By Adedapo Adesanya
Telecommunications giant, Airtel Africa, has become the beneficiary of a $200 million loan from the International Finance Corporation (IFC), a World Bank subsidiary, to support the expansion of its network and investment into its distribution infrastructure, particularly in rural areas.
IFC’s financing is intended to solve the issue of approximately 600 million people’s lack of access to 4G mobile coverage despite up to 86 per cent of firms on the continent using mobile phones for business operations.
The new financing will go to three of Airtel Africa’s subsidiaries to bring high-speed mobile connectivity to more than 37 million subscribers in sub-Saharan Africa.
According to a statement, the new financing will take the form of a sustainability-linked loan, with key performance indicators related to the main pillars of Airtel Africa’s sustainability strategy: digital connectivity focused on smartphone adoption rates, financial inclusion for women, and gender balance within Airtel Africa’s own management team.
“These three metrics will contribute to bridging the digital divide in Africa and support the equitable distribution of economic opportunities, poverty reduction, and financial stability across the continent. Most of the financing package is denominated in local currency, which IFC is providing to reduce the impact of currency volatility,” the statement added.
Speaking on the financing, Ms Mary Porter Peschka, IFC’s Regional Director for Eastern Africa, noted that IFC’s partnership with Airtel is critical to expanding high-speed connectivity on the continent.
“Better connectivity means more opportunity. Our work with Airtel will help millions more people not only to come online but also gain access to high-speed networks so that they can better leverage the digital economy opportunities.”
For Airtel Africa, the telco intends to partner with local and regional financial institutions to further enhance the mobile money ecosystem by providing additional financial services to all customers across the region, further enabling the economic empowerment of women.
Airtel Africa’s Group CEO, Mr Sunil Taldar said: “The expansion of our network is critical to our ambition of bridging the digital divide across Africa. This ambition can only be unlocked through continued investment into the region, and we welcome the partnership with IFC to enable this and further support our sustainability strategy of transforming lives and building better futures for communities across Africa.”
Modupe Gbadeyanka