Ethiopia's Economy
Opening Telecoms and Banking
How Ethiopia ended the state telecom monopoly by licensing Safaricom in 2021, and began opening banking to foreign investors.
Ethiopia began opening closed sectors.
Telecoms
- Ethio Telecom was a state monopoly.
- In 2021, a consortium led by Safaricom (Kenya) won a licence, launching services in 2022.
- Mobile money like telebirr and M-Pesa expanded.
Banking
In 2024, Ethiopia passed a law allowing foreign banks to operate.
Stock exchange
The Ethiopian Securities Exchange launched in 2025.
Why
- More competition lowers prices and improves service.
- Foreign investment brings dollars.
Challenges
Conflict, currency issues and infrastructure still deter investors.
The new SIM
A shopkeeper in Addis switches to Safaricom for cheaper data after decades of a single operator.
Thinking opening markets is quick
Investors weigh stability and currency risks.
Key takeaways
- Ethiopia licensed Safaricom in 2021.
- Mobile money expanded.
- Foreign banks were allowed from 2024.
- A stock exchange launched in 2025.
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