Ethiopia to enhance financial inclusion via mobile services

Ethiopia is set to transform its digital economy, with projections indicating a contribution of over ETB 1.3 trillion to the GDP by 2028. Significant telecommunications reforms and increased investments in mobile technology primarily drive this transformation.

As a result, this growth is expected to create over 1 million new jobs as the digital sector expands, with major players like Ethio Telecom and Safaricom Ethiopia enhancing connectivity and fostering competition. Moreover, by 2028, more than 50 million citizens are anticipated to be connected to mobile internet, significantly boosting productivity across vital sectors such as agriculture, which could add ETB 140 billion, and manufacturing, projected to contribute ETB 114 billion.

However, despite widespread coverage, Ethiopia is confronted with a notable digital divide, as 76% of the population still does not utilise mobile internet. That situation highlights the urgent need for targeted policy reforms to increase accessibility and bridge this gap. Furthermore, mobile money services are becoming increasingly vital for financial inclusion, with 90 million registered accounts and a 70% penetration rate facilitating access to financial resources for underserved communities.

In response to these challenges, Ethiopia is taking proactive steps to accelerate its digital transformation through key policy recommendations. These recommendations include prioritising service affordability by reducing sector-specific taxes, fast-tracking telecom reforms to enhance infrastructure development, and improving device affordability by lowering taxes on mobile devices.

Strengthening regulatory support for mobile money services and investing in digital skills and e-government initiatives will further empower citizens and facilitate broader participation in the digital economy. Ultimately, these efforts aim to drive sustainable growth and development across the country.