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ITIDA disburses EGP70M export incentive for Egyptian IT companies

ITIDA disburses EGP70M export incentive for Egyptian IT companies

ArabFinance: The Information Technology Industry Development Agency (ITIDA) announced disbursing of its Export-IT’s 2019 cash rebate on ICT exports of the local ICT companies, according to the agency’s emailed statement.

The total amount of export rebate for the program’s 11th round has reached EGP70 million, and have been paid for a total number of 131 companies out of 137 companies that have applied for the program this year.

“Export IT program is part and parcel of ITIDA’s strategy that primarily aims at boosting Egyptian IT exports, increasing competitiveness, and enabling them to expand and access global markets,” Amr Mahfouz, CEO of ITIDA, commented.

Mahfouz stressed that ITIDA attaches great importance to the Export IT program, in light of challenges brought upon by the global pandemic, and the unprecedented government support and commitment to boost exports as one of the main sources of foreign currency for the Egyptian economy.

Based on the Egyptian ICT companies’ request, ITIDA has reopened the submission of documents for “Export IT” 2020 rebate disbursement for a period of two weeks, until the end of July, aiming to expand the base of beneficiary exporting companies.

In 2021, ITIDA launched an exceptional round of its annual “Export IT” program, to cope with the challenges introduced by the COVID-19 pandemic, by offering the local IT companies cash incentives on proceeds of value-added exports for two consecutive years, 2019 and 2020.

According to ITIDA, 33 companies have applied for the program the first time, while 22 startup companies have joined this year. The 11th round of the program saw the participation of new companies from governorates other than Greater Cairo such as Alexandria, Dakahlia, and Ismailia.

All export transactions and supporting documents have been audited, reviewed, and cross-validated by the program's external auditor.

Export IT program accepts local ICT companies with more than 50% of Egyptian ownership, headquartered in Egypt, and are exporting ICT services, IT-enabled services such as call center services, consultation, and training services related to the IT industry.

According to the terms and conditions of the program, approved companies receive direct cash incentives up to 10%, and with a maximum limit of 20% of value-added exports based on the company size (micro, small, medium, or large), with a maximum amount of EGP 2.5 million for each company or EGP 3 million for companies operating in or have branches in one of the new tech parks.

The program offers additional incentives to companies exporting e-Commerce, e-Gaming, e-Health, e-Design services. Further incentives are also granted to companies operating in new tech parks, the new entrants to the program, and the companies operating in other governorates than Cairo, Giza, and Alexandria.

In line with ITIDA’s new strategy to promote and encourage exports of disruptive and emerging technologies such as AI, data science, and Robotic Process Automation (RPA), ITIDA has exceptionally accepted medium companies with annual revenues exceeding EGP 50 million, exporting emerging technologies services or those who have succeeded in penetrating new markets.

Throughout the eleven previous rounds of Export-IT, ITIDA has extended support to more than 230 Egyptian companies, with a total value amounting to EGP 480 million.

 

 

 

 

 

 

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