Safaricom Ethiopia raises $193M, lifting it into Ethiopia's top 8% of growth rounds
What's the deal? Safaricom Telecommunications Ethiopia (STE) raised Sh25 billion ($193 million) in new funding, Safaricom disclosed in its half-year results on November 5, 2026. The round was led by Safaricom alongside co-investors VodacomDealroom has a profile for this one. Try Dealroom →, Sumitomo Corporation, British International Investment, and the International Finance Corporation.
By the numbers: At $193 million, the raise ranks in the 92nd percentile of growth equity rounds in Ethiopia over the trailing 48 months, against a sample of 134 deals. Cumulative funding in STE has reached Sh164.3 billion ($1.265 billion); total funding, including debt, stands at Sh369.2 billion ($2.842 billion).
What's the endgame? STE wants to turn rapid growth into a sustainable business. It now serves 15.4 million customers, up 38.4%, with service revenue in the six months to September up 71.6% to Sh10.6 billion. New debt funding settled outstanding vendor obligations and funded operations.
Why now? The unit is closing in on profitability. It cut its EBITDA loss by 96.5% to Sh434 million, and management expects EBITDA break-even by March 2027. "Part of the funding was applied to settle outstanding vendor obligation," Safaricom said.
What could go wrong? The business remains loss-making below the EBITDA line, posting a net loss of Sh8.8 billion. Future price steps hinge on Ethiopia's regulator, with a change of government having already delayed the process. Chief executive Wim Vanhelleputte said Ethiopia has "a very long way to go" to match Kenya's 57.7% EBITDA margin.
Shifting stakes: Safaricom's shareholding slipped to 54.09% from 54.17% in March, as co-investors contributed more equity this round. Those partners retain rights to buy back a 2.78% stake they let Safaricom take up in earlier rounds.
The signal: After five years and more than $2.8 billion in total funding, Safaricom's Ethiopia bet is pivoting from heavy equity injections toward debt as it nears break-even. The large, top-decile raise shows how much capital a telecoms buildout in a cash-dominated market still demands, even as the losses narrow.
Read more: businessdailyafrica.com
Image credit: Adam Jones, Ph.D. - Global Photo Archive
