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Prime Minister of Ethiopia: country’s digital ID system to boost GDP by 7%

Almost 50 million citizens have already registered with the system

  • Photo source: Prostock-Studio / iStock

The national digital identification system (Fayda) has the potential to increase Ethiopia’s gross domestic product (GDP) by 7 per cent, while safeguarding data privacy and ensuring economic sovereignty. This was stated by Ethiopian Prime Minister Abiy Ahmed, according to Ethiopian Broadcasting Corporation, a partner of TV BRICS.

Ethiopia’s digital identification system forms the basis of the country’s transition to digital technologies. It combines biometric and demographic data and assigns a unique identification number to every registered citizen. It is noted that the aim of the digital identification system aligns with the United Nations (UN) Sustainable Development Goals and the long-term development strategy Agenda 2063 of the African Union.

The legal framework for launching the system in Ethiopia was established in 2023. Its roll-out is proceeding at a rapid pace. Almost 50 million citizens have already been registered in the system, which has been integrated into more than 150 public and private institutions. It is expected that this integration will enable the target of 115 million registered users to be reached by the 2027–2028 financial year.