In an era when Africa’s state-owned enterprises are often dismissed as sluggish relics of the past, Ethio telecom is breaking the mold. Against the odds, this century-old operator has not only held its ground amid liberalization and market turbulence; it has risen to become a formidable force of innovation, inclusion, and national pride.
Now emerging from the final year of its ambitious three-year ‘LEAD Growth Strategy,’ Ethio telecom stands at a pivotal point in its journey. It is not just a telecommunications provider; it is the nervous system of Ethiopia’s digital transformation, a national backbone connecting remote villages and urban centers alike, a fintech innovator serving over 54 million people, and an unlikely case study in how public sector incumbents can outpace even their most agile challengers.
The closing chapter of the LEAD Growth Strategy was unveiled in July 2025 at the Ethiopian Science Museum, where CEO Frehiwot Tamru’s voice never wavered and conviction never faltered. Not once did she pause for water. That unwavering focus, mirrored in her delivery, is what fueled the strategy’s execution. Her presentation was not merely a report; it was a demonstration of the resolve it takes to turn state infrastructure into a driver of 21st-century development.
Frehiwot, recently recognized as one of the continent’s top young leaders and elected for a second term on the GSMA Board of Directors, represents a rare breed of public sector leadership that is visionary, unflinching, and fiercely attuned to both market forces and public mandates. She now also serves on the GSMA Foundation Board, an international endorsement of her capacity to shape the sector’s future globally. The story she shared was not simply a fiscal review; it was a national narrative.
From Monopoly to Momentum
The telecommunications landscape in Ethiopia underwent a seismic shift in 2021. For the first time in the nation’s modern history, the sector was opened to competition. By 2022, Safaricom Ethiopia, a subsidiary of the Kenyan telecom giant, had officially entered the market. Conventional wisdom predicted what had occurred in other African liberalization contexts: The aging incumbent would lose its footing, unable to compete with leaner, more innovative newcomers.
But Ethio telecom defied that script. Rather than retrench, it reimagined itself. The company embraced liberalization not as existential threats but as opportunities to retool, reposition, and reassert its relevance. Building on the earlier Bridge Strategy, it launched the LEAD—Leadership, Expansion, Agility, and Digitalization-Growth Strategy not only to maintain its standing but to redefine what a national telecom provider could be in a digital era.
Over the next three years, Ethio telecom executed this vision with an intensity rarely seen in state-owned enterprises. It introduced over 800 new products and services, expanded infrastructure to some of the most inaccessible corners of the country, transformed its legacy networks into high-speed digital corridors, and entered the fintech, cloud services, and e-commerce sectors, all while upholding a customer-centric mission focused on affordability, accessibility, and inclusion.
Ethio Telecom’s LEAD Growth Strategy placed strong emphasis on disciplined and forward-looking capital planning, even in a challenging and unpredictable economic climate. In recent years, the company has made substantial investments in expanding infrastructure, enhancing service quality, and introducing new solutions. In the final year alone, revenue reached an all-time record ETB 162 billion, supporting sustained growth while operational efficiencies enabled effective cost management and the continued pursuit of strategic objectives.
The company’s cost-control strategy was noted by Ethiopia’s Ministry of Finance as a model for “results-oriented public sector investment.” Partnerships with local vendors, strategic in-sourcing, and use of green energy were key to sustaining growth without overexposing the company to forex volatility.
The Human Engine Behind the Numbers
The true meaning behind the impressive metrics—an 83.2 million customer base and 72.9% revenue growth—is found in the shared belief that brought them to life. It began with bold leadership that didn’t just set a strategic direction, but inspired a common purpose. That purpose resonated with every staff member until it became their own, creating a powerful spirit of unity that extended outward to forge genuine partnerships across the ecosystem.
Frehiwot’s four-hour presentation symbolized more than preparation; it was the final act of a marathon leadership performance that spanned the entirety of the LEAD Growth Strategy. Throughout the years, she has cultivated a corporate culture defined by accountability, public transparency, and relentless drive, reflecting a new norm within Ethio telecom, whereby transparency is considered performance art and woven into the fabric of the strategy.
What made this year’s media briefing particularly poignant was that it marked the closure of a transformative arc. The LEAD Growth Strategy was not a standalone response to market changes; it was the successor to the Bridge Strategy, a preparatory phase that anticipated market liberalization. Where Bridge laid the groundwork, LEAD raised the architecture, and the results are now in full view.
