Celtel gets sh525b for network expansion
Jun 20, 2007
THE International Finance Corporation (IFC), the World Bank private sector lending arm, has announced a $320m (about sh525b) financing deal to five <br>subsidiaries of Celtel International.
By Emmy Olaki
THE International Finance Corporation (IFC), the World Bank private sector lending arm, has announced a $320m (about sh525b) financing deal to five
subsidiaries of Celtel International.
The beneficiaries include Uganda, ($40m), the DR Congo ($150m), Madagascar ($50m), Malawi ($30m) and Sierra Leone ($50m).
IFC said in a statement that it will provide $160m from its own account, the largest to date in sub-Saharan Africa.
This will be complemented by another $160m in syndicated loans from eight commercial banks and financial institutions.
Three South African banks are participating in IFC’s loan programme for the first time.
Celtel said it would spend the money in modernising and developing mobile networks in countries with obsolete and inadequate fixed lines and very low telephone penetration rates.
“Investment in infrastructure such as telecommunications is crucial for Africa’s economic development. Our long-term collaboration with IFC shows that the private sector can play an important role in fulfilling that need,†said Mo Ibrahim, the Celtel founder and chairman. Edward Nassim, the IFC vice-president for Africa, the Middle East and Europe, said infrastructure was one of the key bottlenecks and reason for the high cost of doing business in Africa. He said this dragged economic competitiveness.
“The expansion of mobile telephone services to previously underserved areas will help create more favourable environment for business to operate thereby creating jobs and contributing to poverty eradication,†he said. The MTC Group of Kuwait that owns Celtel, has also announced an investment fund of $10.5b for its Africa operations.
THE International Finance Corporation (IFC), the World Bank private sector lending arm, has announced a $320m (about sh525b) financing deal to five
subsidiaries of Celtel International.
The beneficiaries include Uganda, ($40m), the DR Congo ($150m), Madagascar ($50m), Malawi ($30m) and Sierra Leone ($50m).
IFC said in a statement that it will provide $160m from its own account, the largest to date in sub-Saharan Africa.
This will be complemented by another $160m in syndicated loans from eight commercial banks and financial institutions.
Three South African banks are participating in IFC’s loan programme for the first time.
Celtel said it would spend the money in modernising and developing mobile networks in countries with obsolete and inadequate fixed lines and very low telephone penetration rates.
“Investment in infrastructure such as telecommunications is crucial for Africa’s economic development. Our long-term collaboration with IFC shows that the private sector can play an important role in fulfilling that need,†said Mo Ibrahim, the Celtel founder and chairman. Edward Nassim, the IFC vice-president for Africa, the Middle East and Europe, said infrastructure was one of the key bottlenecks and reason for the high cost of doing business in Africa. He said this dragged economic competitiveness.
“The expansion of mobile telephone services to previously underserved areas will help create more favourable environment for business to operate thereby creating jobs and contributing to poverty eradication,†he said. The MTC Group of Kuwait that owns Celtel, has also announced an investment fund of $10.5b for its Africa operations.