Ethiopia's Council of Ministers has approved a new regulation establishing the Universal Access Fund, funded by a 1.5% levy on telecom operators' annual gross revenue to connect rural areas. This policy aims to advance the country's digital economy goals. The Ethiopian Communications Authority will manage the fund to address infrastructure gaps in underserved regions.
Ethiopia's Council of Ministers has approved Regulation No. 585/2026, establishing the Universal Access Fund to promote digital connectivity in rural and underserved areas. The fund will be financed by a mandatory 1.5% contribution from the annual gross revenue of all licensed telecommunications service providers in the country. This initiative, managed by the Ethiopian Communications Authority (ECA), seeks to eliminate technological isolation in remote communities, schools, and health centers.
Under a "Pay-or-Play" principle, telecom operators have flexibility: they can pay directly into the fund or invest in network expansion in unserved areas, deducting those costs from their contribution. Newly licensed operators receive a three-year exemption to help them establish operations. The fund prioritizes connectivity for rural schools and healthcare facilities, as well as access for women, persons with disabilities, and low-income households. It also supports the development of local digital content and technologies in indigenous languages, aiming to build an inclusive Ethiopian digital ecosystem.
To ensure compliance, the ECA imposes penalties on operators: a 2% fine for the first month of delay, increasing to 5% for each subsequent month. This regulation represents a structured effort to advance Ethiopia's digital inclusion goals, balancing regulatory requirements with opportunities for industry investment.