Safaricom to Raise $2 Billion for Funding of its Ethiopian Subsidiary

Safaricom has announced plans to raise close to $2 billion from development finance institutions (DFI) and local banks in five years to fund its Ethiopian subsidiary.

Part of the funding will also be raised internally and through rental financing from equipment vendors.

In the 2022/2023 financial year, the telco expects to incur between KSh60 billion to KSh65 billion on capital expenditure in Ethiopia.

In 2021, Safaricom undertook a one-year bridging facility of $400 million to support the payment of license fees for the Ethiopia telecom licence.

The facility was then converted into a five-year long-term facility of $120 million, and $280 million seven-year facility with a two-year moratorium on principal repayment.

Safaricom was awarded a licence by the Ethiopian government on July 6, 2021, to provide telecom services in the country.

See Also:

Ethiopia Set to Access Faster Network as Ethio Telecom Launches 5G

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