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13 June 2023
Law firm Norton Rose Fulbright has advised Global Partnership for Ethiopia on the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency’s (MIGA) equity investment, loan and guarantees to support the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network across Ethiopia, leading to more affordable internet, reliable mobile connectivity and technology access for people and businesses in the country.
Norton Rose Fulbright advised Global Partnership for Ethiopia on its winning bid for the first private telecommunications licence in Ethiopia, in 2021, and the initial partnership between Vodafone, Vodacom, Safaricom, Sumitomo Corporation, and British International Investment. It has now advised on IFC’s $157.4 million equity investment in Global Partnership for Ethiopia and $100 million A-loan to its wholly owned subsidiary, Safaricom Telecommunications Ethiopia Private Limited Company. In addition, MIGA will provide 10-year guarantees of $1 billion to cover the equity investments of Safaricom Ethiopia’s shareholders.
The investment and guarantees will help Safaricom Ethiopia roll out and operate 4G and 5G mobile networks across the country – including in rural and urban areas. Furthermore, under a license granted in May 2023 by the Central Bank of Ethiopia, Safaricom Ethiopia also plans to launch financial services in 2023 under the brand name M-PESA.
“We are delighted to have worked with Global Partnership for Ethiopia on this transaction, which forms a key milestone for development financing in East Africa and the progression of communication and mobile financial services within Ethiopia,” said Oliver Stacey, partner, Norton Rose Fulbright.
