holding expect a decline in sales with 10% increase in cost and 5% increase in prices, which lead to lower margins.
They believe that there is no further extension of installment scheduled or an increase in debt.
Pharos analysts hope that, interest rate cuts to sustain demand, stability in costs in light of weaker commodity prices, and a rise in consumer demand on the back of suburban migration.
While they fear deacceleration or decline in demand due to affordability issues, further extension of installments schedule, significant jump in prices, and emergence of installment schedules in the resale market and compete with development companies. They prefer ORHD and TMGH.
source: dailynewssegypt
Barely a week goes by without a startup in Egypt announcing an investment round.
The country has over the past few years ramped up its entrepreneurial activity, becoming the fastest growing ecosystem in the Middle East and North Africa (Mena) region according to a report by Magnitt.
Helped by the falling inflation rate and an economy that is on its way to recovery, more people are gaining the confidence to launch their own business.
“We have seen a lot of change in the startup ecosystem in Egypt in the last couple of years. We see it in the number of our applications; it is doubling.
Also, in the quality of the entrepreneurs who are applying to join the programme," says Marie-Therese Fam, managing partner at accelerator Flat6Labs Egypt.
With a population of more than 100 million, Egypt’s market has the potential to be one of the most lucrative and it is attracting the attention of not just startups from the wider region, but also investors.
"Over the past three years we have been seeing more access to finance and more interest from global investors to invest in the ecosystem, adding to that the governmental initiatives supporting starts and SMEs,” says Mohamed Hamza, associate director at AUC Venture Lab.
“We have been seeing an increased awareness about entrepreneurship through the work of various stakeholders, appearing on TV and having dedicated programmes directing attention towards the topic as well as the introduction of entrepreneurship education as a requirement in a number of public universities.”
The number of venture capital (VC) firms, accelerators and incubators in Egypt have been increasing, indicating a growing interest in entrepreneurship in Egypt. In fact, according to one report by the Global Entrepreneurship Monitor (GEM), launched by The American Univeristy in Cairo School of Business in 2018, 82 per cent of Egyptians perceive successful entrepreneurs as having high social status and almost 76 per cent of Egyptians, mostly youth, perceive entrepreneurship as a good career choice, compared to a global average of 61.6 per cent. Moreover, 55.5 per cent of non-entrepreneurs surveyed expressed their interest in starting their own business, a percentage that is double the global average.
"There is a shift in the mindset. Young people are more eager now to start their own projects.
Also, there are so many entities that provide help and support to startups.
The more young people know about these entities and the fact that there is so much support, the more they are encouraged to start their own projects,” says Fam.
But perhaps one of the biggest drivers for the rise in entrepreneurship is the lack of “interesting jobs for young people”, according to Fam.
While the overall unemployment rate stands at around 8 per cent according to CAMPAS, Egypt’s statistics agency, the youth unemployment rate as of 2018 was more than 32 per cent according to the World Bank.
The GEM report reveals that opportunity-driven entrepreneurship has been decreasing at the expense of necessity- driven entrepreneurship that is driven by the lack of other work alternatives, increasing from 31.1 per cent in 2016 to 42.7 per cent in 2017, compared to a global average of 22.2 per cent.
Solving global problems in Cairo
The historic capital, Cairo, is a city with a dense population of 30 million, crumbling infrastructure and an unwavering sense of hope.
The metropolis has proven to be fertile ground for solving problems that many cities in emerging markets around the world are experiencing.
One particular sector that Cairo has excelled in, is solving the transportation problem for overcrowded cities with poor public transportation systems.
It has been startups that have provided the solutions and one such example is Swvl, an application for booking buses that recently closed a $42 million investment round, marking the biggest VC investment deal in the country and the highest in Mena in the second quarter of this year.
"Startups can offer many innovative solutions for the big issues. We cannot say they are solving the whole thing at one time, but at least they are offering a know-how and a new way of dealing with things just like what happened with the transportation market starting with Uber then the rise of Careem then Swvl which is much more Egyptian and much more related to our situation and streets," says Ahmed Adel, business mentor at Fekretak Sherketak.
