Ethiopia’s commitment to digitalize the economy

Of late, the UNCTAD’s 2019 Digital Economy Report emphasized that Ethiopia is on the final stage to start and operate the digital platform; and its successful welcoming the technology is highly appreciated. Following this, The Ethiopian Herald has made an exclusive interview with Joy Kategekwa (PhD), Head of the UNCTAD Regional Office for Africa, to discuss the importance of digital economy for development.

According to Kategekwa, digitalization in the economy is a phenomenon that is with us for change. If we look at how we are living in various demonstrations of digitalization and how we are working together, it is obvious that we use technologies to communicate each other; we also use e-payment platforms in financial activities, she emphasized.

Regarding structural transformation, Kategekwa said that Africa has keen interest to support the acceleration of transformation from agriculture to industry which is helpful for value addition, job creation and increasing productivity. As to her, digitalization has paramount importance, not only for democratization process, but also it is important for social and economic development.

In addition, encouraging the current status of Ethiopia in digital economy, she avowed: “Despite there is a huge gap between the under-connected and hyper-digitalized countries, Ethiopia has made an encouraging journey in operating digital economy like other developing countries.”

For instance, the effort towards building ICT Parks and the support for local and foreign software developers can be a manifestation for the commitment of Ethiopia’s government and its journey to join countries that are operating e-commerce platform, she stated. She has also appreciated Ethiopia’s keen interest to welcome the technologies for the development of its economy.

On the other hand, Kategekwa has pointed out the areas of work to be done by the Ethiopian government for better digital technology advancement. As to her, providing full infrastructure, increasing entrepreneurial spirit on digital technology among the society, and allocating adequate finance for the sector are amongst the weaknesses that have to be improved.

As to her, UNCTAD is also involving in supporting the progress of Ethiopia to be engaged in digital platform through filling the gap with policy and strategy, putting findings and recommendations at the hand of taking rapid E-Trade readiness assessment and knowledge transferring mechanisms.

As World Trade Organization (WTO) is an umbrella and critical process signal for the world, Ethiopia’s performance is highly appreciated especially in terms of the level of readiness that the country currently has. And UNCTAD is making different technical support for African countries to join WTO.

Adding to the point, African Free Trade Area (AfCFTA) is a modern developmental blue print for trade integration in Africa. It basically means that Africa should not be discriminated between and among each other, except the preference of that country.

Accordingly, Ethiopia has also the policy dispensation of Article 24 of the general agreement on tariff and trade and Article 5 of the general agreement on trade and services which allow countries which are negotiating a free-trade area or customs union to have an interim agreement on trade tariffs for a period of ten years. Therefore, Ethiopia is a unique place to do it right which is to mean learning by doing, she avowed.

As AfCFTA is a smaller market certainly compared to the broader global multilateral trading system. In this mini market, countries can better test their capacity to make standards, to meet signatory condition and to meet the obligation from market access in Africa to increase capacity for better quality and establish system for better free trade in Africa.

Although Ethiopia has entered to the system with full commitment in selling more values and products, it has needed to be envisioned as a country on equal footing with the rest of the world.

Kategekwa also discussed on the UNCTAD’s effort for empowering women in this sector. Accordingly, there remains a considerable gender digital divide in terms of the use of information and communications technologies (ICTs), of women participation as workers and entrepreneurs in the ICT sector as well as women enrollment in education related to digital technologies.

“In order to advance the empowerment of women through ICTs, countries used to focus on ways to enhance the involvement of women e-commerce leaders in the policy-making processes at the national, regional and global levels. Perhaps, Ethiopia will increase women empowerment for the future” she noted. The good news for Africa is, according to the report, it has exhaustive engagement in applying the digital technology, she added.

According to Kategekwa, if each African countries can highly collaborate and work together in regulating significant policies in digital technology. There will be an absolute change across the continent in connection with e-services.

The Ethiopian Herald September 14, 2019

 BY HIZKEL HAILU

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