Who Owns Whom

ICT and Telecommunications in Ethiopia

Charles Chinya | Ethiopia | 30 August 2021

ICT and Telecommunications in Ethiopia

The Ethiopian government is the main growth driver in the ICT industry as the major client of ICT companies and the majority shareholder in the only telecoms company Ethio Telecom. In terms of the government’s Growth and Transformation Plan 2, ICT will provide a springboard towards realising the national vision of becoming a middle-income country by 2025. Recently Ethiopia has opened up the industry to the private sector, offering two telecom operator licences (one has been awarded) and indicating it will sell 40% of Ethio Telecom, which it owns.

Liberalisation

The government plans to liberalise the telecoms market and modernise telecoms infrastructure. Mobile sim and broadband penetration are low compared to other developing countries due to high mobile tariffs and the country’s poor network coverage. While 2G networks are widely available, 4G coverage is restricted to Addis Ababa. Ethiopia also has a notably low level of international connectivity. E-commerce is in its infancy in Ethiopia and is rarely used, although mobile banking is growing.

IT Hardware and Software

There is local assembly of mobile phones, and innovation and localisation for Ethiopian use such as a keyboard in Amharic. Mobile phone assembly is largely of feature phones, but many parts and compenents must be imported to produce mobile handsets, and industry players say the industry requires local compoments production.

Report Coverage

This report focuses on the information and communication technology sector (ICT) in Ethiopia which includes telephony, the internet and broadband, and the infrastructure that supports them including hardware manufacturing, assembly and supply, and software development and supply. The report includes information on the state of the industry and influencing factors such as teledensity and the economic environment, major players and government’s liberalisation plans. There are profiles of 41 companies including the dominant player Ethio Telecoms, international players with a presence in Ethiopia such as ZTE Corporation and Tana Communications and IT companies such as Africom Technologies and Fairfax Technologies.

Table of Contents

PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 3
3.1. Industry Value Chain 5
3.2. Geographic Position 7
4. SIZE OF THE INDUSTRY 9
5. STATE OF THE INDUSTRY 13
5.1. Local 13
5.1.1 Corporate Actions 16
5.1.2 Regulations 17
5.1.1. Enterprise Development and Social Economic Development 19
5.2. Continental 20
5.3. International 25
6. INFLUENCING FACTORS 27
6.1. Economic Environment 27
6.2. Coronavirus 28
6.3. Environmental Concerns 28
6.4. Electricity Supply 28
6.5. Technology, Research and Development (R&D) and Innovation 29
6.6. Internet Censorship 29
6.7. Cyber Security 30
6.8. Labour 30
7. COMPETITION 32
7.1. Barriers to Entry 32
8. SWOT ANALYSIS 32
9. OUTLOOK 33
10. INDUSTRY ASSOCIATIONS 34
11. REFERENCES 34
11.1. Publications 34
11.2. Websites 35
APPENDIX 1 – SUMMARY OF NOTABLE PLAYERS 36
Computer Services and Related Equipment 36
Telecommunications and Related Equipment 38
COMPANY PROFILES - COMPUTER SERVICES AND RELATED EQUIPMENT 41
AFOMSOFT TECHNOLOGIES PLC 41
AFRICOM TECHNOLOGIES PLC 42
AHADOOTEC ICT SOLUTIONS PLC 44
ALTA COMPUTEC PLC 46
AMLION SYSTEMS PVT LTD 48
CHINA COMMUNICATIONS SERVICES CORPORATION LTD 49
CNET SOFTWARE TECHNOLOGIES PLC 53
CREAVERS SERVICE PLC 55
EDMONIA ICT SOLUTIONS PLC 57
ETHIO TELECOM 58
ETHIOPIAN INCLUSIVE FINANCE TECHNOLOGY S.C. 60
FAIRFAX TECHNOLOGIES LLC 61
G2G IT SOLUTIONS S.C. 63
IE NETWORK SOLUTIONS PLC 65
INTRACOM ICT SOLUTION PLC 67
KIFIYA FINANCIAL TECHNOLOGY PLC 69
M-BIRR ICT SERVICES PLC 70
MKTY IT SERVICES PLC 72
PROFESSIONAL ELECTRONIC DATA SYSTEMS PLC 74
SYMBOL TECHNOLOGIES PLC 75
TANA COMMUNICATION PLC 76
TEAMY TRADING PLC 78
TRANSSION MANUFACTURING PLC 79
WEBSPRIX PLC 81
ZTE CORPORATION LTD 83
COMPANY PROFILES – TELECOMMUNICATIONS AND RELATED EQUIPMENT 89
CHINA COMMUNICATIONS SERVICES CORPORATION LTD 89
EDMONIA ICT SOLUTIONS PLC 93
ETHIO TELECOM 94
G2G IT SOLUTIONS S.C. 96
IE NETWORK SOLUTIONS PLC 98
MKTY IT SERVICES PLC 100
SPACE ENGINEERING LTD 102
SYMBOL TECHNOLOGIES PLC 104
TANA COMMUNICATION PLC 105
TRANSSION MANUFACTURING PLC 107
UNITED SYSTEM INTEGRATORS PLC 109
WEBSPRIX PLC 111
ZTE CORPORATION LTD 113