The agreement, unveiled during the global technology event in Barcelona, aligns with Ethio Telecom’s three-year Next Horizon Strategy, which focuses on expanding network capacity, enhancing service quality, and supporting Ethiopia’s growing digital economy.

Under the deal, the telecom operator will undertake a comprehensive modernization programme involving the expansion, upgrade, and 4G layering of about 1,500 mobile sites within the Ericsson network-managed infrastructure.

The initiative will also introduce new technological capabilities designed to improve network coverage, reliability, and capacity.

Ethio Telecom said the project will replace legacy infrastructure with advanced network technology, significantly boosting 4G coverage and capacity while expanding the company’s 5G footprint to support high-speed connectivity required for modern digital services.

A major focus of the initiative is digital inclusion, particularly in underserved communities. The modernization programme will target 75 rural areas, deploying tailored mobile solutions aimed at bridging connectivity and usage gaps in remote regions.

The company also plans to modernize 502 existing 3G sites by upgrading them to advanced 4G technology, a move expected to improve service quality and deliver faster mobile broadband services to millions of users.

Within the Ericsson-managed network circle, the project will add 2.8 million new 4G capacity, raising the total to 4.1 million. The expansion will also extend LTE services to 157 additional towns, increasing the number of connected towns to 276 and boosting population coverage by 45 percent, reaching 85 percent population coverage in the region.

Ethio Telecom noted that the network upgrade will provide critical support for Ethiopia’s rapidly expanding digital ecosystem, including national platforms such as telebirr, ZemenGebeya, and Znexus, which are driving digital payments, e-commerce, and digital services adoption across the country.

The company reaffirmed its commitment to investing in advanced technologies and strengthening strategic partnerships to position Ethiopia as a leading digital hub in Africa, while enabling broader access to reliable and high-speed connectivity.

This is contained in the Africa Telecom 50 Report 2024 (East Africa), a ranking of the leading mobile network operators (MNOs) in East Africa, based on the most recently available data on their mobile subscriptions.

The report covered the period up till January 31, 2025.

Tanzania is the 2nd biggest market with 80,662,041 subscriptions, while Kenya comes 3rd with 71,375,093. These top three countries account for 238,637,134 mobile subscriptions or 75.76% of the market in East Africa in 2024.

The other sizable markets in the region during the period under review are Uganda with 37,151,000 mobile subscriptions and Rwanda with 13,480,095 subscriptions.

The remaining seven countries of the region (Somalia, Burundi, South Sudan, Comoros, Eritrea, Djibouti and Seychelles) each have a subscription base of less than 10 million.

The report also shows that Ethio Telecom of Ethiopia is the biggest telco in the region, with 80,500,000 mobile subscriptions, followed by Safaricom Kenya with 46,567,767 subscriptions.

Vodacom Tanzania comes in the third position with 24,708,053. TIGO Tanzania and MTN Uganda rank 4th and 5th with 23,506,864 and 21,551,000 respectively.

The five other MNOs which make up the top 10 in East Africa in 2024 are Airtel Kenya with 21,517,842 subscriptions, Airtel Tanzania 19,824,410, Airtel Uganda 15,600,000, Halotel Tanzania 11,031,495, and MTN Rwanda 8,331,304.

Beyond its raw numbers of 86,600,000 mobile subscriptions, Ethiopia, East Africa’s biggest telecom market as at 2024, falls short in teledensity in the region.

Teledensity measures the number of active telephone lines available to each person in a country at any given year.

With a population of 132,059,767 (based on data from Worldometer as at October 31, 2024), the country has a current teledensity of 65.58%, ranking 7th in the region.

On average, the Africa Telecom 50 Report 2024 (East Africa) shows that more telephones are available to people, per capita, in Seychelles, Kenya, Tanzania, Rwanda, Comoros and Uganda during the period under review than to people in Ethiopia.

Since the advent of telephony in the country more than a century ago, the Ethiopian government had shut out competitors outside the country from its telecom market until August 2022 when it opened the space for Safaricom Kenya.

The state-owned operator, Ethio Telecom, had therefore monopolized the entire telecom space all this while, and even today, it still accounts for 92.96% of the market.

Compared to the other big East African telecom markets of Tanzania and Kenya, with a teledensity of 117.65% and 126.48% respectively, Ethiopia has plenty of catching up to do in this critical telecom metric. In working out this maths, Ethiopia will require about 68,000,000 more mobile subscriptions in order to catch up with Tanzania’s teledensity as at today.

