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Standard Bank has provided $138 million (R3.1 billion) in funding to Safaricom Telecommunications as part of the Kenyan group\u2019s ongoing investment in its Ethiopian unit.<\/p>\n
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.<\/p>\n
\nThe funding will support Safaricom\u2019s continued rollout of digital infrastructure and services in Ethiopia.<\/p>\n<\/blockquote>\n
Standard Bank, Africa\u2019s 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.<\/p>\n
Read:\u00a0Standard Bank\u2019s 10-month performance holds firm
Standard Bank backs Midvaal Hospital\u2019s R34m energy upgrade<\/p>\nAnthony Ndegwa, executive vice president for Telecoms, Media & Technology at Stanbic Kenya\u2019s Corporate and Investment Banking business, notes that the lender and Safaricom worked closely in structuring financial solutions tailored to Safaricom\u2019s operations and market conditions.<\/p>\n
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Broader ambitions<\/strong><\/p>\n
Safaricom Plc CEO Peter Ndegwa said the partnership supports the group\u2019s broader ambitions in the Ethiopian market.<\/p>\n
\n\u201cAs a business, we are guided by innovation and strategic partnerships we aim to transform lives at scale \u2013 empowering communities to fully participate in Ethiopia\u2019s digital economy.<\/p>\n<\/blockquote>\n
\u201cThrough this partnership we are given the opportunity to pursue this goal and grow further to digitally enable Africa,\u201d Ndegwa added.<\/p>\n
Read:
The forces shaping Africa\u2019s near future
African countries need strong development banks<\/p>\nThe 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.<\/p>\n
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.<\/p>\n
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Read: Africa must use more of its own resources for growth \u2013 Standard Bank chief<\/p>\n
Safaricom recently reported 10.1 million three-month active customers in Ethiopia, four years after entering the market.<\/p>\n
Taitu Wondwosen, head of Standard Bank in Ethiopia, says the bank views infrastructure funding as central to economic growth.<\/p>\n
\u201cDigital 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,\u201d she adds.<\/p>\n
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