Standard Bank and Safaricom Telecommunications Announce USD 138 Million Partnership to Expand Network Access

Standard Bank’s financing facilitates 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 on-going vision to driving digital transformation and inclusion in Ethiopia” says Anthony Ndegwa, Executive Vice President for Telecoms, Media & Technology at Stanbic Kenya’s Corporate and Investment Banking. 

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 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,” says Peter Ndegwa, Safaricom Plc Chief Executive Officer. 

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

The telecommunication company acquired licence to operate in Ethiopia in 2021, and Standard Bank was one of the advisors and financiers who worked with them as they deployed services and built the network in the country. 
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. According to the World Bank report,

Empowering Ethiopians by Laying the Digital Foundations for Economic Growth, between 2020 and 2024, at least 4 million more people gained internet access, increasing coverage from 15 to 19 percent of the population. Although each of the new mobile users has access to broadband internet, not all use data, so 4 million is a minimum estimate for new internet users.

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

“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 enabling individuals, communities and businesses to access affordable financial products and services that meet their needs,” says Taitu Wondwosen, Head of Standard Bank in Ethiopia.