In a bold move set to turbocharge East Africa’s fast-rising digital economy, Standard Bank—trading as Stanbic in Kenya—has inked a USD 138 million (KES 17.94 billion) financing deal with Safaricom Telecommunications to accelerate the rollout of mobile and broadband infrastructure in Ethiopia.
The facility, arranged solely by Standard Bank, will support Safaricom Telecommunications Ethiopia PLC (STEP), the operator’s Ethiopian subsidiary, as it deepens network penetration in one of Africa’s last untapped telecom frontiers.
As the sole arranger, lender, and facility agent, Standard Bank structured a bespoke financial solution that aligns with Ethiopia’s dynamic regulatory environment and Safaricom’s aggressive expansion strategy.
“This partnership reflects our commitment to enabling sustainable growth across the region,” said Dr. Joshua Oigara, Regional Chief Executive for East Africa at Standard Bank Group. “By supporting the expansion of digital connectivity in Ethiopia, we are strengthening economic linkages and contributing to East Africa’s digital future.”
Safaricom, which secured its Ethiopian operating licence in 2021, has grown at a pace rarely seen in global telecom markets. The company recently reported 10.1 million active customers within just four years, cementing its position as Ethiopia’s second major mobile operator.
“As a business, we are guided by innovation and strategic partnerships,” said Safaricom CEO Peter Ndegwa. “This financing enables us to transform lives at scale—empowering youth, entrepreneurs and underserved communities to participate fully in Ethiopia’s digital economy.”
Ndegwa added that the partnership gives Safaricom the platform to “grow further to digitally enable Africa.”
Stanbic Kenya’s Corporate & Investment Banking division played a critical advisory role, working closely with Safaricom to shape financing suited for the Ethiopian market’s evolving needs.
“We are honoured to have partnered with Safaricom again in enabling their vision for digital transformation and inclusion,” said Anthony Ndegwa, Stanbic Kenya’s Executive Vice President for Telecoms, Media and Technology.
Ethiopia’s Rapid Digital Shift Creates Massive Opportunity
Ethiopia has been accelerating digital reforms, from data protection laws to digital ID systems, in a bid to modernize its economy.
According to the World Bank’s Empowering Ethiopians by Laying the Digital Foundations for Economic Growth (2020–2024) report, at least 4 million new internet users came online, pushing national internet penetration from 15% to 19%.
With a population of more than 120 million, the potential for mobile money adoption, digital commerce, and broadband connectivity remains enormous.
Standard Bank says the deal is a reflection of its pan-African commitment to infrastructure-led growth.
“As a bank we are dedicated to partnering with relevant parties to accelerate the continent’s economic growth,” said Taitu Wondwosen, Head of Standard Bank in Ethiopia. “Digital and financial inclusion remain key pillars toward unlocking prosperity.”
Dr. Oigara echoed the sentiment: “This partnership demonstrates the power of regional collaboration in unlocking long-term value.”
Faster network rollout across Ethiopia’s cities and rural areas
New opportunities for SMEs, digital entrepreneurs, and fintech innovators
More affordable and accessible internet for millions
Strengthened economic ties between Kenya and Ethiopia
Acceleration of Africa’s digital transformation agenda
With one of the continent’s largest banks backing East Africa’s biggest telecoms brand, the region edges closer to realizing its dream of a fully interconnected digital economy.
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