INSIGHT ETHIOPIA 1 MIN READ

Ethiopia | Digitalization of International Trade

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Ethiopia’s ICT trade faces persistent declines, with ICT goods exports dropping sharply while digitally deliverable services show moderate growth amid infrastructure and forex challenges.

  • Ethiopia’s ICT goods exports fell from $31.9 million in 2020 to $21.7 million in 2021, a 32% decline, continuing a downward trend from the 2017 peak of $61 million. || Source: CEIC
  • ICT goods accounted for 0.71% of total goods exports in 2021, plummeting to 0.06% in 2023. This sharp decline contrasts with a rising ICT goods import share, increasing from 3.6% in 2020 to 4.71% in 2023. || Source: UNCTAD
    + ICT services exports remain at 3% of total services exports, below regional peers. However, digitally deliverable services increased 16.7% in 2023, though below the 2021 peak of 41.7% YoY growth.
  • Ethiopia’s trade partners shape digital flows: China dominates imports, while the UAE accounted for 17% of exports in 2022, influencing sectoral dynamics. || Source: Statista
  • Limited digital infrastructure, foreign exchange shortages, and high import costs hinder ICT trade. These barriers contribute to fluctuating ICT service growth and sustained declines in goods exports.