The submarine fibre optic cable project (Seacom) is set to get a kes 30.16 billion($260m) loan from the International Finance Corporation (IFC) which is aimed at debt-refinancing and expansion into new service lines.
A disclosure by IFC said the expansion is expected to boost small and medium enterprises (SMEs) and large corporates in South Africa, East Africa, and West Africa.
“Seacom seeks to diversify from its subsea cable operations into the enterprise service provider market across the continent and refinance its short-term debt with new longer-term debt. Through the project, we will help one of the important digital infrastructure companies to increase its enterprise services capabilities to SMEs, medium and large corporates in South Africa, East Africa, and West Africa; leveraging its fiber network spanning 21,000 km (including 17,000 km on its submarine cable) as well as its strategic alliances on the 2Africa Cable and Equiano Cable.” the World Bank’s private-sector lending arm said.
The IFC further added that Seacom’s targeted growth plan will be achieved through strategic acquisitions and organic growth initiatives across its markets.
Seacom is currently embarking on a five-year plan to diversify from its subsea cable operations in Southern, East, and West Africa by building out its integrated enterprise business and expanding its footprint in the region.
Currently, the 2Africa Cable, with a network of over 45,000km is the longest subsea cable system ever deployed and run by a consortium, comprising China Mobile International, Facebook, MTN GlobalConnect, Orange, STC, Telecom Egypt, Vodafone, and WIOCC.
