The Essence of ICT Restructuring in Ethiopia

Abstract

Information and communication technologies (ICTs) are among the main enabling tools of modern civilization. These days, it is an integral part of our lives. Globally, the economy needs ICT infrastructure for its activities such as the facilitation of trade and commerce. In addition to that, human welfare and poverty eradication programmes need proper ICT to enable several humanitarian efforts. In this article, we present the importance of ICT restructuring in Ethiopia. First, we analyse the current state of ICT in Ethiopia and then suggest the kind of restructuring it needs. ICT is an important technology sector which provides basic communication services to individuals and helps the overall growth and development of a country. ICT itself is one of the largest economic sectors and contributes to almost 5% of the global GDP, according to the reports of Gartner. These days, ICT is essential for empowering the people all over the world. It provides knowledge and information which is essential for the success of democracy. In the modern world, ICT enables online businesses, provides advanced methods of teaching and learning, plays a key role in the functioning of governance, and enriches the entertainment industry. All branches of science, arts and commerce are benefited from ICT. Recent advances in healthcare and public services are the results of the modern ICT. Overall, ICT has become an integral part of the modern human lives. Ethiopia has achieved some growth and development in the ICT sector over the last couple of decades. As of 2018, fifty-four million people use cell phones in Ethiopia. However, it is still far behind several African countries. It is one the countries with very low Internet penetration. Every year, the International Telecommunications Union (ITU) analyzes the growth and development of ICT services across the world. Based on this analysis, they rank the ICT services of the countries. This is quantified as ICT development index (IDI). In terms of IDI, Ethiopia is ranked at 170 out of total 176 countries for which IDI ranks are available in 2017. Even its neighbouring countries Kenya, Djibouti, and Sudan are ahead of Ethiopia in IDI. Modern digital ecosystem is very much expanded and several new dimensions are added to it every year. All these new services provide some economic benefits and help the country in its development. If we analyze the human development index (HDI) of the countries around the world, we see that HDI and the IDI are very much dependent. The countries which are having high HDI have high IDI. In Table I, we show the correlation between these two indices which are critical for the modern development. In the first five rows, we show the countries which are at the very top of the global IDI. In the next five rows,