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Seacom plans $563mn expansion in West and East Africa for digital growth

Friday, 23 February 2024 17:14
Seacom plans $563mn expansion in West and East Africa for digital growth

(Ecofin Agency) - In 2019, Seacom conducted a study on the market potential for fiber optic services in Tanzania, Uganda, Kenya, and Rwanda, with funding from the United States Trade and Development Agency (USTDA).

The digital infrastructure and IT services company, Seacom, is set to begin expanding its operations in West and East Africa, Alpheus Mangale, the company's CEO, revealed in a recent interview with Business Day.

Through this initiative, the company is seeking to extend its footprint across Sub-Saharan Africa amid an accelerating digital transformation and an ever-increasing demand for high-speed connectivity and digital services. To implement this strategy, the company says it needs around $563 million but has already secured a $207 million loan from the International Finance Corporation (IFC) in June 2023.

Seacom based its expansion plan on acquisitions. In October 2021, the company acquired the network of Kenyan fiber optic operator Hirani Telecom. In February 2022, it also purchased infrastructure from the telecom operator Africell in Uganda, including 760 kilometers of fiber optic cable and a data center. In April 2022, Seacom invested 144.9 million South African Rand (about $7.7 million) to acquire Network Solutions and Hymax subsidiaries from the South African telecom solutions provider EOH.

According to the IFC, Seacom's expansion into Sub-Saharan Africa is expected to support the digital transformation of 24,000 businesses in the region by 2027. This initiative will also help increase access to the internet and cloud and cybersecurity services. Moreover, the company aims to boost its revenue by capitalizing on the expected surge in demand for high-speed connectivity, among other services. The Global System for Mobile Communications Association (GSMA) estimates that the number of mobile internet users in the region will increase from 287 million in 2022 to 438 million by 2030.



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ECOFIN AGENCY offers a selection of articles translated from AGENCE ECOFIN. Founded in 2011, Agence Ecofin is a leader in Francophone Pan-African economic news, particularly in West and Central Africa. The agency publishes daily news on nine African economic sectors: Public Management, Finance, ICT, Agribusiness, Energy, Mining, Transport & Logistics, Communication, and Training.

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