Ethiopia outlines vision for accelerating ICT investments

31st May 2013 By: John Muchira - Creamer Media Correspondent

Ethiopia says it is intent on accelerating investments in the information and communication technology (ICT) sector.

The country, which is among the fastest- expanding economies in the world, has acknowledged that the ICT sector is lagging behind sectors like manufacturing, agriculture, mining, energy and transport, which are experiencing unprecedented growth.

“Government is working hard to expand the ICT infrastructure in the country to increase access and drive economic growth,” says Deputy Prime Minister Debretsion Gebremichael.

As part of efforts to accelerate investments in the sector, the Ethiopian government intends to construct a $270-million ICT park, which will not only aim to assist in developing a knowledge-based economy but will also enable the Horn of Africa nation to compete for business-process outsourcing opportunities.

The technology park, to be called Ethio ICT, will be located on a 200 ha piece of land adjacent to Bole International Airport, in the capital, Addis Ababa, and will be financed by government.

The new park will be akin to Konza Techno City, which is being constructed in Kenya; Hope City, in Ghana; Egypt’s Smart Village; and Mauritius’ Ebene Cyber City.

“We have secured land next to the airport specifically because it is strategic for foreign investors who will be interested in investing in the hub,” says project manager Brehane Keleta.

The feasibility study on the park, as well as its design, were undertaken by Indian company WiPro IT Consulting.

The park will be divided into zones focusing on business, assembly and warehousing, commercial activities and administration, as well as a knowledge park. It will include restaurants, medical facilities, financial services as well as postal and banking ser- vices, besides others.

Although construction of the park is expected to take three years, 15 local and international companies have applied for space. Other companies, including ZTE, Techno Mobile and Security Innovation Network, have been allocated 25 000 m3 plots each to establish ICT incubation centres, manufacturing plants and soft- ware development centres.

Ethio ICT is expected to make a significant contribution to the growth of the ICT sector in Ethiopia, where government hopes to boost the penetration of mobile telephony and Internet access.

Out of Ethiopia’s 80-million-strong popu- lation, only 20-million people have access to mobile telephony, while the number of those with Internet connectivity remains extremely low.

According to the International Monetary Fund, Ethiopia’s economic growth is expected to be around 7.5% this year and could hit 10% over the next three years.