Ethio Telecom, Huawei partner to expand Ethiopia’s digital infrastructure

Ethiopia’s state-run telecommunications company, Ethio Telecom, which is one of the biggest players in the country’s digital transformation landscape, is engaging Chinese giant Huawei to support digital innovation with the main objective of buoying up the digital economy.

An announcement from the telco states that the collaboration will, among other things, include the “strengthening of local software development, solution customization, system integration, and technical support through enhanced local engineering capabilities.”

This week, the Chief Executive Officer of the telco, Frehiwot Tamru, Huawei’s President for North Africa, Li Shen, and their respective teams, held discussions to define the details of the partnership, which they agreed will extend beyond traditional telecommunications infrastructure toward a broader business, innovation, and digital ecosystem collaboration.

Through the collaboration, they hope to develop systems that can enhance “connectivity, cloud computing, artificial intelligence (AI), cybersecurity, Internet of Things (IoT), data center services, and digital platforms to accelerate the digital transformation of enterprises across key sectors of the economy.”

Small and medium-sized enterprises (SMEs) are the backbone of Ethiopia’s economy, and both partners believe enhancing digital innovation will close the existing local digital infrastructure capacity gap through efforts that contribute to “digital inclusion, digital literacy, rural connectivity, digital education, community empowerment, and sustainable digital infrastructure.”

Digital payments are also envisaged in the deal, as Huawei hopes to support efforts to strengthen the digital ecosystem by integrating business solutions with the telebirr mobile money platform to enable digital payments, financial services, e-commerce, and other value-added services that empower businesses. Ethio Telecom also had discussions with Mastercard in April to boost collaboration in the area of financial inclusion.

The telco and Huawei say they also aim to facilitate smartphone affordability and digital device accessibility through innovative financing models and broader market initiatives.

Ethio Telecom has struck similar deals with financial institutions in the past including Siinqee Bank and Awash Bank to provide device financing targeting up to two million smartphones annually to low-income citizens through long-term instalment plans. This move reflects a growing recognition that digital public infrastructure inclusion requires both digital identity and the devices needed to access it.

The collaboration, Ethio Telecom says, falls in line with its three-year strategic development plan labelled “Next Horizon: Digital & Beyond 2028 strategy.” It also exemplifies a global trend where telecommunications operators are evolving from just connectivity providers to integrated digital platform companies that support the foundational infrastructure for nations to grow their digital economies.

Ethio Telecom has been doing just that, playing a vital role in supporting Ethiopia’s digital ID expansion efforts.

Another telco, Safaricom, also recently sealed a collaboration agreement with the ID authority to drive digital identity enrollment in seven administrative regions of the country.

Article Topics

digital economy  |  digital inclusion  |  digital payments  |  Ethio Telecom  |  Ethiopia  |  Huawei  |  telecom