Ethiopia’s digital economy could increase GDP by more than ETB 1.3 trillion by 2028, according to a new analysis by the GSMA titled “Driving Digital Transformation of the Economy in Ethiopia.” The report highlights how telecom reforms and investments in mobile technology are promoting growth in key sectors like manufacturing, public services, and agriculture.
It is projected that these improvements will result in more than 1 million new employment and an additional ETB 57 billion in tax revenues by 2028. In addition to highlighting the country’s noteworthy developments in smartphone use and mobile connections, the report offers a clear road map for optimising these advantages for the benefit of its citizens. To achieve these objectives, however, reforms and concrete action would be required. Setting the Standard for Digital Development in Ethiopia The paper claims that under the Home-Grown Economic Reform (HGER) program, Ethiopia has made notable progress in its telecom reforms.
The sector produced ETB 57 billion in tax revenues and ETB 700 billion in GDP by 2023. 4G coverage has increased eightfold, and mobile internet connections have increased by 65%. Due to heightened competition in the telecom industry and greater mobile internet access, major operators Ethio Telecom and Safaricom Ethiopia have played a significant role in propelling this expansion. Important Results and Economic Effects The survey estimates that more than 50 million Ethiopians would have mobile internet access by 2028, which is almost twice as many as there are now. By 2028, improved connection will propel growth in industries including manufacturing, which will contribute ETB 114 billion, and agriculture, which will add ETB 140 billion. Despite living within network coverage, 76% of people still do not use mobile internet, indicating a significant utilisation gap.
Closing this disparity, particularly the 40% gender gap in mobile internet use, is crucial for Ethiopia’s digital future. With certain policy reforms, this gap might narrow to 66% by 2028, bringing millions more Ethiopians online. Mobile Money and Financial Inclusion With 90 million registered accounts and a 70% penetration rate, mobile money is one of the primary drivers of financial inclusion. These services will be increasingly important in fostering digital and financial inclusion as they grow, which will further boost the country’s economic development.
Crucial Policy Recommendations to Accelerate Ethiopia’s Digital Transformation The GSMA offers several significant policy recommendations, including prioritising service affordability, accelerating telecom changes, raising device prices, expanding the availability of mobile money services, and enhancing digital literacy and government services.
To research, develop, and deliver innovation that is critical to societal transformation and productive corporate environments, the GSMA is a global organisation that unifies the mobile ecosystem. Our objective is to fully utilise connection to advance individual, corporate, and societal success. As representatives of mobile operators and organisations across the mobile ecosystem and adjacent industries, the GSMA offers its members three key pillars: Connectivity for Good, Industry Services and Solutions, and Outreach. Promoting policy, tackling today’s most important societal concerns, bolstering the technology and interoperability that make mobile possible, and providing the biggest platform globally for uniting the mobile ecosystem are all part of the MWC and M360 series of events.