Digital Ethiopia 2025: Move towards bright future

The UN Sustainable Development Goal (SDG) 16.9, advocates providing a legal identity for everyone by 2030.Ahead of the International Identity Day celebration that slated for 16 September 2024,Ethiopiahas held a webinar seriesin which itshared its digital transformation experiencesto the international community focusing on advancing service delivery through expanding digital IDs.

As part of the SDG 16.9International Identity Day movement, the webinar discussed significances of digital IDs, public infrastructure and governance. Ethiopia’s digital governance strategy positions digital ID system as a crucial element for improved service delivery, increased transparency, and enhanced citizens’ participation in various social and political issues.

With a vision of transforming Ethiopia into a digital powerhouse by 2025, the Ministry of Innovation and Technologyis takinginitiatives to push towards a digital future. One of the most ambitious projects under its umbrella programs is the five million coders’ initiative, which aims to equip students and workers with basic digital skills.

The initiative, which offers short training opportunities, is part of the broader Digital Ethiopia 2025 strategy designed to foster a digital economy, improve transparency, and enhance the efficiency of government and business operations, as stated by Ministry of Innovation.

The five million coders’ initiative is being implemented with the support of the Government of the United Arab Emirates. It draws inspiration from the One Million Arab Coders program, an initiative launched by Sheikh Mohammed Bin Rashid Al Maktoum in 2017 at the World Economic Forum. As reported by the Ministry of Innovation, over 150,000 participants have already enrolled in the program, with many more expected to join in the coming months. The program, which runs over three years, promises international certification for participants, opening doors to global job opportunities.

Speaking to local media, Innovation and Technology Minister BeleteMola (PhD) highlighted the importance of aligning Ethiopia’s policies and strategies with global technological trends. “Digitalization is playing a critical role in making governmental and organizational operations transparent and easy to manage,” he noted, stressing the need for skilled professionals to drive these transformations. The Digital Ethiopia 2025 plan is not just about policy; it requires a workforce capable of implementing these ambitious goals. According to the minister, lack of sufficient human capital has been one of the major challenges in realizing the country’s digital transformation, making programs like the five million decoders’ initiative essential.

The initiative primarily targets Ethiopia’s youth, particularly university and high school students, who are often unemployed or underemployed. As the global economy increasingly shifts toward digital platforms, Ethiopian youth must adapt to these changes to remain competitive. Belete emphasized that this program offers an opportunity for young people to gain vital skills that will help them secure jobs in both local and international markets. With the rise of online jobs, digital skills are becoming increasingly essential, and the government is committed to providing these opportunities to as many young people as possible.

Ethio Telecom, the country’s leading telecom operator, is also playing a key role in Ethiopia’s digital transformation. The company has been expanding its services to support the growing digital economy, with a particular focus on financial inclusion through its mobile money platform, Telebirr.

Telebirr has already attracted over 47.55 million users and facilitated transactions worth more than 2.55 trillion Birr as of the 2023/24 fiscal year. By integrating mobile technology into financial transactions, Ethio Telecom has been able to reach underserved communities, providing them with access to essential financial services, according to the company’s official report.

In the 2023/24 fiscal year, the company generated 93.7 billion Birr revenue, with a profit margin of 23.3%. This represents a 47% increase in profit compared to the previous year, defying expectations that competition would erode its market share. According to CEO FrehiwotTamru, the company’s success is due to its strategic planning and diversified portfolio, which includes over 270 products and services, many of which are focused on digital solutions. Ethio Telecom is not only maintaining its market position but also actively contributing to the country’s digital transformation.

As Ethiopia continues its digital journey, both the public and private sectors are playing crucial roles in shaping the future of the country’s economy. The Digital Ethiopia 2025 initiative, along with the efforts of companies like Ethio Telecom, is positioning Ethiopia to compete in the global digital economy. With more training programs and digital services being rolled out, the future of Ethiopia’s digital transformation has already begun founding on digital identity solutions.

BY YESUF ENDRIS

THE ETHIOPIAN HERALD SUNDAY EDITION 15 SEPTEMBER 2024

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