In an exclusive interview with Business Monthly, Marwa Abbas, the General Manager of IBM Egypt, reveals how the tech giant is fueling Egypt’s digital revolution.
From pioneering artificial intelligence (AI) and cloud technologies to boosting public-private partnerships, Abbas outlines IBM’s pivotal role in shaping Egypt’s future and its ambitious plans to support its Vision 2030.
The interview has been edited for length and clarity.
Business Monthly: What key sectors can potentially drive Egypt’s growth in the short term?
Marwa Abbas: Over the past few years, the ICT sector has emerged as a leading driver of growth in Egypt, maintaining double-digit growth rates with an annual increase of over 16% for the last five years. Public-private partnerships have played a crucial role in digitizing government services and operations, supported by favorable regulations and initiatives.
The Egyptian government, led by the Ministry of Communications and Information Technology, has made significant strides in developing the IT industry, enhancing its regional and global competitiveness through a robust digital infrastructure and increased local demand for IT applications.
At IBM, we are committed to Egypt’s 2030 Vision, leveraging transformative technologies like hybrid cloud and generative AI to support a technology-driven future.
Notable contributions include our collaboration with SAP SE to automate the tax system and our partnership with ACME SAICO to implement AI solutions for the automation of 22 wheat silos, supporting the Ministry of Supply and Internal Trade in digitizing the wheat supply chain. Additionally, we signed an MoU with the Ministry of Petroleum and Mineral Resources to accelerate digital transformation in the oil and gas sector.
Last year, we also formalized our commitment with the Ministry of Communication and Information Technology (MCIT) to utilize generative AI solutions for automating government operations and digitizing public services. This agreement ensures that IBM will provide AI expertise to support the development team at the Applied Innovation Center using our watsonx platform.
BM: What prospects does the IT sector hold, and how can it contribute to boosting Egypt’s economy through digital transformation?
Abbas: To raise the ICT sector’s contribution to 8% of Egypt’s GDP by 2030, substantial efforts are underway, including training hundreds of thousands of young professionals and scaling up to train 1 million by 2030. The government aims to expand the number of digital innovation centers to 32 by 2026, enhancing innovation and research while improving the country’s digital infrastructure.
IBM has pledged to equip 30 million people globally with the skills needed for tomorrow’s jobs by 2030. To address the AI skills gap, we plan to train two million learners in AI by 2026, particularly from underrepresented communities, through collaborations with universities and new coursework via IBM SkillsBuild.
In Egypt, we continuously partner with the government, academic institutions, and nonprofits to enhance education and empower individuals. In December 2023, the Ministry of Communications and Information Technology (MCIT) signed an agreement with IBM to support the “Digital Generations of Egypt” initiative, offering free digital training to youth across various age groups in fields like AI, data science, and cybersecurity.
IBM is proud to collaborate with MCIT on initiatives like the Digital Egypt Cubs Initiative (DECI), which aims to develop future digital leaders. Additionally, through the Digital Builders Initiative with MCIT, Microsoft, and Amazon, we provide students access to the latest technologies.
BM: What strategies should Egypt implement to attract more investment into its IT and technology sectors?
I believe the Egyptian government has a clear vision for the IT sector and is keen to adopt transformative technologies across various industries. A robust digital infrastructure is crucial for attracting technology investments. Ongoing initiatives in high-speed internet connectivity, expanding data centers, and developing smart cities are positioning Egypt as a regional technology hub.
With its strategic location, youthful population, and growing digital ecosystem, Egypt is well-equipped to attract global investors looking for opportunities in the Middle East and Africa. The outsourcing industry and freelance sector have seen significant growth, with digital exports reaching $6.2 billion in 2023—an increase of 26% from $4.9 billion in 2022.
Collaboration between the government and private sector is essential for fostering innovation. Egypt is encouraging partnerships that enable private companies to invest in public projects, particularly in digital education, healthcare, and smart infrastructure. These collaborations are leading to the creation of innovation hubs and technology parks that attract global tech giants.
We are heavily investing in generative AI, a technology that revolutionizes business processes by automating labor-intensive tasks, resulting in increased efficiency and productivity.
BM: What challenges does Egypt face in adopting digital transformation, and how can these be addressed?
Abbas: A significant challenge is the rising risk of cyber threats, especially for banks and their third-party service providers. These entities are particularly vulnerable to attacks that could jeopardize the economy, as banks handle sensitive personal information and play a key role in connecting the local economy to global markets.
Understanding attackers’ tactics is vital for protecting investments, data, and infrastructure. According to IBM’s X-Force Threat Intelligence Index 2024, which monitors over 150 billion security events daily, there has been a 71% year-over-year increase in cyberattacks involving stolen or compromised credentials. Additionally, 32% of incidents now involve data theft and leaks, indicating a trend toward stealing and selling data rather than encrypting it for extortion.
As AI technologies grow, it’s expected that 50% of this expansion will encourage cybercriminals to develop more cost-effective tools targeting AI systems.
