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Shaping the Narrative

How China–Ethiopia Tech Ties Are Powering a Digital Transformation

How China–Ethiopia Tech Ties Are Powering a Digital Transformation

Ethiopia is fast emerging as one of Africa’s digital frontiers,and at the heart of its transformation is a growing partnership with China. From connecting millions of Ethiopians to mobile internet, to building factories that provide jobs and exports, China’s technological investments are reshaping daily life in the Horn of Africa nation.

Chinese telecom giant Huawei has become a household name in Ethiopia’s digital journey. Working with state-owned Ethio Telecom, the company has helped roll out 4G networks nationwide, pilot 5G in Addis Ababa, and deploy solar-powered mobile towers that keep rural areas connected even when power is scarce.

The results are striking. Since 2020, Ethiopia has added more than 7 million new mobile subscribers and extended internet access to an additional 4 million people, according to the World Bank. Perhaps the biggest leap has come through TeleBirr, a mobile money service supported by Chinese technology, which now counts over 51 million users. For millions, this has meant instant access to savings, payments, and services for the first time.

Beyond connectivity, Chinese-built industrial zones are helping Ethiopia industrialize. The Eastern Industry Zone, outside Addis Ababa, hosts more than 140 companies and employs over 11,000 workers. Factories there produce textiles, shoes, ceramics, and building materials, much of it bound for export.

For young Ethiopians, the parks are more than just buildings, they are gateways to steady jobs and skills that were scarce just a decade ago. “I never imagined working in a factory with modern technology,” said one textile worker. “Now I can support my family and learn skills that give me confidence for the future.”

The cooperation is also moving into cutting-edge fields. Ethiopia and China recently signed an agreement to expand collaboration in AI, 5G, big data, and cloud computing. Huawei is already helping Ethiopian banks set up AI-powered data centers to strengthen digital finance.

If reforms continue, the digital economy could add ETB 1.3 trillion (about US$23 billion) to Ethiopia’s GDP by 2028, according to GSMA. For a country striving to diversify beyond agriculture, that growth could be transformative.

While challenges remain, such as extending services to rural areas and ensuring long-term sustainability, the overall impact of China–Ethiopia tech ties is clear: they are changing lives. Families once cut off from the digital world can now connect, save money, and access services. Youth are finding work in factories that link Ethiopia to global markets. And the country is laying foundations for a future driven by digital innovation.

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