By Charles Muchoki | Africa Guardian
The International Finance Corporation (IFC) has extended new financing to three of Airtel Africa plc’s subsidiaries, aiming to enhance high-speed mobile connectivity for over 37 million users across sub-Saharan Africa. The $200 million loan from IFC will be used to expand and modernize Airtel Africa’s network infrastructure, with a significant focus on improving access in rural areas.
Currently, around 600 million people in Africa lack access to 4G mobile coverage. In many sub-Saharan countries, mobile internet availability and network performance fall below regional averages. Despite these challenges, up to 86% of businesses on the continent rely on mobile phones for their operations, as highlighted in IFC’s recent report on digital connectivity in Africa. The financing from IFC is designed to help bridge this connectivity gap.
The funding will be structured as a sustainability-linked loan, with key performance indicators aligned with Airtel Africa’s sustainability goals. These include increasing smartphone adoption, enhancing financial inclusion for women, and promoting gender balance within Airtel Africa’s management team.
By focusing on these areas, the financing will contribute to closing the digital divide in Africa and support broader goals of equitable economic opportunities, poverty reduction, and financial stability across the continent. A significant portion of the loan will be denominated in local currencies, which IFC has provided to mitigate the risks associated with currency fluctuations.
“IFC’s partnership with Airtel is crucial for expanding high-speed connectivity in Africa,” said Mary Porter Peschka, IFC’s Regional Director for Eastern Africa. “Improved connectivity creates more opportunities. Through our collaboration with Airtel, millions more people will gain access to high-speed networks, enabling them to fully participate in the digital economy.”
In East Africa, where traditional banking infrastructure is limited, mobile network operators often serve as the primary providers of financial services. This is especially true for women, who rely heavily on mobile banking. Enhancing digital connectivity, therefore, not only promotes financial inclusion but also empowers women economically. Airtel Africa plans to collaborate with local and regional financial institutions to further develop the mobile money ecosystem, offering additional financial services to customers across the region and boosting women’s economic empowerment.
Airtel Africa’s Group CEO, Sunil Taldar, emphasized the importance of network expansion in achieving the company’s goal of bridging Africa’s digital divide. “Our ambition to close the digital divide across Africa depends on sustained investment in the region, and we are pleased to partner with IFC to advance this goal and support our sustainability strategy of transforming lives and building better futures for communities across Africa,” Taldar said.
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