SENEGAL – The International Finance Corporation (IFC) and partners British International Investment (BII) and Proparco have announced a financing package for Sonatel to improve essential telecommunications infrastructure in Senegal.
The local currency equivalent €87 million (US$94.4m), sustainability-linked loan includes €32 million (US$34.7m) from IFC, €25 million (US$27.1m) from BII, and €30 million (US$32.5m) from Proparco. The funding will also expand access to reliable, affordable mobile and fixed broadband services.
It will help Sonatel, the largest telecom operator in Senegal, expand its telecommunications infrastructure, including towers and cables, particularly in rural areas.
“This partnership marks a significant milestone in Senegal’s digital development. Together with Sonatel, we are committed to delivering innovative and inclusive solutions that will have a lasting impact on Senegal’s economy and people,” Olivier Buyoya, IFC Regional Director for West Africa, said.
“Our collective vision is to create a digitally enabled future where every individual has access to opportunities and resources, driving forward Senegal’s economic transformation and social progress.”
The financing will be the first sustainable linked facility (SLF) in francophone West Africa. It is designed to link the loan’s pricing to the achievement of measurable objectives, making a significant contribution to sustainable development.
“Investing in the digital infrastructure space is a priority for BII given its importance in addressing economic growth constraints in Africa,” Chris Chijiutomi, managing director and head of Africa at BII, said.
“Our investment in Sonatel will help provide quality and affordable connectivity and directly foster inclusive economic growth, particularly in rural areas.
“It also aligns with our goal to invest more in the Francophone West Africa region. We look forward to working with our partners to connect more people and businesses in the area digitally.”
The SLF sets out ambitious goals for Sonatel in two key areas: increasing the representation of women in management positions in Senegal and expanding the reach of digital skills programs implemented by Sonatel within the country.
“I am thrilled to underscore the significance of our partnership with IFC, British International Investment, and Proparco,” Sekou Dramé, CEO of Sonatel, said.
“Together, we spearhead a transformative journey in Senegal, driving digital innovation and fostering technological advancements that will ultimately elevate our country’s digital landscape.”
The project builds on an existing partnership between IFC and Sonatel. It aligns with Senegal’s ambition to develop sustainable digital infrastructure to modernize its economy.
BII is the UK government’s development finance institution. Proparco is a development finance institution and a subsidiary of the Agence Française de Développement Group.
IFC’s investment is supported by the International Development Association’s (IDA) Private Sector Window Local Currency Facility, which helps provide longer-term, local currency funding for high-impact projects in IDA and fragile and conflict-affected situations where local currency solutions are underdeveloped or absent.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
