A look into Egypt’s local router manufacturing industry

Egypt’s first locally manufactured routers are on the way: In a step to bolster the country’s local manufacturing capabilities and connectivity, the Information Technology Industry Development Agency (ITIDA) signed contracts with Telecom Egypt and three private companies to design and develop locally made high-speed internet routers last March. “We aim to thoroughly localize the electronics industry to achieve self-sufficiency in the local market, boosting the export of Egyptian electronic products on a global scale,” CIT Minister Amr Talaat said at the time.

The players involved: The private sector companies included El Sewedy Electrometer, ElAraby Group, local electro-medical and electronic equipment manufacturer BioBusiness, and fiber optic cabling solutions manufacturer HitekNOFAL OPTIX.

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But not all of the companies may end up actually producing routers: Designs for the routers are expected to be finalized by January 2025. From the three companies presenting, one of the designs will be chosen as the winner — with possibility of more than one being chosen if multiple companies present suitable designs.

We should see locally made routers from Telecom Egypt in the market around 3Q 2025: The winning company will be given a three-month grace period after completing the design to sign the official agreement and finalize the initial quantities and production stage, a government source told Enterprise. Under the agreement, the winning company will deliver the first batch of routers to Telecom Egypt within six months of the contract signing.

It’s all part of a larger plan: The router manufacturing plan is part of the government’s Egypt Makes Electronics initiative, which aims to deepen local manufacturing and reduce imports of electronic products. Since 2015, the CIT Ministry has been working to localize the country’s electronics manufacturing industry under the initiative with an initial focus on mobile phones, tablets, GPS tracking devices, LED lighting, smart meters, LED TVs and displays, and solar energy systems.

There’s a big market for routers in Egypt: As of January 2024, Egypt had 82 mn internet users, representing a penetration rate of 72.2%, some 45.4 mn social media users and over 110 mn mobile phone users — accounting for 97.3% of the population— according to DataReportal.