Standard Bank backs Safaricom Ethiopia unit with $138m funding facility

Standard Bank has provided $138 million (R3.1 billion) in funding to Safaricom Telecommunications as part of the Kenyan group’s ongoing investment in its Ethiopian unit.

The lender said it acted as sole arranger, lender and facility agent on the term facility for Safaricom Telecommunications Ethiopia PLC (STEP), while also playing an advisory role on the transaction.

The funding will support Safaricom’s continued rollout of digital infrastructure and services in Ethiopia.

Standard Bank, Africa’s biggest bank by assets, has worked with Safaricom since it acquired a licence to operate in Ethiopia in 2021, advising and financing the telecoms group as it built its network and launched services in the country.

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Anthony Ndegwa, executive vice president for Telecoms, Media & Technology at Stanbic Kenya’s Corporate and Investment Banking business, notes that the lender and Safaricom worked closely in structuring financial solutions tailored to Safaricom’s operations and market conditions.

Broader ambitions

Safaricom Plc CEO Peter Ndegwa said the partnership supports the group’s broader ambitions in the Ethiopian market.

“As a business, we are guided by innovation and strategic partnerships we aim to transform lives at scale – empowering communities to fully participate in Ethiopia’s digital economy.

“Through this partnership we are given the opportunity to pursue this goal and grow further to digitally enable Africa,” Ndegwa added.

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The government of Ethiopia has also been deliberate in growing their economy through the adaptation of regulations which has resulted in a significant growth in the uptake of internet, Standard Bank notes.

According to a World Bank report, at least four million more people gained internet access between 2020 and 2024, which increased coverage from 15% to 19% of the population.

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Safaricom recently reported 10.1 million three-month active customers in Ethiopia, four years after entering the market.

Taitu Wondwosen, head of Standard Bank in Ethiopia, says the bank views infrastructure funding as central to economic growth.

“Digital and financial inclusion in the African market has been one of the key objectives to break barriers and enable individuals, communities, and businesses to access affordable financial products and services that meet their needs,” she adds.

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