Armenia’s Digital Transformation: Bridging the Digital Divide for Sustainable Growth. UN Thematic Paper

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UN paper - Armenia Digital

Armenia’s push toward digitalization is accelerating, but challenges such as the digital divide, infrastructure gaps, and digital literacy inequalities remain critical. With UN support, the country is navigating a complex path toward sustainable, inclusive digital growth.

Why Digital Connectivity Matters for Armenia’s Future

In today’s interconnected world, digital connectivity is not just a luxury—it is essential for economic growth, governance, education, and social inclusion. According to the United Nations’ thematic paper on Armenia’s digital connectivity, the country is actively working to expand its digital infrastructure and governance, yet disparities persist, particularly in rural and low-income communities.

The UN recognizes digital transformation as a key driver of the Sustainable Development Goals (SDGs) and emphasizes its potential to accelerate progress across all sectors. The Global Digital Compact, adopted in September 2024, provides a framework to ensure digital technologies benefit everyone equitably, focusing on universal internet access, data privacy, and AI governance.

Armenia’s Digital Transformation: Key Milestones and Goals

Armenia’s digitalization journey is led by the Ministry of High-Tech Industry (HTI) and follows a structured, phased approach:

  • “Digital Jump” (2018-2020) – Focused on infrastructure investments, including internet expansion and digital platforms.
  • “Digital Acceleration” (2021-2025) – Prioritizing digital productivity and government services.
  • “Digitized Development” (2026-2030) – Aiming for tech-driven economic growth and innovation.

Armenia ranks well regionally in e-governance development, yet gaps remain between urban and rural areas. Key initiatives include:

  • A unified e-government platform to streamline public services.
  • The launch of a cybersecurity center to strengthen national digital security.
  • Investments in e-health initiatives to modernize healthcare.

The Digital Divide in Armenia: Who Is Being Left Behind?

Despite advancements, Armenia faces a significant digital divide, particularly in rural areas and among marginalized groups:

  • Low-income households and small businesses struggle with broadband adoption due to affordability.
  • Rural communities lag in internet access and digital literacy compared to Yerevan and secondary cities.
  • Gender disparities persist, with only 35% of Armenian women possessing basic digital skills compared to 55% of men.
  • Persons with disabilities face additional obstacles, such as lack of assistive technologies and inaccessible digital platforms.

Although 88% of the population lives within 10 km of a fiber network, last-mile connectivity gaps prevent full access in smaller communities. Addressing these inequalities is key to ensuring no one is left behind in Armenia’s digital transformation.

Developing Armenia’s Digital Infrastructure for a Connected Future

To sustain its digital growth, Armenia is investing heavily in data centers and connectivity expansion:

  • Tier 3 data centers like Ovio’s facility in Abovyan are being developed to enhance reliability and data storage capacity.
  • Increasing data security and power efficiency is a priority, requiring further investment in renewable energy sources.
  • Expansion of fiber-optic connectivity to underserved regions remains a challenge, despite strong urban network infrastructure.

E-Government and Online Services: How Armenia is Going Digital

Armenia is prioritizing digital governance and transparency, with initiatives such as:

  • E-gov.am – A one-stop platform for tax filing, public services, and permits.
  • E-draft.am – A public consultation platform for proposed legislation.
  • E-request.am – A digital hub for administrative service requests.
  • E-justice & e-procurement – Streamlining legal and business transactions.

Armenia’s participation in the Open Government Partnership (OGP) underscores its commitment to digital transparency and citizen engagement. However, ensuring access for non-digital populations remains a challenge.

Armenia’s IT Sector: A Fast-Growing Industry with Global Potential

The Armenian IT sector is rapidly expanding, with a 43% increase in turnover in 2023, largely driven by foreign markets. Key highlights include:

  • The IT sector’s growing contribution to GDP.
  • A rising foreign workforce, particularly from Russia.
  • Armenia’s improved ranking in the Global Innovation Index.
  • Challenges in supporting science-based startups and securing private R&D funding.

Government-backed programs, tax incentives, and diaspora-led investments are playing a critical role in fostering innovation and digital entrepreneurship.

Sustainability and the Digital Economy: Armenia’s Green Tech Initiatives

The UN’s thematic paper emphasizes the need for sustainable digital development in Armenia. Key priorities include:

  • Reducing electronic waste (e-waste) through recycling programs.
  • Promoting the circular economy in digital technologies.
  • Implementing digital product passports to track compliance with environmental standards.
  • Initiatives like EU4Environment supporting e-waste management and green tech innovation.

As Armenia’s data center and IT sectors grow, the country must ensure its energy consumption remains sustainable, with a shift toward renewable energy sources.

The Role of the Armenian Diaspora in Digital Growth

The Armenian diaspora plays a significant role in the country’s IT sector, contributing through:

  • Investment in startups via platforms like Granatus Ventures.
  • Educational initiatives, such as the TUMO Center for Creative Technologies.
  • Global market access, facilitating Armenia’s integration into the international tech ecosystem.

The government continues to offer incentives for diaspora engagement, recognizing its importance in driving innovation and entrepreneurship.

UN’s Role in Supporting Armenia’s Digital Future

The United Nations is actively working to bridge Armenia’s digital divide through:

  • Policy support and investment strategies to enhance digital affordability.
  • Capacity-building programs to improve public sector digital skills.
  • Developing digital forensic labs and early warning systems for public safety.
  • Strengthening AI governance and ethical technology frameworks.

According to the International Telecommunication Union (ITU), Armenia must invest approximately 17% of its GDP annually in digital transformation to achieve inclusive digitalization between 2023-2030. The UN Sustainable Development Cooperation Framework (UNSDCF) is helping guide these investments to ensure affordable, accessible, and inclusive digital growth.

The Path Forward: How Armenia Can Close the Digital Divide

To fully realize its digital potential, Armenia must prioritize:

  • Broadband expansion and last-mile connectivity.
  • Affordable internet access for low-income households and small businesses.
  • Gender and disability inclusion in digital education and employment.
  • Cybersecurity and data protection frameworks to safeguard online rights.
  • Environmental sustainability in tech infrastructure.
  • A multi-stakeholder approach, integrating government, private sector, civil society, and international partners.

Armenia’s digital transformation is a key driver of economic growth, innovation, and governance efficiency. However, ensuring inclusivity, affordability, and sustainability is critical. With strong UN support and strategic policy implementation, Armenia is well-positioned to become a regional leader in digital connectivity and innovation.

Source: UN Armenia – Digital Connectivity Leaving No One Behind, 2025

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