Projects
Summary of proposed guarantee
Summaries of proposed guarantees are provided prior to Board consideration and before final contract signing, and they are therefore subject to change. Project briefs are disclosed after Board consideration and contract signing and reflect the terms of the project at the time of contract signature. Environmental and Social Review Summaries are provided for projects assigned an Environmental Assessment Category of A or B.
- Project name
- Comzatel Mozambique
- Project ID
- 11079
- Fiscal year
- 2013
- Status
- Proposed
- Guarantee holder
-
Comzatel International Gmbh
- Investor country
-
Germany
- Host country
-
Mozambique
- Environmental category
- C
- Sector
-
Telecommunications
- Date SPG disclosed
- November 05, 2012
- Projected Board date
- November 19, 2012
- Gross exposure
- $12.4 million
- Project type
- Non-SIP
- Strategic priority area
-
IDA
This summary covers an investment of €9.5 million (about $12.4 million) by Comzatel International GmbH of Germany in Comzatel Mozambique. The investor has applied for a MIGA guarantee on the investment amount for a period of up to five years against the risks of transfer restriction, expropriation, and war and civil disturbance.
Comzatel Mozambique is a small internet service provider, providing internet and data service to businesses and individuals. Comzatel International's increased capital investment will expand the existing network by increasing its geographical spread, improving its density, and acquiring new technology.
Environmental Categorization:
The project is a category C under MIGA's Policy on Social and Environmental Sustainability.
Development Impact
The project is expected to broaden Mozambique's information, communications, and telecommunications sector by providing broadband internet service across most parts of the country. The provision of high-speed connectivity and increased competition in the sector is already resulting in lower internet tariffs, increased reliability, and improved service. In addition, investment in new technologies, such as WiMAX, will also create a demonstration effect for other operators to invest in new capability, leading to enhanced knowledge and skills and increased private sector productivity. This project is aligned with the World Bank Group's Country Partnership Strategy for Mozambique, which notes a need for further development of the country's internet market. It is also aligned with MIGA's priority of supporting investments into countries eligible for concessional lending from the International Development Association.
