Ethiopia’s State telecommunications company, Ethio-telecom has moved to sign a deal worth $1.6bn with one of two Chinese firms expected to share a major network expansion project.

The deal, which comes after a lengthy tender process, will see the introduction of 4G mobile phone network in the capital, Addis Ababa, as well as the expansion of the 3G network nationwide by the end of 2015.

Addis Ababa has one of the highest smart-phone penetration rates among African capitals.

Negotiations for the project began a year ago, with eight international companies bidding for the contract.

But the contract was finally awarded to two Chinese companies, Huwaei and ZTE, following fierce competition from the two Chinese telecoms giants. More