Safaricom Ethiopia has secured a major boost from the World Bank Group to expand its network and services. The company announced that it has received equity investment, loan and guarantees from the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), two of the World Bank Group’s institutions that support private sector development in emerging markets.
The funding ceremony was held at Safaricom Ethiopia’s headquarters in Addis Ababa, Ethiopia, where the company’s Chairman, Mr. Michael Joseph, and Vice President of Industries at IFC, Mr. Mohamed Gouled, signed the agreement. The deal marks the closure of the transaction that was initiated in May 2020, when the Ethiopian Communications Authority (ECA) awarded Safaricom Ethiopia the country’s first full-service telecom license.
Safaricom Ethiopia is part of the Global Partnership for Ethiopia BV (GPE), a consortium of international telecom companies that includes Vodafone, Vodacom, Sumitomo Corporation, and British International Investment (BII). Safaricom PLC, Kenya’s leading mobile operator, is the majority shareholder of GPE and Safaricom Ethiopia.
The company launched its mobile services in October 2022, offering 2G, 3G and 4G connectivity to customers to 25 cities, meeting the 25% population coverage obligation in its license. Safaricom Ethiopia is also building its own mobile network infrastructure, while having infrastructure sharing and interconnection agreements with Ethio Telecom, the state-owned telecom provider.
The investment from IFC and MIGA will support Safaricom Ethiopia’s ongoing construction and operation of its greenfield telecommunications network, which aims to drive digital connectivity and inclusion across Ethiopia. The company will also use the funds to expands its recently launched mobile money service, M-PESA, which is expected to have a profound impact on improving financial inclusion and access to digital services for millions of Ethiopians.
Mr. Mohamed Gouled, Vice President of Industries at IFC, said: “The progress Safaricom Ethiopia has achieved in such a short period is nothing short of remarkable. With the highly anticipated launch of M-PESA, we are excited to witness the profound impact it will have not only on the telecommunications landscape but also on improving financial inclusion for all people across Ethiopia.”
Mr. Michael Joseph, Safaricom Ethiopia Chairman, said: “With IFC coming on board as an equity partner, their experience in global operations and the stature of their investment brings a lot of praise and respect to the board. We look forward to their input in helping us make strides in the Ethiopian market.”
Safaricom Ethiopia’s vision is to transform lives through a digital future for all Ethiopians. The company aims to leverage its expertise and innovation to offer affordable and reliable telecom services that meet the needs and aspirations of its customers. By opening up the telecom market to private sector competition and foreign investment, Safaricom Ethiopia hopes to contribute to Ethiopia’s digital transformation and economic development.
Read: Risks of Blood Clots: Here are a few things to keep in mind before going into surgery