advertisement
IFC Invests $257.4 Million In Safaricom Ethiopia
World Bank’s private lending arm, the International Finance Corporation (IFC), has invested $257.4 million in Safaricom Telecommunications Ethiopia PLC. This investment is set to position the company for accelerated growth and driving the digital transformation agenda in the country.
This investment represents a significant step towards expanding access to quality telecommunications services and fosters development in Ethiopia. Safaricom Ethiopia, a subsidiary of Kenya’s leading telecommunications provider Safaricom PLC, secured the investment to support its operations and facilitate the rollout of critical infrastructure, technology etc.
This move will see IFC become a minority shareholder in Safaricom Ethiopia. At the same time, the Multilateral Investment Guarantee Agency (MIGA), a political risk insurer and a member of the World Bank Group, has also announced that it will provide 10-year guarantees of $1 billion to cover the equity investments of Safaricom Ethiopia’s shareholders: Vodafone Group, Vodacom, Safaricom, and British International Investment.
advertisement
A portion of the MIGA guarantees, $76 million, will come from the MIGA Guarantee Facility, part of the International Development Association’s Private Sector Window, in the form of a first loss layer. In a statement, the two World Bank organisations said the equity investment, loan and guarantees will support the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network 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,” said Mohamed Gouled, IFC Vice President of Industries.
Ethiopia, with a population exceeding 115 million, represents a vast and untapped market for telecommunications services.
advertisement
Safaricom Ethiopia aims to replicate its success in Kenya, where it has played a pivotal role in driving financial inclusion, digital payments, and internet connectivity.
The company’s strategic expansion into Ethiopia aligns with its vision to connect people, transform lives, and enable socio-economic progress through cutting-edge telecommunications solutions.