Emerging Africa Infrastructure Fund provides USD17.5 million of Debt to Zain Communication Ghana Limited
EAIF is providing USD17.5 million of senior debt to Zain Communication Ghana Limited which is 75% owned by Zain Group, a major cellular operator in the Middle East and Africa.
The total project cost is circa $523 million equivalent. The EAIF financing is part a syndicated loan led by the International Finance Cooperation (IFC). The proceeds from the financing will be used to finance the development and constructions of state of the art cellular communications network in Ghana.
The direct and indirect links between increased and improved telecommunications services, higher GDP growth and poverty reduction have been clearly demonstrated in numerous independent studies.
The Project itself will:
i. Improve availability and access to reliable and affordable communications services;
ii. Increase competition which would lead to further declines in telephone tariffs as well as product and service innovations;
iii. Expand geographic coverage to cover 90% of the country including all major cities and several previously uncovered remote areas by end-2009;
iv. Support regional trade and integration through the Zain One Network; and
v. Create both direct and indirect employment opportunities. Zain Ghana projects that it will directly employ 600 people by 2013, and estimates that additional 1,000 indirect jobs will be created.