Ethiopia is progressing with its digital ID project as part of its 2025 Digital Strategy and is seeking increased private-sector participation to ensure its success. The World Bank has expressed its support by providing$350 million to help Ethiopia achieve its goal of delivering secure ID and inclusive digital services to at least 90 million people.

The Digital ID for Inclusion and Services Project aims to enable Ethiopian citizens to access a wide range of public services and economic opportunities through the Fayda digital ID. The funding will also develop secure and energy-efficient ICT infrastructure, establish a Personal Data Protection Commission, and digitally transform public and private sector services. In addition to the digital ID project, the funds will be invested in other aspects of Ethiopia's digital infrastructure, including instant digital payment services and an interoperable data exchange platform. Efforts will also be made to accelerate refugee digital inclusion and promote adaptive social protection.

The World Bank Country Director for Eritrea, Ethiopia, South Sudan, and Sudan, Ousmane Dione, emphasizes the transformative potential of the Fayda digital ID system, which has already enrolled 3.5 million citizens. He believes the system will foster a sense of belonging and ensure equal access to services, promoting inclusive growth and shared prosperity.

In a separate initiative, Ethiopia and Djibouti are implementing a World Bank-supported digital integration project to extend digital services to border communities. The project aims to build cross-border broadband connectivity, data flows, and digital trade infrastructure, with a budget of$130 million. Private sector partners are expected to contribute around$30 million.

Why does it matter?

The digital ID project, backed by the World Bank and private sector partners, represents a significant step towards Ethiopia's digital transformation agenda. The collaboration with Djibouti for the digital integration project demonstrates Ethiopia's commitment to regional connectivity and growth. The involvement of the private sector is crucial in ensuring the successful implementation of Ethiopia's digital transformation initiatives.