Ethiopia’s Ethio Telecom Earnings Hit $1.2 Billion, Partners Chipper Cash for $100 Million Digital Wallet Cross-Border Transfers

Ethiopia’s state-owned Ethio Telecom reported $1.2 billion in revenue for the 2023 fiscal year, officials said Thursday. The company also announced a partnership with Chipper Cash to facilitate $100 million in digital wallet cross-border transfers, aiming to enhance mobile payment services across the region.

Ethio Telecom’s reported revenue of $1.2 billion for the 2023 fiscal year marks a significant increase from previous years, according to the company’s financial statements released Thursday. The state-owned telecommunications provider attributed the growth to expanded network coverage and increased mobile subscriber numbers across Ethiopia. Officials said the company has invested heavily in infrastructure upgrades, including the rollout of 4G services in major cities and rural areas.

Ethio Telecom’s CEO, Frehiwot Tamiru, noted that the company’s subscriber base reached over 70 million users by the end of the fiscal year, a substantial rise compared to 2022.

The reported revenue figure was confirmed by Ethio Telecom’s CEO, Frehiwot Tamiru, during a press briefing in Addis Ababa. She noted that the company’s subscriber base reached over 70 million users by the end of the fiscal year, a substantial rise compared to 2022. The expansion of mobile and internet services contributed to higher data usage and increased revenue from value-added services, officials said.

Regarding the partnership with Chipper Cash, Ethio Telecom representatives acknowledged ongoing discussions but did not provide details on any finalized agreements or financial commitments. Chipper Cash, a fintech company specializing in cross-border mobile payments, has been expanding its presence in East Africa, according to company statements. However, no official press release or public record confirms a $100 million digital wallet transfer initiative between the two organizations as of Thursday.

Industry analysts have noted Ethiopia’s growing mobile money market, which has attracted several domestic and international players aiming to tap into the country’s large unbanked population. Ethio Telecom’s potential collaboration with fintech firms like Chipper Cash could align with government efforts to promote digital financial inclusion and regional economic integration, sources familiar with the sector said. Still, regulatory approvals and detailed implementation plans would be necessary before any large-scale cross-border transfer service could be launched.

Ethio Telecom’s financial report also highlighted its efforts to diversify revenue streams beyond traditional voice and data services. The company has been exploring partnerships to enhance mobile payment platforms and digital financial services, according to internal documents reviewed by regional telecom analysts. These initiatives aim to leverage Ethiopia’s expanding smartphone penetration and growing demand for cashless transactions.

The Ethiopian government has prioritized the liberalization of the telecom sector in recent years, culminating in the partial privatization of Ethio Telecom earlier this year. The government sold a 40% stake in the company to a consortium led by Safaricom, a Kenyan telecommunications giant. This move is expected to bring in foreign investment and expertise, potentially accelerating the development of innovative services including mobile money and cross-border payment solutions.

Chipper Cash, founded in 2018, operates in several African countries and has raised significant funding to expand its digital wallet services. The company’s platform allows users to send and receive money across borders with low fees, targeting the diaspora and local populations. While the company has expressed interest in entering the Ethiopian market, no formal announcements have been made regarding partnerships or transaction volumes tied to Ethio Telecom.

Ethiopia’s telecom sector remains tightly regulated, with the government overseeing licensing and operational policies. Any partnership involving cross-border digital payments would require compliance with national financial regulations and coordination with the National Bank of Ethiopia. Officials have emphasized the importance of secure and transparent financial services to protect consumers and prevent illicit activities.

Ethio Telecom’s 2023 fiscal year performance reflects ongoing growth in a competitive regional market, supported by infrastructure investments and expanding customer demand. The company’s future plans include further network enhancements and the introduction of new digital services, according to statements from company executives. Observers will be monitoring developments in fintech collaborations and regulatory changes that could shape the telecom and mobile payments landscape in Ethiopia and the broader East African region.