Washington, D.C., and Beirut, Lebanon, June
1, 2005—The International Finance Corporation, the private sector
arm of the World Bank Group, today announced the signing of a $40 million
loan to Scancom Limited, Ghana, a majority owned subsidiary of Investcom
Holding, the international telecommunications group.
Scancom, providing services under its brand name Spacefon Areeba, is the
leading mobile telecommunications operator in Ghana. IFC’s loan will help
fund Scancom’s network upgrade and expansion. In addition to strengthening
Scancom’s capital structure, the financing will be used to promote economic
development in the country by providing more affordable telecom services
to a larger portion of the population. IFC’s investment will also complement
the work of the World Bank, which is assisting the government of Ghana
to implement pro-investment sector reform and a world-class regulatory
environment.
“Through this project, IFC is assisting a key player in the emerging telecommunications
sector in Africa,” noted Mr. Mohsen Khalil, director of IFC’s Global
Information and Communication Technologies Department. He added that,
“By enabling Scancom to accelerate its network expansion, the project
will contribute to market competitiveness and support the government of
Ghana’s efforts to improve performance in the sector.”
According to Mr. Azmi Mikati, chief executive of Investcom Holdings, “Investcom
is delighted to have signed this loan facility agreement with IFC. These
funds will be used to improve and expand Scancom's mobile telecommunications
infrastructure and services across the country, allowing us to offer better
quality, affordable, and reliable mobile services to a larger section of
the people of Ghana.”
“In line with our strategy in Africa, this project represents a further
opportunity to contribute to the telecom sector’s growth and private sector
development in the region,” noted Mr. Richard Ranken, director of IFC’s
Sub-Saharan Africa department. He added that IFC’s involvement with
Scancom should “spur interest for other foreign direct investment in Ghana.”
The mission of IFC (www.ifc.org)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people’s lives. IFC finances private
sector investments in the developing world, mobilizes capital in the international
financial markets, helps clients improve social and environmental sustainability,
and provides technical assistance and advice to governments and businesses.
From its founding in 1956 through FY04, IFC has committed more than $44
billion of its own funds and arranged $23 billion in syndications for 3,143
companies in 140 developing countries. IFC’s worldwide committed portfolio
as of FY04 was $17.9 billion for its own account and $5.5 billion held
for participants in loan syndications.
Investcom Holding (Luxembourg) S.A. (www.investcomholding.com)
is an international telecommunications company with operations in the Middle
East, Africa, and Europe. As of February 2005, Investcom provided services
to over 2.6 million mobile subscribers. The company operates GSM networks
mostly under the Areeba(tm) brand in Benin, Cyprus, Ghana, Guinea-Bissau,
Liberia, Sudan, Syria and Yemen, with a combined population under license
of more than 110 million. The company also provides carrier voice and data
services through its operations in Monaco and the UK.
Scancom has been providing GSM services since
1996. At year end 2004, Scancom Ghana had approximately 957,000 subscribers.
Mobile penetration in Ghana has significantly increased over the past 3
years, growing from 2% in 2002 to over 7% and rising by the end of 2004.
Ghana:
Capital: Accra
Population (end 2004)1: 21 million
Mobile penetration (end 2004)2: 7%
Scancom Limited:
Investcom Holding ownership: 96.67%
Investcom brand: Co-branded AreebaTM /Spacefon; AreebaTM
in June 2005
Market share (end 2004)3: 64%