from ADANE BIKILA in Addis Ababa, Ethiopia Ethiopia Bureau ADDIS ABABA, (CAJ News) A MULTIMILLION dollar investment by some World Bank members is a major step in reforming the telecommunications sector, accelerating digital transformation and inclusion in Ethiopia.Safaricom has welcomed the investment by the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) following the equity investment and guarantee into the mobile network operator.

Peter Ndegwa, Safaricom PLC Chief Executive Officer, said together with the rest of the Global Partnership for Ethiopia members British International Investment, Sumitomo Corporation, Vodacom and Vodafone he looked forward to working with the World Bank Group to jointly contribute to the telecommunications reform programme, digital transformation and inclusion objectives.This would offer Ethiopians world class mobile connectivity and technology access that will spur economic development in the East African country.

“The equity investment by IFC and the 10-year guarantees of US$1 billion by MIGA is a show of confidence in Ethiopia as a viable growth market as well as in our business,” Ndegwa added.He was commenting on the investment that was announced on Thursday.

The equity investment, a loan and guarantees to support the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network is anticipated to lead to more affordable internet, reliable mobile connectivity and technology access for people and businesses.IFC will make a $157,4 million equity investment in GPE and a $100 million A-loan to its wholly owned subsidiary, Safaricom Ethiopia.

Following the transaction, IFC will hold a minority position in Safaricom Ethiopia.MIGA will provide ten-year guarantees of $1 billion to cover the equity investments of Safaricom Ethiopia’s shareholders: Vodafone Group, Vodacom, Safaricom, and British International Investment.

portion of the MIGA guarantees, $76 million, will come from the MIGA Guarantee Facility, part of the International Development Association’s Private Sector Window, in the form of a first loss layer.The investment and guarantees will help Safaricom Ethiopia roll out and operate 4G and 5G mobile networks across the country including in rural and urban areas.

Furthermore, under a license granted in May 2023 by the Central Bank of Ethiopia, Safaricom Ethiopia also plans to launch financial services in 2023, under the brand name M-PESA.Ethiopia is Africa’s second most populous country (behind Nigeria), with a population of approximately 120 million.

CAJ News

Source: CAJ News Agency