Safaricom has obtained a $138 million (18 billion Kenyan shillings) loan from South Africa’s Standard Bank to accelerate its fast-growing operations in Ethiopia, the company announced Wednesday.
Standard Bank, operating in Kenya as Stanbic, is the sole lender and arranger of the facility. The funds will be used to expand network infrastructure and digital services in Ethiopia, where Safaricom launched commercial services in 2022.
Since entering the market, the Kenyan telecom giant has invested more than $2.27 billion in the country.
Safaricom CEO Peter Ndegwa said the financing supports the company’s goal of connecting underserved communities and driving digital inclusion. “Through this partnership we are able to pursue our ambition to digitally enable Africa and transform lives at scale,” he said.
The loan extends a long-running relationship with Standard Bank, which previously helped finance Safaricom’s entry into Ethiopia.
Rapid growth in a crowded market
Safaricom Ethiopia now serves more than 10 million active customers. Its 4G network reaches over half of Ethiopia’s 136 million people through 3,141 sites in more than 150 towns and cities.
Last week the company introduced Lehulum, a standalone M-Pesa app that works on any mobile network — a first in Ethiopia. The service allows users to send money, pay bills and access financial tools without needing a Safaricom SIM card.
However, Safaricom said customers using mobile data from state-owned Ethio Telecom — which has about 83 million subscribers — have been unable to access the app, blocking logins and transactions. The company described the restriction as ongoing.
Losses narrow sharply
In the six months ending Sept. 30, Safaricom’s Ethiopian unit reduced its loss by 59%, to 15.2 billion shillings from 19.4 billion shillings a year earlier, despite sharp depreciation of the Ethiopian birr.
The improved performance helped lift Safaricom’s group net profit 52% to 42.7 billion shillings ($330 million).
The company expects its Ethiopian business to turn profitable in the financial year ending March 2027.
Standard Bank said the tailored financing package reflects confidence in Safaricom’s strategy in one of Africa’s largest and most competitive telecom markets.
