Ethiopia's Digital Leap - a Timeline of Significant Changes

In June 2020, the Government of Ethiopia launched the Digital Ethiopia 2025 Strategy, a national digital transformation strategy aiming to lay the foundation for a digital economy by the end of 2025. The goal of this comprehensive strategy, implemented immediately following approval by the council of ministers, was to develop digital infrastructure and integrate digital technology across all sectors.

This year marks the final year of the Digital Ethiopia 2025 Strategy, which has achieved significant milestones in transforming digital technology in the country. On Monday, a national exhibition and workshop focused on Ethiopia's digital transformation journey opened at the Science Museum in Addis Ababa. The workshop was organized by government technology institutions such as the Ministry of Innovation and Technology (MInT), Information Network Security Administration (INSA), Ethiopian Artificial Intelligence Institute (EAII), and Ethio Telecom.

The Ethiopian government launched the Digital Ethiopia 2025 Strategy to develop digital infrastructure and ensure access to digital services for all Ethiopians, laying the foundation for a digital economy. Deputy Prime Minister Temesgen Tiruneh, speaking at the exhibition and workshop opening, highlighted the landmark achievements of the national strategy in developing digitalization in Ethiopia.

Acknowledging the achievements and progress made by the Digital Ethiopia 2025 Strategy in developing digital infrastructure, expanding digital services and commerce, digital finance, and digital literacy over the past five years, Temesgen announced preparations for a more ambitious strategy, Digital Ethiopia 2030, to realize a digital economy after the current strategy's completion.

According to DPM Temesgen, the national strategy and the government's commitment have established necessary legal and operational frameworks for digital economy growth and ensuring access to basic digital knowledge and skills for citizens. Ethiopia is making significant investments to expand digital infrastructure and exploit available opportunities while overcoming challenges in the journey towards digitalization. Implementing the strategy and adopting new policies and frameworks play a crucial role in creating a conducive environment and transforming the digital sector to improve service delivery, modernize trade, and create a more inclusive and prosperous society.

Minister of Innovation and Technology, Belete Molla (PhD), emphasized the importance of realizing a digital economy for Ethiopia's fast development. The national digital strategy has helped develop digital innovation, skills, and literacy, expand digital infrastructure, and build institutions to enhance the nation's technological capacity over the past five years. Belete highlighted the transformative power of digital technology and the need to work ambitiously in the sector to keep pace with global changes.

Deputy Prime Minister Temesgen stressed Ethiopia's efforts to build an inclusive economy through a digital economy, with the Digital Ethiopia 2025 Strategy laying the foundation for this vision. He emphasized the strategy's role in improving government service provision and digital trade, showcasing the government's commitment to digital technology development following national reforms.

The Digital Ethiopia 2025 Strategy, led by the Deputy Prime Minister, aims to expand critical digital infrastructure, develop human resources, and enhance digital literacy. Specifically, it focuses on creating a conducive ecosystem for digital businesses and investments. The government's measures have brought significant changes to the sector, he added. According to him, the strategy has helped Ethiopia make great strides in digitalization within a short period of time, with many positive outcomes being achieved.

The Digital Ethiopia 2025 Strategy has achieved landmark accomplishments in accelerating digital transformation in Ethiopia. Temesgen mentioned the significant progress being made in developing digital infrastructure, implementing progressive policies and proclamations, as well as improving digital literacy. "When the Digital Ethiopia 2025 Strategy was launched, the digital sector in Ethiopia was in its infancy. For example, in early 2020, there were only 17 million internet users in Ethiopia, which has now increased to over 44 million," Temesgen reiterated.

As a result of investments in expanding infrastructure and creating a conducive ecosystem for the digital sector through new laws, policies, and regulations, the private sector has significantly increased its investments in digital services. Digital finance, digital payments, and electronic trade have seen a significant increase following the strategy. "Through extensive investments in digital infrastructure and the implementation of laws and regulations that create a conducive environment for digital transformation, the Digital Ethiopia 2025 Strategy is laying the foundation for a digital economy," Temesgen emphasized.

The Digital Ethiopia 2025 Strategy has completely transformed digital transactions and payments, which were almost inaccessible before the strategy. Currently, financial transactions conducted digitally surpass cash transactions, Temesgen reiterated. "For example, Telebirr, Ethio Telecom's mobile money service launched a year after the strategy, now has over 52 million subscribers," the Deputy Prime Minister stated, highlighting the success of digital commerce and services in public offices.

In addition to launching the national digital strategy, the Ethiopian government has established the Digital Transformation Council. This council is tasked with monitoring, evaluating, and overseeing the digitalization process to ensure secure, integrated, and efficient digital transformation. The council evaluates progress, provides direction, and addresses challenges in the digital transformation journey, collaborating with technology-based government institutions.

Continuing to focus on accelerating digital transformation, the Ethiopian government is developing two new strategies: the Digital Government Strategy and the Electronic Commerce Strategy. These strategies, once approved and implemented, will play a crucial role in speeding up digital transformation. Temesgen emphasized the importance of these new strategies in enhancing digital services, modernizing trade transactions, and creating an inclusive digital society.

Looking ahead to the final year of implementation of the Digital Ethiopia 2025 Strategy, the Ethiopian government is preparing to launch the Digital Ethiopia 2030 Strategy. By reviewing the achievements and challenges of the current strategy, preparations are underway to transition to the next phase. As the first phase concludes, Ethiopia is gearing up to launch the Digital Ethiopia 2030 Strategy, setting the stage for five more years of innovation and progress. "The future looks promising, and together, we are shaping it," the Deputy Premier reaffirmed.

At the National Digital Transformation Journey Exhibition and Workshop, INSA, MInT, EAII, Ethio Telecom, and other government technology-based institutions are showcasing their technologies and innovative products in the digital sector. INSA, for example, is presenting homegrown apps focused on cybersecurity and related products, which are essential for building a safe, resilient, and robust digital industry.

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