In its latest annual report the telecommunications company said the global financier, which offers advisory services besides debt and equity investments, was hired by the consortium that won a licence to set up a second telecommunications firm in that market called Safaricom Ethiopia.
The Nairobi Securities Exchange-listed company is the major shareholder of the subsidiary whose other owners are Vodacom Group, Sumitomo Corporation and CDC Group. The partners paid Sh100.8billion for the licence.
“In addition, a transaction fee of Sh474million was paid to the International Finance Corporation. The total cost was distributed proportionate to each consortium partner’s shareholding in the joint venture,” Safaricom said.
The telecommunications giant relied heavily on short-term loans from Standard Chartered Bank Kenya that loaned Safaricom Sh46.3billion last year, which was meant to help the company fulfil its part of the capital obligations in the new venture. However, the company did not disclose the services received from IFC.
Safaricom Ethiopia is set to launch operations next month in Dire Dawa, a city in eastern Ethiopia near the Oromia and Somali border.
The phased launch will commence in August 2022 in the city of Dire Dawa and then accelerate to 24 other cities, including Addis Ababa inhi the months that follow.
Safaricom, the first private telecom company in Ethiopia, says it is a purpose-led technology and communication company committed to contributing to Addis Ababa’s digital transformation and inclusion agenda.