Standard Bank has partnered with Safaricom to offer $138 million in funding to expedite the ongoing rollout of digital infrastructure and services in Ethiopia.
In a statement, the financial institution noted that it served as the sole arranger, lender, and facility agent on the telco's term facility while also providing advisory services.
It further stated that the two parties collaborated on the development of financial solutions that were tailored to the business while remaining responsive to market demands.
The decision comes as the government in the East African country has also been methodical in boosting the economy through adaption of legislation, which has resulted in a significant increase in the use of the internet.
In a statement, Standard Bank noted that it served as the sole arranger, lender, and facility agent on the telco's term facility while also providing advisory services.
It further stated that the two parties collaborated on the development of financial solutions that were tailored to the business while remaining responsive to market demands.
The decision comes as the government in the East African country has also been methodical in boosting the economy through adaption of legislation, which has resulted in a significant increase in the use of the internet.
According to the World Bank report, Empowering Ethiopians by Laying the Digital Foundations for Economic Growth: 2020-2024, at least 4 million additional people gained internet access, increasing coverage from 15% to 19% of the population.
Despite the fact that all new mobile users have access to broadband internet, not all use data, the 4 million figure is a conservative estimate of new internet users.
In July, Safaricom achieved a key milestone by reaching over 10 million active users in just four years after obtaining an operating licence in the Horn of Africa country.
“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,” commented Peter Ndegwa, Safaricom Group CEO.
He added: “Through this partnership we are given the opportunity to pursue this goal and grow further to digitally enable Africa.”
Anthony Ndegwa, executive vice president for Telecoms, Media and Technology at Stanbic Kenya’s Corporate and Investment Banking believes the alliance enables and supports Ethiopia’s vision to driving digital transformation and inclusion.
“ 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,” said Taitu Wondwosen, head of Standard Bank in Ethiopia.
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