Ecommerce Egypt

8/2/2019 Ecommerce Egypt

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Nagwa ElShenawiThe Cabinet Information & Decision Support Center

(IDSC) [email protected]

May 2001

eCommerce in Egypt

INTERNET


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Table of Contents

Profile of Electronic Commerce in

Egypt

Egyptian Electronic CommerceInitiative

Analysis of Barriers of EC in Egypt and

the way forward

Factors affect the diffusion of

Electronic Commerce in Arab world


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Internet/Telecom Environment in Egyptin numbers...

Teledensity in 99/00 11 line/100 person

ISPs in 2001 60

Users 99/00 400k

Total Bandwidth in 2000 4Mbit/s

Source: Ministry of Telecommunication& Information Technology,


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Electronic Commerce Activity in Egypt

B2C

B2B


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Online catalogs

GMC

h d il /


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Phone and email contact /Cash on delivery


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International payment


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EDI Environment

DAMIETTA CASE STUDY

THE PROBLEM

REQUIREMENTS

DSC

Non-EDI environment


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DSC CASE STUDYEDI TECHNICAL SOLUTION

INSIDE THE COMPANY

C

O

M

M

EDI Software

EDI

APPLICATION

INTERFACE

Internet


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Method of communicating business documents

electronically. Documents include purchase orders,

invoices, shipping instructions and notifications.

Used mainly in business to business Electronic

Commerce. Using the Internet as a transfer media.

EDI


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Business Cycle EDI

EDI No Paper Work


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EDI environment

DSC CASE STUDYA SUCCESS STORY

DSC

EDI

OVER INTERNET

EDI environment


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EC Initiative :

National EC committee founded in October1998

All key ministries (Foreign Affairs, Justice,

Economy, Trade,Financeetc

Set up Egypts electronic Commerce initiative.

Launched in Sept. 1999


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EC Progress-To-Date

Legal &

Regulatory

Financial

Market

Access

Government

Role


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Legal & Regulatory Issues

Egyptian EC Law

Technology DevelopmentCommittee

14 Governmental bodies

12 chapters 38 articles

Consumer protection, Taxes, IPR, DSCustoms, contracts, Security

Unicetral, Europe, Japanese


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Financial IssuesGovernment stated aim cash-less society

Issuer & Acquirer

Personalisation

Authorisation

Clearing, settlement,reconciliation

Terminal installation &

Maintenace

Establishment of Smart Card Processing Co.


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Governments Role

Policy

National Plan for ICT

Electronic government

Business Rules


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Access Issues

Telecommunication Infrastructure

Bandwidth Cost

Tele-density Infrastructure


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Barriers to EC in Egypt

Awareness & Education

Social & Psychological

Ecommerce InfrastructureAssociated Cost


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Awareness & Education

Consumer Awareness

Corporate Awareness


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Ecommerce Infrastructure

Lack of a Certificate Authority

Lack of SET Compliance


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Social & Psychological

Resistance to Change

Territorial Behavior

Generation Gap

Language Barriers


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Associated Cost

Individual Spending on IT

Hosting Cost

Website design and

implementation

Internet Access

Computers

Individual spending on IT is $5/year,

while 1000$/year in Switzerland. Per

capita income in Egypt is 1200 $/year,

while $20 k in Switzerland.

Egypt = 60$ USA= $25

$500 - 35 000

$20/month in Egypt , $10/month in USA

In developing Countries is approximatel

10 times more expensive than in USA


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Arab World


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0

50

100

150

200

250

1985 1995 2005

millionusers

Internet Growth


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Tele-density in Arab Countries

(1998)389

245

236

143

95 9286

81

60 5453

0

50

100

150

200

250

300

350

400

Emirates

Bahrain

Algeria

Syria

Jordan

Egypt

Kuwait

Saudi

Arabia

Oman

Morocco

Tunisia

Telephone Line/000

Source : World Bank , Country at a Glance Data


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DNS in Arab Countries

(2000)19718

46404069

2828

612

0

4000

8000

12000

16000

20000

United

Arab

Emirates

Egypt

Kuwait

Saudi

Arabia

Jordan

Source : NW,Internet Domain Survey


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Internet Users in Arab Countries

(1999)7.7

5

3.73.3

1.7

0.6 0.3

0

1

2

3

4

5

6

7

8

UnitedArab

Emirates

Bahrain

QUAR

Kuwait

Oman

Saudi

Arabia

Egypt

% Of Population


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Number of PCs in Arab Countries

106 93

50

2115

9 4 3 2

0

20

40

60

80

100

120

Egypt

Algeria

Morocco

Syria

Source : World Bank , Country at a Glance Data

PC 000

Tunisia


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Factors affecting diffusion of E-BusinessWithin the Arab World

Economic:

Average Income

Cost of using IT

Managerial & Administrative: Lack of Legal Framework

Lack of Financial Institutions

Lack of Consumer Protection Laws


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Factors affecting diffusion of E-Business

Within the Arab World- Contd Infrastructure:

Weakness of Technological Status

Weakness of Communication Network

Socio-Culture :

Illiteracy

Arabic Language

Content Resistance to the Westernization Culture


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Challenging the Barriers of Convertingto E-Business

Role of Government:

Pioneer

Facilitator

Private Sector :

Pioneer

Partner


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Challenging the Barriers of Converting

to E-Business- Contd Role of NGOs:

Support

Development

Role of International Org. :

Providing Expertise

Finance


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SO IS THERE ANYHOPE? !!


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Conclusion

Future...

Hope.. & Work..

Hope ..that tomorrow will be better then

Today..

Ongoing Work to transfer Hope to a Reality


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THANK YOU

[email protected]