Safaricom has secured a $138 million (Sh17.8 billion) loan from Standard Bank to accelerate the growth of its operations in Ethiopia.
The funds will be directed towards enhancing digital infrastructure and expanding the company’s range of services in the East African nation. Standard Bank, Africa’s largest bank by assets, operating locally as Stanbic, served as the sole arranger and lender for the financing.
“The two businesses worked side by side in the development of the financial solutions that were bespoke to the business while responsive to the market’s needs,” the bank said in a statement.
Safaricom first entered Ethiopia in 2022, with Standard Bank acting as both advisor and financier. Since then, the telecom firm has invested $2.27 billion (Sh292.77 billion) in telecom and digital financial infrastructure across the country.
Anthony Ndegwa, Executive Vice President for Telecoms, Media and Technology at Stanbic Kenya’s Corporate and Investment Banking, said: “We are honoured to have partnered with Safaricom again in enabling and supporting their ongoing vision to drive digital transformation and inclusion in Ethiopia.”
Safaricom CEO Peter Ndegwa emphasized the company’s long-term goals, stating: “We are guided by innovation and strategic partnerships as 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 added, “Through this partnership, we are given the opportunity to pursue this goal and grow further to digitally enable Africa.”
Currently, Safaricom serves over 10 million active customers in Ethiopia, Africa’s second-most populous nation. Its 4G network now covers more than half of the country’s 136 million people, with 3,141 active sites across over 150 towns and cities.
Last week, Safaricom launched a network-agnostic M-Pesa mobile app called Lehulum, allowing users from any network operator to access mobile money services. The app enables sending and receiving money, making payments, and using other digital financial tools.
However, the service is not yet available to customers of the state-owned Ethio Telecom, which has 83.2 million subscribers. Safaricom noted on December 5: “M-Pesa Lehulum is currently not accessible on smartphones using mobile data services managed by Ethio Telecom, leaving our customers unable to log in, transact, or retrieve their funds.”
In the six months ending September, Safaricom posted a smaller loss in Ethiopia, which contributed to a 52.1 percent increase in its overall profit to Sh42.7 billion ($330 million).
