Ethio telecom has signed an agreement with the Ethiopian Pharmaceutical Supply Service (EPSS) to develop a digital supply chain system aimed at improving the distribution of medicines nationwide.

The deal will introduce a centralised platform that integrates real-time inventory management, biometric warehouse access, and AI-enabled monitoring tools to reduce theft and inefficiencies. Ethio Telecom said the initiative will strengthen visibility across the supply chain, from procurement to last-mile delivery.

EPSS, the government agency responsible for procuring and distributing medicines to public health facilities, has struggled with logistical bottlenecks and shortages in a market heavily dependent on imports. Ethiopia spends hundreds of millions of US dollars each year on pharmaceuticals, yet patients in many regions still face delays in accessing essential drugs.

The initiative is part of Ethio Telecom’s “Next Horizon: Digital & Beyond 2028 Strategy”, which aims to expand its enterprise services into sectors including health care, finance and logistics. The company, one of Africa’s largest telecom operators by subscriber base, is seeking to position itself as a technology partner in Ethiopia’s national digital transformation drive.

Officials said the digital platform is expected to improve inventory accuracy, support faster decision-making, and strengthen regulatory compliance. Infrastructure support, including backup power and dedicated control rooms, will accompany the rollout.

The agreement reflects Ethiopia’s push to integrate digital technologies into public services, with health care a priority as the country of more than 120 million people works to expand access and efficiency across its medical system.