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.
Introduction
The 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. The ICT sector includes hardware manufacturing, assembly and supply, and software development and supply. The Ethiopian government is the main growth driver in the ICT industry as the major client 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 the government 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. As of January 2021, internet users in Ethiopia reached 23.96 million and internet penetration stood 20.6%. The number of mobile connections in Ethiopia in January 2021 was equivalent to 38.5% of the total population. The Ethiopian government has recently as June 2020 imposed a blanket internet shutdown for three months, and the internet has been shut down more than 12 times and the government-mandated blackouts are intended to muzzle unrest and activism.
Strengths
• Ethiopia is a significant recipient of foreign direct investment in East Africa.
• Growth and Transformation Plan 2 priorities ICT development.
• International original equipment manufacturers have local distributors.
• Startups are a source of jobs.
Weaknesses
• Delays in land allocation and construction permits for new ICT sites development.
• Monopoly of Ethio Telecoms prohibits competition.
• Poor and unreliable telecoms infrastructure
• Scarcity of foreign currency.
• The regulatory environment.
• The skills-intensive industry faces a serious skills shortage.
Opportunities
• Demand for IT products and services is driven by most economic sectors, requiring ICT to be competitive.
• Increase in demand for data and internet services.
• Liberalisation of the sector.
• Low internet penetration rates.
• National fibre backbone infrastructure will enable internet access to new users.
Threats
• Dependence on China’s foreign investments expose the country to risks.
• Fibre and copper cable vandalism.
• Potential political conflicts and protests which usually turn violent.
• Power supply interruptions.
• The sector is vulnerable to cybercrime.
• Threats of terrorism by regional groups.
Outlook
The demand for telecommunications services is set to grow. With the arrival of 4G in Ethiopia, demand for broadband and mobile data will increase. The liberalisation of the telecoms industry is set to increase direct foreign investment. The expectation is that infrastructure development will be key to meeting increased demand, and an increase in competition will result in better quality products and services. Some role players see Ethiopia as the next hub in mobile assembling/manufacturing and software outsourcing, benefiting from the low-cost labour and growing IT skills development.\r\n\r\nAnalysts point out that new digital technology with increased internet access and demand for products and services to deliver knowledge and information electronically also increase opportunities for cybercrime.
ICT and Telecommunications in Ethiopia
2021
Full Report
R 1 900.00(ZAR) estimated $105.39 (USD)*
Industry Landscape
R 1 330.00(ZAR) estimated $ 73.77 (USD)*
Historical Reports
ICT and Telecommunications in Ethiopia 2018-10-18
R 1 900.00(ZAR) estimated $105.39 (USD)*
View Report Add to CartTable of Contents
[ Close ]| 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 |
