Policy gaps keep Ethiopia’s online talent from turning views into income

By Surafel Ashebir

In a cramped room between unpainted concrete walls, 24-year-old Saron adjusts her ring light, leans toward her phone camera, and begins to record.

The TikTok beauty tutorial—her 150,000 followers waiting—will likely go viral, as so many of her videos do, reaching audiences far beyond Ethiopia’s borders. But the clicks, comments, and millions of views translate into zero direct income.

“Sometimes I feel foolish,” she said. “A girl in Kenya with fewer followers is earning money. But me? Nothing—because I live in Ethiopia.”

Across the continent, from Nairobi’s co-working lofts to Lagos’s music studios, Africa’s creator economy is booming. YouTube channels, Instagram, and TikTok trends have turned everyday people into entrepreneurs, generating millions of dollars and fueling one of the fastest-growing sectors in Africa in 2024.

In Ethiopia, one of Africa’s most populous nations, the story is starkly different. Creators like Saron are locked out of the global digital monetization system—unable to earn ad revenue through YouTube’s Partner Program, tap TikTok’s Creator Fund, or collect payouts from Spotify, Patreon, or PayPal.

“It’s like we are present, but invisible,” said Henok Tadesse, a tech YouTuber whose videos rack up views across East Africa. “They watch our videos, they laugh, they share, but we get nothing in return.”

Tewodros Mulugeta, a 26-year-old who narrates content on YouTube, described a workaround familiar to many Ethiopian creators. “I had to start monetizing by opening a YouTube account from America,” he said. “Direct monetization is restricted here.”

Globally, more than 50 million people now earn through platforms like YouTube, TikTok, Instagram, Facebook, Twitch, and Patreon. The income streams vary—from ad revenue and brand sponsorships to fan subscriptions and virtual gifts—but only a small fraction make a full-time living. Still, the industry’s footprint is enormous: YouTube alone counts over 12 million monetized creators.

The economic loss for Ethiopia is harder to measure, but digital analysts estimate the country forfeits USD 30 million to USD 50 million annually in unclaimed creator income. In countries that have embraced the creator economy, the ripple effects are significant. India’s YouTube ecosystem added USD 1.2 billion to its economy and supported more than 750,000 jobs. In the United Kingdom, it was GBP two billion.

Many other African countries have also surged ahead. Kenya, Nigeria, and South Africa have unlocked platform monetization, forged partnerships with global tech firms, and introduced national policies to support their creators.

Kenya passed a Digital Creators Bill in 2023, earning USD 15 million in 2024 alone. Nigeria launched a USD 600 million Creative Industry Fund, while Ghana has hosted Google and Meta training hubs for local influencers and entrepreneurs.

Ethiopia, by contrast, remains absent from the map—unrecognized by major platforms, excluded from monetization programs, and unsupported by any national policy. Despite its booming youth population and a swelling tide of online creative talent, the country has yet to negotiate platform access or build the digital infrastructure needed to sustain creators.

In the absence of official pathways, Ethiopian creators have developed fragile workarounds. They use VPNs to mask their location, open accounts with foreign bank details, or register their businesses in Kenya or the United States.

“I’m listed as a Kenyan business,” said Abel, a content creator who gets paid through a relative in Nairobi. “But it’s risky, unsustainable, and technically illegal.” Many others simply walk away.

“I was burnt out,” said Selam, a dancer who abandoned TikTok in 2023. “Why create content when you know it leads nowhere? It made me feel invisible.”

The costs go beyond lost income. Creators speak of burnout, low motivation, and a creeping sense of isolation. For some, migration has become the only route to a digital career.

“Many of us are thinking of leaving,” said Saron. “Not because we hate Ethiopia, but because our dreams aren’t possible to attain here.”

Observers warn that digital exclusion is quietly fueling a brain drain, stripping Ethiopia of some of its most innovative young talent. Analysts say the government has no official strategy to integrate into the global digital economy: no negotiations with YouTube, TikTok, Meta, or Spotify; no legal framework for global payment platforms like PayPal, Stripe, or Wise; no designated office to champion creators or digital monetization.

Against this backdrop, a new tax amendment took effect in July 2025, explicitly making income from digital content creation taxable. The law defines digital creators as business entities, imposes a 15 percent tax, and requires platforms to report payments above set thresholds.

An official at the National Bank of Ethiopia, speaking on condition of anonymity, explained how such income is handled.

“Incoming funds definitely come through the bank,” the official said. “Our guideline is clear: any Ethiopian who receives foreign currency abroad can open a local account and hold that money here. Foreign transfers are expected to come legally via SWIFT, and there is no restriction on holding those funds once they arrive. Whether the source is remittance, service payments, or investment, we categorize the inflow accordingly.”

The official confirmed the tax law’s link to licensing: “If there’s no license, the person cannot pay tax. Those who are licensed declare their income based on the license they hold.”

In response to the tax, local platforms such as Gursha Hub and Jami have sprung up to help creators monetize their work domestically. They offer tipping systems and subscription packages, integrated with local payment services, charging commissions of five to 10 percent. But the revenue potential is modest—nowhere near what global platforms can deliver.

Observers say Ethiopia is rich in music, dance, storytelling, and traditional art—forms that could thrive on global platforms. But without access to monetization, much of that content goesunderpromoted, and underrepresented.

“We could be the next Afrobeats,” said musician Amanuel. “But the pipeline is blocked. We can’t get paid or promoted, and we can’t distribute music without routing it through foreign labels.”

Analysts argue that the absence of digital payment systems is not just holding back individual artists—it is diminishing Ethiopia’s entire cultural footprint in the global digital space. The problem is not a lack of creativity, ambition, or skill, they say, but policy neglect and digital exclusion.

“We are ready,” Saron said. “But until Ethiopia opens the door, we’ll stay behind it, knocking.”

On YouTube, creators earn between USD one and USD five per thousand views—almost everywhere except Ethiopia. Musicians on Spotify earn nothing unless they distribute through foreign accounts. PayPal, Stripe, Wise, and most digital wallets still do not operate legally in the country.

Costantinos Berhe, former chair of the AU Anti-Corruption Board and ex-UN policy adviser, says the government must urgently embrace and regulate Ethiopia’s emerging digital content sector—an industry he believes holds both economic and cultural promise.

“The content creation industry is new, but in Ethiopia we lack awareness, infrastructure, and policy support,” he said. “We’re missing the opportunity to earn foreign currency and promote our culture on a global stage.”

Costantinos calls for direct engagement with global tech companies, expanded access to digital banking, and investment in reliable, affordable internet. He also stresses the need for regulatory frameworks that support both creators and the wider digital ecosystem. But he warns that with the opportunities come risks: misinformation, online addiction, and social fragmentation.

“This is not just about entertainment—it’s about national development, identity, and Ethiopia’s place in the global digital economy,” he said.

As other African nations race ahead, Ethiopia’s choices in the coming years will determine whether it becomes a digital leader or remains a spectator. Monetization is more than a tech feature—it’s an engine of growth. It sustains livelihoods for editors, producers, and influencers, drives tax revenue, and channels foreign currency into local economies. Without it, Ethiopian creators remain in the shadows, fueling global platforms they cannot fully benefit from.