Kinshasa, DRC, June 26, 2023—To increase digital connectivity in the Democratic Republic of Congo, one of the least connected countries in sub-Saharan Africa, IFC today announced an investment in Eastcastle Infrastructure to support the company's telecom tower expansion in the country.
IFC is providing a $30 million loan from its own account and has mobilized an additional $30 million from the Emerging Africa Infrastructure Fund to finance Eastcastle's strategy to build more shared telecom towers in DRC. The new towers will be leased by mobile network operators and other digital service providers, allowing them to expand their coverage, and reduce their operating costs and energy usage through infrastructure sharing.
The DRC's mobile telephone penetration rate is only about 50 percent, partly due to the country's limited investment in digital infrastructure, such as telecom towers. Improved coverage creates an enabling environment to increase digital skills and spur entrepreneurship activities for underserved groups, especially women and youth.
"We are very pleased that following IFC's equity investment in Eastcastle that they have been able to now provide our DRC operations with a $60 million long-term debt package. This, with the $34 million from The Standard Bank of South Africa, will enable us to surpass over 1,000 towers in the DRC," said Peter Lewis, Co- Founder and Director of Eastcastle Infrastructure Ltd.
The new investment follows IFC's first financing to Eastcastle in 2021 to support the company's growth plans across sub-Saharan Africa. It also aligns with IFC's strategy to promote the digital economy and development of digital services in Africa.
New technologies, data usage growth and the rollout of 4G and 5G networks in Africa is fueling the need for more telecom infrastructure including towers. For example, according to GSMA, data consumption is forecast to nearly quadruple between 2021 and 2027 in sub-Saharan Africa as smartphone prices fall and mobile network operators lower the cost of data. DRC, with its large population and four mobile network operators, can be a large part of this growth with increased access to telecommunications infrastructure.
"DRC's digital market has untapped potential and infrastructure sharing initiatives such as telecom towers are central to helping the country boost digital inclusion. IFC's growing work with Eastcastle will play a key role in connecting more people in the DRC to the digital economy," said Malick Fall, IFC Country Manager for the DRC.
About IFC
IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our 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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