Nairobi, Kenya, December 6, 2022 -- To support universal and affordable broadband access in Africa, and the opportunities that come with increased connectivity, IFC today announced a loan to Airtel Africa to help connect millions of new subscribers to mobile internet in six African countries.
IFC will provide six of Airtel Africa's subsidiaries with a mix of local currency and USD loans totaling $194 million. The new financing facility is in line with Airtel's Africa strategy to increase debt within its operating companies.
According to data from GSMA, less than half of sub-Saharan Africa's population had access to mobile services at the end of 2021, while only 28 percent of the population had access to mobile internet. GSMA also estimates that by 2025, the value added by mobile technology and services is expected to reach almost $155 billion annually.
The financing facility has a tenor of eight years and will be used to support Airtel Africa's operations and investments in Democratic Republic of Congo, Kenya, Madagascar, Niger, Republic of Congo and Zambia, where the banking landscape and access to local funding remains largely underdeveloped.
IFC's loan is supported by co-financing from institutional investors through IFC's Managed Co-Lending Portfolio Program (MCPP). IFC's loan in Zambia is supported by the Local Currency Facility of the International Development Association's (IDA) Private Sector Window.
"I am very excited to announce the signing of this new facility with IFC. Not only does this facility align with our focus on improving our balance sheet through localising debt within our operating companies, but it also supports our commitment and our ability to meet very strict ESG criteria in demonstration of the continued execution of our sustainability journey. I look forward to working closely with IFC in the coming years and to exploring further opportunities to cooperate together to support the economies and communities where we operate," said Segun Ogunsanya, Airtel Africa CEO.
"The COVID-19 pandemic made mobile connectivity even more urgent for both social and economic development. Helping more people connect to affordable and fast internet networks is a priority for IFC in Africa, especially in the continent's lower-income countries. The partnership with Airtel Africa will help achieve this," said Sérgio Pimenta, IFC Vice President for Africa.
IFC's digital strategy in Africa aims to enable ubiquitous, reliable, and affordable connectivity. This includes investing in the growth of independent tower operators, data centers and broadband, as well as supporting mobile operators primarily in fragile and conflict situations (FCS) and Low-income International Development Association countries (LIC-IDA).
As part of IFC's loan facility, Airtel Africa has committed to comply with the applicable requirements of IFC's Performance Standards on Social and Environmental Sustainability and has put in place a dedicated Environmental and Social Action plan. This will further strengthen the company's commitment to transforming lives across the communities in which Airtel operates and will provide clarity on how Airtel can help address inequality and support economic growth across Africa.
About IFC
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. IFC works in more than 100 countries, using its capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2022, IFC committed a record $32.8 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of global compounding crises. For more information, visit www.ifc.org.
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About Airtel Africa
Airtel Africa is a leading provider of telecommunications and mobile money services, with a presence in 14 countries in Africa, primarily in East Africa and Central and West Africa. Airtel Africa offers an integrated suite of telecommunications solutions to its subscribers, including mobile voice and data services as well as mobile money services both nationally and internationally. The Group aims to continue providing a simple and intuitive customer experience through streamlined customer journeys. www.airtel.africa
About the IDA Private Sector Window
The International Development Association's (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving IDA's objectives and the World Bank Group's twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). The IDA PSW is an option when there is no commercial solution, and the World Bank Group's other tools and approaches are insufficient. For more information, visit: http://ida.worldbank.org/psw
