A new legal framework has been unveiled to reduce the digital technology access gap across various regions of Ethiopia and ensure all citizens benefit from technology.
This new regulation is expected to accelerate the country’s journey toward a digital economy. It specifically targets rural and remote areas where telecom services have been non-existent or limited.
The primary source of income for this fund will be a revenue share paid by telecommunications service providers (operators) doing business in Ethiopia.
According to Regulation No. (585/2026), titled the “Universal Access Fund,” approved by the Council of Ministers, any licensed telecom organization is obligated to contribute 1.5% of its annual gross revenue to the fund.
This fee will be calculated based on the operators’ financial reports for the Ethiopian budget year (July 8 to June 7).
The Ethiopian Communications Authority (ECA) has been tasked with collecting and managing these payments.
However, to encourage new operators entering the market, a three-year grace period has been granted.
The regulation also introduces flexible methods for telecom companies to fulfill their obligations.
Operators can fulfill their required 1.5% contribution by paying directly into the fund; alternatively, under the “Pay-or-Play” principle, the regulation stipulates that they can meet their obligations by building infrastructure and providing services themselves in rural and unserved areas identified by the Authority.
It was noted that the costs incurred for such projects will be deducted from their required revenue contribution. The fund’s objective is described as not only expanding infrastructure but also ensuring social equity.
The regulation specifically supports the education and health sectors, ensuring that rural schools, higher education institutions, and healthcare facilities gain access to internet and communication services.
Furthermore, special attention will be given to ensuring digital service access for women, persons with disabilities, and low-income segments of society. The fund is also expected to play a role in increasing local content and promoting technological products developed in local languages.
According to the regulation, if a telecom operator fails to make its contribution on time, a 2% penalty will be imposed for the first month of delay. For every subsequent month of delay, an additional 5% penalty is mandated.
