Ethiopia’s telecommunications market is poised for further expansion with the anticipated arrival of a third telecom operator by late 2025 or early 2026, according to the Ethiopian Communications Authority (ECA). While the ECA is temporarily pausing the issuance of new licenses in mid-2023, this decision aims to create a more favorable investment environment before welcoming additional global players.

Balcha Reba, Director General of the ECA, explained that this temporary suspension will allow for a reassessment of the current market situation and the implementation of necessary reforms to attract and ensure long-term investment. “Since there are new conditions that require investment, work is being done to see if it is appropriate and to make further improvements if necessary,” Balcha stated. The ECA is carefully evaluating market volatility, the existing regulatory framework, and broader policy factors to attract reputable and qualified operators.

The addition of a third telecom operator is expected to bring several benefits to Ethiopia, including increased competition, improved quality and availability of telecom services, spurred innovation, enhanced network coverage, and reduced costs for consumers.

Ethiopia’s telecom sector has undergone significant changes since 2018, when the government recognized its vital role in the country’s development and embarked on a path towards free markets and privatization. For decades, state-owned Ethio Telecom held a monopoly, limiting competition and innovation. A key milestone in this transformation was the licensing of Kenyan telecommunications giant Safaricom in 2021, marking the arrival of the first private telecom operator in Ethiopia.

Safaricom has experienced substantial growth, reaching an estimated 42 percent population coverage, demonstrating the potential for rapid expansion in the newly liberalized market. This success has informed the government’s decision to introduce a third operator and its current focus on creating favorable investment conditions.

However, previous attempts to issue a second license have been met with challenges, including a lack of satisfactory bids and concerns about political instability. In November 2023, the government reportedly confirmed it had cancelled the process of issuing a third telecoms license due to a lack of interest.

Despite past setbacks, the ECA’s current strategic approach aims to maximize the benefits for Ethiopian citizens by ensuring a strong and competitive telecom ecosystem before welcoming a third operator[6]. In October 2024, Brook Taye, CEO of Ethiopia Investment Holdings, stated that Ethiopia still plans to welcome a third mobile operator due to increased demand for B2B and B2C broadband services. He also revealed plans for Ethio Telecom to list on Ethiopia’s new stock market.

Tiya High School in Central Ethiopia has received a significant boost to its technological capabilities thanks to a donation of modern electronic equipment worth over 4 million birr (30,000 Euro) from the Romanian government.

The Romanian Ambassador to Ethiopia, Julia Pataki handed over the latest technology equipment on February 5, in the presence of Sodo Woreda officials, parents representatives, teachers and students. 

The donation includes 21 standardized all in one computers, a printing machine, a 75-inch television, a camera, and other essential electronic equipment, creating a fully equipped state of the art ICT lab for the school. This initiative aims to provide Tiya High School with the technology necessary for a modern learning environment.

Ambassador Pataki personally championed the project, which was launched last year, and ensured the inclusion of a full camera set to allow students to develop professional skills alongside their academic studies.

Tadelle Birhane, Head of the Sodo Woreda Education bureau, expressed gratitude to the Romanian government for its support and acknowledged the crucial role of technology in education. He noted that Tiya High School has become one of the top schools in the district, a center of excellence thanks in part to such ongoing assistance.

Emunesh Ilala, Director of the school said that a good and efficient school produces good citizens. The students’ performance has been improving over the years and this donation will further enhance their academic achievement.  

Ambassador Pataki highlighted the importance of connectivity noting that this lab can also help build the capacity of other schools in the community.  This is her second ICT project following the first done in Addis Ababa, Cathedral school, and the third is in the pipeline.

The school envisions modernizing to Level 4 and becoming a model institution for the region, emphasizing that the donated equipment will help build a solid foundation for future generations. The Tiya School Virtual Excellence Center is scheduled to be officially inaugurated on March 6th, with federal and regional officials, ambassadors, community elders, parents, and students in attendance. This contribution marks a significant step forward in enhancing educational opportunities and technological literacy for students at Tiya High School.

This donation is a potential reflection of the growing collaboration between Ethiopia and Romania. Romania is prioritizing technology and digital transformation in its own education system, and this donation may represent an effort to share those resources internationally. 89% of households in Romania have access to internet. Other international efforts are also underway to improve education and provide digital resources to Ethiopian youth.