Swvl’s understanding of the Egyptian market enabled it to become the market leader and highlighted the opportunities in the buses sector with both Uber and Careemlaunching their own service.
“We can even see that the public transportation sector started to use mobile applications such as Mwasalat Misr which I think will be a good experiment that will be generalised soon,” says Adel.
Challenges
Yet despite the innovation and enthusiasm, there remains plenty of challenges that hinder the growth of startups in the country. Many end up failing, the country had the highest rate of business discontinuation among the 49 countries studied in the GEM report with a rate of 10.2 per cent in 2017, a significant increase from 2.7 per cent in 2010.
The report attributes the high discontinuation rate to the challenging business environment reflected mainly in the lack of profitability for businesses and the difficulties in accessing capital.
"Investors need to understand that the nature of investing in startups is different,” says Mohamed Khedr, managing partner at Endure Capital and founder of Fatakat, an online network aimed at Arab women. “Investors are used to dividends and thus find it difficult to supply startups with money for seven or 10 years and wait for its exit until they can have their money.”
According to Khedr, many investors “do not understand that they can have a maximum of 30 per cent stake because the founders still have upcoming investment rounds and stake to share and do not want to end up with 3 or 4 per cent share”. While others tend to be overbearing and tend to get too involved in the day to day running of the startup, which ultimately might contribute to the failure of the company.
The regulatory environment is also a hindrance, particularly with regards to investing in startups.
“There needs to be new laws that are introduced specifically for startups such as shareholders' agreement as well as regulations that ease taxation and financial restrictions and facilitate procedures of registering startups,” says Khedr.
Lack of experience is one other main reason why startups fail.
Generally, Egyptian entrepreneurs have low fear of failure compared to the global average in GEM, but despite the positive attitudes, most entrepreneurs report that it is a tough and stressful job with extended working hours, high risk and high level of uncertainty.
About nine out of 10 startups in Mena fail but few are aware of the failure rate since much of the media focuses on the success stories, investment rounds and acquisitions.
"One of the biggest reasons why startups fail is experience.
You can learn how to be an entrepreneur but not open your own business,” says Adel who founded a startup when he was still a university student and had to shut it down a year later. “You can be an intraprenuer.
You can join a startup to learn more.
I am not encouraging students to open their startups without experience. If you have a good idea that you think will change the market, just get some experience in your team.”
Yet, there are lessons to be learned in failure. Many entrepreneurs in Egypt who have failed learn from their mistakes and strive to start new businesses.
One example is the team behind Wasla Browser, their third venture after their initial startups failed. While university graduates continue to found their own businesses in the hope of becoming their own boss and creating employment opportunities for themselves, it is the ones who are on their second or third ventures that are likely to see success and it is these founders who are contributing to the most value to Egypt’s startup ecosystem.
"The youngest people think that they will be their own decision makers, and no one will tell them what to do and so on which is actually not true. An entrepreneur is bossed by the market itself, the customers and investors," says Adel.
source: wamda
For almost 10 years, Egypt has made a dramatic leap in a number of fast-expanding startups and an amazing set of supporting institutions and communities.
In 2018, Egypt was ranked the fastest growing startup ecosystem in the Middle East and North Africa and the second largest after UAE, according to a report by start-up platform MAGNiTT.
During these years, Egypt’s flourishing entrepreneurship scene has been receiving support from governmental entities and private institutions which aid entrepreneurs to reach their maximum potential by offering fund opportunities and mentorship.
Having known about these governmental and private institutions that provide help and support to startups, Egyptian young people were encouraged to start their own projects, especially in light of the lack of employment opportunities and law wages.
Egypt’s population of more than 100 million citizens also makes its market one of the most lucrative, attracting the attention of not just startups from the wider region, but also investors.
