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International Financial Corporation Invests in Safaricom Ethiopia

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The International Finance Cooperation (IFC) and Multilateral Investment Guarantee Agency (MIGA), which are members of the World Bank Group, have announced an investment in Safaricom Ethiopia's greenfield telecommunications network across Ethiopia. The investment includes an equity investment, a loan, and guarantees to support the ongoing construction and operation of the network.

IFC will make a USD 157.4 million equity investment in Global Partnership for Ethiopia BV (GPE) and a USD 100 million A-loan to its subsidiary, Safaricom Telecommunications Ethiopia Private Limited Company (Safaricom Ethiopia). MIGA will provide 10-year guarantees of USD 1 billion to cover the equity investments of Safaricom Ethiopia's shareholders. 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. This partnership between IFC, MIGA, Vodafone, Vodacom, Safaricom, Sumitomo Corporation, and British International Investment in Ethiopia aims to provide more affordable internet, reliable mobile connectivity, and technology access for people and businesses in the country. Mohamed Gouled, IFC Vice President of Industries, said the investment aims to create a competitive market for mobile connectivity, increase competition in the digital sector globally, and reduce costs for consumers. The improved access to high-quality digital services is expected to benefit young people, small businesses, and entrepreneurs.

Safaricom Ethiopia is a subsidiary of Safaricom, a leading mobile telecommunications company in Kenya. Safaricom Ethiopia plans to launch financial services under the brand name M-PESA in 2023, following a license granted by the National Bank of Ethiopia. M-PESA is a mobile money service that allows users to send and receive money, make payments, and access other financial services using their mobile phones.

Source (including image): Fana BC