By Hajaratu Kalokoh
The telecoms operator Africell and the Oversees Private Investment Corporation (OPIC) of the United States government have confirmed a US$100 million financing agreement meant to expand the compamy's operations.
The agreement which took over a year to materialize, began with the signing in November 2018 and concluded in May 2019.
The confirmation ceremony was done on Tuesday at a ceremony in the US Embassy in Freetown.
Africell is a subsidiary of the Lebanon-based Lintel Holdings. The operator, first established in The Gambia in 2001, currently has operations in Sierra Leone, the Democratic Republic of Congo, and Uganda.
Africel said the funds will be used to expand the availability, reach, coverage and quality of its services, in addition to other associated value added services like mobile payment, micro finance, and micro insurance across its Africa operations.
Ziad Dalloul, Founder and Chairman of Africel Holding Limited, said at the confirmation ceremony that his company is at the forefront of the evolving landscape of African communications, data and technology enabled services.
“Together with OPIC and our stakeholders, we are continuously investing in new solutions which drive development and improve our customers experience,” he said in a statement at the ceremony.
Since its establishment in 2001, Africell has become one of the fastest growing mobile telecommunication operations in Africa with a focus and skillset tailored for operations in the frontier market.
It started operations in Sierra Leone in 2005 and has grown to become one of the leading network providers in the country.
Maria E. Brewer, US Ambassador to Sierra Leone, noted that the $100 million financing is part of the U S Government’s commitment, which highlights the longstanding supports of the USA to Sierra Leone across different sectors.
The embassy facilitated the negotiation for the agreement between Africell and OPIC.
“The solid partnership between the US Embassy and the private sector, exemplified by this agreement with Africel, will lead to stronger and fruitful development,” said Ms Brewer.
She noted that a critical part of the ongoing process involves planning, as OPIC helps American businesses gain footholds in new market, catalyzes new revenues and contributes to jobs and growth opportunities both at US and Sierra Leone.
“OPIC provides businesses with financing, political risk insurance and advocacy services and accomplishes more by partnering with private equity investment fund managers,” said Brewer.
OPIC is a self-sustaining US government agency that helps American businesses invest in emerging markets. The corporation was established in 1971. OPIC provides businesses with the tools to manage the risks associated with foreign direct investment, fosters economic development in emerging market countries and advance US foreign policy and national security priorities.
Mohamed Rahman Swaray, Minister of Information and Communication, commented that the investment will compliment the effort of the current government which has been trying to attract much needed private sector investment in Sierra Leone.
According to Swaray, Africel and Sierra Leone have come a long way.
“Therefore, we are confident that Sierra Leone will have a fair share of the $100 million investment,” Swaray said.
According to Swaray, the investment comes in the right time as they will be able to invest into network expansion to support President Bio’s project of improving reach and access, particularly in un-served communities and also ensure skills transfer and preparing the next generation of Sierra Leoneans will be key and critical in this process.
He added that government has made commitment in creating a congenial environment for private sector investment were they will repatriate their legitimate profit and where opportunities will be created to secure jobs and at the same time contribute to national development.
© 2019 Politico Online
