Standard Bank backs Safaricom Ethiopia with $138m funding

Standard Bank Group, Africa’s largest lender by assets, led by South African banker Sim Tshabalala, has extended a $138 million (R3.1 billion) funding facility to Safaricom Telecommunications Ethiopia as the Kenyan operator deepens its push in one of the continent’s most promising telecom markets. 

Longstanding partnership 

The group acted as sole arranger, lender and facility agent, while also advising on the structure of the deal. Standard Bank has worked with Safaricom since the Kenyan carrier won a licence to operate in Ethiopia in 2021. Since then, it has helped finance its network rollout and early commercial operations.

Anthony Ndegwa, executive vice president for Telecoms, Media & Technology at Stanbic Kenya’s corporate and investment banking arm, said the two sides spent months shaping a solution suited to local market conditions and Safaricom’s expansion needs.

Safaricom’s push in Ethiopia 

Safaricom CEO Peter Ndegwa said the latest facility strengthens the company’s position as it builds scale in Ethiopia. “This partnership gives us room to widen our reach and continue our work to digitally enable Africa,” he said. 

Ethiopia’s government has been opening parts of the economy to private players and updating regulations to support new investment. Standard Bank noted that the shift has helped drive stronger internet adoption. A World Bank report found that about four million additional people came online between 2020 and 2024, pushing national coverage to roughly 19 percent. 

Safaricom now counts 10.1 million three-month active users in Ethiopia, four years after it launched services in the country.  Taitu Wondwosen, head of Standard Bank in Ethiopia, said the lender views telecom infrastructure as essential to economic development.

“Digital and financial inclusion remain central goals, helping individuals and businesses access services that support day-to-day life and long-term progress,” she said. 

Expanding footprint

Founded 163 years ago, Standard Bank operates in 21 African countries and four global financial centers and two offshore hubs, including Kenya, Tanzania, Uganda, Ethiopia, and South Sudan, as it expands its regional presence. It is listed in Johannesburg and Namibia. 

Under Tshabalala Standard Bank has continued to channel capital toward projects aimed at strengthening local industries. This year it funded Midvaal Private Hospital’s R34 million ($2 million) renewable-energy system. On Nov. 12, the group opened a new office in Cairo, adding North Africa to its growing network and broadening its reach to international investors.