Ethiopia, a country rich in history and cultural heritage, is now embarking on a transformative journey towards a digital future. With a population exceeding 115 million people and a rapidly growing economy, Ethiopia recognizes the immense potential of digital technologies in driving economic growth, enhancing productivity, and improving the lives of its citizens. In this article, it is important to delve into the concept of a digital Ethiopia and explore its significance in shaping the country’s economy.
One of the key pillars of building a digital Ethiopia is the development of robust digital infrastructure. The government has been investing significantly in expanding access to the internet, improving connectivity, and building a reliable telecommunications network across the country. Initiatives such as the National Broadband Plan and the expansion of fiber-optic networks are laying the groundwork for a digitally connected nation.
Ethiopia has witnessed a dramatic increase in mobile penetration in recent years. The proliferation of smart phones and affordable data plans has opened up new avenues for e-commerce, online banking, and digital services. With a population that is predominantly young and tech-savvy, the rise of digital platforms and mobile applications is revolutionizing the way Ethiopians access goods and services, conduct transactions, and engage with businesses.
E-commerce platforms are emerging as powerful drivers of economic growth, enabling small and medium-sized enterprises (SMEs) to reach a broader consumer base beyond traditional brick-and-mortar stores. By leveraging digital platforms, entrepreneurs can expand their businesses, create employment opportunities, and contribute to the overall economic development of the nation.
Digital financial services are playing a pivotal role in promoting financial inclusion and empowering the unbanked population in Ethiopia. Mobile money solutions, such as M-Pesa, have gained traction, allowing individuals to send and receive money, access credit, and make payments using their mobile phones. This is particularly crucial in rural areas where access to traditional banking services is limited.
By providing convenient and secure financial services, digital technologies are making it easier for individuals, households, and businesses to participate in the formal economy. This fosters entrepreneurship, enhances savings and investment, and contributes to poverty reduction and inclusive growth.
To fully harness the potential of a digital Ethiopia, investment in digital skills and innovation is of paramount importance. The government, in collaboration with educational institutions and private sector partners, is working towards equipping the youth with the necessary digital literacy and technical skills. Initiatives such as coding boot camps, online learning platforms, and technology incubators are nurturing a generation of innovators, entrepreneurs, and tech professionals.
Furthermore, fostering a culture of innovation and entrepreneurship is vital to drive technological advancements and create a favorable environment for startups. By supporting homegrown talent and promoting research and development, Ethiopia can foster digital innovation that addresses local challenges and creates exportable solutions, thereby boosting the country’s economic competitiveness on a global scale.
The Ethiopian government has recognized the importance of digital transformation and has implemented various initiatives to facilitate its growth. The Digital Ethiopia 2025 Strategy outlines a comprehensive roadmap to leverage digital technologies across sectors such as agriculture, manufacturing, healthcare, and education. This strategy aims to enhance service delivery, improve efficiency, and create an enabling environment for digital innovation and entrepreneurship.
Additionally, establishing supportive regulatory frameworks, ensuring data protection, and promoting cyber security are crucial to building trust in the digital ecosystem and attracting investment from both domestic and international players.
As Ethiopia embraces the digital era, the country is poised to unlock significant economic opportunities and improve the lives of its citizens. By investing in digital infrastructure, fostering digital skills, promoting innovation, and implementing supportive policies, Ethiopia can position itself as a regional leader in the digital economy.
MiNT State Minister Yeshurun Alemayehu (PhD) made the above remark yesterday at the panel discussion that was held as part of the Digital Ethiopia Week.
Speaking at the occasion, the state minister mentioned that Digital Ethiopia 2025 is a journey that requires consistent commitment of stakeholders in the domain. “As per to our national Digital Ethiopia strategy 2025, all country wide efforts shall be geared towards addressing the key pillar issues of the infrastructure, enabling interactive systems and the overall ecosystems as per the stated targets and global standard.”
According to him, the aspiration can only be achieved and converted to measurable output items if they are accompanied by continuous effort. In this regard, the government of Ethiopia has been continuously working on variety of sources like ICT and telecommunication infrastructure expansion, e-government &e-commerce development, national ID, cyber security, among others.
The midterm evaluation of the achievements of Digital Ethiopia 2025 indicated that the process is at a promising stage but a lot is yet to be done to address the demand at national level.
The government is looking for a wider support and contribution from development partners like EU to expand achievements to deliver much more results in this regard, Yeshurun emphasized.
“We have received support from the EU through another channel to develop the national electronic government strategy and the government enterprise architecture. By this project, we have observed that the EU’s support is practical and focuses on actual implementation.”
Moreover, the BEIC project which is implemented by GIZ and financed by EU is one of the exemplary projects that bring tangible results in the areas of automating public private dialogue, electronic consultation, tax collection and trade expansion.
Appreciating the EU and BEIC for their continuous support and longstanding development partnership with Ethiopia, the state minister further noted that the conference would be important to support the digital transformation endeavors of Ethiopia.
The EU Economic Governance Team Leader Ionna Alburesco mentioned that the potential of digital transformation in enhancing businesses, and economic development is significant and should be acknowledged.
“Digitalization has transformed people’s lives, the way they live and interact with businesses and government institutions.”
“Digitalization should be a tool that is accessible to everyone,” she noted, adding that EU is leading to digital transformation especially in developing laws and regulatory frameworks to manage and oversee digital transformation.
Commending the Ethiopian government’s ambitions in the digital transformation path and the Digital Ethiopia strategy 2025, Alburesco said the commitment in the realization those strategies have been demonstrated by different ministries including the MiNT.
“EU has been Ethiopia’s trusted partner in digital transformation and it is committed to support your part in the area. We have been and we will continue to be involved and supportive in this process.
A digital Ethiopia holds the potential to drive economic growth, create employment, enhance financial inclusion, and improve service delivery across various sectors. It is an exciting time for the country as it paves the way for a brighter and more prosperous future powered by digital technologies.
BY LAKACHEW ATINAFU
THE ETHIOPIAN HERALD FRIDAY 15 MARCH 2024
