On June 29, 2012, MIGA issued guarantees of $6.5 million covering investments by 4G Africa AG of Switzerland in HTT Telecom S.A. in Cameroon. The coverage is 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 a 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).
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 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.