How Digital Transformation is Affecting Businesses in Egypt

Egypt is one of the pioneering countries in the MENA region to digitally transform its economy in order to accelerate development, modernize its economy and enhance the day-to-day lives of the Egyptian society. The digital transformation will also enable the creation of new business models, further fueling economic growth in the region. Almost three years ago, the Egyptian ministry of trade and industry began undertaking measures to develop the digital sector and address any problems which might emerge as a result of digital transformation.

To successfully transform Egypt’s economy as seamlessly as possible, the following measures will be taken as part of Egypt’s digital transformation strategy:

  • Infrastructure Development

  • Human Capital Investment

  • Digital Entrepreneurship Support

  • Creation of a Conducive Business Environment

In this interview by Egypt Today, the World Bank’s VP, Makhtar Diop, outlined his expectations and those of the global community regarding Egypt’s ongoing digital transformation. “Information and Communication Technologies currently account for 3.1 percent of the [Egyptian] national GDP. The [Egyptian] government is looking to double this to about 6 percent by 2025.”

These reforms will invariably affect businesses across the country and region, but which businesses are most likely to be affected, and how?

  • Physical stores will begin experiencing a decline in sales due to the advent of e-commerce websites.

  • New, disruptive services can more easily enter the market as the digital-first approach allows for a leaner business model.

  • Businesses will be expected by their customers to maintain communication with them through social media channels and other digital platforms.

  • Customers will begin to demand more and more transparency from the businesses they purchase from on topics such as environmental friendliness, product quality, and corporate social responsibility.

  • Innovative products will appear more regularly as digitalization removes a lot of the barriers to entry in the Egyptian market.

  • Brands will be better able to engage their customers and to appear less robotic and more human.

All in all, while the digital transformation of Egypt’s economy will negatively impact many existing, deep-rooted companies, it will allow businesses that do not resist this change to enhance almost every aspect of their business by empowering them to attract, engage, and communicate with their customers in new, more cost-effective ways, and to offer a wider range of services and products to a greater array of people.



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