Seacom secures $207 million in financing from IFC to expand its network and services in Africa
June 25th 2023
Seacom had been negotiating IFC financial support since May 2021 as part of its expansion in Africa. The total cost of the project is estimated at approximately 563 million USD.
The International Finance Corporation (IFC), a branch of the World Bank focused on financing the private sector in emerging countries, announced on Thursday June 22 that it had granted a long-term loan of $207 million to the digital infrastructure company and of Seacom computer services. The latter will use the funds to expand the coverage of its fiber optic network and cloud-based services in seven countries in sub-Saharan Africa.
IFC’s financing includes $70 million from the financial institution’s own funds, $42.24 million in co-financing mobilized from institutional investors and the equivalent of $94.76 million mobilized from Nedbank Limited and Mauritius Commercial Bank.
This investment is the culmination of negotiations initiated since May 2022 between the IFC and Seacom. It is part of the company’s expansion strategy in sub-Saharan Africa in a context marked by the acceleration of digital transformation as well as an ever-increasing demand for broadband connectivity and digital services. Seacom had conducted a study in 2019 on the market potential of fiber optic services in Tanzania, Uganda, Kenya and Rwanda, with funding from the United States Trade and Development Agency (USTDA). The total cost of the project is estimated at approximately $563 million.
“ Continuing our ambition to expand in Africa will enable our business to take advantage of the opportunities created by the growing demand for digital services; it is also a demonstration of a long-term partnership with the IFC ,” said Richard Schumacher, chief financial officer of Seacom.
For its part, the IFC estimates that its investment will increase access to quality IT services for African businesses, enabling Seacom to support the digital transformation of 24,000 businesses in the region by 2027, including in the low-income countries, by increasing access to the Internet and to cloud and cybersecurity services.
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