Unleashing Infrastructure as Sovereign Capacity
In telecom, infrastructure equals destiny. Under the LEAD Growth Strategy, Ethio telecom treated infrastructure not as a utility investment but as a sovereign act. Over the course of the past fiscal year alone, the company launched 1,683 new mobile sites. Nearly half (836) were located in rural areas. These weren’t simply incremental expansions; they were connectivity lifelines extended to over 2,300 new villages.
By the close of the strategy, mobile network population coverage reached 99.4%, while geographical coverage expanded to 86.5%. The 4G network, which had covered less than 20% of the population at the start of the strategy, now reaches over 70%. The company’s 5G services, while still in the early stages, are active in 26 cities and supported by 306 massive multiple input multiple output (MIMO)-enabled sites.
Ethio telecom’s infrastructure revolution also embraced sustainability. In areas where power grids do not reach, and where commercial incentives often fall short, the company deployed 141 solar systems and upgraded power systems at over 2,400 LTE and 5G sites. Altogether, it now generates 27 megawatts of renewable energy, establishing itself as one leading green operator.
telebirr: The Heartbeat of a Cash-Lite Economy
No part of Ethio telecom’s transformation is more visible, or more consequential, than the evolution of telebirr, its mobile money platform. Launched just months before the LEAD Growth Strategy began, telebirr has grown into the backbone of Ethiopia’s emerging digital economy.
Today, more than 54 million people (over half the population) are active telebirr users. The platform processed over ETB 2.38 trillion in transactions in a single fiscal year. Its services now include utility payments, international remittances, microloans, savings, e-commerce, and public service fees. Over 310,000 merchants and 320,000 agents support this ecosystem, which has become a parallel banking system for the unbanked and underbanked.
The company’s commitment to telebirr is not simply commercial; it is developmental. By integrating telebirr with government services, Ethio telecom has elevated the platform from a fintech product to public infrastructure. Its newest addition, ZemenGEBEYA, is a digital marketplace poised to reshape Ethiopia’s e-commerce terrain. According to the GSMA, telebirr has surpassed global averages in transaction circulation, reflecting a balanced and mature digital finance system in just four years.
In a recent statement, the GSMA Mobile for Development team remarked, “telebirr is one of the fastest scaling and most diversified state-owned mobile money ecosystems globally. Its integration into national ID systems and public services represents a best-in-class example of platform-level policy design.” This endorsement adds to the platform’s growing international profile, placing it alongside M-PESA and Orange Money in terms of regional impact, yet with deeper institutional embedding.
Connecting the Unconnected: A National Achievement
Among the most resonant themes in Frehiwot’s leadership is her mission to connect the unconnected. In 2024/25, that mission translated into reality. Ethio telecom provided first-time connectivity to over 5.9 million people in remote villages and communities. Many of these areas had no prior access to any digital network. The company’s smart solution, a compact device installable even without fiber, road, or electricity, made rural connectivity a question of will, not feasibility. The company proved that inclusive connectivity is not only a policy imperative but also a technical possibility and a moral obligation.
A Rising Digital Sovereign
Beyond consumer services, Ethio telecom’s expansion into enterprise and cloud services signals its role as a national digital infrastructure provider. What distinguishes this infrastructure is not its size but its strategic function. In an age where data sovereignty has become a geopolitical issue, Ethio telecom’s ability to host, protect, and manage national data on local servers represents a decisive step toward digital independence.
Its cybersecurity capabilities are equally robust. In the last fiscal year alone, over 461,000 cyber-attack attempts were blocked. The company has achieved international certifications including ISO 27001, PCI DSS, and CSA, positioning it as a trusted guardian of Ethiopia’s digital assets.
As of mid-2025, over 650 public and private institutions have migrated to Ethio telecom’s cloud ecosystem. The flagship data center, located in Addis Ababa, supports 7.5 petabytes of storage and boasts ISO 27001 and PCI DSS certification, two of the most stringent global security standards. The facility has a modular 5 MW IT Load capacity. and supports 624 racks, reflecting a scale that positions it for cross-border cloud hosting ambitions.
A 2025 ECA (Ethiopian Communications Authority) advisory report identified Ethio telecom’s infrastructure as “critical to national digital sovereignty,” citing the operator’s ability to host identity, payment, and government workloads entirely on domestic infrastructure. In an era of rising cyber risk and extraterritorial data concerns, Ethio telecom’s investment in on-shore infrastructure aligns with continental efforts under the AU Digital Transformation Strategy (2020–2030).
