The United States Government-owned International Development Finance Corporation (DFC) has announced the approval of a $500 million credit line to Kenya’s leading Telco, Safaricom and a consortium of firms seeking a Telecommunication license in Ethiopia.
The credit line, which is part of DFC’s investments this quarter amounting to over $2.1 billion, will finance the design, development, and operation of a new private mobile network provider as well as the acquisition of a mobile network provider license.
“The financing approved by DFC will be critical in facilitating private sector investment to increase economic growth in developing countries, especially in continuing to respond to the economic and health impacts from the pandemic,” said DFC CEO Adam Boehler in a statement to the media.
Safaricom disclosed earlier this year it would need up to US$1-billion for the Ethiopia project and it will rely on debt to fund the joint bid by a consortium including parent Vodacom Group and two other entities.
During Vodacom’s H1 2021 results presentation recently, it was revealed that Safaricom will have a majority stake of 51% in the consortium while South Africa’s Vodacom, will have a 5% stake in the consortium and the remaining share will go to strategic investors.