Digital Marketplaces Driving Ethiopia’s Economic Transformation

July 17, 2025

The global rise of digital trading commonly known as e-commerce is reshaping how goods and services are bought and sold. With its rapid expansion and accessibility, e-commerce has become a transformative force in modern economies, offering unprecedented opportunities for both businesses and consumers.

In Ethiopia, digital commerce is gaining momentum as part of the country’s broader digital transformation strategy. Public and private institutions are increasingly investing in digital platforms that facilitate online trading. Ethio Telecom, for instance, has launched “Zemen Gebeya,” a digital marketplace aimed at streamlining trade operations and expanding access to products and services across the country.

In an exclusive interview with The Ethiopian Herald, Smart Link Properties PLC Executive Manager Yonas Beyene highlighted that launching digital marketplaces contributes significantly to Ethiopia’s economic growth. These platforms allow consumers to shop at any time, from anywhere, and on any device, eliminating the limitations of store hours and geographical barriers.

Yonas emphasized that e-commerce improves efficiency by reducing expenses and saving time. It also helps curb inflation, facilitates job creation, and ensures broader access to goods and services.

Although Ethiopia entered the digital marketplace landscape later than some countries, Yonas noted that it benefits from better infrastructure, such as expanding mobile network coverage, growing internet accessibility, and increasing Smartphone adoption. These advancements give Ethiopia an edge to leapfrog into the digital economy with a stronger foundation than early adopters once had.

Smart Link Properties PLC has developed Nugizu, a secure, user-friendly digital marketplace designed to connect sellers and buyers more effectively. Yonas explained that Nugizu not only facilitates transactions but also enables quality control through customer feedback and product review mechanisms.

This, in turn, helps ensure that products meet consumer expectations and standards. Nugizu reflects the company’s commitment to bridging the gap between traditional commerce and modern digital practices.

Alongside Nugizu, other digital commerce platforms are emerging in Ethiopia. Zemen Gebeya, developed by Ethio Telecom, has already onboarded over 42 businesses and logistics providers and is envisioned as more than just a marketplace. It is positioned as a comprehensive digital ecosystem that fosters inclusive economic growth.

In a recent statement, Ethio Telecom CEO Frehiwot Tamiru described Zemen Gebeya as an initiative aligned with the company’s goal of becoming a leading digital solutions provider. According to her, the platform not only enhances the convenience of trade but also empowers local producers, farmers, artisans, and entrepreneurs to participate in the national and global digital economy.

The e-commerce boom in Ethiopia brings significant economic and social benefits. It opens new avenues for employment, especially in fields like logistics, IT, customer service, and digital marketing. It also empowers rural communities by providing market access to smallholder farmers and artisans who were previously disconnected from mainstream commerce. In addition, online trading helps reduce operating costs, improves supply chain efficiency, and promotes transparency in pricing and product quality.

The digital marketplace offers consumers a wider selection of products and easier comparison of prices, features, and brands.

Payment flexibility is another key advantage of Ethiopia’s digital trading platforms. Consumers can choose from various digital payment systems, including Telebirr, CBE Birr, HelloCash, Amole, and even international credit and debit cards. These options support financial inclusion and contribute to the growth of the digital financial ecosystem in the country.

Despite the promising growth, several challenges remain. Internet access, especially in rural areas, is still limited, and digital literacy remains low among segments of the population.

Additionally, there is a need for more robust regulatory frameworks to govern e-commerce, protect consumers, and ensure data security. However, efforts are underway to address these issues through infrastructure investment, awareness campaigns, and policy updates aimed at strengthening Ethiopia’s position in the digital economy.

Ultimately, the rise of e-commerce in Ethiopia signals a broader shift toward modernization and economic integration. Through platforms like Zemen Gebeya, Nugizu, and others, the country is laying the groundwork for a digitally driven economy that connects urban and rural communities, fosters entrepreneurship, and aligns with Ethiopia’s national development goals.

As Frehiwot Tamiru rightly put it, “Zemen Gebeya is not just a platform, but a digital ecosystem to empower local economies.” Yonas added that “digital platforms like Nugizu help bridge the gap between traditional commerce and future-ready markets,” underscoring the transformative potential of e-commerce in Ethiopia’s economic future.

BY TSEGAYE TILAHUN

THE ETHIOPIAN HERALD THURSDAY 17, July 2025