(Ecofin Agency) - In 2023, the 2G and 3G telecom networks covered almost the entire Ethiopian population, according to the GSMA. In contrast, the 4G and 5G networks covered 33% and 1% of Ethiopians, respectively.

Ethio Telecom, the state-owned telecommunications company, is asking the Ethiopian Parliament to implement policies that would make land acquisition easier to help expand its network across the country. Frehiwot Tamiru, the CEO of the company, shared this request during her speech to the Parliamentary Committee on Public Enterprises and Institutional Affairs.

According to Ms. Frehiwot, inadequate land acquisition procedures, especially in urban areas, are the main obstacle to expanding the company’s infrastructure. She explained that Addis Ababa is the hardest city for installing towers, unlike rural areas, where the situation is much better.

This request comes as Ethio Telecom plans to invest $1 billion in FY2024-2025, mainly to expand its network coverage. The company intends to deploy 1,298 new mobile sites, including 165 in rural areas. It also plans to build 320,000 new fiber optic distribution lines, install 1,553 kilometers of metropolitan fiber, and extend its national network by 400 kilometers, increasing its total length to 22,200 kilometers.

In addition, the Global System for Mobile Communications Association (GSMA) reports that in 2023, 4G covered 33% of Ethiopia’s population, while 5G reached just 1%. The 2G and 3G networks covered 99.1% and 98.5%, respectively. The GSMA also notes that mobile phone penetration was at 40% in 2023, with 100 million Ethiopians still not connected to mobile internet.

While resolving land issues could help speed up the network expansion, other significant challenges remain. Ms. Frehiwot mentioned insecurity, poor road access, lack of commercial electricity, vandalism, fraud, and financial constraints as additional barriers. The company is also seeking funding to support its $1 billion investment project.