Ethiopia’s Economic and Social Climate Shift Following Telecom Privatization

Although the Ethiopian telecommunications sector has had a lot of improvements in the past two years, it has been apparent that the services provided have not yet been sufficient or reliable compared to the demand in the country. Providing the customers with alternatives of service providers to choose from and thus creating a competitive environment within the providers is a great way to get more reliable and affordable telecom services.

In recent times, Ethiopia has made history when it decided to privatize its telecom sector and allowed for international telecommunication companies to compete in the country’s telecom industry. It has been eminently celebrated when multiple international companies bid to be a part of the Ethiopian telecommunications sector. Therefore, what will be the inevitable shift in Ethiopia’s economic and social climate following the grant of the license to operate telecom services in Ethiopia?

Ethiopia is a country of many young talents that lack efficient resources in order for them to live up to their fullest potential. Hence, Ethiopia suffers from bulk illegal emigration of its citizens due to the incessant pursuit for better job opportunities and better quality of life. Whereas, countries like Kenya, South Africa, India, and Romania have been outsourcing the skills of their young people to countries like Israel, which employ more than 100,000 people, by providing software solutions, digital marketing, and any other services that can be provided online. This is how we ensure that in getting reliable and sufficient internet service, our biggest export will shift from gold and coffee to having our skilled youth get outsourced for several services in the comfort of their own country.

It isn’t very well known that there are a lot of young people in Ethiopia that are already exporting and outsourcing their skills online. However, they are immensely challenged by the instability, speed limit, and high price of the country’s internet connection, which is why a lot of foreign employers/companies do not feel comfortable enough to give out most of the work to Ethiopian employees, and only give out close to 10% of their work. Therefore, Providing reliable and affordable internet will invigorate these young people and these foreign companies resulting in increased growth of the country’s economy.

Written by: Haleluya Tasew