In a bold move that underscores the rapid evolution of Ethiopia’s telecommunications landscape, Ethio Telecom, the nation’s premier telecom operator, has unveiled an ambitious revenue goal of 235.8 billion Birr for the fiscal year 2025/26, representing a substantial 45.6% increase compared to the previous year’s earnings. This target signals a robust push toward financial growth and digital transformation. Announced during the launch of a new three-year strategic plan titled “Next Horizon: Digital & Beyond 2028” at a prominent venue in Addis Ababa, this initiative builds on past successes and sets a clear path for innovation. With a focus on expanding connectivity, enhancing digital services, and driving economic impact, the company aims to solidify its position as a leader in the region’s tech ecosystem. This strategic vision not only addresses immediate market needs but also anticipates future demands in an increasingly connected world.
Strategic Vision and Financial Goals
Ambitious Revenue and Profit Projections
Ethio Telecom’s financial aspirations for the 2025/26 fiscal year are nothing short of remarkable, with the headline revenue target of 235.8 billion Birr accompanied by a pre-tax profit goal of 76 billion Birr, reflecting a staggering 260% year-on-year growth. This translates to a profit margin of 22.6%, a testament to the company’s focus on operational efficiency. Additionally, an EBITDA margin of 47.7% is projected through stringent cost-saving measures, ensuring sustainable profitability. Beyond domestic earnings, international revenue from services like infrastructure sharing and call transit is expected to rise by 6% to $225.9 million. Total asset growth is also on the horizon, with projections to increase from 332 billion Birr to 501 billion Birr over the coming years. These figures highlight a comprehensive approach to financial health, balancing aggressive growth with fiscal responsibility in a competitive market.
Building on Past Successes for Future Growth
Reflecting on the achievements of previous strategies, Ethio Telecom has demonstrated a proven track record of transformative growth, which serves as a foundation for current ambitions. The earlier LEAD Growth Strategy, spanning recent years, resulted in a 164% revenue surge and added a cumulative 100 billion Birr to the company’s coffers. This success has emboldened the telecom giant to aim even higher with its latest plan, focusing on both financial milestones and market expansion. The emphasis now shifts to leveraging these past gains to fuel innovation and scalability, ensuring that the projected revenue and profit targets are not merely aspirational but grounded in a history of tangible results. By aligning historical performance with forward-looking initiatives, the company seeks to maintain momentum while navigating the complexities of a dynamic industry landscape.
Infrastructure and Digital Expansion
Enhancing Connectivity Across Ethiopia
A cornerstone of Ethio Telecom’s strategy is the expansion of nationwide connectivity to bridge the digital divide and bring more citizens into the digital fold. Plans are in place to grow the customer base by 6% to 88 million and boost mobile broadband capacity for 1.8 million users. Coverage of 4G LTE Advanced services will extend to 85% of the population across 550 additional towns, while 1,228 new mobile sites, including 322 in rural areas, are set to be developed. Furthermore, 5G services will expand to 10 additional cities, increasing the number of 5G sites from 315 to 490. These efforts are complemented by customer-focused initiatives such as long-term device payment options and targeted rural campaigns to convert 61% of mobile users to broadband subscribers. This comprehensive push underscores a commitment to ensuring that even remote regions benefit from advanced telecom services.
Investing in Sustainable Digital Infrastructure
Beyond connectivity, substantial investments in ICT infrastructure are poised to support Ethio Telecom’s growth trajectory. The company plans to enhance data center capacity by adding 192 racks, 1.536 MW of IT load, and 8,064 servers to meet rising demand. Additional projects include deploying 1,100 kilometers of backbone fiber, transitioning 500 sites to green energy solutions, and upgrading international gateway and cloud service capacities. These initiatives reflect a broader trend of prioritizing sustainable and scalable systems that can adapt to future technological advancements. By focusing on eco-friendly practices and robust infrastructure, Ethio Telecom aims to create a resilient foundation that supports both current objectives and long-term digital ambitions, ensuring that Ethiopia remains competitive in the global tech arena.
Digital Innovation and Financial Services Growth
Innovation in products and services forms another critical pillar of the strategic plan, with Ethio Telecom set to introduce 327 new offerings and bring over 3.5 million customer devices to market. The digital financial platform, Telebirr, is projected to see a 14% user increase to 62.5 million, facilitating transactions worth 4.43 trillion Birr—an 86% surge—and generating 8.5 billion Birr in income. This focus on digital financial services highlights the growing importance of fintech in driving economic inclusion and convenience for millions of users. By integrating cutting-edge solutions with accessible financial tools, the company is not only diversifying its revenue streams but also empowering communities through technology, paving the way for broader economic impact across diverse demographics.
