Safaricom Ethiopia is set to receive funding through the World Bank Group after the deal was closed during a funding ceremony held at the firm’s headquarters in Addis Ababa, Ethiopia.

The funds will be channeled from the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency (MIGA), both members of the World Bank Group.

The funds will be in form of full equity investment, a loan and guarantees for the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network.

According to the telecommunications company, which launched its operations in Ethiopia in October 2022, says the new network will boost its digital connectivity throughout Ethiopia.

“The progress Safaricom Ethiopia has achieved in such a short period is nothing short of remarkable,” said IFC Vice President of Industries Mohamed Gouled.

Gouled added, “With the highly anticipated launch of M-Pesa, we are excited to witness the profound impact it will have not only on the telecommunications landscape but also on improving financial inclusion for all people across Ethiopia.”

IFC is set to hold a minority equity stake in the Global Partnership for Ethiopia BV (GPE), as Safaricom PLC will remain the majority shareholder after the closure of the said transaction.

The other members of the consortium include Vodafone, Vodacom, Sumitomo Corporation, and British International Investment (BII).

“With IFC coming on board as an equity partner, their experience in global operations and the stature of their investment brings a lot of praise and respect to the board,” said Safaricom Ethiopia Chairman Michael Joseph.

He added, “We look forward to their input in helping us make strides in the Ethiopian market.”

Safaricom Ethiopia expects the substantial investment to fast track the new company's ambitious plans to offer affordable internet and reliable connectivity throughout Ethiopia.