The IFC’s investment commitment includes a substantial equity investment of $157.4 million, in addition to a $100 million loan and guarantees. These resources will be channeled towards the ongoing construction and operation of Safaricom Ethiopia’s pioneering telecoms network, designed to catalyze digital connectivity across the nation. Notably, MIGA will contribute ten-year guarantees of $1 billion to secure the equity investments of Safaricom Ethiopia’s shareholders.
Safaricom Ethiopia’s chairman, Michael Joseph, expressed the company’s excitement at the IFC partnership and its potential to drive progress. “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,” said Mohamed Gouled, vice president of industries at IFC.
As the transaction concludes, the IFC will hold a minority equity stake in the consortium, while Safaricom PLC will remain the majority shareholder. The consortium boasts distinguished members including Vodafone, Vodacom, Sumitomo Corporation, and British International Investment (BII). This consortium, formed to secure Ethiopia’s telecoms license, has been instrumental in the nation’s strategy to liberalize its telecommunications sector.
The significant investments and strategic partnerships underscore Safaricom Ethiopia’s commitment to its ambitious vision of extending affordable Internet access and dependable connectivity across Ethiopia. The company’s journey has been lauded for its transformative potential, bringing together innovation, competition, and accessibility in the country’s telecom landscape.
August 8, 2023
Delino Gayweh
Serrari Financial Analyst
photo source Google
