In Ethiopia's capital, a state telecom operator has launched 5G.

Ethio Telecom, Ethiopia's state-owned telecom operator, has launched 5G mobile phone networks in Addis Ababa, the country's capital.

Ethio Telecom expects the move will give them an advantage against the forthcoming competition, which will be a consortium of foreign telecom carriers making their first foray into the country's lucrative industry.

Residents in select areas of Addis Ababa will be able to obtain 5G mobile networks on their phones, which will provide data speeds 20 times faster than current 4G networks.

In the following year, Ethiopian telecom expects to roll out 150 5G sites in and around the city.

The business said in a statement that the network's expansion is contingent on "the readiness of the ecosystem's players," including the availability of 5G ready devices and handsets.

Huawei, a Chinese telecom powerhouse, is providing the required equipment for the services.

Ethiopia had previously closed its doors to international telecom operators before introducing measures to liberalize the sector and selling a service license to a consortium led by Kenya's Safaricom last year.

Last March, the government postponed indefinitely a proposal to partially privatization Ethio Telecom by selling 40% of the company's equity share capital due to global and domestic "rapid moving macro-economic changes."