(3 minutes read)
· Huawei Technologies Corp. in a bid to enhance its footprint in the Eastern Africa, will shift its regional office to Ethiopia from the Democratic Republic Congo (DRC)
· At a time, Ethiopian telecommunication sector is opening up, analysts say that Huawei’s move is strategically important, since it is the second most populated country in the continent and is currently unleashing a number of reform measures to make the country more open and transparent, particularly in telecom sector
· Ethiopia has a huge task ahead in the telecom sector. The country is seeking to double its mobile towers to about 14,000
· It also plans to sell a 40% stake in Ethio Telecom and issue two new telecom licenses next year
Huawei Technologies Corp. in a bid to enhance its footprint in the Eastern Africa, will shift its regional office to Ethiopia from the
Democratic Republic Congo (DRC). At a time, Ethiopian telecommunication sector is opening up, analysts say that Huawei’s move is strategically important, since it is the second most populated country in the continent and is currently unleashing a number of reform measures to make the country more open and transparent, particularly in the telecom sector.
Recently, Ethio Telecom was in news for inviting partners for its expansion, heralding a bold move by the country to move towards
increased privatization. That would have motivated the Chinese telecom major to relocate its regional office to Ethiopia, where it might be trying to become the major vendor for the state-owned monopoly Ethio Telecom. It is expected that expansion of Ethio would open up enormous opportunities in the telecom sector in Ethiopia, which the Chinese company has the wherewithal to service.
Liberalization of the telecom industry is an avowed objective of the present regime in Ethiopia le d by its reform -friendly Prime Minister Abiy Ahmed , who assumed power in 2018. Ethiopia needs a higher quantum of foreign exchange to boost the economy. Liberalization of telecom can bring in more foreign exchange and at the same time improve the connectivity across the Horn of Africa nations.
Ethiopia has a huge task ahead in the telecom sector. The country is seeking to double its mobile towers to about 14,000. This would entail an investment of up to US$1.1 billion. Also, it has to build its fiber-optic network from less than 30,000 kilometers now to spread it across the country. It also plans to sell a 40% stake in Ethio Telecom and issue two new telecom licenses next year.