Safaricom pays IFC Sh474m for Ethiopia entry transactions


The $100 million China-assembled Safaricom data centre in Addis Ababa, Ethiopia. PHOTO | TESFA-ALEM TEKLE | NMG

Safaricom and its partners in the Ethiopian venture paid the International Finance Corporation (IFC) a transaction fee of $4 million (Sh474 million) for services rendered in relation to the entry into the new market.

The Telco says in its latest annual report that the global financier, which offers advisory services besides debt and equity investments, was hired by the consortium that won a licence to set up a second telecommunications firm in that market called Safaricom Ethiopia.

The Nairobi Securities Exchange-listed company is the major shareholder of the subsidiary whose other owners are Vodacom Group, Sumitomo Corporation and CDC Group. The partners paid $850 million (Sh100.8 billion) for the licence fee

“In addition, a transaction fee of $4 million (Sh474 million) was paid to the International Finance Corporation. The total cost was distributed in a manner proportionate to each consortium partner’s shareholding in [the joint ventur],” Safaricom said.

So whats the difference between way IFC deals with Africa countries and the exploitative way WB/IMF have always dealt Africa ?

Ule Jamaa wa long live xi

Kama ungekua na akili, ungekua usha jua IFC is the private investment arm of the World Bank but since wewe ni mfuasi sugu wa jambazi kutoka Sugoi, ignorance is in your blood.