Over the last two decades, Ethiopiahas achieved remarkable progress toward social and economicindicators. Analytical evidence shows that developmentprojects with a significant information and communicationtechnology (ICT) component have a higher potential toachieve greater outcomes on the ground than the ones notsupported by ICT. This is why the Government of Ethiopiasees ICT within the broader context of its socioeconomicdevelopment objectives and believes that it should takeadvantage of today's most innovative and reliabletechnologies to accelerate the rate of economic growth andalleviate poverty in the country. The Government of Ethiopiahas requested the ICT sector unit of the World Bank toprepare a comprehensive report on how ICT can be used toachieve a true transformation of the Ethiopian economy andsociety. Therefore, this report explores how ICT can beleveraged to foster the development of an ICT-enabledindustry and the private sector in general, to enhancepublic sector performance, to develop the agriculture andhealth sectors, and finally how all these efforts can leadto the emergence of an open innovation ecosystem. Thisreport takes stock of current and recently-launched ICTinitiatives in Ethiopia and develops sector-specificrecommendations based on international best practices thathelp leverage the transformative power of ICT to improve thesocial and economic well-being of citizens and achieve rapidand sustainable socioeconomic development. The reportexplores following topics: background in chapter one,presents fostering the development of ICT-enabled industryand the private sector in chapter two. Chapter three dealswith enhancing the performance of the public sector. Chapterfour is developing the health sector. Chapter five dealswith agricultural and rural development. Chapter six helpsin creating an open innovation ecosystem; and chapter sevenpresents recommendations for ICT-enabled transformation in Ethiopia.