Over the years, Ethiopia has been throwing its full weight behind digitalization. Supported with legal frameworks and included in national development plans, digitalization is taking shape in the country. Similarly, substantial headways have been made in implementing the Digital Ethiopia 2025 Strategy. The government is making extensive efforts to digitalize all sectors and the economy.
Initiatives such as the National ID program, the Mesob One Window Service, and the expansion of digital infrastructure are improving governance, service delivery and shoring up economic activities. Obviously, digitalization is not only about catalyzing technological transfer, it is also about laying the foundation to modernize and unlock the country’s economic potential.
The National ID program, also known as the Fayda Project, oils the wheels and paves the ways for a digital future. Providing each citizen with a unique and verifiable digital identity, it streamlines access to public and private services, ensures targeted delivery of social protection, and strengthens security and accountability. With more than 14 million individuals currently enrolled, the country’s digital governance is making rapid progress.
On one hand, the national ID catalyzes digital financial services, e-government applications, and national planning, reduces fraud and duplication while enhancing efficiency and transparency. On the other hand, the recently inaugurated Mesob One Window Service is also expected to expedite the process of digital transformation by integrating multiple government services into a unified digital platform. The service will simplify access to essential services such as land registration, business licensing, tax services and investment approvals. This reform reduces bureaucracy, eliminates redundancies, minimizes opportunities for corruption, and significantly cuts down on time and costs for citizens and businesses alike. It symbolizes a shift in governance from a paper-based, fragmented bureaucracy to a streamlined, citizen-focused digital administration.
Fast-tracking the digitalization process are Ethio telecom and Safaricom. These public and private enterprises have been instrumental in expanding mobile connectivity and internet access across the country. Ethio elecom alone has launched 4G networks in dozens of towns and is piloting 5G services in urban centers. Together, both telecom providers are increasing digital inclusion, driving competition, and helping bring affordable services to millions. According to the Ministry of Innovation and Technology, this improved connectivity has contributed to increased mobile usage and deeper internet penetration nationwide.
Ethio telecom CEO Frehiwot Tamiru in a recent panel discussion said that digital infrastructure is becoming a powerful driver of economic growth. Digital financial platforms, particularly telebirr and CBEBirr, are revolutionizing how people transact, save and access services. These platforms have collectively processed nearly 800 billion Birr in transactions in a year.
Currently, telebirr alone has over 51 million subscribers and processed over 1 trillion Birr in transactions in a single half-year. This growing trend has far-reaching implication beyond technological success. It opens a new phase in financial inclusion, reducing dependency on cash and lowering currency printing costs. Consequently, these tools empower rural populations, women, and youth by enabling them to participate more actively in the economy.
However, as Frehiwot said the path towards digitalization is far from over and that deeper digital penetration, particularly in rural areas, is critical to achieving inclusive development.
With national vision, increasing private sector engagement, and a rapidly growing digitally connected population, the country is well-positioned to accomplish broad-based and inclusive national development.
Ethiopia’s digital journey is well underway, marked by bold reforms, strategic investments, and tangible progress across key sectors. The synergy between government initiatives and private sector engagement is accelerating this transformation, expanding access and opportunity for millions. While challenges remain—particularly in reaching underserved rural communities—the foundations for a robust digital economy are being firmly laid. With sustained commitment and inclusive strategies, digitalization will continue to be a powerful lever for national development and socioeconomic empowerment.
THE ETHIOPIAN HERALD FRIDAY 27 JUNE 2025
