Societe Mauritano-Tunisienne des Telecommunications (MATTEL)

MIGA provided guarantees totaling $55.8 million to the Office National des Telecommunications (Tunisie Telecom) of Tunisia, for its $70.1 million equity investment in, and loan guaranties to the Societe Mauritano-Tunisienne des Telecommunications (MATTEL) in Mauritania. The coverages are for 15 years for the equity and eight years for the loan guaranties, and are against the risks of transfer restriction, expropriation, and war and civil disturbance.^[1]

Until the year 2000, Mauritania had only one phone operator, the national telecom provider, which had a capacity of approximately 32,000 fixed lines, serving a population of 2.5 million people. In 1998, with the assistance of the World Bank, the Mauritanian government initiated a telecommunications reform process aimed at improving the availability of telecommunications services through the liberalization of the market and the introduction of private sector participants. In May 2000, through a competitive bidding process, the government awarded the first mobile telephone operating license to MATTEL, and it is this project that MIGA is supporting.

The project, the first that MIGA has supported in Mauritania, involves the installation, operation, and maintenance of a new Global System for Mobile Communication (GSM) telephone network. The project intends to increase teledensity from 0.6 percent as of 2000 (among the lowest in the world), to 4 percent by end-2002. As well as expanding the scope of service, the improvement in quality will be an important positive development for the local business community. MATTEL, which paid $28 million in upfront license fees, will be paying $150,000 equivalent per year in frequency and regulatory fees to the government. The project anticipates providing employment for 64 people, who will benefit from extensive training in telecommunication operations, as well as marketing and sales skills. MATTEL will also indirectly benefit local businesses through the local procurement of various goods and services.

^[1] The guarantee was expired on March 30, 2017.