Orange Centrafrique S.A. (Orange RCA)

MIGA has issued a guarantee of $37.9 million to Orange Participations S.A. of France, covering 90 percent of its equity investment (including retained earnings) in Orange Centrafrique S.A. The guarantee is for a period of up to 20 years and will protect the investment against the risks of transfer restriction, expropriation, war and civil disturbance, and breach of contract.

The project involves the installation, operation and maintenance of a state-of-the-art telecommunications network operating on 100 percent digital GSM technology—critical to Central African Republic’s economic development. Subscribers are expected to benefit from more reliable service and reduced costs due to increased competition and diverse product offerings.

The project will also set up Internet services in the country. Affordable and dependable Internet services are especially important for businesses, residential customers, and government offices in a landlocked country like the Central African Republic. In many ways, access to the Internet will contribute to the country’s integration into regional and global trade and investment.

The project will also support the growth of other industries, including urban transportation (taxi drivers), advertising companies, print shops, information technology and software companies, construction firms, and various other retail and service companies. Government revenues from the project will include taxes and fees, in addition to the license fee.

This project is aligned with the World Bank Group’s efforts to address economic recovery in the Central African Republic. The country is one of the poorest in the world. Overall growth has been hampered by the country's landlocked position, poor transport system and largely unskilled workforce.

This is the first project guaranteed by MIGA in the Central African Republic. MIGA’s participation in the project supports several agency priorities, including investment in an IDA-eligible country in sub-Saharan Africa, and investment in infrastructure.