• Ethiopia partners with Ethio Telecom to roll out three major digital transport systems

• GSMA estimates the shift could add 24 billion birrs ($177.2 million) in value by 2028

• The initiative may create 130,000 jobs but faces challenges due to low internet access

The Ethiopian authorities have made digital transformation a cornerstone of socio-economic development, impacting various sectors, including transport. The Ethiopian government is banking on digitization to modernize its transportation sector and has partnered with the national telecommunication operator, Ethio Telecom, to roll out three digital solutions: an interurban public transport service system, an integrated fuel distribution system, and a centralized national road traffic offenses management system.

“These systems will play a significant role in cross-country public transport, the fuel supply chain and modernizing traditional operational procedures in traffic penalty management. They will enable timely access to accurate data for fuel supply and transactions, allow customers to use various financial institution options, establish transparent procedures, and eliminate user inconvenience,” explained Ethio Telecom in a statement issued on May 14.

This initiative is part of the Ethiopian government's ambition to accelerate digital transformation and support the development of all economic sectors. The Global System for Mobile Communications Association (GSMA) backs this approach, projecting that the digitization of the transport sector should generate an added value of 24 billion birrs (around $177.2 million) by 2028, representing 4.6% of the sector's added value over the period. The association also anticipates the creation of 130,000 new jobs and 2 billion birrs in added tax revenue for the state.

However, it is essential to note that the adoption of digital services by the population necessitates their access to smartphones and the Internet. For instance, GSMA estimates that out of Ethiopia’s total population of 126.5 million, as stated by the World Bank in 2023, 100 million Ethiopians are not yet using the Internet. GSMA also reports a 36% smartphone penetration rate in the East African nation.