Onatel Burundi

Onatel Burundi, formally the Office National des télécommunications du Burundi, is a state-owned telecommunications operator established by the Burundian government in 1979. It operates as a public industrial and commercial establishment with legal personality and is supervised by the ministry responsible for communications and information technology. The company was created at a time when Burundi’s telecommunications market was effectively monopolized by the state, and its initial business was centered on fixed-line telephone services. The company’s development has followed the broader liberalization and modernization of Burundi’s communications sector. International Development Association financing helped fund its original buildings, equipment, and vehicles. During the 1990s, Onatel partnered with Télécel Zaire to establish Télécel Burundi, which introduced mobile telephony to the country. The partnership was ended in 2003, with Onatel receiving compensation, and the resulting mobile operation eventually became Onamob. Onatel subsequently expanded beyond traditional telephony: it began offering internet access in 2003, data transmission in 2004, and its own mobile service in 2005. Burundi liberalized the telecommunications sector through a 1997 decree-law. The arrival of private and partly private competitors placed Onatel under sustained commercial and technological pressure. The company retained a broad service portfolio, including fixed voice, mobile voice, broadband, data connectivity, and internet access, but struggled to maintain investment in network infrastructure and equipment. Its competitive position was further affected by the entry and growth of operators such as Econet Leo, Lumitel, and Smart Burundi. Onatel participated in several national and regional connectivity initiatives. In 2007 it invested in the West Indian Ocean Cable Company and the Regional African Satellite Communication Organization. In 2010 it joined other Burundian telecommunications companies in a consortium that developed the Burundi Backbone System fiber-optic network, contributing capital to the project. In 2011, the company and the government launched broadband wireless services in several population centers. In 2014, Onatel worked with the Burundian government and Huawei on the Bujumbura Metropolitan Area Network, a Chinese-funded project intended to improve metropolitan connectivity. The network faced profitability difficulties in a market where the Burundi Backbone System already provided competing infrastructure. Financial and operational difficulties became increasingly visible after the late 2000s. Public reporting has described obsolete equipment, weak profitability, debt, declining turnover, and difficulty adapting the organization to competition and newer technologies. The government considered privatization or a sale in the late 2000s and early 2010s but did not complete that process. A Huawei-backed loan in 2017 was intended to support an upgrade of the mobile operation, Onamob. By 2020, public reporting indicated that the company served approximately 14,000 fixed-line customers and 250,000 mobile customers, while employee numbers had fallen through retirements, deaths, and resignations. Management and government officials have periodically proposed recovery measures, including recapitalization, new management, network rehabilitation, metropolitan fiber expansion, restoration of the fixed-line network, a mobile money platform, and the sale of obsolete real estate or non-core financial holdings to address salary arrears and debt. As of 2023, Onatel remained one of Burundi’s four principal mobile operators, alongside Econet Leo, Lumitel, and Smart Burundi. Its position is therefore that of a legacy national operator attempting to modernize and remain relevant in a competitive, increasingly mobile and data-oriented market.

