Safaricom Ethiopia, Ethiopia’s first private telecom operator, received additional backing from the World Bank Group’s private investment arm and guarantee agency.
In September, the International Finance Corporation (IFC) indicated it would contribute up to $160 million in equity. Still, on June 8, the World Bank Group said IFC would spend $157 million and loan $100 million.
Vodafone Group (VOD.L), Vodacom (VODJ.J), Safaricom (SCOM.NR), and British International Investment will get 10-year $1 billion guarantees from the Multilateral Investment Guarantee Agency for their equity investments in Safaricom Ethiopia.
“The investment and guarantees will help Safaricom Ethiopia roll out and operate 4G and 5G mobile networks across the country – including rural and urban areas,” the announcement stated.
After receiving a license in May 2021, Safaricom Ethiopia began its mobile network in October.
In Africa’s second-most populous nation with 120 million people, state-owned Ethio Telecom enjoyed a monopoly.
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