Technological advancement is becoming the most determinant on socio-economic activities. For most countries, digital economy driven by technological revolution has become key agenda to transform their economic structure.
Digitalization has been growing with breakneck speed and becoming dominant on world’s economic activity. The technological advancement has reached on fourth technological revolution. Subsequently, nations become alert to employ digital economy since it lessens costs obsessed by manual based economy.
United Nation Conference on Trade and Development reported this year that platform centered business played prominent role on data driven global economy. According to the report “The combined value of the platform companies with a market capitalization of more than $100 million was estimated at more than $7 trillion in 2017 – 67 percent higher than in 2015”.
Even countries with less technological advancement are recently designing policies and strategies to make their transactions, logistics, taxation and other economic key tools practiced through digitalization, as to the report.
Ethiopia has also kept eyes on building digital institutions at a time when digital economy is dominating world’s market. Last year, Ministry of Innovation drafted an electronic transaction proclamation and started digitalizing the nation’s economy for global competence.
It was reported that the proclamation which comprises soft currency service usage and aims to manage the all-digital economic activities will applied soon.
Of course, Digital economic activities are on practice since years before by banks, tele communication, transport and other some companies. However, firms are not able to reach as expected because of limited technological infrastructures, less local and global platforms, and absence of law enforcements.
Recently, Ethiopian government reported that the government is more likely to practice digital economic platform. Last week, Ethiopia and world’s biggest e-commerce based company, Alibaba visited Addis Ababa and signed memorandum of understanding to open hub of e-commerce, eWTP (Electronic world trade platform) which estimated to boost electronic commerce and Ethiopia become the second African destination next to Rwanda.
Ethiopian Prime Minister Abiy Ahmed also held discussion with president of Alibaba Group Jack Ma on the way of boosting digital market in Ethiopia.
During the discussion with Alibaba last Nov. 25, Dr.Abiy stressed that his government is highly alert to adopt digital commerce and agreed with Jack Ma to build computing and electronic commercial hub which aims at making Ethiopia center of digital commerce. The hub is also foresees to expand experience and job creation. He also twitted that Jack Ma has a desire to make Ethiopia a bridge between China and Africa. To him, Ethiopia is striving to boost its cross border trade and digital economy via e-commerce.
Dr.Ing. Getahun Mekuria, Minister of Innovation told media during the signing of MoU with Alibaba Group that Ethiopia is on the way of digitalizing its economy and striving to create competence digital based institution. Thus, the signing between Ethiopia and Alibaba is one showcase for Ethiopian future on digital market.
The Ethiopian Herald November29, 2019
BY YESUF ENDRIS
