According to a report by Canadian research firm Technology Strategies International, Ethiopia’s telecommunication market is rapidly expanding and is expected to reach almost 20 million mobile subscribers by 2014, at a 43% annual growth rate.
The report, titled “Investment Opportunities in the ICT Sector in Ethiopia: 2010” and conducted by Technology Strategies International in partnership with BroadGroup TMT Ventures, shows Ethiopian ICT market as favourable to investment opportunities, predicting by 2011, the privatization of state-owned Ethiopian Telecommunications Corporation (ETC), followed by the liberalization of the mobile market.
“The Ethiopian Government recognizes that the country is being left behind in terms of digital inclusion, and urgently needs to address this if it wants to reap the benefits that other African countries have demonstrated from embracing ICTs”, noted Christie Christelis, President of Technology Strategies International, adding that ICT strategy may also become an important political issue in the next elections.
According to Christelis, liberalization of telecoms and banking in Ethipia is necessary for creating investment opportunities in the country. “The Chinese have already recognized the potential of Ethiopia and are building an electronics manufacturing facility to address the high growth expected in demand for handsets and accessories. They are also providing supplier financing in certain telecommunications investments in order to address the shortage of domestic capital”, she said.
The 37 page report looks at the investment opportunities in the ICT sector in Ethiopia and future trends in fixed line communications, mobile communications and internet usage, commending that the next four years will be critical in shaping the Ethiopian ICT sector’s future.
Denisa Oosthuizen
