Standard Bank backs Safaricom's expansion in Ethiopia
Standard Bank has partnered with telecoms group Safaricom to provide funding of $138 million.
By Standard Bank
Standard Bank has partnered with Kenyan telecoms group Safaricom to provide funding of $138 million as part of an investment in Safaricom Telecommunications Ethiopia.
The bank acted as sole arranger, lender and facility agent on the term facility, as well as playing an advisory role.
“We are honoured to have partnered with Safaricom again in enabling and supporting their on-going vision to driving digital transformation and inclusion in Ethiopia,” says Anthony Ndegwa, executive vice president for telecoms, media and technology at Stanbic Kenya’s Corporate and Investment Banking.
“As a business, we are 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,” says Peter Ndegwa, Safaricom chief executive officer.
“Through this partnership we are given the opportunity to pursue this goal and grow further to digitally enable Africa,” adds Ndegwa.
The telecoms company acquired a licence to operate in Ethiopia in 2021, and Standard Bank acted as one of the advisors and financiers supporting the network build and service deployment.
Safaricom recently announced 10.1 million three-month active customers, after only being in the Ethiopian market for four years.
“As a bank we are dedicated in partnering with relevant parties to drive infrastructure development that will help accelerate the growth of the continent’s economy. Digital and financial inclusion in the African market has been one of the key objectives to break barriers and enabling individuals, communities and businesses to access affordable financial products and services that meet their needs,” says Taitu Wondwosen, head of Standard Bank in Ethiopia.
Interesting deployment pattern for digital banking in frontier markets. The $138M facility structure here is telling, especially using Standard Bank as sole arranger rather than syndication. It suggests they're treating this as infrastructure-grade credit based on Safaricom's track record. The 10.1M active users in four years validates the M-Pesa playbook, but the real test is monetization per user compared to Kenya benchmarks.