A study by the Global System for Mobile Communications Association (GSMA) reveals that artificial intelligence (AI) adoption in Ethiopia is significantly constrained by foundational barriers, digital inclusion challenges, and sector-specific complexities.
The UK Embassy in Addis Ababa recently launched the report, which underscores the need for targeted investments, policy support, and multi-stakeholder collaboration to unlock AI’s full potential in the country.
Ethiopian officials initiated the Digital Ethiopia strategy in June 2020 to leverage digital opportunities and transition toward a knowledge-based economy. However, the report highlights that overcoming hurdles such as data accessibility, infrastructure gaps, digital inclusion, and financing constraints will be crucial for scaling AI adoption and supporting emerging use cases.
Speaking at the report’s launch, Worku Gachena, director-general of the Ethiopian Artificial Intelligence Institute (EAI), acknowledged challenges in accessing data experts, infrastructure, and standardized data policies necessary for AI development in Ethiopia.
GSMA representative Eugénie Humeau emphasized that while South Africa boasts a strong research ecosystem and Kenya benefits from collaboration between big tech firms and local innovators, Ethiopia’s AI sector is largely driven by the public sector, with limited private sector engagement.
According to the report, the government plays a central role in AI development, yet private sector participation remains minimal, affecting investment attraction. Unlike regional tech hubs such as Kenya and Nigeria—where private-led innovation thrives—Ethiopia’s AI ecosystem remains largely state-driven, with an underdeveloped startup and research landscape.
Structural challenges persist, including limited access to high-quality datasets, particularly for local languages and sector-specific applications. Ethiopia also faces a shortage of AI talent due to few specialized training programs and ongoing brain drain, diminishing the availability of skilled professionals.
In 2024, the total enterprise value of Ethiopian startups surpassed USD 300 million. However, financing constraints continue to hinder the growth of AI-driven enterprises, preventing them from scaling their innovations.
The nation’s data ecosystem remains fragmented, with government data largely inaccessible and poorly curated. Efforts to streamline data-sharing through government partnerships have faced challenges due to inefficiencies and a lack of coordination.
Additionally, Ethiopia’s unstable power grid severely restricts the scalability of high-performance computing (HPC), posing significant obstacles for AI development.
High costs for specialized hardware and limited access to affordable computing power further exacerbate the issue. For instance, computers priced at USD 2,000 internationally can cost between USD 5,000 and USD 6,000 in Ethiopia due to import duties, making them unaffordable for many developers.
The GSMA report stresses that AI-enabled solutions in Ethiopia rely heavily on donor funding, government subsidies, and institutional grants. It recommends diversifying financing models to foster sustainable AI growth.
The report recommended the need to accelerate AI development, reduce import barriers for AI hardware, promote affordable mobile technology and digital literacy, focus on talent development and retention, foster public-private partnerships to support AI fundamentals, and support local innovators through flexible policy measures.
