The World Bank Group will provide $257.4 million (KSh36.8 billion) to Safaricom Ethiopia to support its greenfield telecommunications initiatives.
Mobile connectivity in Ethiopia will improve as a result of this development.
The International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), the private investment arms of the World Bank Group, will provide the capital in the form of equity investments, loans, and guarantees.
In order to assist the greenfield projects, the finance arrangement calls for the IFC to lend the consortium $100 million (Sh14.3 billion) and invest $157.4 million (KSh22.5 billion) in Global Partnership for Ethiopia BV (GPE).
As a result, IFC will hold only a small ownership interest in Global Partnership for Ethiopia BV (GPE), with Safaricom PLC holding the majority.
To put things in perspective, the partnership, also known as the Global Partnership for Ethiopia BV (GPE), consists of British International Investment (BII), Vodafone, Vodacom, and Sumitomo Corporation.
“With IFC coming on board as an equity partner, their experience in global operations and the stature of their investment brings a lot of praise and respect to the board. We look forward to their input in helping us make strides in the Ethiopian market,” Safaricom Ethiopia Chairman, Michael Joseph, said.
In addition, MIGA would provide 10-year guarantees totaling $1 billion (KSh143.1 billion) to cover the equity investments made by the shareholders of Safaricom Ethiopia.
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