“With a large youth population, low wage costs and numerous niche markets yet to be saturated, Egypt is an ideal place to offer young entrepreneurs a suitable environment to experiment and develop their ideas,” founder of Global Entrepreneurship Network’s (GEN), Jonathan Ortmans, said.
Moreover, it’s indicated that 82 percent of Egyptians perceive successful entrepreneurs as having high social status and almost 76 percent of Egyptians, mostly youth, perceive entrepreneurship as a good career choice.
Furthermore, 55.5 percent of the non-entrepreneurs surveyed expressed their interest in starting their own business, a percentage that is double the global average, according to a report published by The Global Entrepreneurship Monitor (GEM).
But without the support of the Egyptian government, many startups would have never seen the light. There has been an increasing engagement by the Investment Ministry, as well as other governmental institutions, since the inception of the government’s economic reform plan.
Egypt successfully established many incubators, providing a stepping stone for local entrepreneurs. Bedaya, TIEC – Technology Innovation and Entrepreneurship Center, and Fekretak Sherketak are the top incubators founded by the government, offering funding for new innovative ideas.
Bedaya
Bedaya, a governmental incubator, was established by Egypt’s General Authority for Investment and Free Zones (GAFI) in 2009. This incubator can offer up to LE 150,000 (US$9,047) in funds as well as business development services, networking opportunities and manufacturing spaces.
Though Bedaya is a governmental incubator, it is led by the sector.
According to their website, 60 percent of Bedaya’s fund is allocated to supporting startups from governorates outside of the capital, Cairo.
The incubation period at Bedaya is a minimum of three months. Bedaya offers funding for 3-5 years in return for equity. But, it also reveals different exit strategies that vary from business to business.
TIEC – Technology Innovation and Entrepreneurship Center
Running throughout Upper Egypt and the Delta as well as in its headquarters in Cairo, TIEC is a government entity that specializes in incubating information and communication technology (ICT) startups as part of the governmental plan to develop Egypt’s ICT sector.
Since its establishment in 2010, TIEC offers fund of up to LE 120,000 (US$7,237) without a share or equity in the company. Its incubation period is 1 year.
Fekretak Sherketak
“Fekretak Sherketak” Initiative was launched in September 2017 by Egypt’s Ministry of Investment and International Cooperation to encourage startups and promote the entrepreneurial atmosphere in Egypt.
According to its website, this incubator is “designed to support and empower the next generation of Egyptian entrepreneurs and contribute to the development of the Egyptian startup ecosystem.”
Along with funding opportunities, the firm offers program mentorship, training and other necessary tools and resources for local entrepreneurs looking to grow and expand their businesses.
The program promotes the launch of the Egypt Entrepreneurship Program (EEP) in partnership with Hermes Financial Group and UNDP.
Emerging businesses have the opportunity to receive LE 500,000 ($30,157) as a fund from "Fekretak Sherketak" in return for 4-8 percent equity as well as a four-month training period.
Furthermore, the number of private venture capital (VC) firms, accelerators and incubators in Egypt has also been increasing, which indicates a growing interest in entrepreneurship in Egypt.
These firms include Gesr, Flat6labs, Injaz Egypt, and AUC Venture Labs; they succeeded in putting many brilliant ideas into motion. Egyptian entrepreneurs who like to start or even scale their business can head to any of these incubators or accelerators which offer mentorship, training, office space, and legal support to selected startups.
Due to Egypt’s evident interest in entrepreneurship, barely a week goes without an Egyptian startup announcing an investment round. Egypt opened doors for many young people to start thinking about ways to innovate, create and control their destinies , unleashing their entrepreneurial potential.
source: egypttoday
What is the best way to attract foreign direct investment to Egypt? Niveen Wahish sounds out the experts
Foreign direct investment (FDI) into Egypt fell to $6.8 billion in 2018, down from $7.4 billion the previous year, according to the UN Conference on Trade and Development (UNCTAD) 2019 World Investment Report.
