IFC spearheaded a $320 million investment package for five Celtel subsidiaries to help expand and upgrade fast-growing mobile networks in the Democratic Republic of Congo, Madagascar, Malawi, Sierra Leone, and Uganda. IFC in June 2007 provided a $160 million loan for its own account, and an additional $160 million in syndicated loans with participating commercial banks and parallel loans from bilateral financial institutions.
Celtel, which was acquired by MTC of Kuwait in 2005, will use the funds to modernize and develop the mobile networks in countries with obsolete and inadequate fixed-line networks and low telephone penetration rates. These range from just over four phones for every 100 people in Malawi and Madagascar to about 10 per 100 people in Sierra Leone.
IFC’s relationship with Celtel dates back to 1999, with a series of investments in the holding company and its operating subsidiaries. These investments have contributed to the region’s dramatic growth in mobile phone penetration levels, increased competition, and reduced tariffs.
For more information contact:
Houtan Bassiri
Communications Officer
Johannesburg, South Africa
Tel: +27-11-731-3179
Email: hbassiri@ifc.org
