Egypt is preparing a competition that will allow startups and entrepreneurs to pilot AI-powered solutions within government ministries, as the country seeks to translate its expanding technology ecosystem into deployable public-sector applications and commercially viable intellectual property.
Communications and Information Technology Minister Raafat Hindi announced the initiative at the sixth Tech Invest Egypt conference in Cairo on September 7, where he outlined government efforts spanning artificial intelligence, startup financing, digital skills, GovTech and advanced computing infrastructure.
The announcement comes as Egypt's ICT sector recorded 24.3% growth in the fourth quarter of the 2025/2026 financial year, which the government described as its highest growth rate on record.
AI startups to test solutions inside government
Under the planned competition, entrepreneurs and startups will be invited to develop AI-powered technology solutions capable of delivering developmental impact.
Selected solutions will initially be piloted within a government ministry. Technologies that demonstrate successful results could subsequently be expanded across other government entities.
The government has not yet disclosed the competition's launch date, funding arrangements, eligible technology categories or selection criteria. Hindi said details and participation requirements would be announced soon.
The initiative reflects a broader effort to create practical routes for Egyptian technology companies to work with the public sector rather than limiting government support to incubation and funding programmes.
The Ministry of Communications and Information Technology is also developing infrastructure intended to allow innovative companies to integrate securely with government systems, potentially creating additional opportunities for GovTech startups to contribute to public-service delivery.
Egypt pushes AI from experimentation to deployment
Artificial intelligence featured prominently in Hindi's address at Tech Invest Egypt.
The minister said Egypt's priority is increasingly to move beyond discussions about AI's potential and toward its safe and responsible implementation across government and the private sector.
Egyptian developers are already working on applications and models covering areas including language processing, speech-to-text technology, translation and healthcare.
Hindi highlighted the recent experimental launch of the Egyptian large language model Karnak alongside the Loghat and Belmasry applications as examples of locally developed AI capabilities.
The ministry is also working to provide researchers and developers with access to advanced computing resources. The objective is to enable Egyptian teams to develop intellectual property that can eventually be commercialised and taken into international markets.
No details were provided on the scale or technical specifications of the computing resources being made available.
More than 20 governorates have digital innovation hubs
Startup development forms another component of the government's strategy.
Egypt Digital Innovation Hubs are now present in more than 20 governorates, providing entrepreneurs with access to skills development, incubation and entrepreneurship programmes.
The hubs also provide technical and legal consulting, marketing support and connections with investors.
Hindi said the government is working with the private sector to address persistent challenges facing startups, including access to capital, business growth, expansion into new markets and the recruitment and retention of skilled workers.
The aim is to create mechanisms that allow promising companies to establish sustainable operations and scale within Egypt before moving into regional and international markets.
ICT sector records 24.3% quarterly growth
The government is pursuing these initiatives against a backdrop of strong growth in Egypt's technology industry.
According to figures presented by Hindi, the ICT sector expanded by 24.3% during the fourth quarter of the 2025/2026 financial year, representing its highest growth rate on record.
Egypt's outsourcing exports also reached $5.1 billion by the end of 2025.
The government is targeting $8 billion in outsourcing exports by 2028, alongside efforts to expand electronics manufacturing and increase domestic value addition.
The broader digital economy strategy outlined by Hindi includes accelerating digital transformation, localising technology, strengthening digital infrastructure, developing skills, improving sector governance and creating a more supportive environment for investment and innovation.
Maintaining digital sovereignty is also identified as a strategic priority.
Tech Invest Egypt brings startups and investors together
The sixth Tech Invest Egypt conference was organised by the General Division for Digital Economy and Technology at the Federation of Egyptian Chambers of Commerce in strategic partnership with the Information Technology Industry Development Agency.
Held under the theme “Empowering Competencies, Developing Investments,” the event brought together government representatives, technology companies, investors, entrepreneurs, startups and academic institutions.
Four specialised sessions addressed investment in the IT sector, corporate AI strategies, startup growth and financing, and Egypt's Personal Data Protection Law and its executive regulations.
Networking sessions also connected entrepreneurs with incubators, accelerators and other organisations supporting technology development.
Hindi toured an accompanying exhibition showcasing Egyptian startups and innovators developing AI and digital transformation technologies.
