Arab Finance: To achieve sustainability development goals, Egypt is working on digitalizing its economy. Digitalization is one of the pillars of Egypt Vision 2030. With this tendency, companies providing digital solutions are becoming vital for the progress of 2030 ambitious goals.

Arab Finance brings you the insights of Hossam R. Elgamal, CEO of IKEN and the Ambassador to Africa at the International Chamber of Commerce’s (ICC) Digital Economy Commission, on IKEN's goals, as well as his thoughts on the digitalization of Egypt and Africa.

1- Can you share with us your journey with IKEN? How did the idea first come about and what made you think this idea would be a success?

We were looking at establishing a new company in the digital transformation and cybersecurity industry, and with my participation in different United Nations and International Chamber of Commerce events, it was clear that Industry 4.0 solutions would serve a broad range of economic sectors. It is the required sector to achieve Egypt Vision 2030 in line with the United Nations’ (UN) sustainable development goals (SDGs) and to preserve the environment, especially in the utilities, manufacturing, and agriculture sectors. Moreover, digital security serving IT and OT needs will be in high demand in the years to come. When assessing the market, it was apparent that it was a blue ocean with many potential needs that require awareness, capacity building, and projects’ feasibility studies but would constitute a sizable market in the next 5 years.

2- What services and new features does IKEN offer? What is your market edge and what differentiates your business?

IKEN is an Industry 4.0 expert and system integrator that provides turnkey industry 4.0 digital transformation projects with clear return on investment (ROI), especially in the manufacturing, utilities, and agriculture sectors. Our edge is our expertise; our integrated vendors, our best practices, our ability to handle large-scale assignments, and our successfully implemented projects with clear outcomes are what make us stand out in the market, in addition to, our digital security expertise in operating technology. Currently, few in the market have hands-on Industry 4.0 solutions with a clear ROI, while many offer IT digital transformation solutions; others provide some automation solutions.

3- How is this in line with the CBE’s financial inclusion and digital transformation goals?

Financial inclusion is an essential strategy in Egypt to improve governance, speed up digital economy transactions, and improve security and privacy. IKEN’s Industry 4.0 solutions are enabling variant economic sectors to become a part of the financial inclusion ecosystem connecting their supply chain to suppliers as well as to buyers. Accordingly, this will raise business intelligence, agility, and quality related to needs, production, and market dynamics. Economic sectors' core business Industry 4.0 digital transformation would support 2030 digital transformation goals, and further would help raise the value proposition, efficiency, quality, and competitiveness of the different economic sectors.

4- Who is your target audience, and how do you aim to build a robust customer base? Are there specific sectors that you target?

Target prospects are all economic sectors with a further medium-term focus on manufacturing, agriculture, and utilities. We partnered with AOI and MOMP to provide them with necessary solutions, in addition, we started and delivered a national initiative in partnership with Ministry of Military Production (MOMP) under the auspices of the Egyptian Prime Minister in 2022 to build the capacity of 1,000 engineers in the I4.0 technologies spreading awareness and ability to assess different factories (public and private) needs and potential ROI.

IKEN is also planning to have more than one event to showcase successful implementations and achieve ROI with the support of our vendors in 2023.

5- As we always like to talk numbers, can you shed light on the company’s performance and growth?

The company has been profitable year after year since its establishment in 2020, and it achieved revenues equal to 10 times its paid-up capital in the first two years. 2022 is expected to be a profitable year, although it is a difficult year for the Egyptian economy.

Besides the day-to-day business, IKEN has planned to establish a factory for semi-smart prepaid Gaz meter in 2023, with an expected annual revenue of almost EGP 1 billion.

IKEN is also planning to establish another factory for electric vehicles, in collaboration with European R&D companies and Egyptian Experts.

6- What are the company’s short and long term goals?

IKEN's short-term goal is to lead Industry 4.0 digital transformation in major economic sectors and achieve fast growth through large national projects.

In the medium-term, IKEN would start manufacturing major components of its solutions in Egypt, and would start marketing its developed solutions in the regional market across Europe, the Middle East, and Africa (EMEA), along with considering joining the Egyptian and international stock markets.

7- As the ICC’s digital economy commission Ambassador to Africa, how and when do you think Egypt can become a 100% digital economy, if ever?

As the Ambassador of the international chamber digital economy commission for Africa, and from what I have assessed regionally and internationally, I believe Egypt is leading in Africa by far on e-government services, digital inclusion, and digital commerce. Industry 4.0 is new worldwide and has been available for only the last 5 to 10 years, and its solutions are the one capable of transforming core economic sectors' businesses and industries (manufacturing, agriculture, utilities, tourism, retail, and many more). In Egypt, we can target having 50 to 70% achievement in manufacturing, utilities, and agriculture by 2030.

8- In terms of Africa, do you think the continent is far behind when it comes to its digital infrastructure? Furthermore, how can it be improved?

Many African countries are not only lagging in digital infrastructure, but also in electricity which is a major factor in digital transformation. Also, most of the locked countries have yet to get better connectivity at an acceptable price, in addition to, national initiatives for capacity building.

In fact, the Industry 4.0 solutions’ ability to achieve a clear ROI for different economic sectors would constitute bankable projects and catalyze the digital transformation strategy in the African countries. IKEN, along with other Egyptian digital transformation integrators, may lead the efforts in Africa, and would need further synergy with the Egyptian government plans and resources related to embracing the continent.

9-Is digitization a double-edged weapon when it comes to cybersecurity or can they both work hand in hand?

More digital transformation means more cybersecurity threats, and for that proper planning of cybersecurity awareness, capacity building, national SOCs, and helping more specialized companies in digital security are extremely important. In fact, I agree that digital security plans should go hand in hand with digital transformation strategy.

10- What can you say to companies that need to improve their digital infrastructure to protect their data?

Digital security is the only way to protect your digital transformation investment and secure your products, services, and data. Any digital transformation project without related digital security is like a retail company with big investments in showroom products without proper security of the store leading to potential shoplifting or destruction of the products.

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