Ethiopia has taken significant steps to bolster its digital economy by implementing policies that encourage innovation and entrepreneurship, investing in digital infrastructure, and improving the regulatory environment to support e-commerce and digital trade.
Under the ambitious “Digital Ethiopia 2025” initiative, Ethiopia aims to leverage digital opportunities and transition towards a knowledge-based, innovative economy. This strategy has attracted both national and international private sector investments, particularly in digital solutions to meet the needs of the country’s expanding market. Some of these partnerships are expected to benefit society by driving a digital revolution.
As part of its strategy, several foreign companies have entered the Ethiopian market, offering their services through fair competition. Recently, Alibaba, one of the world’s leading retail platforms, launched operations in Ethiopia. Innovation and Technology State Minister Yesherun Alemayehu (PhD) highlighted that the strategic partnership with Ali Express demonstrates Ethiopia’s potential and readiness to be a significant player in the global digital economy.
The Ministry of Innovation and Technology (MiNT) has been working diligently to transform Ethiopia into a tech-driven, innovation-led society. From developing the National Digital Economy Strategy to expanding e-government services, the ministry’s efforts align with the needs of a modern digital economy. The collaboration with Alibaba Group is expected to open new opportunities for Ethiopian SMEs, enabling them to participate in global trade.
With the launch of an e-commerce hub, Ethiopian Airlines has positioned Ethiopia as a focal point for digital trade, facilitating efficient and seamless transactions that connect the country to the world. The Airlines has set a new standard for e-commerce infrastructure in Africa, aligning perfectly with Ethiopia’s national vision of empowering the private sector and fostering an enabling environment for e-commerce to thrive.
Digital Transformation Ethiopia Association (DTEA) Deputy President Bahiru Zeyenu noted that the country is making strides in its digital transformation journey. The growth of e-commerce services, a critical part of the digital economy, will help ensure an inclusive digital system. He emphasized that the launch of Alibaba’s Ali Express, utilizing Ethiopian Airlines as the main logistics hub, marks a significant step forward. Additionally, with existing e-commerce and e-government services, new international platforms like Ali Express will pave the way for increased investment.
The introduction of these platforms will boost productivity and offer consumers more choices and higher-quality products due to competition among business providers. “A digital economy cannot be built without including rural areas. Experiences from other countries, such as China, show the importance of modernizing rural areas with adequate infrastructure,” Bahiru added.
He also pointed out that without reliable electricity and internet access, it is impossible to implement e-commerce services effectively. Therefore, the government needs to identify priority areas for infrastructure development to make e-commerce accessible to the public and connect Ethiopia to the global market. Alongside infrastructure development, fundamental changes are needed to make digital infrastructure more accessible.
BY BETELHEM BEDLU
THE ETHIOPIAN HERALD WEDNESDAY 28 AUGUST 2024
