Telecom

Airtel Africa Negotiates $200 Million Loan for Network Expansion

Airtel Africa Negotiates $200 Million Loan for Network Expansion
Friday, 03 May 2024 17:28

Telecom company Airtel Africa is in talks for a $200 million loan from the International Finance Corporation (IFC), the World Bank's arm focused on financing private sector ventures in emerging markets. The African subsidiary of Bharti Airtel plans to utilize the funds to cover its capital expenditure (CAPEX) requirements and refinance existing debt in the Democratic Republic of Congo (DRC), Rwanda, and Kenya.

In an April 30 statement, the IFC outlined that the CAPEX component will be directed towards modernizing Airtel Africa's telecom network. This includes purchasing active equipment for 4G sites such as antennas, software upgrades, packet core, and base transceiver station. The telecom company will also bolster its fiber optic capacity.

In December 2022, Airtel Africa already secured an initial $194 million financing from the IFC to support its operations in the DRC, Kenya, Madagascar, Niger, and Zambia. This initiative aligns with the telecom group's growth strategy amid heightened competition in the African telecom market. The company also aims to strengthen its balance sheet by consistently reducing group debt and localizing it within operating companies. In its financial results for the third quarter of 2023, the company set May 2024 as the deadline for full repayment of group debt.

As a reminder, Airtel Africa operates in 14 markets with 151.2 million customers as of the third quarter of 2023. In Rwanda, the company boasts 5 million subscribers with a 38.6% market share, compared to its sole competitor MTN's 61.4%, according to the Rwanda Utilities Regulatory Authority. In the DRC, Airtel holds a 29.02% market share against Vodacom (38.92%), Orange (25.64%), and Africell (6.42%), according to telecom regulators. In Kenya, Airtel commands a 29% market share, while its main rival Safaricom holds 65.9%, as per the data from the Communications Authority.

On the same topic
• PowerTel and Paratus Zimbabwe partner to deploy high-capacity national fiber network• First phase to connect Plumtree, Bulawayo, and Livingstone within...
• FDSUT calls for increased funding to expand digital connectivity projects• 1,550 localities to be connected to 4G by 2028, reaching 2.6 million people•...
• Kurudy Inc presents investment platform to Burkina Faso's digital transition minister• Platform targets strategic sectors: agriculture, real estate,...
This partnership directly targets one of Africa’s most persistent development challenges: the lack of reliable and affordable internet access,...
Most Read
01

• Maritime sector faces renewed risks amid military tensions in the Middle East• Blockade fears at S...

Israel-Iran conflict raises new threats for global shipping and oil trade
02

This launch is a significant milestone that highlights Rwanda's ongoing digital transformation. With...

MTN Rwanda Launches 5G Network in Kigali, Paving Way for Nationwide Expansion
03

Egypt signs deals to import up to 290 LNG cargoes over 30 months, starting in July Trafigura,...

Egypt secures 290 LNG shipments ahead of peak summer electricity demand
04

• WAEMU’s inflation dropped from 2.2% in March to 1.5% in April 2025• BCEAO attributes the decline t...

WAEMU Inflation Rate Falls to 1.5% in April 2025
05

Government unveils plan to boost cybersecurity after attacks on public platforms Measures inc...

Morocco launches new cybersecurity strategy as attacks on state systems rise
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

Benjamin FLAUX
bf@agenceecofin.com 
Téls: +41 22 301 96 11 
Mob: +41 78 699 13 72
Média kit : Download

EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.