Ethiopia is gearing up to introduce a third mobile operator in response to the rising demand for business-to-business (B2B) and business-to-consumer (B2C) broadband services.
CEO Brook Taye of Ethiopia Investment Holdings, which oversees Ethiopia Telecom, the country’s largest government-owned telecom provider, recently shared this development.
Taye also disclosed plans for Ethio Telecom to become the first company listed on Ethiopia’s new stock market, with the government selling a 10% stake.
Privatising state-owned enterprises is part of Prime Minister Abiy Ahmed’s strategy to attract more private investment to Ethiopia. The government’s initial step of selling 10% of Ethio Telecom is expected to precede the sale of an additional 45% ownership to investors. According to Taye, this initial sale will provide a sense of valuation for future considerations.
Ethiopia’s telecommunications industry, catering to a population of over 120 million, is considered a valuable asset in the government’s efforts to open up the economy. Ethio Telecom previously held a monopoly until a consortium led by Kenya’s Safaricom secured the country’s first private telecoms license and commenced operations in 2022.
Taye also expressed the government’s willingness to reopen the tendering process for a second private telecoms license. He emphasised the potential in the B2B and B2C sectors and broadband services for homes and businesses, stressing that Ethiopia remains a promising market for telecommunications operators.
In another significant development, Ethio Telecom is set to be on the list next week. It has recently partnered with China’s Shandong Hi-Speed Qianfang International Technology, Ogranak Beograd, to build a hyperscale data centre in Ethiopia. This partnership aims to enhance the country’s digital infrastructure and address the increasing demand for data storage and processing capacity.
Once operational, the data centre will provide local and international clients with secure, reliable, and high-capacity data storage services. It will cater to the growing data needs of various sectors, such as finance, healthcare, and e-commerce, thereby contributing to Ethiopia’s digital transformation.