As for that of Kenya, it would require about 81,000,000 extra telephone lines. Can the country’s two operators (Ethio Telecom and Safaricom Ethiopia) lead the charge to attain such a threshold? Or does the country need to open its telecom space further for one or two more big-muscle operators to come in?

While announcing the release of the Africa Telecom 50 Report 2024 (East Africa) in Abuja, Nigeria, Mr. Frederick Apeji, the CEO of Alford Conferences Limited, explained that, “In compiling the mobile subscription figures for each of the licensed and active mobile network operators (MNOs) in the 12 countries of East Africa, we relied, first of all, on the market share data of these MNOs supplied by the telecommunications industry regulator of these countries.”

Apeji added that,

“The telecom regulator of three of them (Tanzania, Kenya and Rwanda) have such data published on their website; making the collation for their MNOs seamless and accurate. We commend these regulators, and we encourage the regulator of the nine other countries to take a cue from this. In those countries with no updated information by their regulator (Ethiopia, Uganda, Somalia, Burundi, South Sudan, Comoros, Eritrea, Djibouti and Seychelles), we relied on the most recent data supplied by the MNOs themselves. And when neither the regulator nor the operators have updated information on this subject, we relied on various online news websites and other online information sources.”

The annual Africa Telecom 50 Report is published by REVENUE Magazine, one of the trade publications of Alford Conferences Limited.

The first edition, Africa Telecom 50 Report 2023, was published in April 2024 and uploaded on our website, www.alfordevents.com/Reports.

The second edition, Africa Telecom 50 Report 2024, is expected to be published in April 2025. The annual report offers information and insights on the state of the telecom industry in each of the five regions of Africa: Central Africa, East Africa, North Africa, Southern Africa and West Africa.

This is opening a number of new opportunities for economic growth and development as more robust and connected payment networks are breaking down geographical barriers, opening up access to new markets and enabling anyone to send and receive payments quickly and easily from and to anywhere in the world.

However, these significant benefits are largely being realised and felt in Africa’s larger, and key, markets such as Nigeria, South Africa, and of course Kenya- where mobile money was first launched and popularised on the continent.

While these markets have reached greater levels of digital payments maturity, smaller and more underdeveloped markets are often passed over, leaving many still excluded from economic participation and financial freedom.

And yet, the truly transformative power of mobile money and digital payments can be most realised in these overlooked economies where the reliance on cash, a lack of traditional bank accounts due to limited infrastructure and access, and the substantial penetration of smartphones and increasing internet connectivity has created the ideal confluence of circumstances that will pave the way for a more inclusive and resilient financial future.

Realising the enabling power of digital payments

The biggest drivers of mobile money adoption in Africa is its accessibility and ease of use. Unlike traditional financial services, there’s largely no need for extensive paperwork, a credit and financial history, or a physical presence within a brick-and-mortar branch in order to gain access to these services.

This low barrier to entry, along with mobile money’s ability to enable economies beyond just transactions and empower both individuals and enterprises, makes it particularly impactful for underserved markets.

Within these regions, mobile money and the digital payments ecosystem has the power to serve as catalysts for economic growth, poverty reduction, and enable marginalised communities with the financial freedom to manage their day-to-day lives, start or expand their businesses, and invest in their futures.

A concerted effort towards a single goal

It’s important that all levels of an economy work towards achieving the crucial objective of financial inclusion.

Collaboration is a key component in creating and maintaining an environment that creates more opportunities for inclusive growth and ensures economic resilience.

Not only do governments play a pivotal role in developing and implementing the policies and regulations that foster a supportive framework for financial services, but investment from both the public and private sectors are essential to building the necessary digital payments infrastructure that will underpin financial inclusion on the continent.

Meanwhile, fintech firms can continue to drive innovation in this space that will achieve the desired convenience, speed and accessibility within the payments space.

We can see this value already starting to be realised across smaller markets like Eswatini where the Central Bank established a FinTech unit to spearhead the development of digital payments in the country in 2018, in South Sudan where the introduction of mobile money in 2017 has enabled development organisations to distribute cash assistance securely, and Somalia which recently enabled digital payments to be made between the country’s banks, making payments easier.

