Ethiopia's digital economy to contribute over 10 bln USD to GDP by 2028: report-Xinhua

Ethiopia's digital economy to contribute over 10 bln USD to GDP by 2028: report

Source: Xinhua

Editor: huaxia

2024-10-25 20:00:31

ADDIS ABABA, Oct. 25 (Xinhua) -- Ethiopia's digital economy sector has the potential to contribute 1.3 trillion birr (about 10.9 billion U.S. dollars) to the country's gross domestic product by 2028, according to a new report.

The Ethiopian Digital Economy Report, released Thursday by GSMA, an international umbrella organization for mobile network operators worldwide, said that advancements in the sector are expected to create over one million new jobs and generate an additional 57 billion birr (about 468.7 million dollars) in tax revenue by 2028. It also underscores the sector's potential to drive growth in key industries like agriculture and manufacturing.

According to the report, by 2028, over 50 million Ethiopians, nearly double the current number, are expected to be connected to mobile internet. Increased connectivity will drive growth across sectors like agriculture and manufacturing.

However, the report said that a substantial usage gap persists, with 76 percent of the population still not using mobile internet despite living within network coverage. Bridging this gap, particularly the disparity in mobile internet usage, is crucial for Ethiopia's digital future. With targeted policy reforms, this gap could shrink to 66 percent by 2028, bringing millions more Ethiopians online, it said.

Ethiopia has rolled out 2G and 3G networks, with investment over the past five years focused on expanding advanced 4G network coverage and launching 5G in the capital Addis Ababa and four regional cities.