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Ethiopia’s Digital Economy Will Reach 3 Trillion ETB by 2025.

Updated: Feb 8, 2023

The market size of digitally transacted economic activity will show a nine-fold increase by 2025, reaching just above Birr 3 trillion or 39% of GDP, according to Cepheus.

Given initial starting positions in 2020, the largest growth areas are expected to be in ecommerce (17x increase in the next five years), digital finance (11x), digital media (8x), delivery services (6x), software/BPO services (4x), and e-classifieds (4x).

However, the largest revenue pools will likely remain within digital finance and telecom services, followed by marketplace platforms, transportation, and digital media. Several companies in the digital finance, ride-hailing, and digital media space could see Birr 1bn valuations in a few years’ time, by their estimates.

These figures take into account multiple and mutually reinforcing drivers of digital growth and adoption over the coming years: low initial starting positions (unpenetrated markets in most areas), strong macro drivers (good growth, rising incomes), improving infrastructure (being enhanced with new entrant/investments), and a notably improving funding infrastructure.

Infographic: Cepheus Research & Analysis

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