In a significant development for West Africa’s digital economy, the Fonds Commun de Titrisation de Créances (FCTC) Sonatel bond, underwritten by the Emerging Africa Infrastructure Fund (EAIF) and the International Finance Corporation (IFC), debuted on the Bourse Régionale des Valeurs Mobilières (BRVM), the stock exchange of the West African Economic and Monetary Union (WAEMU). This move, commemorated in Abidjan on May 22, 2024, marks a pivotal moment for Sonatel, Senegal’s leading telecommunications provider, enabling substantial advancements in the region’s digital services.
The bond issuance, a first in January 2024, attracted a combined commitment of XOF 48.5 billion (approximately $80 million) from EAIF and IFC, along with substantial regional investment, totaling XOF 75 billion. This financing is earmarked for several transformative projects within Sonatel, including acquiring a 5G license, expanding mobile and internet infrastructure, and enhancing mobile money and data services across Senegal.
This strategic financing will significantly improve internet accessibility in underserved West African areas, fostering job creation and digital skills development. Despite low internet penetration rates across the region, with countries like Sierra Leone and Guinea Bissau having less than 40% connectivity, this initiative aims to bridge the digital divide and catalyze economic growth through innovative technology-driven business models.
Investment specialists from Ninety One, managers of the EAIF, highlighted the listing’s role in mobilizing diverse capital sources, which bolsters Sonatel’s efforts to widen digital service access. Meanwhile, IFC’s Regional Director for West Africa expressed pride in this groundbreaking securitization, emphasizing its potential to deepen local capital markets and enhance regional economic development.
Overall, the successful listing not only exemplifies effective collaboration between private and public financial entities but also sets a robust foundation for future digital transformations in West Africa.