Onatel was created by Decree No. 100/146 on 8 November 1979 as Burundi’s national telecommunications organization. It was established as a public industrial and commercial entity with its own legal personality and placed under the supervision of the ministry responsible for communications. Early financing included a US$7.7 million International Development Association loan for start-up buildings, equipment, and vehicles. At the beginning of its existence, Onatel was Burundi’s only telecommunications provider and concentrated on fixed-line telephone services. The company entered mobile communications during the 1990s through a partnership with Télécel Zaire. The venture, Télécel Burundi, used approximately US$1 million in start-up capital to acquire second-hand equipment and provided Burundi’s first mobile service. It did not generate dividends until 2003. That year Onatel ended its relationship with Télécel Zaire and received 460 million Burundian francs in compensation. Télécel Burundi later evolved into the mobile operator Onamob. The government liberalized Burundi’s telecommunications sector through Decree-Law No. 01/011 of 4 September 1997. Onatel was restructured to operate in the new competitive environment, but new private and partly private operators gradually reduced its market share. Between 2003 and 2004, the company attempted to secure financing from South African companies but lost a US$600,000 deposit without receiving the expected loan. Despite these difficulties, Onatel broadened its service portfolio, introducing internet access in 2003, data transmission in 2004, and mobile telephony under its own operation in 2005. During the 2000s, Onatel pursued infrastructure and international connectivity projects. It invested US$550,000 in the West Indian Ocean Cable Company and US$350,151 in the Regional African Satellite Communication Organization in 2007. From February 2009 to May 2013, it purchased satellite internet capacity from MBI and EMC at a reported cost of US$96,000 per month. In 2010, it joined Africell, U-COM Burundi, CBINET, and Econet Wireless in forming a consortium for the Burundi Backbone System fiber-optic network, contributing US$800,000 in 2011. In March 2011, Onatel and the government launched broadband wireless services using sites in Bujumbura and several provincial locations. The government considered selling Onatel in 2009 and commissioned a report on the idea in 2012, but no sale followed. In 2014, the government, Onatel, and Huawei launched the Bujumbura Metropolitan Area Network. The US$9 million project was financed by a Chinese grant and built by Huawei. Its commercial performance was weakened by competition from the Burundi Backbone System. Operational and financial strain became a persistent theme after 2009. Officials cited obsolete equipment and inadequate investment, while reports described falling revenue, debt, and declining customer and employee capacity. In 2015, the communications minister called attention to the company’s deteriorated equipment and argued that recapitalization, new management, revised policies, upgraded services, and new equipment were necessary. In 2017, Onatel took a 30 billion Burundian franc Huawei loan to upgrade Onamob’s mobile network. Publicly reported figures for 2020 put the company at roughly 14,000 fixed-line customers and 250,000 mobile customers. A report that year said Onatel had been losing money since 2009 and that turnover had fallen from 10 billion Burundian francs in 2015 to 5 billion in 2020. Staffing also declined: the workforce reportedly peaked at 702 in 2009, stood at 560 in 2017, fell to 462 in 2020, and reached 390 in 2022. No new employees were reportedly recruited between 2017 and 2022. In 2021, President Evariste Ndayishimiye criticized Onatel staff over the company’s decline, while civil-society representative Gabriel Rufyiri argued that responsibility also lay with the state, the supervising ministry, and government-appointed directors and board members. In January 2022, General Manager Privat Kabeba described a government recovery roadmap involving metropolitan fiber expansion in Bujumbura, Ngozi, and Gitega, eventual expansion to other cities and communes, repairs to the neglected fixed-line network, and a money-transfer platform. Proposed financing measures included selling obsolete property and shares in BANCOBU and Banque Burundaise pour le Commerce et l’Investissement. By 2023, Onatel remained one of Burundi’s four principal mobile operators, competing with Econet Leo, Lumitel, and Smart Burundi.

1. 2022Recovery roadmap proposed

   Management presents plans for fiber expansion, fixed-line rehabilitation, a money-transfer platform, and asset sales to support recovery.

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2. 2017Huawei-backed mobile upgrade financing

   Onatel borrows 30 billion Burundian francs from Huawei for an upgrade of Onamob’s mobile service.

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3. 2014Bujumbura Metropolitan Area Network

   Onatel, Huawei, and the Burundian government launch a Chinese-funded metropolitan network project in Bujumbura.

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4. 2011Broadband wireless launch

   Onatel and the government launch broadband wireless services across Bujumbura and selected provincial centers.

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5. 2010Burundi Backbone System consortium

   Onatel joins other Burundian operators in a consortium to develop the Burundi Backbone System fiber-optic network.

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6. 2005Onatel launches mobile telephony

   Onatel begins providing mobile telephony through its own operation.

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7. 2004Data transmission service begins

   The operator adds data transmission to its service portfolio.

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8. 2003Expansion into internet services

   Onatel begins providing internet access and ends its partnership with Télécel Zaire, receiving compensation.

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9. 1997Telecommunications liberalization

   Decree-Law No. 01/011 liberalizes Burundi’s telecommunications sector and prompts the restructuring of Onatel.

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10. 1990Entry into mobile communications

    During the 1990s, Onatel partners with Télécel Zaire to form Télécel Burundi, introducing mobile service to Burundi.

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11. 1979Onatel is established

    Decree No. 100/146 establishes Onatel as Burundi’s national telecommunications organization and a public industrial and commercial establishment.

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A national, state-owned full-service telecommunications provider and legacy network operator in Burundi.

