Last Update 22:46
Sunday, 19 September 2021

ITIDA disburses EGP 70 mln export incentive for Egyptian IT companies

The total amount of export rebate for the programme’s 11th round has reached EGP 70 million and has been paid to a total number of 131 companies, out of 137 companies that have applied for the program during 2021.

Doaa A.Moneim , Monday 26 Jul 2021
ITIDA
File Photo: Information Technology Industry Development Agency headquarter Photo courtesy of ITIDA official Facebook page
Share/Bookmark
Share/Bookmark

The Information Technology Industry Development Agency (ITIDA) announced on Monday the disbursing of its Export-IT’s 2019 cash rebate on ICT exports of the local companies that are operating in the information and communication technology sector.

The total amount of export rebate for the programme’s 11th round has reached EGP 70 million and has been paid to a total number of 131 companies out of 137 companies that have applied for the programme during 2021.

CEO of ITIDA Amr Mahfouz said that the Export IT Programme is part and parcel of ITIDA’s strategy that primarily aims to boost Egyptian IT exports, increasing competitiveness, and enabling them to expand and access global markets.”

Mahfouz stressed that ITIDA attaches great importance to the Export IT Programme in light of challenges imposed 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.

Furthermore, and based on Egyptian ICT companies’ requests, ITIDA has reopened the submission of documents for Export IT 2020 rebate disbursement for a period of two weeks, through the end of July, aiming to expand the base of beneficiary exporting companies, according to Mahfouz.

Earlier this year, ITIDA launched an exceptional round of its annual Export IT Programme aiming to cope with the challenges introduced by the COVID-19 pandemic by offering 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 programme the first time around, while 22 start-up companies have joined the programme in 2021 so far.

The 11th round of the programme saw the participation of new companies from governorates outside the Greater Cairo area such as Alexandria, Daqahliya, and Ismailiya, according to ITIDA.

The Export IT Programme accepts local ICT companies with more than 50 percent of Egyptian ownership, headquartered in Egypt, and are exporting ICT services, IT-enabled services, including call centre services, consultation, and training services related to the IT industry.

ITIDA has excluded Egyptian IT start-up companies that were founded in 2016 or later from the “headquarter in Egypt” condition.

According to the terms and conditions of the programme, approved companies receive direct cash incentives that are up to 10 percent with a maximum limit of 20 percent 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 programme offers additional incentives to companies exporting e-Commerce, e-Gaming, e-Health, and e-Design services. Further incentives are also extended to companies operating in new tech parks, the new entrants to the programme, and the companies operating in governorates other 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, 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.

These companies have enjoyed the benefit by getting the full export support on the total value added of their export earnings and not only on the increase of its value-added.

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.

Short link:

 

Latest

© 2010 Ahram Online.