Maroc Telecom negotiates a €375 million loan from the IFC to support its activities in sub-Saharan Africa
July 9th 2023
Maroc Telecom is seeking to strengthen the capacities of its subsidiaries in sub-Saharan Africa, while its growth is limited in its domestic market. The company recently invested €150 million in the construction of a new fiber optic submarine cable.
The Moroccan telecommunications company Itissalat Al Maghrib (Maroc Telecom) is negotiating financing of 375 million euros with the International Finance Corporation (IFC). The arm of the World Bank focused on financing the private sector in emerging countries will decide on the issue at the next meeting of its Board of Directors scheduled for July 27, 2023.
Maroc Telecom needs this loan to support the activities of 8 subsidiaries in sub-Saharan African countries, namely Benin, Burkina Faso, Côte d’Ivoire, Gabon, Mali, Niger, Chad and Togo. The funds will be used to refinance the existing debt of these subsidiaries and finance their capital expenditure, maintenance and expansion, including the acquisition and renewal of licenses.
They have indeed become a major factor in the growth of the telecom group, which is subject to strong competition in its domestic market. In the first quarter of 2023, the subsidiaries generated revenue of 4.6 billion dirhams (approximately 473.5 million USD), up 7.3%, compared to 4.7 billion dirhams (approximately 484 million USD ) for activities in Morocco (up 0.6%).
The operator recently invested 150 million euros in the construction of a new fiber optic submarine cable called “West Africa”. 9,414 km long, the infrastructure connects Maroc Telecom subsidiaries as well as operators in the West African region to the international optical loop in Europe.
“ The project is expected to improve access to quality mobile connectivity for individuals and businesses, which could boost GDP growth and create jobs through efficiency gains, innovation and inclusion. , and strengthen the competitiveness of the mobile connectivity market in each of the target countries by encouraging technological innovation or improving the affordability of services, ” the IFC said.
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