Ethiopian BPO on the Rise: But Can the Internet Keep Pace?











Ethiopia’s business process outsourcing (BPO) sector is expanding rapidly, with market revenue forecast to reach $489.9 million in 2025 and grow at an annual rate of 11.54% to $845.7 million by 2030, according to Statista. The industry now includes about 25 registered firms employing roughly 15,000 workers and generating an estimated $50 million annually—up from $34 million and 3,350 employees in 2021.

International players are returning to the market, including Africa’s outsourcing giant CCI Global, which has resumed operations in Addis Ababa. The Ethiopian Outsourcing Association has also been formed to lobby for greater sector support, while government initiatives—such as the Digital Ethiopia 2025 strategy, investments in ICT parks, and improved internet access following telecom liberalization—are enhancing the country’s appeal.

A young, multilingual workforce, competitive wage levels, and favorable time zones are positioning Ethiopia as an emerging destination for global outsourcing contracts. Industry experts attribute the growth to an untapped pool of skilled talent and lower labor costs, amplified by the depreciation of the birr.

The “Hidden Tax” of Poor Internet

Despite the momentum, operators and young professionals say Ethiopia’s weak internet remains a “hidden tax” on the industry—forcing firms to invest in costly backup connections, maintain redundant staffing, or shift work hours to avoid peak network congestion.

Some BPO managers warn that without a reliable digital backbone, Ethiopia risks becoming known more for missed deadlines and dropped calls than for its capabilities—jeopardizing hard-won gains in a business where reputation travels faster than the signal itself.

“Yes, it has improved compared to before, but it is still not sustainable,” said one operator, who asked not to be named. “We aren’t using the exact amount we buy.” He added that poor connectivity has caused him to miss international meetings and deadlines. “That’s why many are moving to Safaricom,” he noted.

Fair Usage Limits and Infrastructure Gaps

Experts say that limitations on so-called “unlimited” internet plans stem from international agreements that cap usage.

“Fair Usage Policy (FUP), an international guideline, states that every individual should use the internet fairly,” explained Yonas Shiferaw, a network engineer. “But selling unlimited data under a limited policy isn’t appropriate. Remote workers, who consume large amounts of data, are finding this a major headache.”

Yonas also questioned whether Ethiopia’s internet speeds truly meet 4G standards. “We haven’t deployed infrastructure that current technology allows. Bandwidth often faces congestion and shrinks as the number of users grows, leading to unreliable connections.”

“Many customers are switching to Safaricom,” he added. “But will these speeds hold as the user base expands? The answer is no—we won’t see sustained performance.”

He further noted that fixed broadband users often experience speeds far below advertised levels, due to poor equipment quality, insufficient backup power, and aging systems. “These issues mean users get less than what they are promised,” Yonas told Addis Insight.

Telecom Investments and Upgrades

Ethio Telecom, the state-owned operator, launched 1,683 new mobile sites during the fiscal year ending in June, nearly half (836) of which were in rural areas. It expanded LTE coverage to 512 additional cities, bringing total 4G LTE availability to 936 cities and districts. The company also introduced 5G services in 16 more cities, increasing the total number of 5G-enabled locations to 26.

To boost network capacity and speeds, Ethio Telecom deployed Massive MIMO technology at 212 new sites, raising the total to 306.

“These initiatives, combined with core 4G and 5G network expansions, have enhanced network capacity, customer experience, and access to quality mobile data services, strengthening the country’s digital infrastructure,” the company said in its latest report.

The telecom also upgraded its International Gateway capacity by 840 Gbps to a total of 2.48 Tbps and extended its backbone fiber network by 686 km, bringing the total fiber length—including Optical Ground Wire (OPGW)—to 22,673 km.

Last year, Ethio Telecom launched its “Copper Switch Off” initiative, aimed at replacing its aging copper network with high-speed fiber optics. So far, 35,701 customers have migrated to fiber—24,123 of them in the last fiscal year alone.

Calls for Faster Fiber Deployment

Yonas urged a faster transition from copper to fiber, saying it would enable more efficient management through a centralized digital platform. He also advocated replacing manual processes with automated systems and highlighted airFiber technology, which uses microwave antennas to deliver dedicated internet connections to enterprise clients. Remote workers, he suggested, could access this service if organized collectively.

Balancing Growth and Connectivity

Ethiopia is making notable progress in its digital transformation, driven by government strategies like Digital Ethiopia 2025 and significant telecom investments. Expanded network coverage, enhanced international capacity, and accelerated fiber rollout have all improved access to the internet and modernized services.

However, as the BPO sector and remote workforce continue to grow, persistent connectivity challenges remain a critical hurdle. Ensuring reliable, affordable, high-quality internet is essential—not just to sustain the sector’s momentum, but to fully harness the potential of Ethiopia’s young, skilled workforce and secure its position in the global digital economy.