GSMA predicts GDP boost from Ethiopian telecom reforms

Details: Manny Pham; Category: Operators; 28 October 2024; 7716 views

The GSMA predicts that telecom reforms that spurred investment in mobile technology could add over ETB1.3 trillion (US$10. 3 billion) to Ethiopia’s GDP by 2028.

In its latest report on the East African nation, the industry body states that telecom reforms and investment in mobile technology are catalysing growth in key sectors such as agriculture, manufacturing, and public services. Over one million jobs are expected to be created in these sectors, with an additional ETB57 billion in tax revenues projected to flow into government coffers by 2028.

Under the Home-Grown Economic Reform programme, Ethiopia amended its telecom laws. By 2023, the telecom sector in Ethiopia contributed ETB700 billion to GDP and ETB57 billion in tax revenues.

The number of Ethiopians connected to mobile internet is forecast to double to 50 million by 2028, according to the GSMA. The increase in users could potentially drive the agriculture sector to add ETB140 billion and manufacturing ETB114 billion to the economy over the next four years.

The GSMA recently highlighted a “substantial usage gap,” where people live within reach of mobile internet services but are not yet connected.

Angela Wamola, GSMA Head of Sub-Saharan Africa, said: “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.”