Airtel Africa, a major telecom operator in Africa, has got a loan from the International Finance Corporation (IFC) of $194 million. The loan is meant to help the telco in providing connectivity services in Africa to millions of users. According to a release from the IFC, a sum of $194 million is given to Airtel Africa in local currency. Six subsidiaries of Airtel Africa will get this loan. As per data from GSMA, less than half of sub-Saharan Africa's population had access to mobile services at the end of 2021. At the same time, only 28% of the population had access to the mobile internet.
Airtel Africa has received this loan for a tenure of eight years from the IFC. The funds will be used to support Airtel's efforts and operations in Kenya, Madagascar, the Democratic Republic of Congo, Zambia, the Republic of Congo and Niger. The banking landscape in all these regions is largely underdeveloped, and thus Airtel had to seek out a loan from IFC.
Segun Ogunsanya, CEO of Airtel Africa, said, "I am very excited to announce the signing of this new facility with IFC. Not only does this facility align with our focus on improving our balance sheet through localising debt within our operating companies, but it also supports our commitment and our ability to meet very strict ESG criteria in demonstration of the continued execution of our sustainability journey."
Airtel Africa has also agreed to comply with the applicable requirements of IFC's Performance Standards on Social and Environmental Sustainability. Airtel will be able to expand services to more regions of Africa and boost investment to upgrade infrastructure with this loan.