Safaricom Ethiopia Debt II

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Global Partnership for Ethiopia BV (“GPE”) was announced as the sole winner of Ethiopia’s mobile telecommunication license in May 2021 following a competitive bid process run by the Government of Ethiopia. The license authorizes GPE to build, own and operate a nationwide public telecommunication network through its wholly owned subsidiary, Safaricom Telecommunications Ethiopia Private Limited Company (“STEP” or the “Company”). The Company has set up and continues to roll out its 2G, 3G and 4G networks across the country following the commercial launch in October 2022, this rollout enables STEP 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 plan to modernize and digitize the Ethiopian economy and shift from a state-oriented development model to more liberalized models, including within the telecommunication sector.Subject to approvals of all parties, the proposed transaction comprises an 1) up to USD 350 million long term senior loan, including potential mobilization of up to USD 150 million, and 2) up to USD 55 million equity investment to the Company to help fund its capex requirements for the next 5 years. IFC’s proposed investment will support the continued countrywide mobile network roll-out of STEP and help position the Company to comply with the terms of the 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 (Vodacom Group and Safaricom plc), Sumitomo Corporation and British International Investment (the “Consortium”), in delivering an enhanced digital economy for Ethiopia.  Safaricom Ethiopia, the first privately-owned telecom operator in Ethiopia, is expected to be supported by the IDA20 Private Sector Window (PSW) Local Currency Facility (LCF) as described in the Blended Finance Section.