The Submarine Fibre optic cable project, Seacom is set to receive Sh30.16 billion loan from the International Finance Corporation for debt-refinancing and expansion into new service lines.
The expansion is intended to boost small and medium enterprises (SME’s) and large corporates in South Africa, East Africa and West Africa.
“Seacom seeks to expand from its subsea cable operations into the enterprise service provider market across the continents and refinance its short-term debt with new longer-term debt,” IFC said.
IFC is expected to help one of the important digital infrastructure companies to increase its enterprise services, the medium and large corporates in South Africa,
East Africa and West Africa are leveraging their fiber network spanning 21,000km including 17,000km on its submarine cables as well as its strategic alliances on the 2 Africa cable and Equiano cable.
The 2 Africa cable with a network of over 45,000 has been considered the longest subsea cable system over deployed and run by a consortium, comprising China mobile International, Facebook, MTN Global Connect, Orange, Stc, Telecom Egypt, Vodafone and WIOOCC.
The Equiano cable system is the third private international cable owned by Google and the 14th subsea cable invested by Google.
This connects Portugal and South Africa, running along the West coast of Africa with branching units along African Countries.
The IFC added that the Seacom’s targeted growth plan will be achieved thoroughly strategic acquisitions and organic growth initiatives across its market.
The five-year plan that Seacom is embarking on is to diversify from its subsea cable operations in Southern, East and West Africa by building out it inter grated enterprise businesses and expanding its foot print in their region.
The company is principally owned by Remgro with at 30 percent stake,
IPS Cable system IPS the industrial development arm of the Aga Khan Fund for Economic Development 40 per cent, convergence partners 15 per cent and Sanlam 15 percent.