(Ecofin Agency) - By September 2019, Ethiopia will launch a tender process for the attribution of telecom licences. This launch is the result of law approved on June 10, 2019, opening the telecommunications sector. According to the government, these licenses should be delivered by the end of 2019.

Let’s note that the opening of this sector was one of the promises made by prime minister Abiy Ahmed to attract more investors in the sector.  MTN, Vodafone and Orange had already expressed their interest in the market.

The market that has been monopolized by incumbent operator Ethio Telecom has numerous promising niches in the voice, data, mobile money and added-value segments.  

Foreign operators see this market as an opportunity to generate more additional revenues for at least ten years.

Indeed, Ethiopia is a country with more than 100 million residents. The mobile penetration rate is around 60% and service quality does not always meet the requirements.

According to Reuters quoting the country’s finance minister Eyob Tekalign Tolina, the telecommunications sector needs more than $2 billion investments to upgrade telecom infrastructures and services.