Standard Bank, which trades as Stanbic in Kenya and is Africa’s largest bank by assets, has provided a USD 138 million facility to support the growth of Safaricom Telecommunications Ethiopia PLC. The financing, equivalent to approximately KES 17.94 billion, is expected to accelerate the ongoing rollout of digital infrastructure and telecommunications services in Ethiopia, where Safaricom is pursuing one of the biggest regional expansions by a Kenyan corporate in recent years.
The bank acted as the sole arranger, lender and facility agent for the term facility issued to Safaricom Ethiopia, and also provided advisory support during the structuring of the transaction. This latest financing underscores the bank’s growing involvement in regional digital investments and builds on its long-standing relationship with Safaricom.
Strengthening Regional Digital Connectivity
Dr Joshua Oigara, Standard Bank Group’s Regional Chief Executive for East Africa, said the partnership demonstrates the bank’s commitment to enabling sustainable economic growth across the region. He noted that expanding digital infrastructure is central to stimulating new business opportunities and boosting regional competitiveness.
“This partnership reflects our commitment to enabling sustainable growth across the region. By supporting the expansion of digital connectivity in Ethiopia, we are strengthening economic linkages, opening new opportunities for businesses and communities, and contributing to the advancement of East Africa’s digital economy,” Oigara said.
Safaricom’s entry into Ethiopia in 2021 marked a historic moment for the East African telecommunications industry, ending a long-standing monopoly and positioning Kenya’s largest mobile operator as a major player in one of Africa’s largest markets. The company has since laid thousands of kilometres of fibre, rolled out mobile money services and expanded its network across key Ethiopian cities.
Bespoke Financing to Support Expansion
Stanbic executives say the latest financing was tailored to the Ethiopian market and designed to support Safaricom’s long-term business objectives in the country. The bank’s Corporate and Investment Banking division played a central role in developing the structure.
Anthony Ndegwa, Executive Vice President for Telecoms, Media and Technology at Stanbic Kenya’s Corporate and Investment Banking division, said the partnership reflects the bank’s long-term commitment to Safaricom’s regional ambitions.
“We are honoured to have partnered with Safaricom again in enabling and supporting their ongoing vision to drive digital transformation and inclusion in Ethiopia,” Ndegwa said.
He noted that the teams from both institutions worked closely to design financial solutions suited to the regulatory environment, investment needs and market conditions in Ethiopia.
Safaricom Targeting Scaled Digital Inclusion by 2030
Safaricom CEO Peter Ndegwa said the partnership reinforces the company’s strategy of using innovation and collaboration to deliver large-scale digital transformation in Ethiopia. He emphasised that expanding connectivity is central to unlocking economic participation and creating opportunities for youth, entrepreneurs and underserved populations.
“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,” Ndegwa said.
Through the new financing, Safaricom expects to accelerate the deployment of its network and expand mobile and data services, particularly in regions with limited connectivity.
“Through this partnership we are given the opportunity to pursue this goal and grow further to digitally enable Africa,” he added.
Ethiopia’s Digital Economy Taking Shape
Ethiopia remains one of Africa’s most promising telecommunications markets, with a population of more than 120 million people and a rapidly increasing demand for mobile and internet services. Since acquiring its licence in 2021, Safaricom has grown its market footprint quickly, backed by multiple rounds of financing, advisory and capacity-building support from regional and international partners.
The Ethiopian government has also been actively reforming the sector to encourage competition, improve service levels and expand digital access. Regulations enabling private sector participation, infrastructure investment and mobile money adoption have all contributed to rising internet penetration.
According to the World Bank report, Empowering Ethiopians by Laying the Digital Foundations for Economic Growth, at least four million Ethiopians gained internet access between 2020 and 2024, raising coverage from 15 to 19 percent of the population. The report notes that each of these new mobile subscribers has broadband access, although not all are active data users.
Safaricom Ethiopia recently announced that it had reached 10.1 million three-month active customers, a milestone achieved within four years of entering the market. Industry analysts say the company’s growth underscores the significant demand for digital services and reflects the potential for sustained expansion as infrastructure deepens.
Standard Bank Deepens Regional Infrastructure Financing
Standard Bank has been a key financier of Safaricom’s Ethiopian operations since the early stages of market entry. The bank supported the telco during the licensing process and has played a role in previous funding rounds aimed at building network capacity, developing distribution channels and establishing mobile money systems.
Taitu Wondwosen, Head of Standard Bank in Ethiopia, said the institution is committed to working with regional players to drive infrastructure development that supports economic transformation.
“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,” Wondwosen said.
Oigara added that the deal reaffirms Standard Bank’s broader mission of supporting long-term investment across the region. “This partnership demonstrates the power of regional collaboration in unlocking long-term value. Standard Bank remains committed to enabling growth across the region through sustainable investment.”
With the new facility in place, Safaricom Ethiopia is expected to accelerate expansion over the next two years, deepen its customer reach and strengthen competition in the Ethiopian telecoms sector. Analysts anticipate increased investment in fibre networks, mobile money platforms, data centres and digital service offerings as the telco works to consolidate its position in a high-potential market.
