The Overseas Private Investment Corporation (OPIC), the US government’s development finance institution, and Africell Holdings Limited has signed a commitment letter for US$100mn to expand access to telecommunications in Africa
The project is expected to have a strong impact on development, particularly in Uganda and the Democratic Republic of the Congo, by increasing the availability and quality of affordable mobile telephone and Internet services in these countries.
OPIC Managing Director for Africa Worku Gachou and Africell Chief Investment Officer Ian Paterson has signed the commitment.
Telecommunications is a critical part of the development in emerging markets. This project aims to promote better access to and use of mobile voice and broadband technologies in its markets by providing high-quality services at affordable rates.
Africell Founding CEO and Group Chairman Ziad Dalloul, said, “Putting communities at the heart and soul is Africell’s strategy and management’s focus is on operational efficiency to create value for its customers. It is important to partner with investors who truly understand our business model, as well as our markets, to structure solutions that support our growth programs.”
“Telecommunications is now essential to a country's economic development and competitiveness. OPIC’s partnership with Africell highlights our goal of improving communication infrastructure across the continent by supporting our Connect Africa initiative. Better connectivity will remove barriers that restrict growth and commerce,” said OPIC President and CEO Ray W. Washburne.
Earlier this summer, OPIC launched Connect Africa, an initiative to improve connectivity in Africa by investing US$1bn in physical infrastructure, technology, and value chains.
The transaction was led and arranged by Lintel Capital UK Advisors LLP, a London-based firm that specialises in sub-Saharan African investments.
