13 November 2024

Mobile service costs in Ethiopia are now in line with the recommendations of the International Telecommunication Union (ITU), falling below 2% of monthly gross national income (GNI) per capita.

In 2017, they still represented nearly 12% of GNI. This transformation is the result of the liberalization of the telecoms market, initiated in October 2022 with the launch of Safaricom’s commercial activities. According to the GSMA, the price of telecoms services has decreased by 70% in the country.

Telecom liberalization has not only impacted service prices but also contributed to an improvement in network coverage. The 3G network coverage rate, which was around 63% in 2020, has jumped to almost 100% in 2022. 4G network coverage has more than doubled in two years, from 2021 to 2023. From around 5% in 2019, it has increased to almost 15% in 2021, then to 20% in 2022 and already reached 40% of the population in 2023. Although this coverage is still considered low, the competition between Ethio Telecom and Safaricom to win new customers suggests sustained future growth.

The impact of the liberalization of the telecoms market has also been reflected in an increased contribution to the economic and social development of populations. In the agricultural sector, mobile internet already allows farmers to access crucial information in real time, thus improving productivity.

In 2023, the telecommunications sector contributed nearly 700 billion Birr to the Ethiopian economy, 8% of GDP, taking into account ecosystem, indirect and productivity impacts. In addition, it generated 57 billion Birr in taxes.