07 November 2024
Ethio Telecom and the GSMA have concluded in their report, ‘Driving Digital Transformation of the Economy in Ethiopia: Opportunities, Policy Reforms and the Role of Mobile,’ that Ethiopia’s digital economy could generate ETB 1.3 trillion as a contribution to GDP by 2028.
This joint report on the country's digital transformation believes that such performance can be achieved through investments in mobile technologies and ongoing reforms in telecommunications, which will boost key areas such as public services, agriculture and manufacturing.
Advances that can also generate ETB 57 billion in tax revenues and more than 1 million new jobs. As an illustration, the report mentions the ETB 57 billion in tax revenues and the contribution of ETB 700 billion to GDP recorded in 2023, thanks to the reforms launched under the Home-Grown Economic Reform (HGER) program.
The coverage rate of mobile internet connections has increased by 65%, while that of 4G has multiplied by 8, thanks to significant investments by 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 ETB 114 billion to the manufacturing industry, ETB 140 billion to agriculture, and to boost growth in many 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 detriment of women. The GSMA recommends measures to make devices more affordable and mobile services more accessible, accelerate reforms and promote mobile money. Ethiopia sees digitalisation as important to its Vision 2025, including bringing new economic opportunities and improving 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 for millions of people,” said Angela Wamola, GSMA Director for sub-Saharan Africa.
