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| Socketworks II |
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| Summary of Proposed Investment |
| This Summary of Proposed Investment is prepared and distributed to the public in advance of the IFC Board of Directors’ consideration of the proposed transaction. Its purpose is to enhance the transparency of IFC’s activities, and this document should not be construed as presuming the outcome of the Board decision. Board dates are estimates only. |
| Project number | 25475 |
| Company name | Socketworks Ltd |
| Country | Nigeria |
| Sector | Education Services |
| Environmental category | C |
| Department | Health and Education |
| Status | Active |
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| Date SPI disclosed | March 23, 2007 |
| Projected board date | April 24, 2007 |
| Previous Events | Invested: September 10, 2007
Signed: May 23, 2007
Approved: May 18, 2007 |
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| Overview |
Sponsor/Cost/Location |
Development Impact |
Contacts |
Attachments |
| Project description |
Socketworks Limited (Socketworks or the company) is a privately held Nigerian limited liability corporation. It was established in June 2002. It has been supported by the IFC since this time by way of capacity-building and advisory support services through the African Project Development Facility (APDF) as well as a loan (signed in February 2006). Socketworks is a software and outsourcing company that aims to provide packaged ICT solutions to its clients.
In the education market, it has developed software (trademarked “CollegePortal”) that has been endorsed by the Nigerian Universities Commission as the most suitable management software for Nigeria’s universities. Socketworks’ packaged solution for universities is helping universities automate their processes (eg: student admissions and registration, course selection, course management, exam management, facility management) that are currently done manually and is providing internet access that would not otherwise be available. These services are making an enormous difference to universities in Nigeria that otherwise have no ICT systems. The company has also begun implementing e-Government contracts to automate and improve the efficiency of various government services such as immigration and pensions.
The proposed IFC investment will be comprised of equity and/or debt financing for the following:
- Implementation of 19 polytechnics contracts in Nigeria, each consisting of a “bundled” solution, involving the provision of both hardware and software to each institution.
- Expansion of the SocketWorks into Sierra Leone, Ghana, Uganda, Liberia, and Kenya as well as the implementation of new university and e-Government contracts in each new country. |
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| Project sponsor and major shareholders of project company |
| The project sponsors are: President and CEO of Socketworks, Aloy Chife and Executive Director Roland Ewubare. Aloy has served as Director (Business Systems and Processes) for Apple Computers in Silicon Valley, as IT Director for Enron Corporation in Houston, Texas, and as a Project Executive with IBM Global Services. He holds a PhD in economics from London School of Economics. Roland was previously executive director of Schlumberger Nigeria. Prior to that, he held various senior roles as counsel in Schlumberger, primarily in the United States. Roland holds a Master of Laws degree from Harvard. Socketworks has a seven person Board. |
| Total project cost and amount and nature of IFC's investment |
| The total project cost is estimated to be approximately $10million. The proposed IFC investment will be up to $5million in size, made up of straight debt and/or quasi-equity. |
| Location of project and description of site |
| SocketWorks is headquartered in Lagos, Nigeria. The company either has, or plans to open, country offices in (or relocate staff to) Freetown, Sierra Leone; Monrovia, Liberia; Accra, Ghana; Kampala, Uganda; and Nairobi, Kenya. Implementation of SocketWorks contracts takes place at various universities throughout each of the countries in which the company operates. |
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| Anticipated development impact of the project |
| The investment in Socketworks fits well with IFC’s overall developmental objectives because universities in Africa are essentially devoid of information technology. Computing and internet facilities do not exist. The provision of modern IT equipment is expected to dramatically improve the education provided in Africa because it will enable students and faculty alike to access the latest publications and knowledge from the World Wide Web. It will also improve the efficiency of the administration of African universities, freeing up resources for more productive uses. Similar benefits are expected in the various government departments where SocketWorks has signed or plans to sign contracts. |
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| IFC's expected development contribution |
| IFC will provide longer term (debt and/or equity) financing that is not otherwise available and will also provide assistance to the company as it seeks to expand into other service provision in other industries and geographical markets in Africa. |
| Environmental and social issues - Category C |
| Considering the nature of IFC investment this project has been classified as a Category C project according to IFC's Environmental and Social Review Procedure. No further review is required. |
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| For inquiries about the project, contact: |
Aloy Chife
President/Chief Executive Officer
Socketworks Limited
#20 Admiralty Way
Lekki Phase One
Lagos, Nigeria |
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| For inquiries and comments about IFC, contact: |
General IFC Inquiries
IFC Corporate Relations
2121 Pennsylvania Avenue, NW
Washington DC 20433
Telephone: 202-473-3800
Fax: 202-974-4384
E Mail: Webmaster |
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