Ethiopia has launched an ambitious Digital Agriculture Roadmap (DAR) for 2025-2032, signaling a major push to transform its agricultural sector through the integration of digital technologies. The strategic framework aims to modernize practices across the entire agricultural value chain, from farm to market, ultimately increasing productivity, enhancing resilience to climate change, and ensuring the long-term sustainability of Ethiopian agriculture.

The roadmap, developed by the Ethiopian Agricultural Transformation Institute (ATI) in collaboration with the Ministry of Agriculture and the Gates Foundation, builds upon the foundation laid by the 2022 Digital Agricultural Extension and Advisory Services (DAEAS) roadmap. It envisions a more engaging, sustainable, and prosperous agricultural ecosystem for farmers and pastoralists.

Minister of Agriculture Girma Amente highlighted that the DAR focuses on six key solutions across 22 priority areas, including agricultural information, supply chain management, financial services, pricing and marketing services, smart farming, and extension and advisory services. These carefully selected areas are expected to address the pressing challenges faced by Ethiopian farmers.

The roadmap outlines 32 priorities, including improving digital infrastructure, promoting digital literacy among farmers, and developing comprehensive farmer profiles. The plan is structured in two phases, with the first phase (2025-2029) focusing on building the foundational digital infrastructure and addressing key challenges in agriculture, and the second phase (2030-2032) aiming to diversify and scale the digital ecosystem across the sector.

ATI Director-General Mandefro Nigussie stressed that access to accurate and up-to-date information is essential to solving problems in all aspects of the agricultural value chain, from production to market access. He believes that digital tools can bridge the information gap that has long hampered growth in the sector.

With coordinated support from the Ethiopian Agricultural Transformation Institute and the Gates Foundation, this initiative reflects a strong commitment to integrating technology into Ethiopian agriculture to improve productivity and livelihoods. The vision of the DAR is to create a digitally advanced agricultural sector where farmers and pastoralists have access to real-time data, modern tools, and improved market linkages to drive productivity, sustainability, and food security.

Ethiopia’s efforts to create a more business-friendly environment are paying off, with the nation attracting nearly $1.2 billion in Foreign Direct Investment (FDI) in the first four months of the fiscal year. This investment surge follows a series of over 80 reforms implemented over the past six years, aimed at streamlining business processes and opening new sectors to foreign investors.

Zeleke Temesgen, Commissioner of the Ethiopian Investment Commission (EIC), highlighted the positive changes, noting that they have created a more favorable market environment for investors. The EIC now provides comprehensive support, assisting with everything from visa applications and residence permits to banking assistance and market linkage facilitation, removing bureaucratic hurdles.

Significant legislative reforms, including amendments to the Commercial Code, the introduction of the Capital Markets Act, and the passage of the E-Transaction Act, have provided investors with greater predictability and certainty. Notably, the business sector, previously closed for over 50 years, has been liberalized, allowing foreign investors to participate in wholesale, retail, import, and export.

In a recent interview, the Commissioner noted that FDI is 6.4 percent higher than in the same period last year. This growth reflects investors’ increasing confidence in the Ethiopian market, driven by its strategic location, vast market (population over 120 million), access to cheap energy resources, and well-developed industrial parks.

Ethiopia’s strategic focus on five key economic pillars – manufacturing, agriculture, ICT, mining, and tourism – creates diverse investment opportunities. The agricultural sector, the backbone of Ethiopia’s economy, offers lucrative prospects in areas such as coffee processing, fertilizer production, and improved seed and animal feed production. The energy sector, with its abundant renewable resources, presents significant potential for investors in hydropower, geothermal, solar, and wind power.

Ethiopia’s membership in the African Continental Free Trade Area (AfCFTA) and COMESA has further enhanced its attractiveness, granting investors access to a broader African market. Recent macroeconomic reforms, including the liberalization of the foreign exchange system, have addressed previous challenges related to foreign exchange access and dividend repatriation. Investors in special economic zones can now retain up to 100% of their foreign exchange earnings. The establishment of special economic zones aims to enhance the business climate and attract further investments.