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Ethiopia’s digital economy to contribute 1.3 trillion Birr to GDP

Ethiopia’s digital economy to contribute 1.3 trillion Birr to GDP

Ethiopia’s digital economy could add over ETB 1.3 trillion to GDP by 2028, according to the GSMA’s new report, Driving Digital Transformation of the Economy in Ethiopia.

The report highlights how telecom reforms and investments in mobile technology are catalyzing growth in key sectors such as agriculture, manufacturing, and public services. These advancements are expected to create over 1 million new jobs and generate an additional ETB 57 billion in tax revenues by 2028.
Pioneering Ethiopia’s Path to Digital Growth “Ethiopia is well- positioned to be a digital leader in East Africa. By implementing strategic reforms and improving access to digital tools and services, Ethiopia can unlock unprecedented opportunities for economic and social development. This will benefit not only the economy but also the millions of Ethiopians who stand to gain from greater digital inclusion,” Angela Wamola, Head of Sub-Saharan Africa at GSMA.

Ethiopia’s telecom reforms under the Home-Grown Economic Reform (HGER) program have driven major progress. By 2023, the sector contributed ETB 700 billion to GDP and generated 57 billion Birr in tax revenues. Mobile internet connections grew by 65%, with 4G coverage expanding eightfold. Key players, Ethio Telecom and Safaricom Ethiopia, have been instrumental in driving this growth through expanded mobile internet access and increased competition in the telecom market.

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