Ethio Telecom, Ethiopia’s state-owned telecommunications giant, is setting its sights on transformative growth with a bold projection of a 45.5% revenue increase by June 2026 and an ambitious three-year plan to reach 100 million subscribers and 75 million Telebirr accounts by 2028.
Under the leadership of CEO Frehiwot Tamiru, the company is driving Ethiopia’s digital transformation by expanding infrastructure, enhancing digital financial services, and prioritising financial inclusion, particularly in underserved regions.
A Strong Foundation: Ethio Telecom’s Recent Performance
Ethio Telecom has demonstrated remarkable financial and operational success in recent years.
In the fiscal year ending June 2025, the company reported a pre-tax profit of 76 billion birr ($537 million), an 80% increase from the previous year, and total revenue of 162 billion birr ($2.8 billion), reflecting a 72.9% year-on-year growth.
This performance signals the success of its three-year LEAD Growth Strategy (2022–2025), which focused on expanding digital services, improving customer experience, and enhancing network infrastructure.
The company’s subscriber base grew to 83.2 million, a 6.2% increase, bringing national telecom penetration to 73.7%.
Additionally, its mobile money platform, Telebirr, reached 54.84 million users, facilitating transactions worth 2.38 trillion birr and generating $14.4 million through international remittance services.
These achievements highlight Ethio Telecom’s critical role in advancing Ethiopia’s digital economy.
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2026 Revenue Growth: A 45.5% Surge Driven by Data and Telebirr
Ethio Telecom’s projection of a 45.5% revenue increase by June 2026 is fuelled by rising data consumption, an expanding customer base, and the growing adoption of Telebirr.Key drivers include:
Increased Data Usage:
The rollout of 1,683 new mobile network sites, with nearly half in underserved rural areas, has boosted 4G coverage from 37.5% to 70.8% and overall mobile network coverage to 99.4% of the population.
The expansion of 5G services to 26 cities and the deployment of Massive MIMO technology at 306 sites have further enhanced network capacity.
Telebirr’s Growth:
Launched in May 2021, Telebirr has become a cornerstone of Ethiopia’s financial inclusion efforts.
The platform, capable of handling up to 100 transactions per second (scalable to 1,000), supports money transfers, bill payments, and digital financial services via a smartphone app or USSD.
With a projected 14% increase in Telebirr users by 2026, the platform is set to deepen financial inclusion, especially in rural areas.
Subscriber Expansion:
Ethio Telecom aims to grow its subscriber base by 6% to 88 million by June 2026, driven by improved network access and new service offerings.
These initiatives align with Ethiopia’s broader goal of building a digital-first economy, with Ethio Telecom at the forefront of bridging the digital divide.
The Next Horizon: A 3-Year Plan for 100M Users and 75M Telebirr Accounts
Ethio Telecom unveiled its “Next Horizon: Digital & Beyond 2028 Strategy”, a three-year plan (July 2025–June 2028) aligned with Ethiopia’s National Digital Ethiopia 2025 initiative.
This strategy aims to transform Ethio Telecom into a globally competitive, regionally diversified, and digitally empowered enterprise.
Key targets include:
- 100 Million Subscribers: The company projects growing its customer base to 100 million, including 67.3 million mobile broadband users and 1.6 million fixed broadband subscribers.
- 75 Million Telebirr Accounts: Telebirr is expected to scale to 75 million users, with transaction values projected to reach 21.3 trillion ETB.
- Revenue and Economic Impact: Ethio Telecom aims to generate 842.3 billion ETB in revenue over the three years, a 154% increase from the previous strategy period, while contributing 253 billion ETB in taxes and 111.3 billion ETB in dividends to the government.
To achieve these goals, Ethio Telecom plans to expand its infrastructure further, including 1,298 new mobile sites, 4G services in 500 additional towns, and 5G in 15 more cities.
The company will also enhance digital services like cloud computing, data centres, and solutions for agriculture, health, and education.
Telebirr: A Catalyst for Financial Inclusion
Telebirr has emerged as a transformative force in Ethiopia’s digital economy. Since its launch, it has processed 3.58 trillion ETB in transactions, with 1.03 trillion ETB in the first half of the 2024/25 fiscal year alone.
The platform’s partnerships with 28 banks and over 342,600 partners (including 216,000 agents and 196,000 merchants) have streamlined money transfers and expanded access to digital financial services.
In the 2023/24 fiscal year, Telebirr facilitated 9.35 billion birr in micro-loans for 2.9 million customers and 9.72 billion birr in savings for 1.3 million users.
These efforts, in collaboration with Dashen Bank and the Commercial Bank of Ethiopia, are addressing financial inclusion by offering microloans, savings, and overdraft services, particularly in rural areas.
By 2025, Ethio Telecom aims to increase Telebirr’s user base to 55 million, with 275,000 agents and 367,000 merchants.
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Challenges Amid Growth: Privatisation and Economic Pressures
Despite its strong performance, Ethio Telecom faces challenges. The Ethiopian government’s plan to sell up to 45% of its stake in the company has been paused due to macroeconomic pressures, foreign currency shortages, and debates about the telco’s strategic role.
This delay has also excluded Ethio Telecom from listing on the Ethiopian Securities Exchange (ESX), despite earlier hints of integration via Telebirr.
Additionally, the competitive landscape is shifting. The entry of Safaricom Ethiopia, which reached 10 million active customers by 2024, signals increasing competition.
Ethio Telecom must continue innovating to maintain its market dominance while navigating these economic and regulatory hurdles.
A Vision for Ethiopia’s Digital Future
Ethio Telecom’s ambitious targets reflect its commitment to driving Ethiopia’s digital transformation.
What’s Next?
The success of Ethio Telecom’s strategy hinges on its ability to balance infrastructure investment, digital innovation, and economic challenges.
As the company navigates privatisation uncertainties and competition, its focus on sustainable growth and inclusion will shape Ethiopia’s digital future.
Will Ethio Telecom’s vision inspire other African telecoms to prioritise digital equity? Share your thoughts below!
Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.
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