According to reports seen by BMA, the International Finance Corporation (IFC) is now looking to contribute US$150 million direct investment and an additional US$44 million from its Managed Co-Lending Portfolio Program (MCPP) into the Bharti Airtel’s African unit.
We recall that in 2019, investors’ hesitancy about the prospects of the telecom provider in developing markets was high. Still, in 2020, things changed for the better, with Airtel reportedly posting a 72 per cent jump in pre-tax profit with an increase in subscribers around Africa.
The change resulted from a strategic shift from the business in its attempt to merge and earn revenue from its assets and benefit from the strong performance of its mobile money platform.
In 2021, Mastercard disclosed its contribution of US$100 Million in Airtel Africa’s mobile money scheme, estimating the business at US$2.65 Billion.
During the same year, Airtel sold a 7.5 per cent stake of their unit to Qatar Holding LLC, an associate of Qatar Investment Authority, close to US$200 Million.
As part of Airtel’s broader plan to reduce its roughly US$4 billion in debt, Airtel Africa has sold its mobile towers across the continent to various investors. The company closed a deal worth US$176 million at the start of the year, selling its buildings in Tanzania to a joint venture from SBA Communications Corp and Paradigm Infrastructure Ltd.