Ethiopia gets accolades for leading digital transformation in Horn of Africa

At a recent meeting of Horn of Africa Finance Ministers in Kenya’s capital Nairobi, Ethiopia’s digital transformation progress got thumps up from regional officials.

The country, which is currently implementing a massive digital ID program, was recognised for its digital evolution efforts that align with the Horn of Africa Initiative (HoAI) Digital Transformation Matrix, according to Fana Media. This Matrix is a regional framework adopted in 2023 to speed up digital transformation in the region.

The Horn of Africa is traditionally made up of four nations, viz; Djibouti, Ethiopia, Eritrea, and Somalia, but it occasionally includes Kenya, Sudan and South Sudan in discussions that include the broader region.

Speaking during the meeting, Ethiopia’s State Minister of Finance, Eyob, Tekalign, made a succinct presentation of his country’s strides in the areas of expanding connectivity, digital identity, cybersecurity and data protection, all powered by strong political will, legislative and institutional reforms as well as increased investment.

Tekalign particularly emphasized the importance of the country’s national digital ID program, saying it is the nucleus of its digital transformation efforts. With now 19 million people having registered for the Fayda digital ID, Ethiopia hopes to reach 90 million registrations by 2027.

Apart from digital ID which is also powering the country’s digital government drive, the minister also talked about Ethiopia’s digital and instant payment ecosystem, citing the Telebirr mobile money platform which has continued to see increased user numbers. Per the official, Telebirr now has almost 60 million active users, a figure that underscores the increasing nature of financial inclusion in the country.

In the course of the discussions, the ministers are also highlighted the need for stronger regional cooperation and collaboration in order to boost connectivity and integration.

World Bank projects driving the transformation

Ethiopia’s ongoing digital transformation is happening within the framework of two major projects supported by the World Bank. These are the Ethiopia Digital Foundations Project, and the Ethiopia Digital ID for Inclusion and Services Project.

Both projects have combined funding of $520 million from the World Bank’s International Development Association.

In a recent results brief, the Bank said these projects, which have been implemented for the past four years, are helping the country lay a solid foundation for its digital economy growth.

Targeting different aspects, the projects have led to successes including increased connectivity and mobile penetration, financial inclusion with the growth of mobile money services, digital literacy skills for thousands of students and teachers, seamless access to digital public and private sector services through digital ID policy reforms, and telecoms infrastructure development, just to mention these.

It says Ethiopia is also benefiting from the Eastern Africa Regional Digital Integration Project, Series of Projects II, worth $110 million.

While there is significant progress already, the brief indicates that the projects will “continue to focus on expanding rural connectivity and fostering an innovation-driven digital economy.”

Efforts will also continue to ensure the strengthening of regulatory frameworks, promoting inclusive digital services, and encouraging private sector investments.

Ethiopia hosted the ID4Africa AGM this year, and used the opportunity to share its digital ID and digital public infrastructure progress strategy.

Article Topics

Africa  |  digital ID  |  digital identity  |  Ethiopia  |  Ethiopia National ID Program (NIDP)  |  World Bank