(Bloomberg) -- Ethiopia’s state-owned telecommunications operator aims to boost its revenue by 75% in the current financial year, even as it faces increased competition, according to Chief Executive Officer Frehiwot Tamru.
Ethio Telecom is targeting sales of 163.7 billion birr ($1.44 Billion) in the 12 months through July 7, and expects to grow its customer base 6% to 83 million users during that period.
“In terms of increasing our revenue, the plan includes not only leveraging the existing telecom revenue sources but also introducing value-added services, offering new and enhanced digital, local, and international services, expanding enterprise solutions, increasing telebirr accessibility and service types,” Frehiwot said in a briefing in the capital, Addis Ababa, Thursday.
The operator — which earns foreign exchange from commissions on remittances made through its telebirr mobile money product and on international calls — expects a 43% increase in forex revenue to $282.8 million.
Ethio Telecom faces competition from a unit of Kenya’s Safaricom Plc, which won an operating license in Africa’s second-most populous nation in 2021. Ethiopia may revive plans to issue a third permit after floating its currency, a move it expects to entice foreign investment.
Ethio Telecom itself is slated to go on the block, though the sale of its shares may be reserved for locals. The company will be listed on the Ethiopian Securities Exchange, which is to become operational by the end of 2024.
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