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Ethio Telecom engages AfDB to finance digital initiatives

By , Africa editor
Ethiopia , 17 Jan 2025
Solomon Quaynor, AfDB's vice president for private sector, infrastructure, and industrialisation, met with Ethio Telecom CEO Frehiwot Tamru yesterday.
Solomon Quaynor, AfDB's vice president for private sector, infrastructure, and industrialisation, met with Ethio Telecom CEO Frehiwot Tamru yesterday.

Ethio Telecom and the African Development Bank (AfDB) initiated strategic discussions yesterday about financing the telco's digital transformation initiatives, which the state-owned telecom company says will boost the country's digital economy.

Solomon Quaynor, AfDB's vice president of the private sector, infrastructure, and industrialisation complex, was joined by Dr. Leandre Bassole, the AfDB's deputy director general for the East Africa Region, and the bank's senior management team for a high-level strategic meeting at Ethio Telecom.

The negotiations follow Ethio Telecom's announcement at the start of its financial year that it plans to invest more than $1.1 billion in telecom and digital infrastructure expansion.

According to the telco, this large investment underlines its commitment to driving technological advancement, improving digital inclusion, and promoting socioeconomic growth across Ethiopia and Africa.

Ethio Telecom CEO Frehiwot Tamru led yesterday's discussions, which centred on the company's ambitious objective to create a digitally empowered country, the telco said in a statement.

It went on to say: “During the discussion our CEO stated how Ethio telecom is continuously growing and advancing as a key player in Ethiopia’s and Africa’s digital transformation journey.

“By expanding its user base and introducing innovative digital solutions, the company is accelerating Ethiopia’s transition to a fully connected, technology-driven economy while actively contributing to Africa’s broader digital development.

“As one of the largest telecom operators in Africa, Ethio telecom remains committed to leveraging technology to bridge the digital divide, create economic opportunities, and foster a more inclusive and sustainable future.”

Ethio Telecom added: “She reinforced that Africa must harness technology and digital solutions to overcome existing challenges, unlock new opportunities, and drive sustainable development.

“She also underscored that financing the telecom industry is not merely about expanding connectivity it is about empowering entire economies. Telecom operators act as key enablers for all sectors.

“By financing telecom operators like Ethio telecom, financial institutions such as AfDB play a pivotal role in enabling these operators to continue expanding telecom and digital infrastructure, thereby enhancing national productivity, strengthening competitiveness, and accelerating Africa’s digital and economic growth”

The telco said the discussions also highlighted its achievements over the last six years, particularly in the following key areas: telecom and digital infrastructure expansion, rural connectivity initiatives, cloud services and data centres, digital payments and mobile money services, digital finance and fintech innovation, and enterprise solutions for businesses and government.

Quaynor and his team expressed their desire to broaden the partnership with Ethio Telecom beyond financing.

Ethio Telecom said the AfDB team highlighted many potential areas for collaboration and emphasised the bank's interest to assist the company's digital projects.

Quaynor expressed confidence in the relationship with Ethio Telecom, stating, "It is your bank, and you can rely on us to support you in your next moves."

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