GPE Debt (IFC-45197)

Countries
  • Ethiopia
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • International Finance Corporation (IFC)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Proposed
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
B
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Oct 10, 2022
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
SAFARICOM TELECOMMUNICATIONS ETHIOPIA PLC
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Communications
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 100.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Project Cost (USD)
$ 8,000.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Bank Documents
Other Related Projects
Primary Source

Original disclosure @ IFC website

Updated in EWS Jan 9, 2023

Disclosed by Bank Sep 8, 2022

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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

According to the Bank’s website, the Global Partnership for Ethiopia BV (“GPE”) was in May 2021 announced as the sole winner of Ethiopia’s unified telecommunication service license (“License”) following a competitive bid process run by the Government of Ethiopia and the Ethiopian Communication Authority (“ECA”). Subsequently, the GPE formed Safaricom Telecommunications Ethiopia private limited company (“STE” or “Operating Company”), which was granted the License on 9 July 2021. The License authorizes STE to build, own and operate a nationwide public telecommunication network and offer telecommunications services. The Company and STE plans to roll out, launch and operate its 2G, 3G,4G, and 5G networks across the country, enabling it to provide increased access to quality mobile and fixed connectivity solutions for individuals, corporates, and the government. 

The proposed IFC transaction comprises an up to USD 100 million long-term senior loan to the Operating Company, STE, to help fund its capex requirement. IFC’s loan will support the countrywide mobile network roll-out of STE and help position the Operating Company to comply with the terms of its License, which outlines the requirement for (i) specified population and geographic coverage targets and (ii) reasonable tariffs, universal accessibility and teledensity target, amongst others. IFC will also be supporting a group of regional champions and leading global emerging market investors, including the Voda Family (Vodafone Group, Vodacom Group and Safaricom plc), Sumitomo Corporation and British International Investment (the “Consortium”), in delivering an enhanced digital economy for Ethiopia. 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.
Private Actor 1 Private Actor 1 Role Private Actor 1 Sector Relation Private Actor 2 Private Actor 2 Role Private Actor 2 Sector
- - - - CDC Group Parent Company -
- - - - Global Partnership for Ethiopia BV Client -
- - - - Safaricom Plc Parent Company -
- - - - Safaricom Telecommunications Ethiopia Undisclosed -
- - - - Sumitomo Corp Parent Company -
- - - - Vodafone Group Plc. Parent Company -

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.

Safaricom Telecommunications Ethiopia plc
Matthew Harrison-Harvey
Chief Regulatory and External Affairs Officer

MHH@safaricom.et
Addis Ababa Kirkos sub city woreda 01 House number new, Addis Ababa, Ethiopia

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF IFC/MIGA

The Compliance Advisor Ombudsman (CAO) is the independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an IFC or MIGA- financed project. If you submit a complaint to the CAO, they may assist you in resolving a dispute with the company and/or investigate to assess whether the IFC is following its own policies and procedures for preventing harm to people or the environment. If you want to submit a complaint electronically, you can email the CAO at CAO@worldbankgroup.org You can learn more about the CAO and how to file a complaint at http://www.cao-ombudsman.org

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