• Fixed-line telephonyTelecommunications1979

  Onatel’s original service and a continuing part of its portfolio. The fixed-line network historically formed the foundation of Burundi’s state telecommunications system, although public reporting indicates that equipment deteriorated and investment in the network was limited for many years. Recovery plans announced in 2022 included repairing damaged infrastructure and seeking new fixed-line subscribers.

• Onamob mobile serviceMobile telecommunications2005

  Onatel’s mobile business developed after the company’s earlier partnership with Télécel Zaire ended and the resulting operation became Onamob. Onatel began providing mobile telephony directly in 2005. The business has faced competition from several private and state-linked operators, and a Huawei loan in 2017 was intended to finance network modernization.

• Internet and broadbandInternet access2003

  Onatel began internet access services in 2003 and later added broadband wireless, data transmission, satellite connectivity, and fiber-related services. Its broadband activities have included participation in national backbone and metropolitan network projects, although competition and infrastructure constraints have affected commercial performance.

• Business data transmissionEnterprise connectivity2004

  Introduced in 2004, data transmission extends Onatel’s role beyond consumer voice services. The offering is associated with the operator’s broader provision of connectivity for organizations and with its participation in Burundi’s backbone and metropolitan infrastructure initiatives.

• 2022Government recovery roadmapStrategy

  Onatel faced debt, salary arrears, obsolete equipment, and a neglected fixed-line network.

  What changed. Management proposed metropolitan fiber expansion, fixed-line repairs, a money-transfer platform, and sales of obsolete property and certain shareholdings to raise funds.

  Aftermath. The available reference material does not establish whether the full roadmap was implemented.

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• 2017Financing for Onamob modernizationOther

  Onatel needed to upgrade its mobile network while competing with newer operators.

  What changed. The company borrowed 30 billion Burundian francs from Huawei for an Onamob mobile-service upgrade.

  Aftermath. The financing added to a heavily indebted balance sheet while providing a funding source for mobile-network modernization.

  Loan amount. 30 billion BIF (2017)

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• 2014Launch of the Bujumbura Metropolitan Area NetworkStrategy

  The government sought to expand high-capacity metropolitan connectivity with external financing and technical support.

  What changed. Onatel partnered with Huawei and the government on a Chinese-funded metropolitan network project in Bujumbura.

  Aftermath. The project reportedly failed to become profitable because it faced competition from the Burundi Backbone System.

  Project value. US$9 million (2014)

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• 2010Participation in the Burundi Backbone SystemStrategy

  Burundi’s operators needed shared national fiber infrastructure to improve broadband and data connectivity.

  What changed. Onatel joined a consortium with Africell, U-COM Burundi, CBINET, and Econet Wireless to develop the Burundi Backbone System.

  Aftermath. The backbone became a competing infrastructure platform and later affected the profitability of the separate Bujumbura Metropolitan Area Network project.

  Onatel capital contribution. US$800,000 (2011)

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• 1997Restructuring following market liberalizationStrategy

  Burundi opened the telecommunications sector to competition through Decree-Law No. 01/011.

  What changed. The government restructured Onatel so that the state operator could compete with newly established private and partly private providers.

  Aftermath. Onatel retained a broad service portfolio but gradually lost market share and faced persistent pressure to modernize.

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• 2021Public dispute over responsibility for Onatel’s declineControversy

  President Evariste Ndayishimiye criticized Onatel staff for contributing to the company’s collapse. Gabriel Rufyiri of Olucome responded that accountability should also include the state, the supervising ministry, and government-appointed management and board members.

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• 2022Government outlines a roadmap for Onatel recovery

  General Manager Privat Kabeba described proposed metropolitan fiber expansion, fixed-line repairs, a possible money-transfer platform, and asset sales intended to address debt and salary arrears.

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• 2017Huawei loan supports Onamob mobile-network upgrades

  Onatel borrowed 30 billion Burundian francs from Huawei to upgrade its mobile operation, Onamob, amid growing competitive and technological pressure.

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• 2015Onatel faces pressure to modernize and improve performance

  A visit by the minister responsible for communications highlighted deteriorating equipment, insufficient investment, and the need for recapitalization, management changes, improved services, and network renewal.

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1. Onatel Burundi