Over the past seven years of reform, Ethiopia has made significant strides in transforming its technology and digital sectors, establishing them as key components of the nation’s economy. Prime Minister Abiy Ahmed highlighted this progress, noting milestones such as the launch of the first Ethiopian satellite, ETRRS-1, in 2019, the introduction of the Digital Ethiopia 2025 strategy, and the liberalization of the telecom sector.
Key achievements include the development of infrastructure, policy revisions that foster a conducive environment for tech growth, and the establishment of institutions like the Ethiopian Artificial Intelligence Institute (EAII). These initiatives have collectively enhanced Ethiopia’s innovation, digitalization, and entrepreneurial landscape.
The introduction of the National ID (Fayda), the 5 Million Ethio Coders initiative, and the Mesob One-Stop Service Center, along with substantial infrastructure investments, have further accelerated the nation’s digital transformation. According to Prime Minister Abiy, these national initiatives have revolutionized Ethiopia’s digital sector, facilitating rapid advancements in digital transactions.
In an interview with local media, Prime Minister Abiy emphasized that technology and the digital sector are vital for the nation’s economic growth. He stated that Ethiopia prioritizes technological development to achieve prosperity and has invested significantly in creating favorable conditions for the tech landscape by revising existing policies and implementing new strategies.
Highlighting the remarkable growth of the digital sector over the past five years, Prime Minister Abiy noted that the Digital Ethiopia 2025 Strategy has been pivotal. He affirmed that the strategy has met its objectives and announced plans for a new five-year digital transformation initiative, the Digital Ethiopia 2030 strategy, which aims to further position the digital sector as the backbone of the economy.
Launched in June 2020, the Digital Ethiopia 2025 Strategy was designed to foster an inclusive digital economy by mobilizing key stakeholders to address challenges and enhance Ethiopia’s standing in regional and global value chains. This strategy has successfully driven improvements across all dimensions of Ethiopia’s digital development.
Prime Minister Abiy also pointed out that technology is increasingly integrated across various sectors, including industry, agriculture, civil service, law enforcement, and media. Before the reforms, the implementation of technology in these areas was minimal. The strategic shift towards technological advancement has introduced a new tradition of innovation.
As a result of these reforms, Ethiopia has successfully integrated technology into its economic development, creating a favorable ecosystem for realizing a digital economy. Despite these achievements, the Prime Minister emphasized the need to maintain momentum to keep pace with global technological advancements.
The Development of AI in Ethiopia
According to Prime Minister Abiy, Artificial Intelligence (AI) has shown revolutionary growth in Ethiopia in recent years. He noted that Ethiopia was an early adopter of AI technologies, aiming to avoid the historical trend of lagging behind in global technological advancements. The government has prioritized AI, establishing the Ethiopian Artificial Intelligence Institute (EAII) five years ago. The EAII is now recognized as a leading institution in Africa, poised to become a prominent African entity akin to Ethiopian Airlines and Ethio Telecom.
Ethiopia’s early investment in AI has allowed the nation to not only reap the benefits of these technologies but also to compete in the sector. Currently, AI education is offered at the PhD level at Addis Ababa University, integrating AI into the educational system. The EAII is developing various applications that impact multiple sectors, including health, education, agriculture, and manufacturing.
Prime Minister Abiy highlighted the development of the “Mela” application, a locally developed system akin to DeepSeek or ChatGPT, which uniquely utilizes local languages and maintains its own data sovereignty. He also announced plans for Ethiopia to host the Africa AI Summit, where over 1,000 SWaP drones will showcase their capabilities, managed entirely by AI.
Fayda National ID
Another recent digital initiative is the National Digital ID (Fayda), which the Prime Minister claims plays a critical role in Ethiopia’s economic development. According to a World Bank report, the National ID could contribute between 3% and 11% to national GDP by reducing fraud, enhancing trust, and improving efficiency. Prime Minister Abiy emphasized Fayda’s importance as a digital signature in economic planning, income generation, and trade.
Currently, over 15 million citizens possess the Fayda National ID, with a goal to reach 20 million by September 2025. By the end of next year, the government aims to expand this to 70 million citizens, ultimately envisioning that every citizen will be identified through the national digital ID within the next two to three years. The Prime Minister urged all citizens to obtain their Fayda ID, highlighting its significance in various sectors.
Artificial Intelligence (AI) has evolved significantly over the past several decades, transitioning from theoretical concepts to practical applications that impact various aspects of daily life. Today, AI refers to technology that enables machines to simulate human-like learning, comprehension, problem-solving, and decision-making abilities. This includes tasks such as recognizing objects, understanding language, and making autonomous decisions, as seen in self-driving cars.
A major focus in AI today is generative AI, which can create original content like text, images, and videos. This technology relies heavily on machine learning and deep learning techniques, allowing systems to generate new outputs based on learned patterns from vast datasets. Additionally, AI agents are autonomous programs capable of performing tasks and achieving goals without human intervention. These agents adapt to changing circumstances and are increasingly integrated into various applications, enhancing functionality and efficiency.
AI is transforming sectors such as healthcare, finance, education, and transportation by automating repetitive tasks, improving decision-making processes, and enhancing data analysis accuracy. For instance, AI-powered chatbots provide customer support, while machine learning algorithms detect fraudulent transactions.
The concept of AI dates back to ancient philosophy, but significant advancements began in the mid-20th century. Key milestones include Alan Turing’s proposal of the Turing Test in 1950 to measure machine intelligence and the coining of the term “artificial intelligence” at a Dartmouth College conference in 1956. The late 1950s to the 1970s saw rapid growth in AI research, including the development of early neural networks and expert systems. However, periods known as “AI winters” occurred when funding and interest waned due to unmet expectations.
The 2000s marked a resurgence in AI, driven by advances in computational power, the availability of large datasets, and breakthroughs in machine learning techniques, particularly deep learning. This resurgence has led to the widespread adoption of AI technologies in everyday applications.
As AI continues to advance, it raises significant ethical and societal concerns. Issues such as data privacy, algorithmic bias, and the potential for job displacement are critical topics of discussion among researchers and policymakers. The concentration of AI development within a few large tech companies also raises questions about accountability and the equitable distribution of AI benefits.
In conclusion, AI today is characterized by its ability to learn and adapt, with applications that enhance efficiency and decision-making across various industries. As generative AI and autonomous agents become more prevalent, the ongoing dialogue about the ethical implications of these technologies will be crucial in shaping their future development.
BY DARGIE KAHSAY
THE ETHIOPIAN HERALD FRIDAY16 MAY 2025
