• Standard Bank extended a USD 138 million facility to STEP, acting as sole arranger and advisor to support network expansion in Ethiopia.

• Safaricom Ethiopia surpassed 10 million users by mid-2025, while Vodacom increased its stake, signaling strong investor confidence.

• The deal reflects Standard Bank’s focus on infrastructure, digital inclusion, and economic integration across African markets.

On December 10, Standard Bank announced the extension of a USD 138 million term facility to Safaricom Telecommunications Ethiopia PLC (STEP). Acting as the sole arranger, lender, facility agent, and advisor, the bank structured and executed a tailored funding package to accelerate STEP’s network rollout and service expansion across Ethiopia.

“We are honoured to have partnered with Safaricom once again in enabling and supporting their ongoing vision of driving digital transformation and inclusion in Ethiopia,” said Anthony Ndegwa, Executive Vice President for Telecoms, Media & Technology at Stanbic Kenya’s Corporate and Investment Banking. This latest deal builds on Standard Bank’s earlier role as advisor and financier during Safaricom’s acquisition of its Ethiopian operating licence in 2021 and the subsequent launch of its network.

The facility is designed to fast-track the deployment of digital infrastructure and services. Standard Bank and STEP collaborated closely to craft financial solutions aligned with STEP’s capital requirements while remaining responsive to Ethiopia’s evolving regulatory and market landscape.

This development comes as Safaricom continues to perform strongly in its home market. As of July 2025, the company surpassed 50 million customers in Kenya. In its 2024 financial year, M-Pesa revenue rose by 19.5% to KES 140.9 billion (approximately USD 1.1 billion), contributing over a third of total service revenue and underscoring the central role of fintech in Safaricom’s business model. In Ethiopia, Safaricom has rapidly emerged as a formidable challenger. By mid-2025, it had exceeded 10 million active subscribers, with average monthly data usage per user reaching 6.5 GB.

This momentum was further reinforced on December 4, 2025, when Vodacom Group announced a significant increase in its stake in Safaricom—underscoring its deepening commitment to the East African markets of Kenya and Ethiopia. The move reflects growing investor confidence in the region’s telecom potential.

Standard Bank’s renewed commitment through STEP aligns with its broader strategy to support infrastructure projects that unlock long-term economic value and foster deeper integration across African markets. “As a bank, we are committed to partnering with key stakeholders to drive infrastructure development that accelerates the continent’s economic growth,” said Taitu Wondwosen, Head of Standard Bank in Ethiopia. She emphasized that promoting digital and financial inclusion remains a core objective—breaking down barriers so individuals, communities, and businesses can access affordable, tailored financial services.

By financing STEP’s network buildout and supporting Safaricom’s expansion into Ethiopia’s high-potential digital market, Standard Bank is positioning itself at the heart of one of Africa’s most transformative connectivity initiatives. The transaction is expected to catalyze broader economic activity.

Hikmatu Bilali