A Campaign to Enhance Youth’s Digital Literacy in Ethiopia

Digital literacy has become an essential skill for economic and social participation in the modern world, and digital financial literacy is vital as more and more financial products and services enter the market, particularly in Ethiopia. Various global and regional frameworks emphasize its importance, recognizing its role in bridging gaps and fostering inclusive growth. UNESCO defines digital literacy as the ability to safely and appropriately access, manage, understand, integrate, communicate, evaluate, and create information using digital technologies. Despite its significance, many citizens, particularly in sub-Saharan Africa and Ethiopia, lack the necessary digital skills and financial capabilities to take advantage of new opportunities to earn, manage, and help their finances to grow.

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The Importance of Digital and Financial Literacy

Digital skills are crucial for current and future workers, especially youth, to meet the employment requirements of a digital economy, embrace innovation, and maintain a competitive edge. For the general population, digital skills enable meaningful access to government services (through e-government portals), businesses (through e-commerce), and society (through social media). Lack of digital skills can adversely affect competitiveness and employment creation as well as hire-ability. The demand for digital skills is growing across various occupations, including those traditionally not involving technology. On the supply side, digital financial services are more accessible than ever, but their effectiveness depends on the population’s digital and financial literacy.

The Digital Divide in Ethiopia

Literacy and digital skills are key enablers for digital transformation and are key areas of focus for the Government of Ethiopia’s strategies for growth. Ethiopia’s Digital Ethiopia Strategy 2025 aims to achieve 70% digital literacy nationally by 2025. However, current statistics highlight significant gaps. Only 3% of Ethiopians use mobile money, 14% use digital services like debit cards, and fewer than 20% are familiar with ATMs and mobile money agents. Obstacles to improving digital and digital financial literacy in Ethiopia include language barriers, low basic literacy and numeracy levels, lack of access to digital devices, and content relevance. Ethiopia currently ranks 112 out of 149 countries on the World Economic Forum’s digital skills index.

An Online Learning Centre

To tackle these challenges head-on, the UN Capital Development Fund (UNCDF), along with the Ministry of Innovation and Technology (MInT) has launched a new online learning centre: https://learning.gov.et. This initiative targets marginalized groups like out-of-school youth, women, and rural communities. The platform aims to enhance digital and financial literacy by making content accessible, creating localized content and deploying a comprehensive toolkit through various channels such as web platforms and educational centres. For effective guidance and oversight a steering committee has been established. This committee comprises of representatives from the Agricultural Training Institute (ATI), the Commercial Bank of Ethiopia (CBE), the National Bank of Ethiopia (NBE), Ministry of Labor and Skills, Ministry of Women and Social Affairs and Ethio Telecom.

The Digital Literacy School Campaign

On June 12th, 2024, UNCDF and MInT, in collaboration with NBE, CBE, and EthioTelecom, launched an ambitious campaign to promote digital and financial literacy among youth. The campaign, part of the broader Digital Financial Services for Resilience Programme (DFS4Res) funded by the European Union and the Organization of African, Caribbean and Pacific States, targeted high schools and Technical and Vocational Educational Centers (TVETs) in Addis Ababa, Hawassa, and Adama.

The campaign which run from June 13th to 15th, reached over 483,000 students across 232 secondary schools and 16 TVETs. The Honorable State Minister of MInT, Dr. Yeshurun Alemayehu, opened the launch event, emphasizing the government’s commitment to fostering digital literacy. Comments were also provided by Melat Mebratu Gebeyehu and Jessica Massie of UNCDF, as well as Seyoum Mengesha Tachie, CEO, Digital Economy Development and Minda Feleke Woldemariam of MInT.

EthioTelecom, represented by Mr. Belayhun Aragaw, highlighted the broader impact of the campaign, noting, “It is important to promote digital and digital financial literacy to prepare potential customers for financial services in general, not just for our platform but for multiple platforms. We hope it will allow us to expand and create a positive influence in families and surrounding areas and help youth shift their thinking to use and expand their usage of DFS.”

Mr. Mengesha Tachie from MInT emphasized the campaign’s expansive vision, stating, “While the campaign will be inaugurated in these localities and schools, we plan to roll out the digital financial contents into six local languages in total and to continue in all of the major Ethiopian regional cities.”

A representative from CBE, Mr. Geletesa Nejeri Jirata, highlighted the bank’s efforts to support digital literacy, mentioning, “CBE has prepared a studio to discuss digital activities. Given the goal of creating a cashless society in Ethiopia, we need more digital and digital financial literacy and strategies to make products and services more affordable and convenient for a greater number of Ethiopians.”

Campaign materials and activities addressed crucial topics such as keeping digital accounts secure, services beyond sending and receiving money, and the importance of building a financial history. Mr. Feleke Woldemariam from MInT introduced to the students the online digital platform for learning.

Enhancing digital literacy is vital for economic and social inclusion in Ethiopia. Through initiatives like DEL Academy and the Digital Literacy in Schools campaign, Ethiopia can bridge the digital divide, empower its citizens with essential digital skills, and pave the way for a more inclusive and prosperous future. This campaign was a significant step towards enhancing digital and financial literacy among Ethiopia’s youth. By reaching a vast number of students and incorporating practical and engaging content, the campaign aimed to empower the next generation with the skills necessary for economic and social participation in a digital world. Lessons learned from this campaign will be used to reach more schools, universities and TVETs throughout Ethiopia.

The Digital Finance for Resilience Programme in Ethiopia

The ‘Digital Finance for Resilience Programme’ is a four-year programme supported by the European Union and the Organization of African, Caribbean and Pacific States, and implemented by UNCDF. The programme aims to expand the digital finance ecosystem, grow the agent network, improve financial and digital literacy, and develop innovative products and services that meet people’s needs, especially women and youth. These initiatives demonstrate UNCDF’s commitment to leveraging digital finance for resilience, economic recovery, economic growth and meaningful financial inclusion.