- The combined €87 million financing package will help the company expand telecoms infrastructure including towers and cables in rural areas.
- It will provide reliable and affordable mobile and internet services to people in Senegal.
- This is the first sustainability-linked financing in Francophone West African region, designed to link loan pricing with developmental outcomes for female empowerment and capability building for the local workforce.
British International Investment (BII), the UK’s development finance institution and impact investor, is committing XOF16.4 billion (€25 million) in debt financing to Sonatel, the largest telecommunications operator in Senegal.
It is part of a XOF57.07 billion (€87 million), sustainability-linked facility in partnership with International Finance Corporation (IFC) and Proparco.
While the funding will be used to improve essential telecom infrastructure, particularly in rural areas, the investment structure is designed to link the pricing of the loan to the achievement of measurable development goals.
It sets out ambitious goals for Sonatel in two areas: increasing the representation of women in management positions in Senegal and expanding the reach of digital skills programs implemented by Sonatel within the country.
Sekou Dramé, CEO of Sonatel, said, “I am thrilled to underscore the significance of our partnership with IFC, British International Investment, and Proparco. Together, we spearhead a transformative journey in Senegal, driving digital innovation and fostering technological advancements that will ultimately elevate our country’s digital landscape.”
Chris Chijiutomi, Managing Director, and Head of Africa at BII, said, “Investing in the digital infrastructure space is a priority for BII given its importance to address economic growth constraints in Africa. Our investment in Sonatel will help provide quality and affordable connectivity and directly foster inclusive economic growth, particularly in rural areas. It also aligns with our goal to invest more in the Francophone West Africa region. We look forward to working with our partners to digitally connect more people and businesses in the area.”
Françoise Lombard, CEO of Proparco, said, “We are thrilled to support Sonatel’s investments in Senegal’s digital infrastructure to improve the quality of service and expand the geographical reach of the digital network in the country. While improving customer experience, investments in innovative solutions should eventually boost economic opportunities in Senegal. We are also supportive of Sonatel’s commitment to provide ambitious training program targeting entrepreneurs and start-ups as well as to push for a higher representation of women in management positions.”
Olivier Buyoya, IFC Regional Director for West Africa, said, “This partnership marks a significant milestone in Senegal’s digital development. Together with Sonatel, we are committed to delivering innovative and inclusive solutions that will have a lasting impact on Senegal’s economy and people. Our collective vision is to create a digitally enabled future where every individual has access to opportunities and resources, driving forward Senegal’s economic transformation and social progress.”
