Ethiopian Investment Holdings (EIH) opened its 2017 Ethiopian fiscal year (EFY) annual performance dialogue with a detailed review of Ethio Telecom’s impressive results, spotlighting the state-owned operator’s strong growth and expanding role in the country’s digital economy.
Strong Operational and Financial Growth
Ethio Telecom delivered solid year-on-year performance, underlined by a 6% increase in subscriptions and an EBITDA margin of 47%—a healthy profitability level for the sector. The company’s revenue surged by 72%, signaling continued resilience despite intensifying competition and ongoing sector liberalization.
Telebirr: A Driving Force in Digital Finance
One of the standout achievements was the rapid growth of Ethio Telecom’s mobile money platform, telebirr. The platform has become a cornerstone of Ethiopia’s financial inclusion drive, facilitating secure transactions worth 2.38 trillion birr for its more than 83 million users. Beyond transaction volume, telebirr generated 162 billion birr in direct income, cementing its role as both a financial service enabler and a major revenue stream for Ethio Telecom.
Commendation and Strategic Guidance from EIH
EIH praised Ethio Telecom for its:
- Strategic execution in expanding services and adapting to a shifting market.
- Digital transformation impact, especially in widening access to cashless transactions.
- Contribution to financial inclusion, helping millions participate in the digital economy.
At the same time, EIH offered recommendations to sustain momentum and strengthen competitiveness. These included:
- Maintaining consistent growth while navigating new entrants in the telecom space.
- Enhancing service quality and customer satisfaction to build loyalty.
- Pursuing cost optimization to preserve margins in a high-investment sector.
- Aligning with global telecom and fintech trends, particularly in the convergence of telecom and banking services, to foster collaboration and industry harmony.
