Ethio telecom Inks Broadband, Data Centre Deals

Apr 16 , 2022


  Last week, Ethio telecom signed three-year contractual agreements with four virtual internet service providers to sell fixed broadband internet service. Websprix IT Solutions, Vivatech Trading, Zergaw ISP, Skynet IT Soultion, and Dulle Business Group will buy fixed bandwidth internet service from Ethio telecom and provide it to their clients. The state-owned telecom operator also inked a deal with Amhara Bank for the rental of a data centre. The Bank is one of a handful, including Tsehay and Ahadu banks, readying to enter the industry with nearly six billion Birr in equity raised from the public. Led by Henok Kebede, its founding president and former vice president at Dashen Bank, Amhara Bank has already deployed a core banking system. The Bank is leasing a modular data centre from Ethio telecom, which has two of the structures at its disposal. A further three are under construction in the outskirts of Addis Abeba. This includes the "Big Green" data centre, which can host up to 1,000 racks. Over 80 clients deploy their data on the telecom operator's data centres.


Radar

Electricity Bills Get the VAT Jolt

The new Value Added Tax (VAT) has begun implementation on electricity consumption and various service fees affecting customers who use more than 200 kilowatt hours of electricity per month. Based on a directive from the Ministry of Finance, the tax will be applied to the excess amount of electricity consumption above 200 kilowatt hours. The Ethiopian Electric Utility (EEU) began implementing the VAT on bills starting from November though both prepaid and postpaid customers will have to pay VAT a...


Radar

World Bank Greases Financial Overhaul

The World Bank approved 700 million dollars in credit from the International Development Association (IDA) to scale up support for the financial sector. The funds are targeted at modernizing the regulatory and supervisory framework of the National Bank of Ethiopia (NBE), supporting governance reforms, balance sheet restructuring, and recapitalization of the Commercial Bank of Ethiopia (CBE), and transforming the Development Bank of Ethiopia (DBE) into a sustainable development finance institutio...


Radar

Gadaa Bank Expands Reach, Faces Lending Constraints

Gadaa Bank closed its first full fiscal year of operations with a net profit of 90.2 million Br. The 18-month-old Bank held its annual general assembly at Millenium Hall on Africa Avenue last week where the board announced that during the year, the Bank opened 15 branches and now has 85 operational branches. “Due to recently enacted policy measures on credit by NBE and unmet resource mobilization during the fiscal year, the Bank was unable to make loan disbursements,” stated Wolde Bulto,...