Diaspora

Ethiopia : A Nation Crippled By Bureaucrats

By Jon Evans, TechCrunch

Seems like it’s Sub-Saharan Month around here: first Sarah Lacy went to Nigeria, and now here I am in Addis Ababa, Ethiopia’s capital and Africa’s fourth-largest city. It feels like a boomtown. There are cranes and construction sites everywhere, throwing up gleaming new glass-and-steel buildings full of shops selling computers and mobile phones. The major thoroughfares throng with people making, trading, repairing, unloading, selling, and generally hustling.

Don’t get me wrong: this is still a poor country. Electrical outages are regular occurrences, the taxis that patrol the city’s broad avenues are rusting Ladas, and the side streets are harrowed dirt strewn with garbage, lined with tin shacks, and patrolled by beggars and feral dogs. But I’ve only seen occasional pockets of the poisonous stagnation I’ve found so often elsewhere south of the Sahara. This feels like a place where things happen. It’s a city and country that could be on the cusp of a genuine transformation, catalyzed by technology—were it not for a single, gigantic roadblock: its own government.

“Oh, they’re great,” Jörn Schultz deadpans about Ethio Telecom (ETC), the government monopoly that controls all phone, mobile, and Internet service across the nation, and everyone in the room bursts into laughter. He shakes his head. “No, no. They’re terrible.”

Full Story (The Unconquered Nation, Crippled By Bureaucrats – TechCrunch)

This is a proud nation, and with reason: Ethiopia is the only African nation which defeated their would-be European colonizers and remained independent throughout the colonial era. But they need to start looking to the rest of Africa as an example. “They’re so far ahead of us in Kenya,” Assanif says forlornly, meaning the fierce competition among mobile and Internet providers there, and the access and innovation that has thrived as a result.

It’s ironic that Ethiopia’s current government are the same people who overthrew the brutal Marxists called the Derg twenty years ago; alas, they seem to have inherited some of their archenemies’ fondness for monopolies, protectionism, and bureaucracy. I believe mobile Internet access is a transformational force that could turn African nations into economic lions to rival Asia’s tigers—but only if it’s fast, cheap, and ubiquitous. And that will never happen here while every bit of Ethiopia’s Internet is controlled by a dinosaur monopoly with no competitive incentive to improve.

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