Standard Bank, trading in Kenya as Stanbic Bank, has announced a partnership with Safaricom Telecommunications to provide funding worth $138 million (approximately Ksh17.94 billion) in support of Safaricom Telecommunications Ethiopia PLC (STEP).

The financing will facilitate Safaricom’s continued rollout of digital infrastructure and services in Ethiopia. Standard Bank served as the sole arranger, lender and facility agent for the term financing facility to STEP.

Dr Joshua Oigara, Regional Chief Executive for East Africa at Standard Bank Group, said the partnership reflects the bank’s dedication to enabling growth in the region.

“By supporting the expansion of digital connectivity in Ethiopia, we are strengthening economic linkages, creating new opportunities for businesses and communities, and accelerating East Africa’s digital economy,” Oigara said.

He added that the collaboration demonstrates the power of regional partnerships in unlocking long-term value and reaffirmed the bank’s commitment to sustainable investment as a driver of inclusive growth.

Executive Vice President for Telecoms, Media and Technology at Stanbic Kenya’s Corporate and Investment Banking Division Anthony Ndegwa said the bank was honoured to partner with Safaricom again to advance digital transformation and inclusion in Ethiopia.

“We worked closely with Safaricom in developing tailored financial solutions responsive to both the business model and the Ethiopian market environment,” Ndegwa said.

Safaricom Plc Chief Executive Officer Peter Ndegwa said the company’s strategy revolves around innovation and partnerships aimed at transforming lives, empowering youth, entrepreneurs and underserved communities to participate in Ethiopia’s growing digital economy.

“Through this partnership, we are given the opportunity to pursue our goal of building a digitally enabled Africa, enabling shared prosperity and economic progress,” he said.

Safaricom acquired its operational licence in Ethiopia in 2021 with Standard Bank serving as one of the company’s key advisors and financiers during the rollout of services and infrastructure development.

Ethiopian government has since undertaken significant reforms aimed at supporting the digital economy, resulting in impressive growth in internet connectivity and mobile adoption.

Head of Standard Bank in Ethiopia Taitu Wondwosen pointed out that the bank remains committed to supporting infrastructure investments that catalyse economic growth.

“Our focus on digital and financial inclusion continues to shape how individuals, communities and enterprises across Africa access affordable financial products and services to meet their evolving needs,” Wondwosen said.

• A Tell Media / KNA report / By Michael Omondi