With about 10 million people already registered, the Fayda Digital Id is becoming a vibrant facilitator of the digital economic growth activity in the country. Now that the government has started a month long campaign to extend about a million digital ids in Addis Ababa alone the initiative is expected to boost the growth of not only the digital economy but also the overall economic and social development as it serves as a common platform for many sectors.
Digital identification of citizens is a vital step in ensuring multiple benefits of citizens in economic and social development as well as respecting human rights and good governance.
The modern world is undergoing a digital revolution with significant implications for the economic and social fabric. As in the case of previous waves of technological innovation, digital technologies create conditions for the transformation of socio-economic relations. The development of the Internet of
Things (IoT) can make workplaces and transportation systems safer, cities more livable. Broadband networks and online applications are used for communication, shopping, travel and work, as well as to create completely new business models and markets.
In recent years, the digital economy has become a new economic form after the agricultural and industrial economies. Digital technologies, typically represented by the Internet, big data, 5G, artificial intelligence, accelerate the deep integration with industries, bringing the world into the era of digital economy. The digital economy provides numerous benefits, which have contributed to its rapid expansion and positive effect on a variety of industries: Increased productivity. Businesses can improve their productivity and efficiency by using digital technology to automate their operations and processes.
The digital economy is based on electronic goods and services produced by e-commerce, an enterprise with electronic production and management processes that interacts with its partners and customers and conducts transactions via the Internet and networked communication technologies. With a growing population and a mobilization of resources, the digital economy is not limited to commerce and services that touch all aspects of life, from healthcare to education, from business to banking.
One of the basic needs of human beings is housing. But at this moment extending the opportunity for housing is very difficult due to the high price of construction and materials. Therefore governments like that of Ethiopia enter in to schemes of distributing low cost houses for registered residents.
However at a time when there is no system of registering and identifying citizens in a regular and uniform system will create troubles as many people may attempt to engage in fraud so as to benefit from this meager opportunity. IF people are able to have multiple registrations of identity documents, it would be easier for them to do misconducts like fraud.
The digital identification of citizens can guarantee smooth and relatively flawless distribution of such resources to the citizens who need it the most.
The other vital intervention of digital economy in the overall economic and social development of a country like Ethiopia is the immense role it plays in speeding up financial inclusion. It is known that vast majority of the country’s population lacks access to financial inclusion. As a result many people remain at bay from the finance and economic development of the country.
One of the main reasons for the failure to expand financial inclusion of the citizens is the inability to spread financial institutions and their infrastructure to all corners and homesteads across the nation. In this regard the digital system especially the digital identification plays decisive role.
Along with promoting digital payment system, the digital id system as well as the overall digital infrastructure pave the way for providing financial service access, collateral, data source … etc.
The digital economy can also play a pivotal role in securing people’s rights and ensuring good governance as it can provide a platform where people can get efficient public service, encourage transparency and accountability which in turn eliminates corruption and mal administration.
Ethiopia’s stride in promoting digital economy also falls within this wave of global digital economic trend which lays the foundation for economic and social development that can have far reaching impact in the daily lives of the grassroots.
BY STAFF REPORTER
THE ETHIOPIAN HERALD SATURDAY 12 OCTOBER 2024
