Investors update: IFC invests $257.4m in Safaricom’s Ethiopia subsidiary
3 min Read June 12, 2023 at 12:37 PM UTC

IFC invests $257.4m in Safaricom’s Ethiopia subsidiary
Highlights
- The International Finance Corporation is making a $257.4 million debt and equity injection in Safaricom Ethiopia to support its plan to build a communications network.
- IFC on Friday revealed that $157.4 million has been injected as an equity investment while the remaining $100 million is a loan.
- The completion of the deal comes about nine months after the World Bank arm announced plans to purchase a stake in Safaricom Ethiopia. Although the equity size IFC will be allocated for the investment is not immediately clear, it’s reportedly a minority stake.
Source: Business Daily
Our Takeaway
Ethiopia is Africa’s second most populous country, with a population of approximately 120 million. When it launched services in October 2022, Safaricom Ethiopia became the first private telecom operator in Ethiopia, one of the world’s last telecom monopoly markets. The investment and guarantees will help the company roll out and operate 4G and 5G mobile networks across the country – including in rural and urban areas. Furthermore, under a license granted in May 2023 by the Central Bank of Ethiopia, Safaricom Ethiopia also plans to launch financial services in 2023 under the brand name M-PESA.
Healthtech Dawi Clinics secures $8m for expansion in Egypt
Highlights
- Dawi Clinics, the largest chain of outpatient care in Egypt, has raised $8 million in funding to support the expansion of its clinics across the country.
- The investment round was led by Al Ahly Capital Holding, the local investment arm of the National Bank of Egypt, with co-investment from the Egyptian-American Enterprise Fund, a US-backed investment fund that has previously invested in Dawi.
- Currently operating 20 branches across 10 governorates, the startup provides coordinated family care delivered by over 260 doctors specializing in various medical fields. In 2022, Dawi served more than 120,000 patients across Egypt.
Source: Ventureburn
Our Takeaway
Compared to the rest of the world, Africa still has a long way to go in terms of healthtech startups and healthcare provision more broadly. There are lingering issues such as the low doctor-to-population ratio yet to be addressed. But recently, especially since the disruption caused by Covid-19, a number of healthtech startups have sprung up providing innovative solutions to the problems bedeviling the continent’s healthcare system, and are increasingly getting VC backing to capture a widely underserved market.
Nigeria targets single FX rate in shift after governor’s ouster
Highlights
- Nigeria’s dollar debt surged after the surprise weekend ouster of the central bank chief and as fresh comments on merging multiple exchange rates added to signs that President Bola Tinubu is resetting policies blamed for crippling Africa’s biggest economy.
- The price of the West African oil producer’s Eurobonds rose as much as 2.6 cents in the dollar before moderating slightly, with many issues reaching the highest prices since late January.
- Longer-dated maturities saw the biggest gains, with the 2051 maturity up 2.327 cents to 72.526 cents in the dollar at 0829 GMT, according to Tradeweb data.
Source: Bloomberg
Our Takeaway
Emefiele’s suspension had been expected after strong criticisms from Tinubu’s camp before Nigeria’s February presidential election. The country’s new President then criticized the governor’s handling of the naira and monetary policy at his inauguration two weeks ago. Folashodun Shonubi, the deputy central bank governor in charge of operations, is now acting governor. Nigeria’s financial markets were closed when Emefiele’s suspension was announced on Friday. Markets will open on Tuesday after a public holiday on Monday.
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