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

Addis Ababa  October 24/2024 (ENA) Ethiopia's digital economy could contribute 1.3 trillion Birr to the country's GDP by the year 2028, a GSMA report has projected. 

GSMA, a global organization representing the interests of mobile operators, in partnership with ethio telecom, officially launched the report titled "Driving Digital Transformation Economy in Ethiopia" in a telecom stakeholders event in Addis Ababa today.

The report essentially attributed the progress to government's digitization drive, reforms in telecom sector, and mobile technologies.    

Ethiopia's mobile money services have played a pivotal role in financial inclusion, with over 90 million registered accounts in June and a penetration rate of 70 percent, the report found out, and added, this has contributed to the financial inclusion of more than 50% of the Ethiopian population.

According to the report, mobile connections have been a significant driver of Ethiopia's economic growth, contributing 10% to GDP over the past five years. This makes Ethiopia the second-highest country in Africa in terms of mobile contribution to GDP, after Nigeria. 

Furthermore, the digital economy is expected to create over 1 million new jobs and generate an additional 57 billion Birr in tax revenues by 2028, it has projected. 

Noting that digital technologies are catalyzing growth in key sectors such as agriculture and manufacturing, the report stated that agriculture is projected to benefit by 140 billion Birr, while manufacturing is expected to contribute 114 billion Birr by 2028. 

Despite significant progress, a substantial usage gap persists, with 76% of the population still not using mobile internet. Bridging this gap, particularly the 40% gender disparity in mobile internet use, is crucial for Ethiopia's digital future.

The GSMA outlines several critical policy recommendations to fully harness the potential of digitalization in Ethiopia, including prioritizing service affordability, fast-tracking telecom reforms, improving device affordability, and boosting digital skills and government services.

Digitalization is key to advancing Ethiopia's Vision 2025. By leveraging mobile technologies, the country can boost productivity in various sectors, create new opportunities, and improve the lives of its citizens, the report stated.

Ethio telecom and Safaricom Ethiopia, have been instrumental in driving this growth through expanded mobile internet access and increased competition in the telecom market, it was learned.