Brightening the Future of Digital Economy in Africa

October 31, 2024

Alibaba Global Initiative (AGI) has signed an agreement with Digital Transformation Ethiopia Association (DTEA) for the establishment of a training center here in Addis Ababa. The agreement can be considered a big deal for both Ethiopia and Alibaba too as it has a potential to put a significant influence in the rapidly growing economy of the country and the parallel retail trade sector which is driven by the large scale demand for consumer items and online trade.

During the last few years Ethiopia has embarked up on a 10 year economic development plan that aims to speed up the socio-economic development of the country through, among others utilizing the opportunities availed by modern technology.

Digital economy is a vital aspect of the country’s development plan. Accordingly the country has built and launched internet and telecom infrastructure which is increasing its penetration and coverage across the nation. Furthermore it is undertaking legal and economic reforms that allow the growth of the economy via the digital economic activity. Among such measures is the allowing of E-commerce in the country.

E-commerce is one of the advanced platforms that facilitate the trading of goods and services without the need for customers to waste their time and effort to travel to the market. It can also help create more jobs to the African youth.

Considering the large number of the country’s population as well as the rapid rate of urbanization, it can be assumed that the country has an untouched potential demand for online business or E-commerce. Various actors in the private sector in Ethiopia have also ventured the trading of goods via E-commerce platforms. Still more companies and individuals have to come and join the business as the industry is in its adventitious level.

Yet, as the industry needs due support of expertise, experience, technology and finance, it is good to have the experience of giants in the industry like Alibaba. Hence, the training centers opening and the subsequent operation of Alibaba is a tremendous opportunity for those who opt to engage in the industry and benefit themselves, their people as well as the nation.

The government has also done a lot of work to fulfill the necessary precondition for smooth operation of the digital economy in general as well as the E-commerce in particular. Among such measures is the enabling of digital payment system in the country. Almost all banks and financial institutions support mobile banking, internet banking, mobile money and digital payment systems.

Many people are also becoming on board on digital payment systems as they are learning the benefits of the digital payment and transaction system. The country is also implementing swift intervention to build up the talents of its youth in digital economy. This includes the initiative to produce 5 million coders nationwide in the coming few years. This will contribute a huge number of trained human resources for the digital economy including the thriving E-commerce industry.

It is also gone encouraging steps forward in terms of introducing and applying artificial intelligence in sectors that need the technology. Hence, Ethiopia is the right place for running such a large international training center that aims to advance excellence in E-commerce. It can also learn a lot from the immense experiences of the globally renowned E-commerce giant Alibaba and put itself as one of the best centers of excellence in the field.

The coming of AGI in Africa in general must also be celebrated as it can play a big role in setting light for a fruitful development of E-commerce in the continent. Ethiopia is already a hub of trade, transport and tourism in the African continent. Opening of AGI’s first training center for Africa here in Addis Ababa will pay off duly as it is situated among many continental institutions that have been reaping success over the years. Many other E-commerce and related giants should also join Alibaba and all other continental and global companies who have invested and succeeded here in the hub of Africa.

THE ETHIOPIAN HERALD THURSDAY 31 OCTOBER 2024