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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.

 
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