African telecom company Airtel Africa is currently in discussions with the International Finance Corporation (IFC) for a US$200 million loan to support its capital expenditure (CAPEX) requirements and refinance existing debt in Kenya, Rwanda, and the Democratic Republic of Congo (DRC). The funds will be utilized to modernize Airtel Africa’s telecom network, including purchasing active equipment for 4G sites, software upgrades, packet core, base transceiver station, and fibre optic capacity.
This is not the first time Airtel Africa has sought financing from the IFC. In December 2022, the company secured an initial $194 million financing to support its operations in Madagascar, Niger, the DRC, Kenya, and Zambia. This move aligns with the telecom group’s growth strategy in the African market, which has become increasingly competitive.
The company aims to strengthen its balance sheet by reducing group debt and localizing it within operating companies. The May 2024 financial results for the third quarter of 2023 have been set as the deadline for full repayment of group debt.
As of the third quarter of 2023, Airtel Africa operates in 14 markets and has 151.2 million customers. In Rwanda, the company boasts 5 million subscribers with a 38.6% market share, compared to its sole competitor MTN’s 61.4%, according to the Rwanda Utilities Regulatory Authority.
In the DRC, Airtel holds a 29.02% market share against Vodacom (38.92%), Orange (25.64%), and Africell (6.42%), according to telecom regulators. In Kenya, Airtel has a 29% market share, while its main rival, Safaricom, holds 65.9%, according to data from the Communications Authority.