However, Sherif Fahmy, a director at NGage Consulting in Cairo, believes that although the FDI was lower than expected in 2018, it is still the highest in the region.
The UN report showed that Egypt figured as the largest recipient of FDI in Africa that year. Fahmy said that global FDI flows had seen a 13 per cent decline in 2018, falling to $1.3 trillion. This had been attributed to US tax reforms in 2017, which provided tax incentives to US multinationals to repatriate foreign-held capital and invest it in the US economy, he said.
FDI into Egypt had reached around $8 billion in 2016, almost double the figure of 2014, prompting the government to target $10 billion in FDI. However, this did not happen despite multiple efforts.
Allen Sandeep, director of research at Naeem Holding, a consultancy, believes the government has done a decent job in laying the foundations for Egypt to be viewed as an attractive investment hub in the future by enacting bold economic reforms such as the phasing out of petroleum subsidies, taming inflation, and maintaining a competitive exchange-rate policy.
He said that measures such as the new investment law with the one-stop-shop to facilitate set up and the various incentives it offers in free zones had been important to changes in the balance of payments, drops in yields on treasury bonds, and levels of interest shown by investors in international bond issuances.
Fahmy added that the government intended to take further measures to accelerate the automation of procedures. It was also committed to policies designed specifically for value-added and technology-oriented sectors that contribute to overall economic growth and decrease unemployment, he said.
The government’s investment act in particular is designed to promote investment in less-developed regions to enhance living standards.
While Fahmy was optimistic that Egypt could attract more FDI to reach around $8-8.5 billion in 2019-2020, Sandeep believed that for FDI to pick up as a result of the reforms being enacted a time frame of five to 10 years was needed.
In the meantime, he stressed that the government must engage more in investor roadshows and strong PR and marketing impetus to improve awareness externally. Risk perceptions about Egypt, whether on politics, the economy or security, were a lot different outside than within the country, he said.
This had meant that risk premiums were mispriced, resulting in sluggish investor interest both for foreign portfolio and foreign direct investment. He suggested that new venues for investment needed to be prioritised in areas such as the services sector.
Business-process and knowledge-process outsourcing and IT-enabled services were good options for Egypt, he said, because it had a strong edge in terms of human capital.
Alexandria University economics professor Mohamed Abed agreed on the need to coax investment towards areas with potential for Egypt. He lamented the fact that around 60 per cent of incoming FDI poured into the oil-and-gas sector, while more was needed in manufacturing because that was what created jobs.
Around 10 per cent of FDI goes to manufacturing at present. This was mostly directed towards domestic consumption, however, whereas what was needed were export-oriented industries that could generate hard currency, Abed said.
Fahmy explained that according to the UNCTAD report, foreign investment in Egypt was skewed towards oil and gas, as significant discoveries of offshore gas reserves had attracted investment and the country became a net exporter of gas in January 2019.
British Petroleum, he said, had increased its investment stock in the country to more than $30 billion. Egypt also signed at least 12 exploration and production agreements with international oil companies in 2018.
However, Fahmy said the UNCTAD report also showed some large foreign projects had been announced in other sectors, such as a $2 billion Ukranian project by Nibulon to upgrade Egypt’s grain-storage infrastructure and a $1 billion Saudi project by Artaba Integrated Holdings for the construction of a medical city.
In addition, the Chinese Shandong Ruyi Technology Group had signed an agreement to invest $830 million in the construction of a textile area in the Suez Canal Special Economic Zone (SEZ).
Fahmy said that companies opening up in Egypt were not there just for the domestic market, but “for the entirety of the two billion people that represent countries that are part of free-trade agreements and encourage the flow of goods into international and regional markets.”
However, FDI into Egypt could also be affected by global conditions. Sandeep said that the ongoing trade war with China instigated by the US could have long-lasting global impacts, both directly resulting in the flight of capital out of emerging markets and indirectly because of the spillover impacts due to contagion.
