London office advises Global Partnership for Ethiopia on IFC and MIGA investment in telecoms network

Global law firm Norton Rose Fulbright has advised Global Partnership for Ethiopia on the International Finance Corporation (IFC) and Multilateral Investment Guarantee Agency’s (MIGA) equity investment, loan and guarantees to support the ongoing construction and operation of Safaricom Ethiopia’s greenfield telecommunications network across Ethiopia, leading to more affordable internet, reliable mobile connectivity and technology access for people and businesses in the country.

Norton Rose Fulbright advised Global Partnership for Ethiopia on its winning bid for the first private telecommunications licence in Ethiopia, in 2021, and the initial partnership between Vodafone, Vodacom, Safaricom, Sumitomo Corporation, and British International Investment. It has now advised on IFC’s $157.4m equity investment in Global Partnership for Ethiopia and $100m A-loan to its wholly owned subsidiary, Safaricom Telecommunications Ethiopia Private Limited Company. In addition, MIGA will provide 10-year guarantees of $1bn to cover the equity investments of Safaricom Ethiopia’s shareholders. 

The investment and guarantees will help Safaricom Ethiopia 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.

Work on the transactions was undertaken by Norton Rose Fulbright’s London corporate team, led by Partner Oliver Stacey and Counsel Victoria Scopes. They were supported by Associates Jessica Berkeley, Zahra Sachedina, Dan Harman and Rahul Medappa, and Trainee William McKenzie. The debt team was led by Partner Alexandros Zekkos and Counsel Sunny Wong, supported by Associate Shivani Patel. Partner Patrick Bracher from Norton Rose Fulbright’s South Africa office advised on the insurance aspects of the transactions. Further specialist advice was provided by Partners Dominic Stuttaford (tax), Mark Griffiths (competition) and Stuart Neely (dispute resolution). Counsel Stefanie Walthaus and Associate Nivard Witte from Norton Rose Fulbright’s Amsterdam office advised on the Dutch law aspects of the transaction.

Oliver Stacey said: 

“We are delighted to have worked with Global Partnership for Ethiopia on this transaction, which forms a key milestone for development financing in East Africa and the progression of communication and mobile financial services within Ethiopia.”