Finnfund has provided a US$12mn senior loan to Bandwidth and Cloud Services Group (BCS), a telecom infrastructure provider operating in several African countries
With Finnfund’s help as a key project investor, BCS is expanding its operations in East, Central and South Africa. The project aims to increase reliability, accessibility and affordability of the internet when compared to the alternatives.
“Large areas still rely on satellite connections, and in many of these countries, data transfer prices are amongst the highest in the world,” said Yonas Maru, managing director of BCS. “By building our own infrastructure, BCS can offer full connectivity throughout the region with lower prices. The funding from Finnfund will go a long way in closing the connectivity gap in many parts of Africa."
Finnfund has chosen Digital Infrastructure and Solutions as one of its key sectors and expects the investment to create substantial development impacts. “This investment in digital connectivity not only supports the economic growth of East, Central and South Africa but also facilitates inclusive access to critical services in finance, education and health,” added Finnfund’s head of digital infrastructure and solutions portfolio Jussi Ahonen.
“Digital technology presents an opportunity to narrow gender gaps by enhancing access to welfare services, identification and financial services and information,” commented Ahonen.