Geopolitical risks due to tensions between Iran and the Gulf countries and the US could also affect the price of commodities such as oil and could impact trade, tourism, and Suez Canal receipts, Sandeep said.
source:ahram
Managing Director and Head of Brokerage at CI Capital, Karim Khedr, anticipated Egypt to gain a substantial amount of foreign direct investments (FDI) by the end of 2019 which is the last year of Egypt’s economic programme with the International Monetary Fund (IMF).
“Egypt’s investment climate is improving remarkably. The authorities are implementing the subsidy reform which is very important not only for foreign investors but also for the state budget,” Khedr informed Daily News Egypt.
Subsidy was a very considerable burden on the Egyptian budget, so the reform will allow the country to increase its spending on other key areas such as education and health, added Khedr.
Egypt aims to attract as much as $11bn in FDIs in fiscal year 2018/19, up from $7.9bn in the previous year, said Planning Minister, Hala El Saeed in August 2018, adding that FDIs are expected to reach $20bn by the end of the government’s development plan in 2022, driven by ongoing economic reforms.
Foreign investors want to ensure that reform plans are going well, in cooperation with the IMF which approves the confidence of the Egyptian economy’s outlook, mentioned Khedr, echoing the importance of the FDIs to bring the capital into the market, knowhow, in order to create job opportunities and increase the consumption that positively affects GDP growth.
“We saw a significant improvement in the external sector including the tourism sector’s revenues throughout 2018 which is very important for the availability of hard currency,” mentioned Khedr, noting that Egypt’s economy is still facing some challenging.
The high interest rates’ environment, inflation, and subsidy for some products are all challenges for the authorities in 2019, said Khedr, noting that finding solutions for these challenges are key elements to guarantee that these economic programmes are successful.
Additionally, Khedr said that his corporation aims to expand regionally in 2019, yet it depends on available opportunities, affirming that Egypt is a key major market for CI Capital.
“Investment banks expect Egypt to take over large interest of the foreign investors’ interest over the next couple of years as a result of Egypt’s economic improvements and future potential. Foreign investors’ positive outlook for Egypt was clear over our latest third annual MENA investor conference where many investors were there,” mentioned Khedr.
However, Khedr said that Egypt’s implemented reform measures don’t have the full positive impact on the investor’s views to invest in Egypt yet, as there are other challenges that still face the economy such as high inflation rates, adding, “we hope that the interest rates will decline sometime in 2019, which will encourage investors conduct increased business in Egypt.”
The Central Agency for Public Mobilisation and Statistics (announced earlier in December 2018 that the annual inflation rate hit 15.6% in November 2018, compared to 26.7% in November 2017.
CI Capital is an investment bank in Egypt with market-leading investment banking, securities brokerage, asset management, and research franchises.
source: Dailynewssegyptailynewssegypt
Microsoft and Telecom Egypt, an Egyptian telecom company has entered into a partnership, where the tech behemoth will extend its cloud network in the North African country. The announcement was made on Wednesday at the World Mobile Congress 2019.
As a part of the partnership, the telecom will improve the performance and boost reliability for the customers of Microsoft services by delivering low-latency connectivity around Egypt. The partnership will help Microsoft to cater to the local market in Egypt and will help to boost connectivity in the Middle East too.
With the new development, the country will get a direct connection to Microsoft’s global infrastructure. It will improve the delivery process for many services for customers.
For delivering its services inside Egypt, Microsoft will use its latent network optimization while its network investment will boost capacity.
The newly upgraded network connectivity in the country will integrate the tech behemoth’s global network to transatlantic and trans-Arabian paths.
Apart from that, the new development will speed up connectivity in the North African region and also help to enhance connectivity to the new Microsoft cloud regions in the UAE and South Africa.
The global network of Telecom Egypt was created with the help of investments that were carried out in private international submarine cable systems and consortiums. The company has become a choice for content partners because of its reach and capacity in the international platform.
The country’s ideal geographic location across the sea has helped the company to connect over 11 cable systems from the east and 13 from the west.
source: Thesiliconreview
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