Standard Bank has partnered with Safaricom Telecommunications to provide funding of $138-million as part of an investment towards Safaricom Telecommunications Ethiopia (STEP).

The bank acted as the sole arranger, lender and facility agent on the term facility to STEP and played an advisory role, with the financing facilitating Safaricom’s ongoing rollout of digital infrastructure and services in Ethiopia.

“We are honoured to have partnered with Safaricom again in enabling and supporting their ongoing vision to drive digital transformation and inclusion in Ethiopia,” said Stanbic Kenya Corporate and Investment Banking telecoms, media and technology executive VP Anthony Ndegwa.

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.

“As a business, we are guided by innovation and strategic partnerships, and 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,” said Safaricom CEO Peter Ndegwa.

“Through this partnership we are given the opportunity to pursue this goal and grow further to digitally enable Africa.”

The telecommunications company acquired a licence to operate in Ethiopia in 2021, and Standard Bank was one of the advisers and financiers who worked with them as they deployed services and built the network in the country.

Safaricom recently announced 10.1-million three-month active customers, after only being in the Ethiopian market for four years.

The government of Ethiopia has also been deliberate in growing their economy through adaptation of regulations which has resulted in a significant growth in the uptake of Internet.

A World Bank report, ‘Empowering Ethiopians by laying the digital foundations for economic growth’, showed that between 2020 and 2024, at least four-million more people gained Internet access, increasing coverage from 15% to 19% of the population.

“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 enable individuals, communities and businesses to access affordable financial products and services that meet their needs,” said Standard Bank Ethiopia head Taitu Wondwosen.