GPE Debt

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The Global Partnership for Ethiopia BV (“GPE” or the “Company”) was in May 2021 announced as the sole winner of Ethiopia’s unified telecommunication service license (“License”) following a competitive bid process run by the Government of Ethiopia and the Ethiopian Communication Authority (“ECA”). Subsequently, the GPE formed Safaricom Telecommunications Ethiopia private limited company (“STE” or “Operating Company”), which was granted the License on 9 July 2021. The License authorizes STE to build, own and operate a nationwide public telecommunication network and offer telecommunications services. The Company and STE plans to roll out, launch and operate its 2G, 3G,4G, and 5G networks across the country, enabling it to provide increased access to quality mobile and fixed connectivity solutions for individuals, corporates, and the government (the “Project”). The Project aligns with the government’s digitization of Ethiopia and to shift from a state-oriented development model to more liberalized models, including within the telecommunication sector. The proposed IFC transaction comprises an up to USD 100 million long-term senior loan to the Operating Company, STE, to help fund its capex requirement. IFC’s loan will support the countrywide mobile network roll-out of STE and help position the Operating Company to comply with the terms of its License, which outlines the requirement for (i) specified population and geographic coverage targets and (ii) reasonable tariffs, universal accessibility and teledensity target, amongst others. IFC will also be supporting a group of regional champions and leading global emerging market investors, including the Voda Family (Vodafone Group, Vodacom Group and Safaricom plc), Sumitomo Corporation and British International Investment (the “Consortium”), in delivering an enhanced digital economy for Ethiopia.