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ict telecommunications ethiopia

ICT and Telecommunications in Ethiopia 2021

Charles Chinya | Ethiopia | 30 August 2021

ICT and Telecommunications in Ethiopia 2018

Louise Mitchell | Ethiopia | 18 October 2018

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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. Analysts 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.

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ICT and Telecommunications in Ethiopia
ICT and Telecommunications in Ethiopia 2021

Full Report

R 6 500.00(ZAR) estimated $357.78 (USD)*

Industry Landscape

R 4 550.00(ZAR) estimated $ 250.45 (USD)*

Historical Reports

ICT and Telecommunications in Ethiopia 2018-10-18

R 1 900.00(ZAR) estimated $104.58 (USD)*

View Report Add to Cart

Table 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

Introduction

This report focuses on the information and communication technology (ICT) industry in Ethiopia. Although telecommunications formally includes a vast array of sub-sectors, like radio and television, this report focuses on Ethiopian telephony, internet and broadband, and the infrastructure that supports them. The information technology (IT) industry includes hardware manufacturing, assembly, and supply, and software development and supply. Latest available statistics show that the service sector contributed 47% to GDP in 2016. The main contributors to the service sector growth were transport and communications. The government’s growth and transformation plan is expected to stimulate growth in the industrial sector which contributed only 17% to GDP in 2016. One of the main aims of the plan is to grow the industrial and manufacturing sector in order for the economy to become less dependent on agriculture. This objective is still far from being realised with export income contributing only 0.83% of GDP in 2017 and imports accounting for 4.9% in 2017.

Strengths

• Ethiopia’s Second Growth and Transformation Plan prioritises ICT development.
• International OEMs have local distributors.
• The country is attracting high levels of FDI.
• The sector creates jobs through start-ups.
• The young population ensures new entrants into the market.

Weaknesses

• Internet censorship affects economic viability of businesses.
• The monopoly by the state-owned telecommunications company inhibits competition.
• The regulatory environment is not yet established to support growth.
• 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.
• Financial support from government for youth-owned businesses and for the youth to enter the job market.
• Increasing demand for data and internet services.
• Low penetration rates in internet and broadband present opportunities for companies to enter the market.
• The national fibre backbone infrastructure will enable internet access to new users.
• The opening up of the telecommunication sector by government to private investors.

Threats

• Contraband trade threatens the profitability of local mobile phone assemblers.
• Ethiopia's dependence on government investment and Chinese foreign investment exposes the country to risks if government spending is constrained and if China reduces its investments.
• Political unrest deters investment.
• Power supply interruptions affect business efficiency and productivity.
• The sector is vulnerable to cybercrime while the regulatory framework is being put into place.

Outlook

Fixed-line and mobile connectivity has become a vital aspect of the Ethiopian economy and analysts concur that demand for telecommunications services is set to grow. With the arrival of 4G in Ethiopia, demand for broadband and mobile data will increase. Heavy investment in infrastructure will be required to meet demand. Increased foreign direct investment is expected after the government opened up foreign investment in certain sectors that are controlled by the state. The expectation is that it would increase competition so that consumers can benefit from better quality products and services, as well as competitive pricing. Some role players see Ethiopia as the next software outsourcing hub with low-cost labour and growing IT skills development. The prerequisite would be adequate infrastructure. Analysts 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
ICT and Telecommunications in Ethiopia 2018

Full Report

R 1 900.00(ZAR) estimated $104.58 (USD)*

Industry Landscape

R 1 330.00(ZAR) estimated $ 73.21 (USD)*

Historical Reports

ICT and Telecommunications in Ethiopia 2021-08-30

R 6 500.00(ZAR) estimated $357.78 (USD)*

View Report Add to Cart

Table of Contents

[ Close ]
PAGE
1. INTRODUCTION 1
2. COUNTRY INFORMATION 1
3. DESCRIPTION OF THE INDUSTRY 4
3.1. Industry Value Chain 6
3.2. Geographic Position 7
4. SIZE OF THE INDUSTRY 7
5. STATE OF THE INDUSTRY 11
5.1. Local 11
5.1.1. Corporate Actions 14
5.1.2. Regulations 14
5.1.3. Enterprise Development and Social Economic Development 17
5.2. Continental 18
5.3. International 21
6. INFLUENCING FACTORS 23
6.1. Economic Environment 23
6.2. Government Initiatives 24
6.3. Private Sector Investment 25
6.4. Information Technology, Research & Development (R&D) and Innovation 27
6.5. Cybercrime and IT Security 27
6.6. Internet Censorship 28
6.7. Labour 29
6.8. Cyclicality 31
6.9. Environmental Concerns 31
6.10. Electricity Supply Constraints 32
7. COMPETITION 33
7.1. Barriers to Entry 33
8. SWOT ANALYSIS 34
9. OUTLOOK 34
10. INDUSTRY ASSOCIATIONS 35
11. REFERENCES 35
11.1. Publications 35
11.2. Websites 36
APPENDIX 1 – SUMMARY OF MAJOR PLAYERS 38
Computer Services and Related Equipment 38
Telecommunications and Related Equipment 39
COMPANY PROFILES - COMPUTER SERVICES AND RELATED EQUIPMENT 42
AFOMSOFT TECHNOLOGIES PLC 42
AFRICOM TECHNOLOGIES PLC 43
AHADOOTEC ICT SOLUTIONS PLC 45
ALTA COMPUTEC PLC 46
AMLION SYSTEMS PVT. LTD. CO. 48
CHINA COMMUNICATIONS SERVICES CORPORATION LTD 49
CNET SOFTWARE TECHNOLOGIES PLC 53
CREAVERS SERVICE PLC 54
EDMONIA ICT SOLUTIONS PLC 55
ETHIO TELECOM 56
ETHIOPIAN INCLUSIVE FINANCE TECHNOLOGY S.C. 59
FAIRFAX TECHNOLOGIES LLC 60
G2G IT SOLUTIONS S.C. 62
IE NETWORK SOLUTIONS PLC 64
INTRACOM ICT SOLUTION PLC 66
KIFIYA FINANCIAL TECHNOLOGY PLC 68
MKTY INFORMATION TECHNOLOGY SERVICES PLC 70
MOSS ICT CONSULTANCY PLC 72
PROFESSIONAL ELECTRONIC DATA SYSTEMS PLC 73
SYMBOL TECHNOLOGIES PLC 74
TANA COMMUNICATION PLC 75
TEAMY COMPUTER TECHNOLOGIES PLC 77
TRANSSION MANUFACTURING PLC 78
WEBSPRIX PLC 80
ZTE CORPORATION LTD 81
COMPANY PROFILES – TELECOMMUNICATIONS AND RELATED EQUIPMENT 87
BRODYNT GLOBAL SERVICES S.L. 87
CHINA COMMUNICATIONS SERVICES CORPORATION LTD 89
EDMONIA ICT SOLUTIONS PLC 93
ETHIO TELECOM 94
G2G IT SOLUTIONS S.C. 97
IE NETWORK SOLUTIONS PLC 99
MKTY INFORMATION TECHNOLOGY SERVICES PLC 101
SPACE ENGINEERING LTD 103
SYMBOL TECHNOLOGIES PLC 105
TANA COMMUNICATION PLC 106
TRANSSION MANUFACTURING PLC 108
UNITED SYSTEM INTEGRATORS PLC 110
WEBSPRIX PLC 112
ZTE CORPORATION LTD 113