Ethiopia’s leading state-owned telecommunications provider, Ethio Telecom, has entered strategic discussions with Shandong Hi-Speed Group, a Chinese infrastructure enterprise, to construct a hyperscale data centre. This initiative is set to play a vital role in advancing Ethiopia’s digital infrastructure and building a future-proof digital economy.
The discussions were led by Frehiwot Tamru, CEO of Ethio Telecom, and Cal Kun, General Manager of Shandong Hi-Speed Group. Both sides are exploring ways to collaborate not only in the construction but also in the financing of the data centre, marking a significant step forward in Ethiopia’s technological transformation.
Partnership to Drive Digital Transformation
The proposed hyperscale data centre will be a crucial asset in Ethiopia’s quest to strengthen its digital infrastructure. Ethio Telecom emphasized the importance of this collaboration in helping the country achieve its Digital Ethiopia vision. The data centre will provide reliable, scalable, and secure infrastructure to support the growing demands of the digital economy, enabling faster and more efficient data processing and storage capabilities.
“Ethio Telecom continues to actively seek strategic partnerships to support its Lead Growth Strategy and advance the vision of realizing Digital Ethiopia. These partnerships are critical to driving innovation and building the ecosystem,” the company said in a statement.
Shandong Hi-Speed Group has expressed strong interest in collaborating with Ethio Telecom on both the construction and financing fronts. This partnership marks a pivotal moment for the country as it aims to modernize its digital infrastructure and meet the demands of its rapidly growing economy.
Ethio Telecom’s Impressive Financial Performance
Ethio Telecom has witnessed significant growth over the past year. The company concluded its 2023/24 fiscal year (July 1, 2023, to June 30, 2024) with an 8.9% increase in its subscriber base, bringing its total to 78.3 million customers. Alongside this, it recorded an impressive 21.7% increase in total revenue, amounting to Birr 93.7 billion (approximately $1.62 billion). This robust growth underscores Ethio Telecom’s position as a dominant force in Ethiopia’s telecommunications market.
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Mobile Money Expansion: Telebirr’s Growing Influence
Ethio Telecom’s mobile money platform, Telebirr, has also been a major driver of growth. With 47.5 million subscribers, Telebirr now accounts for 45.7% of all mobile money users in Ethiopia. The platform handled an astonishing Birr 1.81 trillion ($31 billion) in transactions during the fiscal year, further solidifying its role in the country’s financial ecosystem.
To enhance its mobile money offerings, Ethio Telecom plans to introduce additional services to Telebirr, expanding accessibility and utility for its vast user base. CEO Frehiwot Tamru has outlined ambitious plans for the platform, targeting a broader range of enterprise solutions and introducing features that will streamline financial inclusion across Ethiopia.
The Role of the Hyperscale Data Centre
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The construction of the hyperscale data centre aligns with Ethio Telecom’s broader strategy to modernize its infrastructure and prepare for future digital demands. The data centre will be a critical asset in supporting Ethiopia’s burgeoning tech sector and enhancing the country’s digital economy. By offering scalable and efficient digital infrastructure, the new data centre will enable Ethio Telecom to handle increased data traffic and provide more advanced services to its customers.
According to Ethio Telecom, the data centre initiative will be key to achieving the company’s growth targets and fulfilling its role in Ethiopia’s digital transformation. The company stated that it will provide the necessary digital backbone to fuel technological advancements in sectors ranging from finance and health to education and governance.
Ethio Telecom’s Data Centre Journey
This is not Ethio Telecom’s first foray into data centre infrastructure. In a 2022 report, the company revealed that it had already constructed two modular data centres and had three more under construction. These ongoing projects, once completed, will bring the total number of Ethio Telecom data centres to five, further enhancing its ability to support the country’s digital needs.
In addition to the partnership with Shandong Hi-Speed Group, Ethio Telecom continues to explore strategic collaborations aimed at building a robust digital ecosystem in Ethiopia.
Ambitious Targets for 2024
Ethio Telecom is targeting a 75% increase in revenue for the upcoming fiscal year, aiming to reach Birr 163.7 billion ($1.44 billion) by July 2024. To achieve this, the company plans to grow its customer base by 6%, expand its range of enterprise solutions, and introduce innovative new services to its mobile money platform, Telebirr. The company is committed to driving sustained growth while enhancing its market presence through strategic partnerships and innovation.
With these developments, Ethio Telecom is well-positioned to remain a key player in Ethiopia’s telecommunications and digital transformation journey. The hyperscale data centre, in particular, will be a milestone project, enabling the telco to support Ethiopia’s rapidly expanding digital landscape.
