Telecom Liberalization Contributing to Cross Sector Growth: Innovation & Technology State Minister

Addis Ababa October 24/2024 (ENA) Ethiopia’s telecom liberalization is evident how government-private partnership drives meaningful progress, contributing to the cross-sector growth, State Minister of Innovation and Technology, Yeshurun Alemayehu, said.  

GSMA and ethio telecom launched the "Driving Digital Transformation of the Economy in Ethiopia" report in Addis Ababa today. 

In a panel discussion, CEOs of various stakeholders including ethio telecom, Safaricom Ethiopia, GSMA and ZTE participated.

During the occasion, Innovation and Technology State Minister, Yeshurun Alemayehu stressed the transformative power of technology and government-private industry collaboration in driving economic development across all sectors, contributing to the growth of the country. 

He stated the country's significant strides in digital transformation and the government's commitment to creating a conducive environment for innovation and entrepreneurship.

“Our nation has made significant strides in embracing digital transformation as a core component of our national development strategy. Our government recognizes that technology is a key enabler of growth, and we have made it a priority to create a conducive environment for innovation, investment and entrepreneurship,” he elaborated.

He noted the Digital Ethiopia 2025 strategy, a key component of the government's development agenda, aims to harness the power of digital technology to drive economic diversification and inclusive development.

“This strategy is not only about advancing the ICT sector, ICT sector is a part also using technology to uplift other crucial sectors, like agriculture, health, education and finance.” 

While Ethiopia has made significant progress, challenges such as the digital divide, skill gaps, and privacy concerns remain, he added.

“These challenges are not insurmountable, with the right policies, partnerships and investments; we can turn them into opportunities.”

Yeshurun emphasized the importance of public-private partnerships for infrastructure development to address these challenges and ensure that no one is left behind in the digital transformation. 

“We must work together to build the necessary infrastructure, foster innovation and ensure that no one is left behind in this digital transformation. One of the most exciting opportunities lies in the power of public private partnership.” 

He further explained “We have seen firsthand, how collaboration between government and industry can drive meaningful progress. The liberalization of our telecom sector for us has opened the door to new investments,  increased competition and enhanced service delivery. We are confident that similar partnership and different modalities in other sectors like in health, agriculture and education will accelerate our digital transformation and contribute to the cross sector growth.” 

Ethiopian Communications Authority Director General, Balcha Reba on his part outlined the regulatory reforms and infrastructure investments that have contributed to the sector's growth. 

 

“Starting from 2018, if you see the total income this sector brings to Ethiopia, it was not more than 30 billion Birr, but now this has increased 300 percent; you have seen last year, only Ethiopia telecom has achieved 93 billion Birr revenues. And at the same time, they have injected 27 billion birr to the tax authority.”

He also highlighted the significant increase in mobile broadband subscribers and the successful collaboration between Ethio Telecom and Safaricom Ethiopia.

“These two operators are not only competing, but they are really collaborating. So we want to keep this momentum,” he said.

Ethio Telecom CEO, Frehiwot Tamiru on her part said the company is working closely with domestic and global organizations to ensure accessibility of telecom services across the country. 

The number of mobile users was 37 million in 2018 and has now reached 79 million, she noted, adding that the number of internet users has increased from 16 million to 46 million and the overall digital service has also recorded a significant growth.

GSMA Global Chief Regulatory Officer, John Giustion his part said that Ethiopia’s digital aspiration is benefiting citizens and businesses in the country.

The 4G coverage has doubled since the opening up of the telecom market in the country, he noted.

So there is huge opportunity to build on, make investment and ensure infrastructure is enabled, he added.