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Ethiopia: Harnessing Digital Technologies for Sustainable Economic Transformation

Ethiopia is taking a significant leap forward by harnessing the transformative potential of digital technology to drive inclusive growth and sustainable national development.

Particularly with the introduction of the “Digital Ethiopia 2025” strategy, the country is taking decisive steps to capitalize on the opportunities that digital technology presents and ensure that the benefits of digitalization reach all citizens, regardless of geography, income, status or infrastructure disparities.

To achieve this vision, Ethiopia is persistently expanding its digital infrastructure and integrating cutting-edge technologies, laying the foundation for an innovation-driven ecosystem, which is essential to accelerating Ethiopia’s digital transformation ambition.

As a result, Ethiopia’s digital transformation drive is gaining real momentum. It is making bold strides, demonstrating visible progress.

These days, while the total number of people deploying mobile banking and the internet continues to grow steadily, digital payment platforms are experiencing a rapid surge in adoption.

According to the 2024 Africa Telecom 50 Report 2024 by Revenue Magazine, as of 2024, Ethiopia has emerged as the largest telecom market in East Africa, with 87 million mobile subscriptions–accounting for approximately 28 percent of the region’s total of 314.9 million.

Further advancing its digital journey, the government is rolling out the National Digital Identity System, ‘Fayda,’which aims to provide every Ethiopian with a secure and verifiable digital identity. To date, over 14 million citizens have registered, marking a significant milestone in the advancement of Ethiopia’s digital governance.

While presenting his Ministry’s third quarterly report, Innovation and Technology Minister Belete Molla (PhD) also highlighted the notable treads Ethiopia has made over the past nine months in both digital transformation and workforce development.

According to the Minister, a surge in digital financial transactions is significantly boosting Ethiopia’s economic growth, with over 800 billion Birr exchanged through platforms such as Telebirr and CBEbirr in the past nine months.

This achievement, aside from showcasing communities’ commitment to adopt and implement new technologies, it has greater impacts on reducing the costs spent on currency printing, simplifying financial transactions and reinforcing Ethiopia’s digital economy journey.

As for the Minister, the strong collaboration and contributions of the two telecom providers, EthioTelecom and Safaricom, have been instrumental in terms of expanding digital infrastructure and connectivity thereby increasing mobile usage and internet penetration across the country.