Ethiopia’s digital sector could inject 1.3 trillion birr (around $10.9bn) into the country’s GDP by 2028, according to a new report by the GSMA, the global association for mobile network operators. The Ethiopian Digital Economy Report projects that digital advancements will help create over one million jobs and generate an additional 57 billion birr ($468.7 million) in tax revenue within the next five years.
Transforming key sectors
The report highlights the digital economy’s potential to transform Ethiopia’s agricultural and manufacturing industries, spurring growth in traditionally vital sectors. By 2028, it is anticipated that over 50 million Ethiopians will have mobile internet access, nearly doubling the current connectivity levels. Greater mobile access is expected to drive efficiency in agricultural practices, enhance manufacturing processes, and provide new business opportunities.
Bridging the digital divide
Despite Ethiopia’s efforts to expand digital infrastructure, challenges remain in closing the ‘usage gap.’ While 76 percent of the population lives within network range, they still lack access to mobile internet. The report stresses that focused policies could reduce this figure to 66 percent by 2028, bringing millions more Ethiopians online. This reduction would be a crucial step in ensuring equitable access to digital resources, particularly for rural communities.
Expanding network coverage
Ethiopia has invested heavily in digital infrastructure over the past five years, upgrading from 2G and 3G networks to more advanced 4G and, recently, 5G in Addis Ababa and select regional cities. This focus on expanding connectivity is intended to support the projected growth in Ethiopia’s digital economy and help it become a significant contributor to the nation’s overall economic development.
With ambitious projections for economic impact, job creation, and increased tax revenue, Ethiopia’s digital sector is positioned as a cornerstone of the country’s future economic strategy.
Credit: Africabriefing
