Ethio Telecom, Ethiopia’s leading state-owned telecommunications company, is deepening its commitment to Ethiopia’s digital transformation by engaging in strategic talks with Shandong Hi-Speed Group, a Chinese enterprise, about constructing a hyper-scale data centre.
This initiative aligns with Ethio Telecom’s broader strategy to advance the country’s digital economy, foster innovation, and support its Lead Growth Strategy. CEO Frehiwot Tamru emphasised that the partnership would bolster Ethiopia’s digital infrastructure, providing scalable, reliable services to support the nation’s digital aspirations.
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Boosting Ethiopia’s Digital Infrastructure
The hyper-scale data centre initiative comes as Ethio Telecom closed its 2023/24 fiscal year with notable achievements, including an 8.9% subscriber increase, reaching 78.3 million customers, and a 21.7% revenue jump to Birr 93.7 billion ($1.62 billion). The company’s mobile money platform, Telebirr, expanded significantly, with 47.5 million users handling transactions worth Birr 1.81 trillion ($31 billion).
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The proposed data centre would serve as a cornerstone for Ethiopia’s growing digital economy, enabling businesses and government agencies to leverage robust, future-proof infrastructure for digital services. The project reflects Ethio Telecom’s commitment to driving innovation and scaling up digital solutions within the nation.
Partnerships and Growth Targets
Ethio Telecom continues to seek strategic collaborations to achieve its ambitious growth goals. Shandong Hi-Speed Group expressed interest in building and financing the data centre, reinforcing Ethiopia’s drive to become a digital hub in East Africa. This partnership will help Ethio Telecom enhance its existing data centres, adding to its growing infrastructure, which includes two operational modular data centres and three more under construction.
In addition to the data centre expansion, Ethio Telecom targets a 75% revenue increase by the end of the next fiscal year, setting its sights on Birr 163.7 billion ($1.44 billion) in sales. These projections are tied to the company’s focus on growing enterprise solutions, expanding mobile money services, and enhancing customer accessibility, mainly through the Telebirr platform.
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Tech Driving Ethiopia’s Digital Ambitions
Ethio Telecom’s focus on expanding its data centre capacity comes at a critical time when the demand for digital services and cloud infrastructure in Ethiopia is rapidly growing. The hyperscale data centre will position the country as a competitive player in Africa’s digital space, offering high-capacity infrastructure to support industries ranging from telecommunications to fintech.
Ethio Telecom’s innovative approach includes exploring cutting-edge technologies and ensuring that Ethiopia’s digital infrastructure meets global standards. As the telco continues to evolve, it remains central to Ethiopia’s broader goals of achieving a knowledge-based economy powered by advanced technology and robust digital systems.
By fostering critical international partnerships and continuing its technological advancements, Ethio Telecom is set to play a pivotal role in driving Ethiopia’s digital transformation, paving the way for a future where digital connectivity is integral to the country’s socio-economic development.