Safaricom’s expansion towards the Horn of Africa geographical market is as significant as the reactions it has reportedly documented to aid its pilgrim mission to penetrate and innovate the Ethiopian ancient culture by driving digital inclusion and pioneer telecommunications operations in the continental fourth largest peninsula geo-location.
The center of this report is focused on the Kenyan telecom giant consent to set up shop in the easternmost ancient market aged by four million years. Safaricom Ethiopia is a significant expansion privileged to encounter severe challenges impacted by the low population of tech-savviest to comprehend technology literacy and the brand of digital inclusion the Kenyan is introducing.
The need to accelerate civilization backed by advanced technology penetration across the African nooks & crannies has attracted the World Bank Group to support Safaricom penetrating the Horn of Africa’s marketplace via equity investments and financed debt. The international financial institution’s consent to supporting the Kenyan telecom giant references its commitment to reducing poverty, increasing shared prosperity, and promoting sustainable development via digital inclusion.
The World Bank Group’s support to alter Safaricom Ethiopia penetration is optimal for driving digital inclusion via debuting telecommunications in the ancient market that front-lines technology adoption and further transforms the Horn of Africa’s socio-economic landscape and commerce relations with African countries.
The international financial institution reported that the telecom giant will access the generous vault of source capital funds disbursement, scheming to rub off on Ethiopia’s GDP growth. Safaricom’s capital investment is sourced from the World Bank Group’s board of directors such as the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA) which autonomously offered different forms of capital investments.
However, the IFC initially reported to support the telecom giant with $160 million in equity investments and diversified its investment scheme per the World Bank Group’s considerations that made slight changes. For context, the IFC will aid Safaricom Ethiopia’s penetration via $157 million equity capital and a $100 debt financing investment fund.
Equity investments and debt financing from the IFC covers intertwined interest systems for Safaricom Ethiopia and the World Bank Group’s board of director. While MIGA assent to issue a long-term one billion dollars equity investment to the telecom giant. The World Bank Group and Safaricom’s commitment to the Horn of Africa will impact the altered socio-economic status transition to a developing country.
