When Ethio telecom unveiled its new znexus smart device ecosystem in Addis Ababa and later showcased it at Mobile World Congress Kigali 2025, it wasn’t just launching another product; it was taking aim at one of Africa’s most persistent digital dilemmas. With connectivity reaching deeper than ever across the continent, the question is no longer whether people are covered, but whether they can afford to connect. znexus is the company’s bold answer: a cloud-powered family of devices designed to bridge the continent’s growing usage gap and bring millions into the digital fold.
Across Africa, telecom operators have already built impressive coverage footprints, yet the paradox remains. Vast populations live within mobile broadband reach but remain offline, not because of a lack of signal, but because of the high cost of smartphones and limited digital literacy. In Ethiopia, Ethio telecom has achieved 71% 4G population coverage and rolled out 5G in 26 towns—numbers that rival many middle-income markets. Still, as company executives frequently note, 58% of Africans already live in areas with telecom service, but they’re not using it.
That contradiction defines the so-called usage gap: the distance between network availability and actual use. For Ethio telecom, closing that gap is the cornerstone of its NEXT HORIZON: Digital & Beyond 2028 Strategy—a program that shifts focus from infrastructure expansion to meaningful digital inclusion.
znexus sits squarely at that intersection. By moving core computing and storage to Ethio telecom’s Telecloud, the company has stripped away one of the largest cost components in smartphone production. The result is a new category of device that combines the price and simplicity of a feature phone with the power and connectivity of a smart one. The znexus 127 Lite, 131 Lite, and 2028 Lite all deliver 4G access, hybrid keypad-touch interfaces, long battery life, and pre-loaded apps such as YouTube, TikTok, Facebook, and the operator’s own mobile money service, telebirr.
Yet, the most disruptive element is invisible: data, apps, and media live securely in the cloud through TeleStorage, Ethio telecom’s personal storage service. This allows users to bypass the hardware limits of low-cost phones and gain confidence that their digital content is safe, even if the device is lost or damaged. In the words of a senior company executive, “The gateway to digital transformation is the device—znexus extends our cloud innovation from enterprises to individuals.”
That vision extends beyond handsets. The znexus portfolio also introduces cloud workspace solutions—laptops, tablets, and thin clients that allow governments, businesses, and NGOs to access secure virtual desktops from any location. It is a natural expansion of the same affordability logic: replacing heavy hardware investment with scalable cloud power. By bundling these devices with internet service, telebirr payments, and cloud storage, Ethio telecom is positioning itself not just as a carrier, but as a full-spectrum digital enabler.
At MWC Kigali 2025, this ecosystem took center stage. Ethio telecom’s exhibition blended consumer innovation with enterprise technology, featuring telebirr’s financial inclusion growth, the Zemen GEBEYA e-commerce platform, and its expanding data center services. Visitors saw a coherent digital story—how an African incumbent can evolve from national operator to continental tech player. Company leaders joined high-level panels alongside the GSMA, ITU, and the World Bank, sharing insights on affordability, collaboration, and the shared responsibility of connecting the unconnected.
Their message resonated with the wider industry mood in Kigali. The GSMA’s State of Mobile Internet Connectivity 2025 Report revealed that more than three billion people worldwide live within mobile broadband coverage but remain offline, with affordability cited as the leading obstacle. Meanwhile, the ITU’s latest data confirmed that only 38% of Africa’s population is online, compared to a global average of 68%—a reminder that the digital divide remains more economic than technical.
In response, the GSMA and six of Africa’s largest operators—Airtel, Axian Telecom, Ethio telecom, MTN, Orange and Vodacom—launched the Handset Affordability Coalition. The initiative proposes baseline technical standards for low-cost 4G smartphones and urges governments to remove taxes on entry-level devices priced below USD 100. “Access to a smartphone is not a luxury; it is a lifeline,” said GSMA Director General Vivek Badrinath. Ethio telecom’s znexus, unveiled the same week, gave the initiative an immediate, tangible reference point—a live demonstration of what affordability through innovation can look like.
This alignment of strategy and product is central to Ethio telecom’s broader transformation plan. The NEXT HORIZON strategy aspires to achieve digital access and inclusion, the expansion of digital services, and regional leadership. znexus cuts across all three, enabling access, deepening service adoption, and strengthening the company’s continental presence. With 936 towns already connected to 4G and a target of 99% LTE Advanced population coverage by 2028, the physical groundwork is solid. But executives are candid that coverage alone will not drive transformation. “The usage gap is not a network problem anymore; it’s an ecosystem problem. Every stakeholder must play a part.”
For Africa, that ecosystem approach carries profound economic weight. Affordable devices are the bridge to digital finance, e-learning, healthcare, and agricultural innovation. GSMA economists estimate that closing the mobile internet usage gap across developing countries by 2030 could unlock USD 3.5 trillion in additional GDP. In Ethiopia—home to more than 120 million people—the potential multiplier effect is enormous.
znexus also reflects a distinctly African model of innovation: cloud-based rather than hardware-heavy, optimized for low-power environments, multilingual, and built for durability. By localizing design and leveraging national infrastructure, Ethio telecom is helping to strengthen regional digital supply chains and reduce reliance on imported technology. The operator’s expanding telecloud network already serves more than 800 corporate clients; znexus extends that advantage to households and individuals.
Still, affordability cannot be solved by operators alone. Policymakers must create the right conditions—removing taxes on entry-level devices, promoting local assembly, and investing in digital skills. Industry coalitions like the GSMA’s provide the framework; initiatives like znexus make it real. The convergence of both could accelerate Africa’s shift from a continent of coverage to a continent of users.
One of the practical levers Ethio telecom has deployed is device financing with local banks to lower the upfront cost barrier. Ethio telecom has rolled out device-financing programs in partnership with Siinqee Bank, a multi-billion-Birr facility to finance devices, planned to reach millions of handsets and complementary credit options with Awash Bank’s micro-credit/credit services. These arrangements support the distribution and loan repayment of low-cost devices, such as znexus models. These bank partnerships are already tied into telebirr and other distribution channels to make financing seamless for customers.
While Ethiopia remains Ethio telecom’s primary market, the company’s ambitions reach beyond its borders. Its leadership envisions sharing its cloud-device model with neighboring countries facing similar affordability barriers. If successful, znexus could serve as a blueprint for how African innovation can address African problems, scaling inclusion not just nationally, but regionally.
As the dust settled in Kigali, one takeaway was clear: Africa’s digital transformation no longer depends solely on infrastructure investment or foreign technology imports. The next leap will come from within—from companies willing to rethink the economics of access and reimagine what connectivity can mean.
Ethio telecom’s bet on znexus is precisely that—a wager that cloud innovation and affordability can do what traditional market forces have not. It represents a redefinition of access, where technology serves people, not the other way around. If the initiative succeeds, millions more Africans will join the digital economy, not as passive users but as empowered participants.
And that, perhaps, is the true meaning of the company’s vision: a “NEXT HORIZON” where digital inclusion is not just a policy goal but a lived reality—where Africa’s connectivity story moves beyond the signal, into the lives of its people.
