Press Release

According to Astute Analytica latest study, the Ethiopia mobile value-added services market revenue surpassed US$ 1.96 billion in 2024 and is predicted to attain around US$ 10.23 billion by 2033, growing at a CAGR of 20.14% during the forecast period from 2025 to 2033.

The increased access to mobile devices in Ethiopia has been significantly influenced by several factors, including urbanization, economic development, and the declining prices of handsets. This convergence of elements has resulted in a considerable surge in the potential user base for mobile value-added services (VAS). 

As more Ethiopians acquire smartphones and even basic mobile phones, they are becoming increasingly connected and digitally engaged. This growing connectivity presents a substantial opportunity for VAS providers to introduce a diverse array of services, ranging from mobile payments and financial inclusion initiatives to content and entertainment offerings.

The introduction of services such as mobile payments has become particularly crucial in fostering financial inclusion among Ethiopia's population. With many individuals previously excluded from traditional banking systems, mobile money solutions are bridging the gap and providing access to essential financial services. 

A notable example of this trend is the launch of M-Pesa, a mobile money service by Safaricom in 2023. This initiative has not only provided a new avenue for financial transactions but also highlighted the potential for mobile VAS to enhance economic participation among the populace.

Ethiopia Mobile Value-Added Services Market Key Takeaways

• The Ethiopia mobile value-added services (VAS) market is projected to reach a valuation of US$ 10.23 billion by 2033, growing at a compound annual growth rate (CAGR) of 20.14% during the forecast period from 2025 to 2033.
• In terms of service offerings, SMS services continue to dominate the Ethiopian mobile VAS market, capturing a substantial 23.4% market share. This strong position is largely attributed to the extensive base of feature phone users in the country, as well as the straightforward infrastructure required to support text-based communication.
• When examining the end users of mobile VAS, enterprises have emerged as the largest segment, accounting for over 73.7% of the market share. This trend reflects the rapidly evolving telecommunications environment in Ethiopia, where businesses are increasingly adopting mobile services.
• From an industry perspective, government bodies represent the largest revenue segment within the mobile VAS market, contributing 26.8% of total revenue. This is largely due to the government's embrace of digital campaigns and administrative messaging tools.
• The paid segment of the mobile VAS market thrives, holding over 77.2% of the revenue share. This success can be attributed to consumers' willingness to invest in specialized content and enhanced communication tools.

Market Overview

While mobile value-added services (VAS) in Ethiopia are experiencing a notable rise in popularity, particularly with the introduction of mobile money services like "TeleBirr," the market is still in a developmental phase, influenced by several challenges. One of the key obstacles is the limited internet penetration across the country, which hinders access to many digital services. 

Additionally, Ethiopia's telecom landscape has historically been dominated by a single provider, which restricted competition and innovation. However, recent market openings have begun to change this landscape, presenting significant growth potential for various VAS, including mobile entertainment, mobile banking, and location-based services.

Ethiopia stands as a pivotal nation in Africa, boasting a population of approximately 120 million, making it the second largest on the continent. This demographic advantage is enhanced by a young population, with a median age of about 19 years. This youthful demographic is increasingly tech-savvy and eager to adopt new technologies, which creates a fertile ground for the growth of mobile services. 

Furthermore, in recent years, the country has enjoyed robust economic growth, with annual GDP growth rates ranging from 6% to 10%. This economic progress has led to a rise in disposable income among consumers, further fueling the demand for innovative mobile services.

Market Growth Factors

Driver

Expanding Mobile Literacy Campaigns: The rise of mobile technology in Ethiopia has paved the way for various app-based solutions that can enhance daily life, from financial services to educational tools. However, the success of these applications largely depends on the level of mobile literacy among the population. Therefore, expanding mobile literacy campaigns is essential to fostering a culture of acceptance and use of these technologies. 

Strong Entrepreneurial Startup: Ethiopia is witnessing a strong entrepreneurial startup culture that is fostering creativity and innovation within the mobile value-added services (VAS) sector.

Restraint

Intermittent Electricity Supplies: The issue of intermittent electricity supplies presents a significant challenge for users of data-intensive mobile applications. Frequent power outages lead to interruptions in connectivity, severely affecting the user experience. Applications that require a stable internet connection, such as streaming services, online gaming, or cloud-based productivity tools, can become frustratingly unstable. 

Technological Skill Disparities: The MVAS market relies heavily on a skilled workforce capable of developing and maintaining applications and services. However, there is a shortage of technical expertise in software development, mobile application design, and data analytics within Ethiopia. This gap limits the ability of local businesses to innovate and compete effectively in the market.

Top Trends

Rapid Rise of Entertainment Content: There has been a remarkable surge in entertainment content that taps into locally preferred music and drama. This trend reflects a broader cultural shift towards celebrating and preserving regional identities through various forms of media. 

Emergence of Interactive E-Learning Modules: The development of interactive e-learning modules that cater to specific regional linguistic needs has significantly transformed the educational landscape. With the growing recognition of diverse languages and dialects, educational content creators are now focusing on designing modules that are culturally relevant and linguistically appropriate for various regions. 

 Ethiopia Mobile Value-Added Services Market Key Players:

• Ethio Telecom
• Amha Wehibe
• Nextstep Technology PLC
• Fidel Technologies
• Other Players

Market Segmentation:

By Service

• Short Messaging Service (SMS)
• Multimedia Messaging Service (MMS)
• Location Based Services
• Mobile Email & IM
• Mobile Money
• Mobile Advertising
• Mobile Infotainment

By Type

• Paid
• Free

By End User

• Individuals
• Enterprises

By Industry

• BFSI
• Education
• Sports
• Retail
• Government
• IT & Telecom
• Healthcare & Life science
• Others