Ethiopia's journey into the digital age faces challenges as a recent UN report ranked the country 169th out of 193 countries in the E-government Development Index.

Published last week, the survey categorized Ethiopia as low-to-middle. Key evaluation components include e-participation, reliability, accessibility, governance, literacy, and infrastructure. The survey also introduced e-government literacy as a new assessment area. Ethiopia's ranking improved by 10 positions, rising from 179th out of 193 countries in the 2022 assessment.

The report highlights Ethiopia’s progress, particularly in the development of the National Identity Program (Fayda), which aims to issue 90 million digital IDs within five years. Additionally, initiatives like the UNHCR and MasterCard project to verify refugees’ identities and ensure their access to entitlements, as well as the digital agriculture initiative, through the Digital Green project, which equips farmers with essential information to boost crop yields, have been recognised as positive progresses.

Of the 193 countries ranked worldwide, 65, primarily European nations, were rated higher. Most African countries were categorized as middle to low, highlighting a broader regional challenge. In the Online Service Index (OSI) and Government Development Index, nine African countries, including Ethiopia, Angola, Guinea, Lesotho, Sierra Leone, Congo, Togo, and Tanzania, were rated as middle.

Despite the improved rankings, Ethiopia's digital transformation journey faces significant challenges. Abiyot Sinamo (PhD), CEO of e-government and services at the Ministry of Innovation & Technology (MInT), highlighted the persistent gaps in digital infrastructure and literacy. He emphasized the substantial challenges that remain to be addressed. "The huge gap is recognizable", he said.

He noted that digital adoption has been uneven across cities and regions, with a gradual pace of progress. He criticized the cluttered digital infrastructure, pointing out that strategically located data centres are essential for broader reach. He emphasized the need for a new enterprise architecture to define the structure of infrastructure, aligning with business and inclusivity strategies.

Abiyot highlighted the regulatory frameworks introduced in recent years, including cybersecurity, e-transaction, and personal data protection proclamations, as well as the ongoing IT strategy. He emphasized the “substantial investments made in digital assets to facilitate ease of doing business.”

The Ministry has developed a five-year e-governance plan requiring a 40-million-dollar investment, prioritizing digital literacy, skills development, and legal frameworks. The strategy aims to enhance functionality, capacity, and finance, addressing critical challenges in data management, governance, and enterprise architecture within public services.

Despite significant digital advancements, Ethiopia continues to grapple with various challenges, including technical issues, workforce inefficiencies, and suboptimal digital and operational outcomes.

This comes amidst ambitious reforms under 'Digital Ethiopia 2025', championed by Prime Minister Abiy Ahmed (PhD), which aspires to build infrastructure that enables the creation of a digital ecosystem with increased interactions and integrated systems across several sectors including e-governance, e-commerce, and national identifications.

In a parliamentary session a few months ago, Abiy stated his wide ambitions to explore new technology lines, including artificial intelligence, smart manufacturing, robotics, and biomedical engineering. The viewpoint may define investments in enhancing technology infrastructure, kindergarten and preschool education, and renewable energy generation until 2050.

The UN report points to new megatrends including the rapid digitalization of services globally, the shift towards remote work, the integration of artificial intelligence (AI), the emphasis on digital identity and data management, and the increased use of data and emerging technologies for policymaking.