Pricing as Policy, Resilience as Strategy
Perhaps one of the most overlooked, yet impactful, decisions made by Ethio telecom during the LEAD era was maintaining affordability in the face of macroeconomic turbulence. Following Ethiopia’s adoption of a floating foreign exchange policy, the cost of imported technology and infrastructure rose sharply. Many companies in similar contexts pulled back. Some, in other African markets, filed for bankruptcy.
Ethio telecom did the opposite. It continued to expand, introduced new services, and kept 22 essential mobile packages untouched by price hikes. This decision was not without risk, but it was grounded in a strategy of resilience and a belief that service expansion and customer loyalty were better long-term buffers than short-term pricing gains.
It worked. The company saw an increase in both usage and customer base. From being considered one of the most expensive providers in the world pre-reform, Ethio telecom is now ranked among the most affordable, both in voice and data.
Corporate Responsibility as National Duty
Over the past fiscal year, Ethio telecom invested ETB 450 million in social responsibility initiatives. These included education, humanitarian support, environmental protection, and green infrastructure. The company’s Green Legacy contribution (over 446,000 trees planted) and its electric vehicle (EV) charging infrastructure have positioned it as an environmental leader in the telecom sector.
Internally, the company has advanced human capital through extensive training, leadership development, and gender equity programs. The percentage of women in director-level roles rose from 4% to 13%, thanks to targeted leadership pipelines. More than one million jobs and income opportunities were created across its service ecosystem, from device distribution to fintech partnerships. Ethio telecom also played a leading role in the National Digital ID program, registering 11 million citizens and integrating its infrastructure into Ethiopia’s state-led digital governance.
The Global Lesson: Public Doesn’t Mean Passive
For much of the past decade, the dominant global narrative in telecom has favored privatization, market competition, and deregulation, yet, Ethiopia’s experience complicates this orthodoxy. Ethio telecom’s LEAD Growth Strategy offers a new model, one where a state-owned operator can be agile, competitive, inclusive, and commercially successful. Its story invites the global industry to rethink what incumbents can do, and how public utilities, far from being doomed to obsolescence, can become engines of transformation.
Unlike many other markets where incumbents lost dominance shortly after liberalization, Ethio telecom retained leadership, deepened service offerings, and grew its customer base. It did this not by clinging to legacy advantages but by embracing disruption from within.
In a region where many state-owned telecom firms have struggled to evolve, Ethio telecom’s trajectory stands apart. For example, while some operators experienced declining market share post-liberalization, Ethio telecom expanded its customer base by more than 8 million users during the final LEAD Growth Strategy year alone. Even one of the continent’s most stable incumbents has not achieved the same scale of fintech integration seen with telebirr.
According to a 2024 GSMA Africa Market Comparison Brief, Ethio telecom now ranks in the top three on the continent for digital inclusion indicators, including rural network reach and mobile money penetration. The same report highlighted Ethio telecom’s model as one of “the most structurally resilient and state-anchored digital architectures in Africa.”
So, what’s next? With the LEAD era complete, Ethio telecom is entering a new phase. The company plans to invest further in cybersecurity, artificial intelligence (AI) platforms, enterprise services, and regional fiber connectivity. It is poised to become a regional digital force, not only in infrastructure but in standards, sovereignty, and innovation.
Its total asset base now stands at ETB 329 billion, its strategic positioning remains central to Ethiopia’s national development plans, and its trajectory, from a telegraph agency to a modern digital giant, is far from over.
Ethiopia’s Digital Standard-Bearer
Ethio telecom’s transformation is more than a corporate success story; it is a national achievement and a blueprint for how telecom can power inclusion, innovation, and identity in the Global South. Operating on a continent that has often waited for others to define the digital future, Ethio telecom has shown what happens when a country builds its own path.
For Ethiopia, the company is no longer just a service provider; it is the scaffold of a digital society. For the world, it is a signal that leadership, when matched with purpose and resilience, can make even the most unlikely institutions shine.
Key Financial Metrics:
A strategy of revenue growth and cost optimization drove exceptional financial results, excluding foreign exchange impacts. EBITDA soared to 76 billion Birr—an 84% increase since the BRIDGE period. This robust performance fueled vital economic contributions, including 43.8 billion Birr in taxes, 2.41 billion Birr in debt service, and a substantial 12.6 billion Birr dividend to the government, underscoring the company’s financial strength and national importance.
Ethio telecom Bridge & LEAD Era Milestones
