Global development institution IFC is providing a $207-million long-term loan package to digital infrastructure and information technology (IT) services company Seacom in a partnership aimed at growing the company’s broadband cable network and cloud-based product offering in sub-Saharan Africa.
The package includes $70-million from IFC’s own financing, $42.24-million co-financing mobilised from institutional investors through IFC’s Managed Co-Lending Portfolio Programme and $94.76-million equivalent mobilised from Nedbank and Mauritius Commercial Bank.
The funding, which supports Seacom’s strategy to become an integrated broadband connectivity and next-generation cloud-based IT service business, will bolster broadband access in Africa and increase the availability of IT services for small and medium-sized businesses.
Seacom leverages cloud technology, its broadband submarine cable network and fibre in major African cities to provide business tools in Djibouti, Kenya, Mozambique, Rwanda, South Africa, Tanzania and Uganda.
A statement released on Thursday outlined that the IFC anticipates that the investment will increase access to quality IT services for African businesses, enabling Seacom to support the digital transformation of 24 000 enterprises in the region by 2027, including in low-income countries, by increasing access to the Internet and cloud and cybersecurity services.
“Pursuing our expansion ambition in Africa will allow our company to leverage the opportunities created by the increasing demand for digital services. It is also a demonstration of a long-term partnership with the IFC,” said Seacom group CFO Richard Schumacher, noting that IFC’s partnership with Seacom is another step toward helping to close the digital connectivity gap in Africa.
“Access to affordable, good-quality Internet is central to economic and social development. The partnership with Seacom will support the company in expanding much-needed digital infrastructure and cloud-based services to meaningfully connect more people and businesses on the continent,” added IFC regional director for infrastructure and natural resources in Africa Sarvesh Suri.
“IFC’s digital strategy in Africa is aimed at enabling ubiquitous, reliable and affordable connectivity. This includes investing in the growth of independent tower operators, data centres and broadband, and support to mobile operators primarily in fragile States and low-income international development association countries.
Over the last decade, IFC committed and mobilised more than $7-billion in digital infrastructure and services globally.
In addition to providing financing, IFC helps investees improve corporate governance and align environmental and social practices with IFC’s performance standards.