In a bold move set to reshape Ethiopia’s digital landscape, Africa’s largest bank by assets, Standard Bank, has entered into a deal with Kenya’s telecom giant, Safaricom, to invest $138 million in Safaricom Telecommunications Ethiopia, commonly known as STEP. Sole arranger, lender, and advisor, Standard Bank is helping power the rollout of digital infrastructure and services across the country.
This partnership cements a recent spate of activity in the region: Vodacom Group announced plans to acquire an additional 20% stake in Safaricom for about US $2.10 billion, raising its stake to 55%. With Safaricom now reaching around 62 million customers, considerably more than the combined customer numbers of Vodacom operations in South Africa and Egypt, the regional stakes in digital leadership are very high.
Anthony Ndegwa, the Executive VP for Telecoms, Media & Technology at Stanbic Kenya, said: “We are proud to support Safaricom’s vision for digital transformation and inclusion in Ethiopia. This is a partnership about enabling innovations that meet local market needs.”
The social aspect was also brought out by Safaricom’s Chief Executive Officer, Peter Ndegwa, thus: “Innovation and strategic partnerships guide us. Our vision is to empower youth, entrepreneurs, and underserved communities to be fully included in Ethiopia’s digital economy and for them to realize shared prosperity by 2030. This partnership enables us to further that mission and digitally enable Africa at scale.”
Since its entry into the Ethiopian market in 2021, Safaricom has grown phenomenally. According to estimates by the World Bank, internet coverage widened from 15% to 19% of the population between 2020 and 2024, adding at least 4 million new users, as STEP now boasts a total of 10.1 million active customers in just 4 years of operations.
Taitu Wondwosen, the head of Standard Bank in Ethiopia, said: “We are committed to partnering with innovators to accelerate Africa’s infrastructure development. Expanding digital and financial inclusion unlocks opportunities for individuals, communities, and businesses to access affordable, relevant services, driving long-term economic growth.”
With finance, expertise, and strategy all aligned, Standard Bank and Safaricom position Ethiopia as the newest rising digital powerhouse within Africa’s rapidly developing tech ecosystem.
