A MULTIMILLION dollar investment by some World Bank members is a major step in reforming the telecommunications sector, accelerating digital transformation and inclusion in Ethiopia.

Safaricom has welcomed the investment by the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA) following the equity investment and guarantee into the mobile network operator.

Peter Ndegwa, Safaricom PLC Chief Executive Officer, said together with the rest of the Global Partnership for Ethiopia members – British International Investment, Sumitomo Corporation, Vodacom and Vodafone – he looked forward to working with the World Bank Group to jointly contribute to the telecommunications reform programme, digital transformation and inclusion objectives.

This would offer Ethiopians world-class mobile connectivity and technology access that will spur economic development in the East African country.

“The equity investment by IFC and the 10-year guarantees of US$1 billion by MIGA is a show of confidence in Ethiopia as a viable growth market as well as in our business,” Ndegwa added.

He was commenting on the investment that was announced on Thursday.

The equity investment, a loan and guarantees to support the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network is anticipated to lead to more affordable
internet, reliable mobile connectivity and technology access for people and businesses.

IFC will make a $157,4 million equity investment in GPE and a $100 million A-loan to its wholly owned subsidiary, Safaricom Ethiopia.
Following the transaction, IFC will hold a minority position in Safaricom Ethiopia.