Ethiopia suffered a loss of at least $100 million due to the internet shutdown by the government for 23 days this month. This is according to NetBlocks, a group that monitors internet freedom worldwide. It calculated the daily impact of the cut in terms of direct economic costs.<\/p>\n
“Beyond the impact on fundamental rights, each day of internet shutdown in Ethiopia runs up a bill in excess of $4.5 million, in terms of the economic impact to the GDP according to the Cost of Shutdown Tool (Cost),\u201d it said.<\/p>\n
The economic impacts of blackouts are calculated using the Cost, which was developed by internet access advocacy groups, the Internet Society, and Netblocks.<\/p>\n
The tool combines telecom industry and development indicators to assess the impact of internet disruptions on digital prosperity. <\/p>\n
“The 23-day shutdown had an estimated economic impact in excess of $100 million on the country’s economy,” Alp Toker, NetBlocks’ Executive Director, told the Nation in an email exchange.<\/p>\n
“The Cost, incorporating the Collaboration on International ICT Policy for East and Southern Africa (CIPESA’s) economic model, indicates direct and indirect losses are divided evenly, with approximately $50 million in the net direct impact and the remainder representing indirect losses.\u201d<\/p>\n
These figures primarily represent lost business but also factor informal trade and a degree of lost confidence.<\/p>\n