Africell Secures $28 Million from EAAIF for Digital Infrastructure Across Africa
In an exciting move for Africa’s digital landscape, the Emerging Africa and Asia Infrastructure Fund (EAAIF) has invested $28 million in Africell, supporting the mobile network’s ambitious infrastructure plans. This substantial funding contributes to Africell’s first-ever $300 million capital market bond, which is designed to fuel connectivity in four African nations: Angola, the Democratic Republic of Congo (DRC), The Gambia, and Sierra Leone.
The investment will help Africell accelerate its network capabilities, delivering greater mobile and data connectivity to an estimated 14 million subscribers. Let’s break down what this investment means, both for Africell and the broader African tech market.
The Role of EAAIF in Africell’s Expansion
Africell’s bond issuance is a milestone, not just for the company but for Africa’s financial markets. The EAAIF’s commitment of $28 million was part of an oversubscribed bond that attracted over $550 million in orders. This enthusiasm allowed EAAIF to reduce its original anchor commitment from $40 million, paving the way for other international investors to participate.
Why This Matters
- Investor Confidence: EAAIF’s involvement encouraged more investors to join, showing how anchor investors can drive market confidence.
- Boost to Capital Markets: Africell’s debut bond also marks a major first—it’s the first corporate bond issuance in both The Gambia and Sierra Leone, expanding these markets.
- Private Capital Mobilisation: This project embodies EAAIF’s mission to bring private capital to regions with untapped potential, making it a unique opportunity for investors.
Africell: A Game-Changer in African Connectivity
Since its inception, Africell has been at the forefront of telecommunication services in Africa. Known for offering affordable, high-quality connectivity, the company has become a vital player in digital growth across four countries. With the demand for mobile and internet access rapidly increasing, Africell’s expansion couldn’t come at a better time.
The $28 Million Impact
The $28 million injection will allow Africell to:
- Upgrade Infrastructure: Ensuring robust infrastructure for faster, more reliable service.
- Expand Connectivity: Reaching millions more people who lack dependable internet access.
- Create Economic Opportunities: Access to the internet opens doors to job creation, online education, and e-commerce, transforming local economies.
EAAIF’s Strategic Focus on Africa’s Growth Markets
The EAAIF, managed by Ninety One Group, a subsidiary of Private Infrastructure Development Group (PIDG), is deeply committed to Africa’s development. Ninety One’s focus is on projects that drive capital market growth and attract international private capital into emerging markets.
Why Africa’s Capital Markets?
- Underrepresented in Global Bonds: In 2020, sub-Saharan Africa (excluding South Africa) contributed only 0.02% to global bond markets. This creates a huge opportunity for African businesses and investors to leverage debt capital for growth.
- Diverse Investment Pool: By involving private international investors, Africa can attract new funding sources, diversifying away from government or foreign aid dependence.
- Private Capital for Public Needs: Investing in telecoms, energy, and infrastructure brings direct benefits to low and middle-income countries, aligning with Ninety One’s commitment to social and economic development.
How Africell’s Bond is Transforming Four Nations
Africell’s expansion across Angola, the DRC, The Gambia, and Sierra Leone highlights the transformative power of capital market funding. In these countries, where digital access varies significantly, Africell’s investment in digital infrastructure will enable millions to participate in the digital economy.
What This Means for Each Country
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Angola: As one of Africa’s fastest-growing economies, Angola is ripe for increased digital connectivity. Africell’s infrastructure will support new digital businesses, creating jobs and economic growth.
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DRC: The DRC’s size and population make it a challenging yet promising market. With improved network capabilities, Africell can connect people across vast regions, transforming education, healthcare, and commerce.
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The Gambia: Africell’s bond issuance is groundbreaking here. The increased connectivity will empower small businesses and local entrepreneurs, fueling the economy.
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Sierra Leone: This bond also marks a first for Sierra Leone’s capital markets. With expanded internet services, Africell is poised to impact agriculture, health services, and digital learning.
The Broader Impact: Financial Services and Market Development
Beyond Africell, this bond represents a leap forward for Africa’s financial services sector. By diversifying funding sources and bringing private investors into the fold, Africell and EAAIF are transforming African capital markets. The success of Africell’s bond will pave the way for more international investments, deepening financial markets in the region and showcasing the opportunities in African businesses.
A Transformational Moment for Private Capital
Tidiane Doucoure, director of emerging market alternative credit at Ninety One, highlighted that mobilising private capital is key to unlocking economic growth in emerging markets. With trillions of dollars available in developed markets, Africa presents a compelling opportunity for growth-focused investments.
“We believe in the development of capital markets and the mobilisation of private capital,” said Doucoure. He emphasised the vast untapped potential of emerging markets, which are home to over six billion people, many of whom stand to benefit from better access to digital services.
What’s Next for Africell and EAAIF?
As Africell pushes forward with its capital expenditure plans, the demand for digital infrastructure across Africa shows no signs of slowing. The success of this bond signals growing interest in Africa’s telecom sector, with investors recognising its critical role in economic empowerment and social progress.
Africell’s future plans include:
- Scaling Network Operations: Reaching underserved communities to bridge the digital divide.
- Enhancing Customer Experience: Improving services and exploring new digital solutions.
- Fostering Economic Growth: By connecting millions more people, Africell is setting the stage for widespread economic benefits.
