Ethiopia’s digital economy is projected to significantly boost the nation’s GDP, contributing approximately US$10.8 billion by 2028, as highlighted in a report released by Ethio Telecom and the GSMA (Global System for Mobile Communications Association). This report is titled “Driving Digital Transformation of the Economy in Ethiopia: Opportunities, Policy Reforms, and the Role of Mobile.”
The findings emphasize that investments in mobile technology and improvements in telecommunications can greatly benefit key sectors such as public services, agriculture, and manufacturing. Furthermore, the report anticipates these advancements could result in a tax revenue increase of US$475 million and create over one million new jobs. In 2023, the Home-Grown Economic Reform (HGER) program successfully generated US$475 million in tax revenue and added US$5,8 billion to the GDP.
Mobile internet access has seen remarkable growth, with coverage expanding by 65% and 4G connections increasing eightfold. This growth is attributed to substantial investments from Ethio Telecom and Safaricom Ethiopia, alongside intensified competition in the market. If this trend continues, the GSMA forecasts that by 2028, around 50 million Ethiopians will be connected to mobile networks. This surge could produce an additional US$950 million for the manufacturing sector and US$1,1 billion for agriculture, promoting further economic expansion.
However, the report also points out significant obstacles to Ethiopia’s broader adoption of digital technology. According to We Are Tech Africa, a startling 76% of the population remains offline, with a notable 40% gap affecting women’s access to mobile internet—addressing this disparity is essential for achieving true digital inclusion.
The GSMA proposes key strategies to tackle these challenges, including making devices more affordable, enhancing service accessibility, accelerating policy reforms, and promoting mobile money solutions. Ethiopia recognizes that digitalization is a cornerstone of its Vision 2025 strategy, viewing it as an avenue to generate new economic opportunities and enhance productivity.
Angela Wamola, GSMA’s director for Sub-Saharan Africa, expresses optimism about Ethiopia’s potential to emerge as a digital leader in East Africa. By implementing effective reforms and increasing access to digital tools and services, Ethiopia can unlock unprecedented economic and social opportunities for millions of its citizens.
