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Central African Republic

Telecel CAR

$22 million

Project Facts

Project Facts

Project Facts

Guarantee Holder
Finnish Fund for Industrial Cooperation Ltd. (Finnfund)
Investeringsfonden for Udviklingslande (IFU)
Investor Country
Environmental Category
Date SPG Disclosed
October 30, 2018
Projected Board Date
December 14, 2018
Project Type

Project Description

This summary covers a contemplated investment by Investeringsfonden for Udviklingslande (IFU), and an investment by Finnish Fund for Industrial Cooperation Ltd. (Finnfund), into the project enterprise incorporated in Central African Republic, Telecel Centrafrique S.A. The project involves upgrade and deployment of the telecom infrastructure, including rolling out of 30 3G and 4G sites in Bangui and other parts of CAR and deployment of fiberoptics for the first time in the country. 

IFU and Finnfund have each applied for MIGA guarantees covering up to US$11 million of their debt investment into the project. The guarantees will have a term of up to 7 years, providing coverage against the risks of transfer restriction, expropriation and war and civil disturbance.

IFU and Finnfund's investments are subject to internal approval.

MIGA’s risk exposure under the guarantees is proposed to be shared with the IDA Private Sector Window (PSW) under the MIGA guarantee facility (MGF).

Environmental Categorization

The project is a category B under MIGA’s Policy on Environmental and Social Sustainability. Click here to view the Environmental and Social Review Summary prepared by the IFC for their investment in the project.

Development Impact

The primary development impact of the project will be development of telecom market and increasing mobile penetration (current mobile/internet penetration in CAR is 23%/4.6% and there is zero 4G capacity). It will have a very strong development reach (CAR is a low-income IDA and FCS country recovering from a history of political and military crises). The project will also have a very strong demonstration effect, as it is likely that the project will result in increased investments by other operations in the country to also upgrade their networks to 4G.