Addis Abeba — The World Bank Group's International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) have revealed plans to fund the ongoing expansion of Safaricom Ethiopia's telecom network, a landmark development expected to boost the country's digital connectivity landscape.
The initiative aims to establish a greenfield telecommunications network that will provide affordable and reliable internet and mobile services across Ethiopia, according to the IFC's statement.
As part of the funding agreement, the IFC will make an equity investment of $157.4 million and provide a $100 million loan to Safaricom Ethiopia, whereas, MIGA will extend a 10-year guarantee worth $1 billion to Safaricom Ethiopia's shareholders, bolstering the stability of these crucial investments.
The project, in line with the Ethiopian government's Digital Ethiopia 2025 plan, will foster the deployment of 4G and 5G mobile networks across the country, even in rural areas, with an expected outcome of significantly increasing digital access for Ethiopia's population of approximately 120 million and improving financial inclusion upon Safaricom Ethiopia's much anticipated launch of its flagship mobile money service M-PESA, in 2023.
Safaricom Ethiopia is a consortium named the Global Partnership for Ethiopia led by Safaricom Plc, and includes Vodafone Group, Vodacom Group, Sumitomo Corporation and British International Investment.
It was declared as the winner of one the two licenses Ethiopia opted to give to private telecommunication operators, in May 2021 after offering $850 million and promised to invest $8.5 million over 10 years.
