The economic contribution of the information and communication technology sector in Ethiopia
After the 2018 reform, Ethiopia placed Information and Communication Technology (ICT) at the core of its development plan and prioritised it as a potential growth strategy. This study uses the Ethiopia Social Accounting Matrix 2015/15 from the Policy Studies Institute to analyse the contribution of the ICT sector as a producer of final products.
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Woldeyes et al Policy brief June 2023
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- After the 2018 reform, Ethiopia placed Information and Communication Technology (ICT) at the core of its development plan and prioritised it as a potential growth strategy. However, the contribution of the ICT sector to GDP is not yet known or monitored.
- This study uses the Ethiopia Social Accounting Matrix 2015/15 from the Policy Studies Institute to analyse the contribution of the ICT sector as a producer of final products.
- The research finds that the ICT sector has contributed above 4% to the GDP and has become increasingly integrated into the international market, contributing to expanding and diversified export. The urban-rural divide has also come down over time.
- This brief concludes that the ICT sector gives a big boost to non-ICT domestic production, which indicates that investments in the ICT sector trigger a chain of actions and reactions that significantly increase the national output.