Safaricom Plc has increased its financial commitment to its Ethiopian telecommunications venture by Sh1.4 billion in the three months ending June 2026, raising its total investment to Sh159.6 billion ($1.234 billion).
The Ethiopian operation, co-owned with Vodacom, Sumitomo Corporation, British International Investment (BII), and the International Finance Corporation (IFC), saw Safaricom raise its stake to 54.1 percent in March 2026, up from 51.67 percent a year earlier. This followed a funding round limited to Vodacom family entities.
Overall funding for the Ethiopian unit reached Sh345.7 billion ($2.672 billion) by the end of June 2026. This includes Sh298.3 billion ($2.306 billion) in equity, Sh15.5 billion ($120 million) in local currency debt, and Sh31.8 billion ($246 million) in foreign currency debt sourced from Standard Bank and IFC.
According to Safaricom, the investment covers shareholder equity, deferred vendor payments, and third-party borrowings. The funding also incorporates license fees amounting to $850 million (Sh109.9 billion) and $150 million (Sh19.4 billion) specifically for the M-Pesa license. The entity has also secured local market loans.
Safaricom Ethiopia is intensifying efforts to reach profitability at the EBITDA level by March 2027. The unit’s active customer base expanded to 14.7 million in June 2026, up from 13.63 million in March and a 46.1 percent increase year-on-year from 10.06 million in June 2025.
Meanwhile, minority investors Sumitomo, BII, and IFC saw their stakes diluted during the latest funding round, holding 23.5 percent, 9.5 percent, and 6.81 percent respectively as of March 2026. Vodacom’s share stood at 6.02 percent. However, these investors retain rights under a shareholders’ agreement to reclaim the 2.78 percent stake lost during the equity injection, either by purchasing shares from Safaricom and Vodacom or by proportionally participating in future capital calls.
