Safaricom secures Sh17.8 billion boost for Ethiopia expansion
Standard Bank, which trades as Stanbic in Kenya, acted as the sole arranger, lender and facility agent for the deal, while also providing advisory support.
Safaricom’s push to cement its presence in the Ethiopian telecommunications market has received a substantial boost after a $138 million (Sh17.8 billion) financing facility to support the telco’s expansion.
The funding, by Standard Bank, will be channelled into the ongoing rollout of digital infrastructure and services by Safaricom Telecommunications Ethiopia PLC (STEP), marking one of the largest capital injections into the firm’s regional growth strategy.
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Standard Bank, which trades as Stanbic in Kenya, acted as the sole arranger, lender and facility agent for the deal, while also providing advisory support.
Commenting on the deal, the lender said the facility underscores its intention to accelerate digital transformation and enable broader access to mobile connectivity in Africa’s second-most populous nation.
Joshua Oigara, Regional Chief Executive for East Africa, Standard Bank Group, said the partnership reflects their commitment to enabling sustainable growth across the region.
“By supporting the expansion of digital connectivity in Ethiopia, we are strengthening economic linkages, opening new opportunities for businesses and communities, and contributing to the advancement of East Africa’s digital economy,” Oigara said.
Stanbic Kenya executives noted that the collaboration builds on a longstanding relationship with Safaricom, which has increasingly relied on strategic partnerships to anchor its regional investments.
The partnership comes at a critical time for Safaricom, which has been rapidly scaling operations since securing its Ethiopian license in 2021.
The two businesses collaborated on bespoke financial solutions to support network deployment, customer acquisition and service expansion in a market where internet penetration, though rising, still lags regional averages.
Peter Ndegwa, Safaricom PLC Chief Executive Officer, said as a business, the firm is guided by innovation and strategic partnerships.
“We aim to transform lives at scale, empowering youth, entrepreneurs, and underserved communities to fully participate in Ethiopia’s digital economy and realise the promise of shared prosperity by 2030,” he said.
He added that the new capital infusion strengthens Safaricom’s ambition to play a defining role in Africa’s digital evolution.
“Through this partnership, we are allowed to pursue this goal and grow further to digitally enable Africa.
Safaricom recently reported having 10.1 million three-month active customers in Ethiopia, a milestone achieved just four years after entering the market, highlighting the country’s strong appetite for mobile services.
Ethiopia’s government has also prioritised digital uptake as part of its economic reform agenda, adjusting regulatory frameworks to allow greater private-sector participation.
A World Bank report, titled ‘Empowering Ethiopians by Laying the Digital Foundations for Economic Growth', shows that at least four million additional Ethiopians gained internet access between 2020 and 2024, raising coverage from 15 to 19 per cent of the population.
However, the lender notes that the actual number could be higher since not all new mobile users consume data.
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