Africa’s Oldest Telecom Operator Targets 7.4trln Birr in Telebirr Transactions
Africa’s Oldest Telecom Operator Targets 7.4trln Birr in Telebirr Transactions

Africa’s Oldest Telecom Operator Targets 7.4trln Birr in Telebirr Transactions

By Mintesinot Nigussie  |  September 4, 2026

Ethio Telecom, Africa's oldest telecom operator, is targeting 7.4 trillion birr in transactions through its telebirr mobile financial services platform in the country’s current fiscal year, as the state-owned telecom operator seeks to make digital finance a larger driver of growth and deepen its shift beyond traditional connectivity.

The target, unveiled at a press conference on Thursday, represents a major expansion of telebirr’s role in Ethio Telecom’s three-year Next Horizon: Digital & Beyond 2028 strategy. The company expects the platform to process 4.99 billion transactions during the year, while its customer base is projected to reach 67.69 million, an increase of 7.1 million users.

Datanomics

Founded in 1894, Ethio Telecom traces its origins to the establishment of telephone services between Addis Ababa and Harar. The operator describes itself as Africa’s pioneer telecom provider and has operated for more than a century as the country’s dominant telecommunications company.

Frehiwot Tamiru, chief executive of Ethio Telecom, said the second year of the strategy would focus on converting the foundations established during the first year into stronger customer experience, service quality and value creation.

Telebirr is expected to remain the company’s principal growth engine as Ethio Telecom expands into digital financial services, e-commerce, cloud computing and other technology businesses. Digital and adjacent businesses are targeted to generate 77.45 billion birr during the year, equivalent to 26.3 percent of the company’s projected 295 billion birr total revenue.

Sheway Hair

The operator plans to expand telebirr’s financial services alongside its growing user base. Microcredit is targeted to increase to 35.4 billion birr from 19.51 billion birr, while digital savings are projected to rise to 26.42 billion birr from 18.75 billion birr.

The expansion is also expected to be supported by a larger merchant and agent network. Telebirr merchants are projected to increase to 569,300 from 440,000, while agents are expected to rise to 452,800 from 410,700.

Ethio Telecom’s push into digital finance comes as mobile money becomes increasingly integrated into everyday payments, commerce and financial services in Ethiopia. The company is seeking to use telebirr not only as a payments platform but as a wider financial ecosystem serving individuals, businesses and institutions.

HypeFitness

The state telecom giant is also targeting rapid growth in its ZemenGebeya e-commerce platform. Gross merchandise value on the marketplace is projected to reach 1.4 billion birr in 2026/27, representing a 279 percent increase from the previous fiscal year. The company plans to increase merchant onboarding, expand its product range and improve payment and logistics integration.

The digital expansion forms part of a wider plan to increase annual revenue to 295 billion birr, up 36.7 percent from the previous fiscal year. Ethio Telecom generated 215.82 billion birr in revenue in 2025/26.

The company expects earnings before interest, taxes, depreciation and amortisation to reach 154.4 billion birr, with an EBITDA margin of about 52 percent. Operating profit is projected at about 127 billion birr, while the targeted net profit margin is 22 percent.

Beyond financial technology, Ethio Telecom plans to increase investment in the infrastructure supporting the digital economy. Total mobile network capacity is targeted to rise to 135.7 million subscribers from 115.1 million, while 4G capacity is expected to increase to 35.31 million from 22.79 million.

The number of 5G sites is planned to increase from 340 to 648, with the number of towns covered by the technology rising from 33 to 73.

The company also plans to deploy 1,685 additional mobile sites, including 605 rural sites, bringing connectivity to more than 1,400 kebeles and about 4.5 million people.

Ethio Telecom is simultaneously expanding its cloud and data-centre infrastructure. Data-centre IT load capacity is targeted to increase to 6.24 megawatts, while enterprise storage capacity is planned to double to six petabytes.

The company expects its international business to generate 253.7 million US dollars in foreign currency earnings during the year through international connectivity, infrastructure sharing and international money transfer services.

Its wider customer base is projected to rise 6.7 percent to 96.2 million. Mobile data and internet users are targeted to increase 16.5 percent to 60.01 million, reflecting the growing importance of data-driven services to the company’s business model.

Ethio Telecom expects to contribute 43.1 billion birr in dividends and 83.8 billion birr in direct and indirect taxes during the fiscal year. It also plans to generate 10.87 billion birr in efficiency gains, including 10.46 billion birr in strategic cost savings and 410.8 million birr in additional revenue.

Source: FSX Business News