IFC has partnered with a digital infrastructure and IT services firm, SEACOM, to expand its broadband cable network and cloud-based product offering in sub-Saharan Africa, with the goal of increasing broadband access in Africa and the availability of IT services for small and medium-sized enterprises.
Together, Nedbank Limited and Mauritius Commercial Bank, along with IFC’s own financing of $70 million, $42.24 million in co-financing mobilised from institutional investors through IFC’s Managed Co-Lending Portfolio Programme (MCPP), and $94.76 million in equivalent mobilised, are providing SEACOM with a $207 million long-term loan package under the partnership.
Cloud computing, SEACOM’s broadband submarine cable network, and fibre in key African cities allow the company to provide services to businesses in Djibouti, Kenya, Mozambique, Rwanda, South Africa, Tanzania, and Uganda. The funding will help SEACOM realise its vision of being a fully-fledged provider of broadband access and cutting-edge cloud-based information technology services.
By increasing access to the internet, cloud, and cybersecurity services, IFC expects SEACOM to be able to support the digital transformation of 24,000 enterprises in the region by 2027, including in low-income countries. Working with SEACOM is another way IFC contributes to bridging Africa’s digital connectivity gap.
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Bringing dependable and inexpensive network access to Africa
According to Richard Schumacher, Group Chief Financial Officer at SEACOM, “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.”
According to Sarvesh Suri, IFC’s Regional Director for Infrastructure and Natural Resources in Africa, “access to affordable, good-quality internet is central to economic and social development.” By working together, SEACOM and the corporation will be able to build up Africa’s digital infrastructure and provide cloud-based services that will help link more people and companies.
The goal of IFC’s digital strategy in Africa is to bring about widespread, dependable, and inexpensive network access. This largely entails providing financial backing to mobile carriers in fragile states and low-income International Development Association (LIC-IDA) nations, as well as investing in the expansion of independent tower operators, data centres, and the internet.
IFC has invested and mobilised about $7 billion in digital infrastructure and services over the last decade. As part of its investment strategy, IFC advises its portfolio companies on how to better manage their operations and comply with applicable environmental and social norms.
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About SEACOM
SEACOM operates Africa’s most extensive network of information and communications technology (ICT) infrastructure, including multiple subsea cables and secure internet connections tracing both sides of the continent. This is partnered with broad terrestrial fibre networks in Southern and East Africa, extending services to these regions.
Today, SEACOM provides holistic ICT solutions covering connectivity, cyber security, cloud, smart networking and communication products that provide African businesses with the necessary building blocks to deliver world-class solutions to their clients. We are privately owned and operated, making us agile and adaptable to the needs of our customers.