Ethiopia - Telecom Market Assessment

Overview & Synopsis

Ethiopia’s telecommunications sector has undergone a remarkable transformation since 2018, moving from a state-controlled monopoly to a more competitive and dynamic market. This shift has been driven by major policy and regulatory reforms, substantial investments in digital infrastructure, significant improvements in the management and performance of the incumbent operator EthioTel, and the introduction of new market players, most notably Safaricom Ethiopia. The Ethiopian government, with the support of the World Bank Group and other development partners, has positioned digital transformation as a national priority, recognizing its role in fostering economic development, job creation, and financial inclusion. in October 2024, Ethiopian Communications Authority (ECA) commissioned from the World Bank a telecom market assessments study. This independent study examined the core fundamentals of Ethiopia’s broadband market, detailing expansion trends, network performance, affordability, and the broader economic impact of the telecommunications sector. To conclude, the World Bank commissioned a series of four consultant studies to help inform policy and regulatory decision-making in the country and presented the results of the research at a public stakeholder consultation workshop held on January 29, 2025, in Addis Ababa. That work was subsequently refined, based on comments received, and is presented here as a consolidated report intended to support the Government of Ethiopia in framing the next wave of digital sector reforms and in aligning regulatory strategies with national development objectives.