The International Finance Corporation (IFC) has announced a new financing initiative for three subsidiaries of Airtel Africa plc, aimed at expanding high-speed mobile connectivity to over 37 million subscribers across sub-Saharan Africa. The $200 million loan will enable Airtel Africa to enhance its network and distribution infrastructure, with a particular focus on serving rural areas.
Closing Africa’s Connectivity Gap
Access to high-speed mobile internet remains a significant challenge in Africa, with approximately 600 million people lacking 4G coverage. Many countries in sub-Saharan Africa have mobile internet access and network performance below regional averages, hindering economic growth and digital inclusion. Despite this gap, around 86% of businesses on the continent rely on mobile phones for their operations, highlighting the critical need for improved connectivity. IFC’s financing to Airtel Africa aims to address these issues, supporting the continent’s digital transformation.
A Sustainability-Linked Loan to Drive Inclusion
The $200 million financing is structured as a sustainability-linked loan, focusing on three key performance indicators tied to Airtel Africa’s sustainability strategy:
- Digital Connectivity – Promoting smartphone adoption rates to increase access to digital services.
- Financial Inclusion for Women – Enhancing financial access for women through mobile banking services.
- Gender Balance – Encouraging gender equality within Airtel Africa’s management team.
These focus areas are essential to bridging Africa’s digital divide and fostering equitable economic growth. IFC’s loan is predominantly denominated in local currency, a strategic move to mitigate the risks associated with currency volatility in the region.
The Impact of Expanded Connectivity
Enhanced digital connectivity not only provides more people with internet access but also creates opportunities for economic development. Mary Porter Peschka, IFC’s Regional Director for Eastern Africa, emphasized the importance of this partnership: “IFC’s partnership with Airtel is critical to expanding high-speed connectivity in Africa. Better connectivity means more opportunity. Our work with Airtel will help millions more people not only to come online but also gain access to high-speed networks so that they can better leverage the digital economy opportunities.”
Empowering Financial and Gender Inclusion
In many parts of East Africa, traditional banking infrastructure is limited, making mobile network operators the primary providers of financial services. This is particularly important for women, who rely heavily on mobile banking for financial transactions. By expanding its network, Airtel Africa aims to strengthen the mobile money ecosystem in partnership with local and regional financial institutions, thus enhancing economic empowerment for women and underserved communities.
Sunil Taldar, Group CEO of Airtel Africa, highlighted the significance of this collaboration: “The expansion of our network is critical to our ambition of bridging the digital divide across Africa. This ambition can only be unlocked through continued investment into the region, and we welcome the partnership with IFC to enable this and further support our sustainability strategy of transforming lives and building better futures for communities across Africa.”
