Ethiopia’s Digital Economy to Contribute 1.3 Trillion Birr to GDP by 2028: GSMA Report

Addis ababa: Ethiopia’s digital economy is poised to make a substantial impact on the nation’s GDP, potentially contributing 1.3 trillion Birr by 2028, as projected in a report by GSMA. The report, launched in partnership with ethio telecom at a stakeholders event, highlights the significant role of governmental digitization efforts, telecom sector reforms, and mobile technologies in driving this anticipated growth.

According to Ethiopian News Agency, the GSMA report, titled “Driving Digital Transformation Economy in Ethiopia,” attributes much of the progress to mobile money services, which have enhanced financial inclusion with over 90 million registered accounts as of June. This has resulted in a 70 percent penetration rate, benefiting more than half of the Ethiopian population. Mobile connections have further driven economic growth, contributing 10 percent to GDP over the past five years, placing Ethiopia second in Africa for mobile’s GDP contribution, just behind Nigeria.

The report further projects tha
t the digital economy will create over 1 million new jobs and generate an additional 57 billion Birr in tax revenues by 2028. It also notes that key sectors such as agriculture and manufacturing are expected to see substantial benefits, with agriculture projected to gain 140 billion Birr and manufacturing 114 billion Birr by 2028.

Despite these advancements, a significant gap remains, with 76 percent of the population not yet using mobile internet. Addressing this gap, particularly the 40 percent gender disparity in mobile internet usage, is deemed crucial for the country’s digital future. To fully capitalize on digitalization, the GSMA outlines policy recommendations including making services more affordable, expediting telecom reforms, improving device affordability, and enhancing digital skills and government services.

The report underscores the importance of digitalization in advancing Ethiopia’s Vision 2025, emphasizing that leveraging mobile technologies can enhance productivity, create opportunities,
and improve citizens’ lives. Ethio telecom and Safaricom Ethiopia have played key roles in this growth through expanded mobile internet access and heightened market competition.

Source: Ethiopian News Agency