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Tele’s ‘LEAD Growth Strategy’ curves success in its first year

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The state owned, mammoth telecom enterprise, ethio telecom’s strategy pays dividends in the first year of roll out, as the firm expressed great enthusiasm of success for its second year.
The telecom operator which ended its 127 year monopoly courtesy of Safaricom Ethiopia entering the mix fully this past financial year disclosed that its first year of the three year LEAD Growth Strategy has reeled in great success.
As the CEO of ethio telecom, Frehiwot Tamiru expressed at a press conference on Thursday July 27, if the current situation both in the country and the globe is set to continue, her enterprise’s projections for the second year will surely be attained.
According to Frehiwot, the goal designed for the 2023/24 budget year targets to; have a healthy competition in the market, better security situation, improve on access to foreign currency, improve on the international market and other issues.
“We are targeted to attain growth in all sectors in the budget year,” Frehiwot signaled her delight.
The enterprise stated that the annual business plan has been developed considering and reviewing relevant government policies, international best practices, and industry trends.
“As the telecom sector is rapidly growing and being dynamic by nature, this plan is not a static plan, rather it follows as a ‘deliberate’ and ‘emergent strategy approach’, taking into account the growth and changes in the industry, the government’s development plans and directions, as well as issues related to competition and further reform, and the current conditions of our country,” the firm disclosed in its statement.
In the year, the enterprise has targeted to expand its mobile towers and capital investments.

(Photo: Anteneh Aklilu)

In line to that, the subscriber base is targeted to increase by 8.3 percent to reach 78 million, with the mobile voice customers share projecting growths of 7.5 percent to reach 74.74 million, while data and internet targets to reach 41.17 million that may have more than one fifth increment. Likewise, the fixed broadband customers is gearing to reach 842,800 with 36.3 growth while the tele density is projected to reach 71 percent.
Regarding the promising new business venture, mobile money, the enterprise has aimed to boost its growth by 28.5 percent. The statement of the company disclosed that the telebirr customers will reach 44.1 million for this year.
The revenue on the other hand is expected to show a 14.7 billion birr increment compared with the 2022/23 budget year to reach 90.5 billion birr.
The projection revenue growth rate is however at a lower trend compared with the experience of the preceding years’ performance.
In the 2022/23 budget year, the revenue of ethio telecom had attained 75.8 billion birr at a growth of 23.5 percent compared with the 2021/22 budget year, while for the current budget year the growth percentage would be 19.4 percent that it a bit lower compared with the experience observed in the past budget year.
The enterprise to this regard stated that the revenue growth forecast considers the new business venture and shifting revenue source from traditional to value-added services, offering local and international products and services to the market, expanding telebirr’s access, service types and partners’ network, enhancing service delivery and by increasing customer satisfaction, retention and loyalty.

Lottery services prepare to usher a new dawn

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The National Lottery Service (NLS), a state owned enterprise under the Ethiopian Investment Holdings (EIH), a sovereign wealth fund (SWF), targets to automate its games under the leadership of a new board that was assigned a couple of weeks ago.
The restructuring comes in light of the reorganization process through the ‘powers and duties of the executive organs’ proclamation that was ratified in October 2021, where the Ministry of Revenue (MoR) was set as the regulator but had not fully committed to lead its role.
In the past, the lottery entity had been responsible as a civil service and at the same time was involved in the business operation wing, which had taken a toll on the lottery operator.
However, as per the 2021 proclamation, the regulatory service had been reserved to MoR, which was the higher body for the former Ethiopian National Lottery Administration for the past several years. The lottery service that is currently controlled by NLS was then transferred as a separate enterprise under the Public Enterprises Holding and Administration.
The new enterprise is now part of the EIH as one of the 26 public enterprises selected to be administered under the SWF, which was formed about a year and half ago.
According to Tewodros Neway, Public Relation Head at NLS, the separation of the regulation and the game was significant decision which allowed the NLS to focus on the lottery game portfolio rather than the experience in the past of balancing both operation and the game.
He said that currently the board of directors has been assigned by EIH to overlook the operation it handles that would help enhance the commercialization of services.
Tewodros however declined to give further details about the future strategy when asked by Capital.
“Lottery was not a commercial entity; it was the national lottery administration that was undertaking the regulation and the game. It has just now got through the license as a business body that will be a new environment for it to render its support,” Abdurahman Eid, CEO of EIH, told Capital recently.
The information that Capital secured from sources show that in this new juncture, the body will focus on transforming the games through a digital scheme, an upgrade from the current paper based system.
A year ago, NLS partnered with ethio telecom launching ‘Admas’ digital lottery with the state telecom operator’s mobile money platform, telebirr.
As per sources, NSL is in the process to fully shift to digital based games.
On her latest meeting with media, Frehiwot Tamiru, CEO of ethio telecom, disclosed that her enterprise, which is one of the enterprises under EIH, will be involved on the lottery business aggressively, starting from the current budget year.
As the power sharing proclamation no. 1263/2021indicates, MoR is the responsible body to give a green light for any entities that wants to do any form of lottery business.
However, Capital learnt from sources that the ministry is yet to exercise its power. Due to that NSL is still carrying out the giving of license and permission for those who want to be involved on the activity.
Capital’s effort to get further information from MoR and ethio telecom were however unfruitful.
Under proclamation no. 1263/2021 that was ratified when the newly elected parliament was assigned about 20 months ago, gives power to MoR to issue permit to undertake lottery activity, supervise, suspend and revoke the same; as well as determine the type and specifications of equipment required to perform lottery games; issue permit and supervise the importation of the same; and control illegal lottery activities.

