Top News

Huawei wants to become the top vendor in the growing telecom market of Ethiopia

Post Date: Wednesday, January 13, 2021

Huawei had a very tragic year, much like the rest of us. When tech industries across the world were flourishing, Huawei was struck the most due to the ongoing US-China tussle. But it’s time for the company’s resurrection. Many of its partners have applied for a special license near the U.S. government to continue business with Huawei. And some have even got the approval.

Recent reports indicate that Huawei will move a regional office covering about five countries from the Democratic Republic Congo to Ethiopia. The Chinese tech giant is planning to leverage its position as the primary vendor of the state-owned monopoly Ethio Telecom to bid for opportunities in the country.

The Ethiopian government intends to bring in foreign exchange to boost the economy while improving connectivity across the Horn of Africa. The government also plans to issue two new telecom licenses next year and sell a 40% stake in Ethiopian Telecom. The telecom industry’s liberalization is at the forefront of what Ethiopian Prime Minister Abiy Ahmed said in 2018 would be a wide-ranging privatization program.

Huawei has emerged as a leader in 5G, a technology that promises super-high-speed connectivity. Only because the company became a primary target of the U.S. did it lose most of its allies and business in 2020.

The company always had close ties with Africa, as it is their top vendor. African government even defended the company stating that it was a victim of the dispute between China and the U.S. As the Ethiopian government is looking to expand its telecom market, many carriers are eyeing the region’s market.

The subsidiary of U.K.’s Vodafone Group, Vodacom, is among carriers planning to bid for licenses. But the ongoing military conflict in the region is giving the telecom a cause to rethink its plan.

Africa’s most distinguished career by subscribers MTN Group and Paris-based Orange S.A. has also expressed their interest in entering the Ethiopian region. After all, the country is Africa’s second-most populous country than 100 million people.