Standard Bank has partnered with Kenya’s largest telecommunications provider, Safaricom, in a $138m transaction geared to assist the latter’s plans to drive the rollout of digital infrastructure and services in one of East Africa’s fastest-growing economies, Ethiopia. The lender, Africa’s largest bank by assets, acted as the sole arranger, lender and facility agent on the term facility to Safaricom. “We are honoured to have partnered with Safaricom again in enabling and supporting their ongoing vision to drive digital transformation and inclusion in Ethiopia,” said Anthony Ndegwa, an executive at Stanbic Kenya’s corporate and investment banking business.
Safaricom — in which Vodacom holds a significant stake, which it is looking to grow — acquired a licence to operate in Ethiopia in 2021, as the country moved to liberalise its telecom market. The expansion followed years of success in its home market of Kenya, success that attracted Vodacom to invest billions of rand in the group. Peter Ndegwa, CEO of Safaricom, said Standard Bank and the group worked side by side in the development of financial solutions that are bespoke to the business while responsive to the market’s needs.
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 this partnership we are given the opportunity to pursue this goal and grow further to digitally enable Africa.” The deal cements Standard Bank’s reputation as the go-to lender for facilitating big-ticket items in Africa through its corporate and investment banking division, which accounts for nearly half of the group’s earnings. Safaricom recently announced 10.1-million three-month active customers after being in the Ethiopian market for only four years, with the group seeing further growth in Africa’s second most populous country.
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“As a bank we are dedicated to partnering with relevant parties to drive infrastructure development that will help accelerate the growth of the continent’s economy,” said Taitu Wondwosen, head of Standard Bank in Ethiopia. “Digital and financial inclusion in the African market has been one of the key objectives to break barriers and enable individuals, communities and businesses to access affordable financial products and services that meet their needs.” The success of Safaricom saw Vodacom last week splash R36bn to acquire a further 20% in the Kenyan major, a deal if successfully concluded will see the South African giant take a controlling stake in Safaricom.
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