(Ecofin Agency) - Seacom had been negotiating IFC financial assistance for an about $563 million African expansion project. 

The International Finance Corporation (IFC) announced Thursday (June 22) that it had granted a long-term loan of $207 million to digital infrastructure and IT services company Seacom. The latter will use the funds to expand the coverage of its fiber optic network and cloud-based services in seven sub-Saharan African countries.

The IFC financing comprises $70 million from the financial institution's funds, $42.24 million in co-financing raised from institutional investors, and the equivalent of $94.76 million raised from Nedbank Limited and Mauritius Commercial Bank.

This investment is the culmination of negotiations initiated in May 2022 between IFC and Seacom. It is part of the company's expansion strategy in sub-Saharan Africa, in a context marked by accelerating digital transformation and ever-increasing demand for high-speed connectivity and digital services. In 2019, Seacom conducted a market potential study for fiber optic services in Tanzania, Uganda, Kenya, and Rwanda, with funding from the United States Trade and Development Agency (USTDA). The total cost of its expansion project is estimated at around $563 million.

“Pursuing our expansion ambition in Africa will allow our company to leverage the opportunities created by the increasing demand for digital services; it is also a demonstration of a long-term partnership with the IFC,” said Richard Schumacher, Seacom’s chief financial officer. 

IFC believes its investment will increase access to quality IT services for African businesses. The institution says it will enable Seacom to support the digital transformation of 24,000 businesses in the region by 2027, including in low-income countries, by increasing access to the Internet, cloud, and cybersecurity services.

Isaac K. Kassouwi