The International Finance Corporation (IFC) has announced that it invested over $1 billion (KSh108 billion) in the telecoms, media and technology (TMT) industry in emerging markets in the last fiscal year that ended in June. It is the largest investment in the sector by IFC in a single year. Nearly 75% of IFC’s $1 billion commitment in TMT was in Africa.
IFC, the private-investment arm of the World Bank, said that high demand for digital services in developing countries led to the increased investments in telecoms, media and technology.
“The pandemic had a countercyclical impact on the digital infrastructure sector which became a lifeline that kept communities connected, businesses running, and governments functioning,” said IFC Managing Director Makhtar Diop.
Investments by IFC included a $100 million investment in Africa’s largest independent fiber, data center and cloud technology provider, Liquid Telecommunications Holdings Ltd in February this year. The institution also partnered with Orange Money Madagascar to help the company expand its mobile money services in Madagascar. Additionally, IFC put in $25 million in Vantage Capital, a pan-African fund, and $20 million in West Indian Ocean Cable Company to support broadband connectivity across Africa.
IFC is the leading development finance institution operating in the Telecoms, Media and Technology sector in developing markets. In the last ten years, the organization has ploughed in over $5 billion in the sector. The World Bank member aims to strengthen the digital industry in developing economies and increase access to reliable and affordable internet in the low-income countries.