The International Finance Corporation (IFC) plans to inject up to $ 160 million in equity into telecoms firm Safaricom Ethiopia.
The World Bank’s private sector lending said in a disclosure that the funds will support Safaricom Telecommunications Ethiopia private limited company (STE) which targets to build, own and operate a nationwide public telecommunication network in the country.
“IFC intends to provide a loan of up to USD 100 million to fund the operating company’s investment programme,” IFC said.
“The project aims to support the transformation of a series of SDG verticals via the provision of advanced telecom services dedicated to such verticals, including education, agriculture, medical, manufacturing, and tourism.”
“The Project aligns with the government’s plan to digitise the Ethiopian economy and shift from a state-oriented development model to more liberalised models, including within the telecommunication sector” the lender also stated.
Safaricom Ethiopia, partly owned by Kenyan telecoms operator Safaricom, commenced phased operations in August in the country’s Dire Dawa city and Haramaya.
Safaricom is the major shareholder of the subsidiary whose other owners are Vodacom Group, Sumitomo Corporation, and CDC Group. The partners paid $850 million for the licence fee.
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