07 July 2023

Safaricom has welcomed another investor to its consortium in Ethiopia, with the International Finance Corporation (IFC) joining as a minority shareholder through a $157.4 million equity investment in The Global Partnership for Ethiopia and a $100 million loan to its wholly owned subsidiary, Safaricom Telecommunications Ethiopia.

The Global Partnership for Ethiopia is a consortium comprising of Vodacom Group, Vodafone Group, Safaricom, Sumitomo Corporation, and British International Investment (BII). The consortium was created to bid for a telecoms license to operate in Ethiopia, and it was awarded that license in May 2021 as part of the Horn of Africa nation’s strategy to liberalise its telecoms sector.

Safaricom Ethiopia began rolling out its network in August 2022 in Dire Dawa. In October 2022, it officially launched its national network in the nation’s capital, Addis Ababa, and ten other cities.

Telecoms market liberalisation is a key part of the Ethiopian government’s Digital Ethiopia 2025 plan to help the country realise its digital potential, leverage technology to build a more prosperous society and help meet the country’s United Nations Sustainable Development Goal commitments.

Now the consortium adds World Bank Group members IFC and MIGA (Multilateral Investment Guarantee Agency) to support the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network across Ethiopia. MIGA will provide ten-year guarantees of $1 billion to cover the equity investments of Safaricom Ethiopia’s shareholders.

Safaricom Ethiopia CEO Anwar Soussa said the additional investment from the IFC will strengthen its ability to roll out modern, high-speed Internet services across Ethiopia.

“Through this investment, we hope to help the company create a competitive market for mobile connectivity, reflecting our strategy to increase competition in the digital sector globally, and reduce costs for consumers. Young people, small businesses, and entrepreneurs will particularly benefit from improved access to high quality digital services such as mobile financial services,” said Mohamed Gouled, IFC vice president of industries. “The Ethiopian telecommunications market – as well as the country’s economy and society – will benefit substantially from equitable, high quality internet access and improved financial inclusion, advancing the country on a path to a more prosperous future.”