The Ethiopian Communications Authority has ordered Ethio telecom to reduce infrastructure rental fees for newcomer Safaricom Ethiopia. Payments must now mostly be in local birr instead of US dollars. Ethio telecom officials note this shift challenges their foreign exchange needs for infrastructure expansion.
On January 31, 2026, the Ethiopian Communications Authority directed Ethio telecom, the nation's leading telecom operator, to lower infrastructure rental fees for the new entrant Safaricom Ethiopia. The regulator also mandates that payments be primarily in Ethiopian birr, shifting away from US dollars.
Messay Woubishet, Ethio telecom's chief communications officer, highlighted the difficulties this change creates for foreign exchange requirements vital to infrastructure growth. “We buy almost everything in foreign currency,” he stated. Infrastructure-sharing revenue represents just 2.6% of Ethio telecom's total 85 billion birr revenue, though it increased by more than 35% year-on-year.
Voice services contribute 30.4% to revenue, with data and internet services at 28.3%. Foreign currency earnings are constrained: the company obtained only 3.16 million dollars out of a 88.19 million dollar target, reaching 83% fulfillment. Primary sources included international services (69 million dollars) and remittances (16 million dollars). Dependence on local currency payments exacerbates hard currency shortages, leading Ethio telecom to pursue options via international financial bodies and collaboration with federal and regional governments.
In an unaudited report for the past six months, Ethio telecom recorded a gross profit (EBITDA) of 42.36 billion birr, yielding a 49.8% margin. The firm also remitted 35.6 billion birr in taxes to the government.