Ethiopia Mobile Value-Added Services (VAS) Market Research Report Forecast: (2025-2030)

Market Definition

Mobile Value-Added Service (VAS) refers to a range of services provided to mobile phone users to enhance their experience beyond basic voice & text communication. These services are designed to add value to mobile communication & typically utilize the capabilities of mobile devices, such as smartphones, to offer various features & functionalities.

Market Insights & Analysis: Ethiopia Mobile Value-Added Services (VAS) Market (2025-30):

The Ethiopia Mobile Value-Added Services (VAS) Market size was valued at around USD 2.28 billion in 2024 and is projected to reach USD 8.19 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 23.75% during the forecast period, i.e., 2025-30. The market presents significant potential for growth & innovation, particularly with recent reforms and the opening up of the telecommunications sector. As the industry evolves and matures, it is likely to offer numerous opportunities for both local & international players to provide value-added services that cater to the needs and aspirations of the Ethiopian population. Ethiopia's remarkable growth in mobile phone penetration over the past decade has created a fertile ground for mobile value-added service (VAS) providers.

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The increased access to mobile devices, driven by factors such as urbanization, economic development, and declining handset prices, has led to a surge in potential users for mobile VAS. As more Ethiopians gain access to smartphones and basic mobile phones, they are becoming increasingly connected & digitally engaged, presenting a significant opportunity for VAS providers to offer services ranging from mobile payments and financial inclusion to content & entertainment services. For instance, in 2023, Safaricom launched M-pesa mobile money service in Ethiopia. This recent liberalization of the telecom sector & ongoing reforms are expected to stimulate competition & innovation in this sector, making Ethiopia an exciting prospect for VAS providers looking to expand their presence.

Additionally, recent efforts to liberalize the telecom sector and open it up to private investors signal a significant shift in the market dynamics. As the country endeavors to improve its digital infrastructure by expanding 4G & 5G networks and potentially introducing 6G technology in the future, presenting a promising opportunity for mobile VAS providers. Also, with the potential for increased internet accessibility, the market landscape for mobile VAS in Ethiopia is poised for transformation, making it an attractive prospect for companies looking to capitalize on the growing digital ecosystem in the country, eventually enhancing the Mobile Value-Added Services (VAS) Market size in the near future.

Ethiopia Mobile Value-Added Services (VAS) Market Driver

Digital Infrastructure Expansion to Fuel the Mobile VAS Market Growth – The growing efforts to expand digital infrastructure in Ethiopia, including the rollout of 3G and 4G networks, play a pivotal role in shaping the Mobile Value-Added Services (VAS) market. This occurs in different verticals, such as education, healthcare, and agriculture, where mobile application improves access to vital services and information. In which, VAS providers partner with local organizations and entrepreneurs to create tailored applications to address specific needs within these sectors. Moreover, as Ethiopia's digital infrastructure continues to expand and improve, the market for mobile VAS is expected to witness sustained growth.

Ethiopia Mobile Value-Added Services (VAS) Market Challenge

Cybersecurity Threat to Restrict the Ethiopia's VAS Market – Security concerns in the digital landscape present a significant challenge to the growth of the Ethiopia Mobile Value-Added Services (VAS) market. Cybersecurity threats, such as data breaches, fraud, and hacking, could undermine consumers' trust, impacting their willingness to engage in online transactions & utilize data-intensive VAS services. These incidents could erode confidence in digital services, hindering the adoption of VAS, particularly in sensitive areas like mobile banking & e-commerce, further hampering the demand graph of the market.

Ethiopia Mobile Value-Added Services (VAS) Market Trend

Enhancing E-commerce & M-commerce in Ethiopia – In Ethiopia, a noteworthy market trend within the value-added service (VAS) sector revolves around the integration of VAS into the e-commerce & mobile commerce (M-commerce) landscape. With the rising adoption of digital shopping platforms and the increasing usage of smartphones, personalized VAS is becoming a new trend in enhancing the overall shopping experience for consumers. This includes features like personalized product recommendations, one-click shopping options, and secure payment solutions. These services streamline the purchasing process and offer a more tailored and engaging shopping experience, fostering customer loyalty.

As the Ethiopian e-commerce and m-commerce ecosystem continues to expand, businesses & VAS providers are recognizing the significance of offering these enhancements to stand out in a competitive market. This trend aligns with the global evolution of e-commerce & digital shopping, reflecting the growing digital maturity of Ethiopia's consumer base and its potential for further growth in the VAS market within the country.

Ethiopia Mobile Value-Added Services (VAS) Market (2025-30): Segmentation Analysis

The Ethiopia Mobile Value-Added Services (VAS) Market study by MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment & includes predictions for the period 2025–2030 at the national level. In accordance to the analysis, the market has been further classified as:

Based on Service:

• Short Messaging Service (SMS)
• Multimedia Messaging Service (MMS)
• Location-based Service
• Mobile Email & IM
• Mobile Money
• Mobile Advertising
• Mobile Infotainment
• Others

Mobile money services have emerged as one of the dominant & highly sought-after mobile VAS in Ethiopia. This service is predicted to account for the maximum share of the Ethiopia Mobile Value-Added Services (VAS) Market in the forecast years. This demand is driven by several factors, primarily the Ethiopian government's active promotion of financial inclusion. With a relatively underdeveloped traditional banking infrastructure, mobile money offers a transformative solution by enabling users, even in remote areas, to access banking & financial services using their mobile phones. Moreover, the convenience & accessibility of mobile money services is paramount in a country where physical access to banks and ATMs can be challenging, making it a preferred choice for a broad spectrum of the population.

Ethiopia Mobile Value-Added Services (VAS) Industry Recent Development:

• 2025: Ethio Telecom launched seven new cloud-based enterprise services ranging from banking and push-to-talk communications to cattle management. Ethio Telecom also launched a push-to-talk/video (PTT/PTV) service aimed at sectors such as security, construction, transportation, and hospitality that use trunked radio systems for communication. The PTT/PTV service offers a cost-effective cellular-based alternative that uses regular smartphones and also supports multimedia messaging, location-based services, and geofencing.

Gain a Competitive Edge with Our Ethiopia Mobile Value-Added Services (VAS) Market Report

1. Ethiopia Mobile Value-Added Services (VAS) Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Ethiopia Mobile Value-Added Services (VAS) Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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