Between 2020 and 2024, Ethiopia experienced a significant increase in digital connectivity, gaining 7 million new mobile subscribers and increasing internet access for at least 4 million people. This expansion raised mobile penetration from 26% to 33% of the population and internet coverage from 15% to 19%. Additionally, mobile money services saw substantial growth, with users reaching 60 million by the end of 2024.
The Ethiopian Communications Authority has licensed over 3,000 digital firms since 2022, which has contributed to job creation and digital entrepreneurship. The telecom sector's monopoly was challenged by introducing competition through policy reforms supported by the International Development Association (IDA), enabling private operators like Safaricom to enter the market.
The World Bank played a crucial role in this transformation through various projects such as the Digital Ethiopia Foundations Project and the Eastern Africa Regional Digital Integration Project. These initiatives aimed at fostering competition in telecommunications, improving connectivity, launching Digital ID services, and promoting financial inclusion.
"Through IDA we leveraged our convening power to bring together stakeholders," noted project coordinators. Efforts included capacity-building initiatives that enhanced regulatory environments and technical expertise within Ethiopian institutions. Innovative financial models mobilized approximately $8 billion in private sector investment.
Significant achievements between 2020 and 2024 include a reduction in telecom prices by about 70%, positioning Ethiopia as one of the world's cheapest countries for mobile data according to the International Telecommunication Union (ITU). Mobile money services surged with women comprising an estimated majority of users.
Digital entrepreneurship flourished with more than 3,000 licensed firms creating thousands of jobs across sectors like fintech and e-commerce. The rollout of Digital ID reached over 13 million citizens by early 2025, improving service access while ensuring data security through legislative advancements such as the Data Protection Proclamation.
Safaricom's entry into Ethiopia's telecom market was facilitated by collaborations between entities like the World Bank Group's International Finance Corporation (IFC) which mobilized $3 billion for network expansion resulting in improved rural connectivity via new cell towers.
As part of ongoing efforts, projects aim to further enhance rural connectivity while promoting an innovation-driven digital economy. The introduction of Fayda Digital ID is underway with ambitions to reach a target population size significantly larger than its current status as early recipients number over twelve million Ethiopians.