Ethiopia plans to expand country’s Internet access

Thursday, April 7, 2005

At an information technology conference in Addis Ababa, Prime Minister Meles Zenawi of Ethiopia vowed to offer universal Internet connectivity in the country within three years. The government is working with a United States technology company Cisco Systems to fulfill this promise.

The government will invest US$40 million in the venture, which will lay nearly 10,000 km of fibre optic cable. Ethiopia currently ranks low in Internet penetration, with just 30,000 connections available for its 71 million inhabitants. Part of the program is the installation of Internet access at 450 secondary schools throughout the country.

Zenawi explained the change of heart that led to the decision to invest in this infrastructure project. “Not long ago many of us felt that we were too poor to seriously invest in information and communication technology,” he said at the conference. “We were convinced that we should invest every penny we have on securing the next meal for our people. We did not believe serious investment in ICT had anything to do with facing the challenges of poverty that kills. Now I think we know better,” he explained to the delegates.

Not everyone thinks that the government knows better. Giovani Peri, Assistant Professor of Economics at University of California, Davis, specializes in macroeconomics and growth theory. Peri believes that the Ethiopian government may be misguided in its direct investment in the build-up of information technology, and should instead create incentives for the private sector to build such infrastructure.

Professor Peri likened the Internet access project to previous failed attempts by African governments to stimulate growth via large-scale projects. “[African governments] in the past tried to build airports … in the middle of desolation.” — but people need to know that the environment is right for business, he said, not just a good airport. He said that the investment in Internet access might be too early for that country, and that before it is built, the country needs a good educational system to get the scientific community involved in the process of building technology infrastructure.

Ethiopia’s population is mostly rural, and over half of the population is illiterate. The country’s GDP per capita is US$560.