Ulaanbaatar has digitised government services impressively. Building an export-oriented IT sector is another matter.
Mongolia has achieved something remarkable: it has leapfrogged directly to digital governance without first building the underlying tech sector one might expect to precede such transformation.
The E-Mongolia platform, launched in 2020, offers 181 government services via mobile app and website, with 492 more planned. It integrates systems like E-Barimt (VAT promotion) and E-Halam (social welfare services) through a single interface, advancing Mongolia’s Vision 2050 by reducing bureaucracy. The Regulatory Agency of Government Digital Services, created in 2022, spearheads these reforms. Mongolia climbed from 74th to 46th out of 193 countries in the UN’s 2024 E-Government Development Index—a significant achievement for a landlocked nation of 3.3 million sandwiched between Russia and China.
Scratch beneath the surface, however, and Mongolia’s digital transformation appears narrower than advertised. The country ranks 80th globally in StartupBlink’s ecosystem rankings, up one spot but with negative five per cent annual growth, hosting 75 start-ups and ranking fifth in East Asia. Edtech leads, ranking 57th globally and fifth regionally with 13 start-ups (17 per cent of the total). Between 2017 and 2025, Mongolia attracted just 14 million US dollars in start-up investment—a figure that would barely fund a single Series A round elsewhere.
Government initiatives extend beyond e-government. The ‘Digital Nation’ programme aims to improve transparency, reduce bureaucracy, and support entrepreneurship. Efforts to expand e-commerce, financial services, and youth entrepreneurship programmes like Youth Business Mongolia provide some infrastructure, but these remain embryonic compared to more mature ecosystems.
Reinvantage’s IT Competitiveness Index places Mongolia 26th out of 32 countries in its debut appearance, above Albania by 0.56 points and below Moldova by 0.87 points. The country performs surprisingly well in Economic Impact (12th) but terribly in Business Environment (30th), suggesting the sector generates modest value despite operating in a challenging regulatory landscape.
The underlying metrics reveal a sector barely distinguishable from telecommunications. Average gross ICT salaries stood at 673 euros in 2024—81 per cent higher than in 2020 but still amongst the lowest surveyed. More tellingly, economy-wide average salaries reached 636 euros, creating just a 6 per cent differential—one of the smallest gaps among all countries and suggesting ICT commands minimal premium over other sectors.
ICT employment reached more than 21,000 in 2024, up from 17,500 in 2020—growth of 20.8 per cent, below the average but faster than the 8.5 per cent growth in total employment. ICT’s share of employment rose from 1.4 per cent to 1.6 per cent, roughly half the nearly 3 per cent average.
Students in ICT-related fields grew 44.7 per cent between 2020 and 2024. Graduates increased almost 39 per cent—suggesting growing interest, though from a low base. ICT services exports comprise just 0.26 per cent of GDP, far below the 2.3 per cent average (excluding Cyprus). Value added stands at 2.02 per cent versus the 4.59 per cent average. These figures confirm that telecommunications, not IT, dominates Mongolia’s ICT sector.
Mongolia has digitised government competently. Building an IT industry capable of exporting services requires different capabilities entirely, ones Mongolia has yet to demonstrate.
You can find out more about Lithuania’s tech sector, as well as those of 31 other countries, in the Reinvantage Future of IT 2026 report.
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