By Ebi Kesiena
Ethiopia’s digital economy is projected to contribute over 1.3 trillion Ethiopian birr (about $10.8 billion) to the country’s GDP by 2028, according to a report by the Global System for Mobile Communications (GSMA).
The report, released in Addis Ababa, stressed the impact of Ethiopia’s telecom reforms and investments in mobile technology on key sectors such as agriculture, manufacturing, and public services. It projects that these advancements will create over one million new jobs and generate an additional $475 million in tax revenues by 2028.
Ethiopia’s telecom reforms, part of a home-grown economic program, had already contributed over $5.8 billion to GDP by 2023. The expansion of 4G coverage and the 65% growth in mobile internet connections have been driven by major telecom players, Ethio-telecom and Safaricom Ethiopia, through increased competition and improved mobile access.
However, challenges remain as Ethiopia has extensive 2G and 3G coverage, while 4G coverage is still limited. The GSMA report points out key issues, such as the affordability of devices, lack of locally relevant content, and low digital literacy among consumers.
By 2028, over 50 million Ethiopians are expected to be connected to mobile internet, nearly doubling current figures. Increased connectivity is anticipated to drive growth in sectors like agriculture and manufacturing, contributing an estimated $1.17 billion and $950 million respectively.
Despite these gains, the report notes that 76% of the population remains offline despite living within mobile coverage, with a significant gender gap of 40% in mobile internet use. Addressing these disparities through targeted policy reforms could significantly boost digital adoption.
Additionally, the report also emphasizes the crucial role of mobile money in financial inclusion, with 90 million registered accounts and 70% penetration. Recommendations include improving service and device affordability and accelerating telecom reforms to unlock the full potential of Ethiopia’s digital economy.
