(Ecofin Agency) – As Africa becomes increasingly digital, Ethiopia has interesting prospects for its digital economy which is expected to grow substantially by analysts, with a consequent beneficial impact on its GDP.
The public operator Ethio Telecom and the GSMA (Global Association of Telephone Operators) concluded in their report “Driving Digital Transformation of the Economy in Ethiopia: Opportunities, Policy Reforms and the Role of Mobile”, that the digital economy of Ethiopia could generate 1,300 billion ETB (around $10.8 billion) as a contribution to GDP by 2028.
This joint report on the country’s digital transformation estimates that such performance can be achieved through investments in mobile technologies and ongoing reforms in telecommunications, enough to boost key areas such as public services, agriculture as well as the manufacturing industry.
Advances which can also generate 57 billion ETB in tax revenue and more than 1 million new jobs. As an illustration, the report mentions the ETB 57 billion in tax revenue and the contribution of ETB 700 billion to GDP recorded in 2023, thanks to the reforms launched as part of the Home-Grown Economic Reform (HGER) program.
The coverage rate of mobile Internet connections increased by 65%, while that of 4G increased eightfold, thanks to significant investments from Ethio Telecom and Safaricom Ethiopia, but also increased competition. At this rate, the GSM Association predicts mobile connection for 50 million Ethiopians by 2028, enough to bring in 114 billion ETB to the manufacturing industry, 140 billion ETB to agriculture, and boost growth in many areas. other sectors.
The report nevertheless mentions significant obstacles to the popularization of digital technologies in Ethiopia. 76% of the population still does not use mobile Internet, with a disparity of 40% to the disadvantage of women, relays We Are Tech Africa which states that “ Closing this gap is essential to ensure widespread digital inclusion ».
The GSMA recommends measures to make devices more affordable and mobile services more accessible, the acceleration of reforms and the promotion of mobile money. Ethiopia considers digitalization important for its Vision 2025 plan, notably seeing it bring new economic opportunities and improve productivity.
« Ethiopia is well positioned to be a digital leader in East Africa. Through strategic reforms and improved access to digital tools and services, the country can unlock unprecedented economic and social opportunities, benefiting millions of people” says GSMA Director for Sub-Saharan Africa, Angela Wamola.