DMP pairs with CEALT to share expertise in transport, logistics management

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The African Center of Excellence for Logistics and Transport (CEALT) and the Doraleh Multipurpose Port (DMP) sign a partnership agreement to pave the way forward for the transportation sector in the region.
The duo cemented their cooperation on July 24, 2023 at the Port of Doraleh premises to which DMP through its MoU announced that the collaboration was a common quest to strengthen the logistics and transport sector in Africa.
“This agreement is structured around several main axes that reflect our commitment to promote the exchange of knowledge, the development of skills and research in the field,” DMP disclosed.
As per the deal, the two parties envisage a regular exchange of information, technical experience and good practices in transport and logistics management.
“This cooperation will allow our institutions to continuously maintain a development impact and promote the emergence of sustainable and effective solutions,” the document read.
By working closely together, the two institutions will be able to offer high quality training and research programs, adapted to the specific needs of the industry and to market developments according to demand.
Co-supervision of students and internships has also been stated as important components of the partnership.
“By offering students the opportunity to work directly with professionals at DMP, we promote hands-on experience that complements their academic training,” DMP pointed out.
This approach also promotes the emergence of strong professional relationships, which can translate into long-term employment and collaboration opportunities.
In addition, the two entities are committed to developing joint research projects that meet the needs of the DMP, within the framework of the research departments existing within the University of Djibouti and the Ministry of Higher Education and Research.
“Research and innovation are essential drivers of progress, and by joining forces, we can explore new solutions, meet the challenges of the sector and contribute to its sustainable development,” it added.
The agreement provides for the construction of a common response to any specific training request from an operator in the logistics and transport sector or from a body linked to the field.
“This flexibility demonstrates our willingness to adapt to market needs and our desire to play an active role in solving the challenges facing the sector. The signing of this agreement marks the beginning of a fruitful collaboration between our institutions,” the statement concluded.

DMP beats the odds to deliver fertilizer

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Cognizant of the dire need of fertilizer in the current rainy season, the biggest port facility in Djibouti, Doraleh Multipurpose Port (DMP), comes in clutch to achieve two consecutive unloading records.
As the modern facility disclosed, on July 21 and 23, courtesy of the 24 hours relentless efforts of the parties involved, dispatch from PSDA/DMP was able to record an untouchable and record performance in the history of bulk cargo.
According to the statement that DMP sent to Capital, the new standards that were set for the unloading and delivery of bulk goods were an unprecedented feat, given the temperature highs of 46Degree Celsius and severe heat wave conditions.
“The port’s operations achieved two records back to back: on Friday July 21, 2023, a record unloading record of 20,284 metric tons (MT) of fertilizer cargo; while on Sunday July 23 a record tonnage of 20,411 MT was unloaded and delivered, making it a first for our facility,” the statement read in-part.
“This feat testifies to the perseverance, competence, competitiveness and exceptional professionalism of DMP’s employees,” it added.
Over the years, the port of DMP has established itself as a flagship of the Djiboutian economy. Its state-of-the-art unloading infrastructure, which enables it to unload ships at a breathtaking speed of 3,000 tons per hour, has placed it as the best performing facility in the region.
The port also boasts bagging lines which are specially designed for grains and fertilizers, facilitating the cargo loading process.
The logistics facility stated that the coordination of operations between DMP and Ethiopian Shipping and Logistics (ESL) has played an instrumental role in increasing port productivity.
Currently, about 454 truckloads of fertilizer are delivered to Ethiopia every day. To optimize transport, 2 trains carry a load equivalent to 74 trucks each, per individual trip, enabling a continuous and rapid flow of goods to Ethiopia by rail.
Following the record breaking performance, the Ethiopian delegation expressed its admiration for the exemplary professionalism of the port’s employees. To this send, the DMP’s leadership disclosed that, “It was delighted with the outstanding results achieved, and expressed its gratitude to the port’s management and employees.”
“This remarkable result would not have been possible without the combined efforts of the port’s labour service on operations and maintenance, SDTV, which is handling the packaging at the port facility, ESL and the contribution of Djibouti Customs,” the DMP management further applauded whilst underlying that, “The success of the Doraleh Multipurpose Port has greatly contributed to Djibouti’s reputation at regional and even international level.”
“The port’s impressive achievements in terms of productivity and unloading performance have attracted the attention of economic players in the region, consolidating Djibouti’s position as an essential hub for maritime trade in Africa,” the statement concluded.
The Port which was inaugurated in May 2017 has the capacity to accommodate vessels with up to 100,000 DWT and boasts state-of-the-art facilities, making it one of the most advanced ports in Africa.
The port features various terminals, including bulk, break, container, and RoRo (Roll-on/Roll-off), and its impressive quay line stretches 1,200 meters, accommodating six berths with a depth of 15.3 meters.
The port also has direct connection to the Djibouti-Addis Ababa railway and is similarly undertaking massive changes and upgrades frequently. For instance, it expanded the port activity with additional equipment worth USD 7 million which allows the port to hand vessels with huge cargo.