MIGA Facilitates Expansion of Telecom Services in Liberia
Washington, November 27, 2023 – The Multilateral Investment Guarantee Agency of the World Bank (MIGA) has issued a guarantee of $81 million to Orange Cote d’Ivoire Participations (OCIP) to cover its existing equity investment and future retained earnings as an additional investment to expand telecom operations in Liberia. The MIGA guarantee protects the company against the risks of expropriation and war and civil disturbance for up to eight years. OCIP acquired an existing telecom company in Liberia and plans to expand its telecom operations, including construction of telecom towers and installation of fiber optic cable, allowing it to increase telecom services and mobile finance services.
Liberia’s social and economic development has been constrained by poorly developed telecom infrastructure and services. Recognizing the importance of information and communication technology as a driver for the country’s social and economic development, the government of Liberia has made the telecom sector a priority for development. Although good progress has been made over the past two decades, the country’s telecom coverage is still among the lowest in the African region. As of January 2022, the mobile and internet penetration rates stood at around 70 percent and 22 percent, respectively.
“MIGA is confident that after completion of this project, the people of Liberia will enjoy improved access to, and enhanced quality of, telecom services. In addition, expanded mobile money services may increase income opportunities for underserved communities in Liberia,” said Hiroshi Matano, Executive Vice President of MIGA. “We know from experience that improved access to mobile services can significantly better the livelihoods of rural populations and facilitate financial inclusion.”
OCIP’s plans include establishing 450 telecom towers in rural areas by 2026 (including 74 MIGA-covered towers). A significant part of its fiber optic cable extension will flow from coastal areas through the interior of Liberia to the borders of neighboring countries. In Liberia, only half of rural households have a mobile phone compared to four-fifths of urban households. Less than one-fifth of the population lives within 50km of a national transmission link.
High capital and operational costs and low disposable income render network services unviable in many areas on their own. The lack of a reliable electricity grid and bad roads create additional hurdles for rural mobile connectivity. OCIP expansion plans address some of these barriers to access and will result in expanded telecom service in rural areas across Liberia.
“The MIGA guarantee enables us to expand and enhance the quality of telecom services for Liberians and bolster digital connectivity. This project represents an important step toward the digitalization of Liberia’s economy,” said Jean Marius Yao, Managing Director of Orange Liberia. “MIGA support is crucial for multinational companies seeking to expand their operations in challenging environments.”
MIGA is also working with OCIP to increase women’s participation in management and technical/digital roles, which will support female employment and leadership. OCIP has agreed to implement a gender action plan to support female employment and leadership development. In addition, OCIP will implement interventions aimed at increasing women’s access to mobile phones, mobile internet, and mobile money services. These efforts will help narrow the gender digital divide and increase female financial inclusion.
About MIGA
MIGA was created in 1988 as a member of the World Bank to promote foreign direct investment in emerging economies by helping to mitigate the risks of restrictions on currency conversion and transfer, breach of contract by governments, expropriation, and war and civil disturbance; and offering credit enhancement to private investors and lenders. Since its creation, MIGA has issued over $76 billion in guarantees across 123 developing countries, supporting more than 1,000 projects. Over the past decade, MIGA’s guarantees have generated more than 156,000 jobs in developing countries.
About Orange Cote d’Ivoire Participations
Orange Cote d’Ivoire Participations was created in 2016. The purpose of the company is the acquisition of shares in companies created or to be created, particularly in the sector of telecommunications, information and communication technologies, electronic communications in general and any commercial activity using electronic communications. It is owned by Orange Côte d’Ivoire (OCI) and is a holding company and carrier of OCI’s external development projects.
Contact:
In Washington:
Elizabeth Howton, +1 (202) 458-5922 or ehowton@worldbankgroup.org
For more information, please visit: https://www.miga.org
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