Ethio Telecom has entered into a partnership with Visa to launch a digital wallet aimed at enhancing the digital economy in Ethiopia. This initiative aligns with the Digital Ethiopia 2025 governmental plan to promote digital and financial inclusion across the country. Telebirr, Ethio Telecom’s digital platform, has seen significant growth, averaging 1.13 million new customers per month leading up to January 2024 and facilitating 47.55 million subscriptions by Q2 2024. This growth has positively impacted the company’s financial performance, resulting in a 14% increase in half-year profits. Ethio Telecom’s focus on diversifying its revenue streams through digital services poses significant competitive challenges for Safaricom, which is also trying to establish a presence in the Ethiopian market. Despite Ethiopia’s lag in personal remittance outflows compared to regional peers, Ethio Telecom’s digital transformation efforts, driven by state incentives and a cost-competitive labor force, position the nation as a potential digital and production hub.
Telecommunication, Financial Services, Technology,Ethiopia, Kenya
https://www.fitchsolutions.com/bmi/telecommunications/ethio-telecoms-partnership-visa-driving-digital-transformation-and-financial-inclusion-23-08-2024