State-owned Ethio Telecom revealed on Thursday that it has initiated strategic discussions with the African Development Bank (AfDB) to finance its digital transformation initiatives, amid reports that the telco also pushed back the deadline of its planned 10% share sale to mid-February.
During the first meeting with AfDB reps, Ethio Telecom CEO Frehiwot Tamru made the case for the telco’s digital transformation vision. Frehiwot highlighted Ethio Telecom’s strategic roadmap unveiled at the start of the current fiscal year, in which the telco has committed to invest over US$1.1 billion in both telecom and digital infrastructure expansion to grow its user base and introduce new digital solutions.
She also said that Ethio Telecom’s digital transformation will not only drive Ethiopia’s digital evolution, but also serve as a broader catalyst for Africa’s digital empowerment.
“Africa must harness technology and digital solutions to overcome existing challenges, unlock new opportunities, and drive sustainable development,” she said. “Financing the telecom industry is not merely about expanding connectivity – it is about empowering entire economies.”
Frehiwot said that by helping telecom operators continue expanding telecom and digital infrastructure, AfDB “will play a pivotal role in enhancing national productivity, strengthening competitiveness, and accelerating Africa’s digital and economic growth.”
During the meeting Solomon Quaynor, VP of AfDB’s Private Sector, Infrastructure, and Industrialization Complex, said the bank was committed to deepening its collaboration with Ethio telecom beyond financing, while the AfDB delegation highlighted several areas of potential partnership.
The news comes after reports that Ethio Telecom’s first sale of shares to kick off its partial privatisation process – and raise funds to roll out its 5G network – has been delayed.
Ethio Telecom plans to sell a 10% stake to private investors in the initial phase of a plan by the government to sell 45% of the telco. After several years of delays, Ethio Telecom began offering shares in October 2024, with the intention of selling the 10% block by January 3, 2025.
According to news outlet The Reporter, Ethio Telecom has pushed that deadline back to February 14. No official reason has been given as yet.
