This summary covers investments by 4G Africa AG of Switzerland in HTT Telecom S.A. in Cameroon. The investor has applied for MIGA guarantees of €5.2 million ($6.9 million equivalent) for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project involves an equity investment and shareholder loan totaling €5.5 million from 4G Africa AG to its subsidiary HTT Telecom S.A. in Cameroon. The investment will support the establishment of a wireless network to deliver Internet broadband services in three major cities in Cameroon (Douala, Yaoundé, and Edéa).
There are minimal or no adverse environmental or social impacts expected as a result of tower installation and operations, which are based on technology used in other parts of the world. Project installations will be set up in Douala, Yaoundé, and Edéa. At this time, the sponsor does not foresee any construction activities as most of the physical infrastructure will be installed on existing building rooftops through rental leases. Based on this information, physical or economic displacement is not anticipated.
This investment is a Category C project under MIGA’s Policy on Social and Environmental Sustainability.
The main developmental impact would be an improvement in broadband Internet provision in Cameroon’s main cities. The development of HTT Telecom S.A. will lower Internet tariffs and increase service reliability and availability in Cameroon.
Indirectly the project contributes to the continued growth of the Internet sector in Cameroon, which has an impact on GDP growth. It is estimated that a 10-percentage-point increase in broadband Internet penetration generates a 1.38 percentage-point increase in economic growth for low and middle-income economies.
MIGA’s proposed support to this project is consistent with the first theme of the World Bank Group’s Country Assistance Strategy for Cameroon, which focuses on increasing Cameroon’s competitiveness through increased investment in infrastructure, including telecommunications.