And, in Ethiopia, non-banks were enabled to provide mobile money services in 2020 as mobile money services could lift 700 000 people out of poverty, add $5.3 billion to the country’s economy, increase tax revenue by $300 million, and essentially position the country to adapt to economic downturns according to the GSMA’s 2023 Mobile Money in Ethiopia report.

Recognising this period as a key moment in the country’s transformation into a financially inclusive economic powerhouse, Onafriq has also strengthened its presence in Ethiopia through a number of partnerships with financial institutions, mobile network operators, and other key decision makers.

This includes partnerships with Ethio telecom and M-PESA Safaricom to enhance and streamline remittance flows and address the shortage of forex while providing customers with much-needed funds.

It’s clear then that when all these elements work in harmony, they can break down barriers to financial access, enabling people and businesses to participate more fully in the economy, thus driving sustainable development and economic growth in these underserved regions.

And, investing in these smaller, underserved markets – which represent a significant portion of the continent’s population – is simply integral to realising true financial inclusion across Africa.

When everyone is able to access financial services we can foster inclusive growth, stimulate local economies and open up access to new markets and opportunities, connecting the continent through sustainable economic development.

From groundbreaking tech startups to sustainable agricultural endeavours, Africa is fast establishing itself as a hub for visionary entrepreneurial ventures.

Over the years, this rich continent has consistently showcased its capacity for pioneering innovations and transformative solutions. The recent upsurge in dynamic ventures, transcending traditional boundaries, highlights Africa’s role as a formidable catalyst for progressive business initiatives.

These avant-garde corporations are not merely altering the commercial environment but also catalyzing socio-economic progression throughout Africa.

At the forefront of this metamorphosis are forward-thinking entrepreneurs who are adeptly employing technology, renewable energy, and indigenous wisdom to confront urgent problems and fashion enduring solutions.

As the global view of Africa pivots from an area fraught with difficulties to a vibrant center of innovation, the spotlight must fall on these extraordinary firms that are scripting a new tale and reshaping the narrative of Africa’s potential and promise. One brand that personifies this transformative force is G Media.

Headquartered in Addis Ababa, Ethiopia, G Media is an esteemed branding and advertising agency serving both domestic and global clientele.

Within its creative walls is an animation studio that breathes life into African folklore, portraying it in a fresh and genuine manner. G Media has earned its accolades by delivering top-tier digital marketing solutions across the African continent.

Among their diversified portfolio of clients is Ethiopian Airlines and Africa’s largest telecommunications provider, which happens to be the continent’s largest airline as well. In a notable feat from 2018, G Media successfully orchestrated a campaign to publicize Ethiopian Airlines’ new mobile app.

Their collaboration extended to Carry1st, developing enticing digital marketing content for African games. Moreover, the agency’s recent endeavours in amplifying Ethio-Telecom’s digital marketing thrust and aiding in the launch of the Tele Birr Super App add to their ambitious milestones.

Debuted in May 2021, Telebirr has rapidly grown into a favoured mobile money solution within Ethiopia. Boasting over 34 million users nationwide, the app simplifies daily life, making money transfers, utility payments, and booking or ticketing accessible with a mere touch.

Within its short two-year existence, Telebirr has tallied over 358 million transactions, amounting to an impressive 746 billion Ethiopian Birr. International remittances through this platform have reached about 2.4 million dollars, spanning 44 countries in this brief success-filled span.

Its unsecured loan offering has marked a radical shift in Ethiopia’s financial scene, extending microcredit facilities to underserved segments such as the youth and women. Telebirr has shown how digital technology can bridge financial disparities, unlocking new avenues for monetary inclusion even in the remotest parts of a burgeoning nation.

In the wake of the triumphant campaign and unveiling of the Tele Birr Super App, G Media’s relationship with Ethio Telecom has thrived. Together they are crafting stimulating and engaging content to spur and magnify user interaction across Ethio Telecom’s various social media channels.

Amadou Daffe, co-founder of Gebeya Inc, and G Media’s Business Advisor, says that “Success in the digital marketing space is about more than just promotions and campaigns; it’s also about developing a strong brand identity that resonates with your target audience. Having worked with Bereket Taffese (G Media CEO), he is not only achieving fantastic things with G Media, but is also very intentional about paving the way for powerful and thriving brand strategies in the ever-changing digital landscape.”