Over $200m in OPIC’s commitments to the information and communications technology (ICT) sector are in Africa, representing about 20% of the sector’s portfolio, according to Alex Hadden, Director, Structured Finance & Insurance.

“About a third of OPIC’s invested capital finances network operators for internet, television, or voice services, such as Kenya-based operator Wananchi Group Holdings and Mawingu Networks,” he said.

“The balance is primarily invested in tower operators. Current OPIC financed businesses are operating primarily in East and West Africa, including Kenya, Tanzania, Nigeria, Guinea, and elsewhere,” Hadden told AGF.

The Overseas Private Investment Corporation (OPIC), the US Government’s development finance institution, has recently surpassed $1bn in current financing support to global ICT businesses.

OPIC is partnering with the private sector to address the challenge of providing affordable access to voice and data communication services in underserved markets, where many of the world’s poorest people are excluded from the benefits of reliable, affordable connectivity, including access to key tools that support sectors from healthcare to education, as well as entrepreneurs and small businesses. 

Infrastructure and affordability are major barriers to bringing the benefits of technology to these communities. 

OPIC is supporting 31 projects in 25 countries, providing financing to telecommunications, communications infrastructure and technology firms through investments in private equity funds, credit facilities to individual businesses, and through risk-sharing and guaranties supporting innovative industry efforts.

“OPIC supports private sector led investment, so our financing is demand driven. OPIC finances companies in countries where investors see market opportunity, but the business lacks access to capital,” explained Hadden.

Three new projects, one of which was in Africa, helped OPIC reach $1bn in global ICT financing milestone.

OPIC committed $4.1m in financing to Mawingu Networks (pictured) to support solar-powered wireless internet access in rural Kenya. 

Using a network of solar-powered “nomadic” wireless internet stations, Mawingu provides last-mile connectivity access to areas that cannot economically access the Internet. 

OPIC’s loan will allow commercial expansion based on Mawingu’s promising initial pilot operations with TV White Space (TVWS) connectivity for off-grid internet access. 

Hadden said that OPIC’s investment commitments in Africa range from $4.1m to $72m. 

“Much of our financing has been through support to Africa-focused private equity funds, such as those managed by Helios Investment Partners,” he said.

Hadden emphasised that OPIC is highly committed to financing businesses in Sub-Saharan Africa, adding that the region makes up about a quarter of the agency’s overall portfolio. 

“We continue to see opportunities on the continent in ICT as the sector has significant headroom and need for capital for both infrastructure and operators. By nearly any metric, African countries remain the most underpenetrated internet markets in the world, suggesting a real need for more investment in the ICT sector,” he said.