Original Story Published by: Staff writer, www.vodafone.com
Photo Source: Courtesy of vodafone.com
Safaricom Ethiopia has received a major boost with news that the World Bank Group, one of the world’s major development finance institutions,will invest in the business.
Safaricom launched mobile services in Ethiopia at the end of last year as part of the government’s strategy to open up the telecommunications sector and increase digitalisation.
As Africa’s second most populous country, with a young population of around 120 million, Ethiopia has huge social and economic potential which the government hopes will be unlocked by its digital strategy.
The World Bank Group has agreed to make one of its largest ever investments into Africa to provide equity, debt and insurance facilities to support the construction and operation of Safaricom Ethiopia’s 4G and 5G mobile networks.
Safaricom Ethiopia intends to bring consumer and business customers in all regions of Ethiopia more affordable internet and reliable connectivity, as well as other digital services.
The International Finance Corporation (IFC), the private sector arm of the World Bank Group whose mission it is to reduce global poverty, will make a $157.4 million equity investment into Safaricom Ethiopia’s parent company, the Global Partnership for Ethiopia – an international consortium comprising of Vodafone Group, Safaricom Plc, Vodacom Group, Sumitomo Corporation and British International Investment.
In addition, IFC will make a $100 million A-loan to Safaricom Ethiopia as a first tranche of debt facilities.
The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group that provides political risk insurance for projects such as this one, will provide a 10-year insurance guarantee of $1.1 billion.
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