Namibia’s Cell One financing

The project financing of Namibia's second mobile phone network has been finalised with work already underway to provide the African nation with greater competition in its telecoms provision

The funds will be used to establish a national network for Cell One in Namibia and sees a significant investment in the African country [Transactions Database].

The IFC board has already approved an investment of up to US$32.5 million in the cable which will run 10,000km from the continent's southern tip to the African horn, connecting:

  • South Africa
  • Mozambique
  • Madagascar
  • Tanzania
  • Kenya
  • Somalia
  • Djibouti
  • Sudan

Another 13 adjoining countries will also be linked to the system as terrestrial backbone networks are completed through a broader World Bank Group initiative.

These include:

  • Botswana
  • Burundi
  • the Central African Republic
  • the Democratic Republic of Congo
  • Chad
  • Ethiopia
  • Lesotho
  • Malawi
  • Rwanda
  • Swaziland
  • Uganda
  • Zambia
  • Zimbabwe

With commitment of this scale to an east coast African project and bank keen to invest in telecoms projects in individual states, the future looks busy in the sector - primarily for mobile investments on a country-by-country basis.

The project at a glance
Project Name  Cell One roll-out
Location  Namibia, Africa
Description  The roll-out of a new mobile phone service across Namibia
Sponsors  PowerCom (Proprietary) Limited
Operator  Nokia Siemens Networks
EPC Contractor  Nokia Siemens Networks
Total Project Value  Undisclosed
Total equity  Undisclosed
Equity Breakdown  TMP - 39 per cent
 NamPower - 37 per cent
 Namic - 12 per cent
 Old Mutual Namibia - 10 per cent
 PowerCom Educational Trust - 2 per cent
Total senior debt  R535 million (US$75m)
Senior debt breakdown  Investec - R237.5 million (US$33m)
 Nedbank Capital - R237.5 million (US$33m)
 Development Bank of Namibia - R60 million (US$8m)
Senior debt pricing  Undisclosed
Debt:equity ratio  Undisclosed
Mandated lead arrangers  Investec Capital Markets
 Nedbank Capital
Participant bank  Development Bank of Namibia
Agent Bank  Nedbank Capital
Account Bank  Nedbank Namibia
Legal Adviser to sponsor  Deneys Reitz
Legal adviser to banks  Bell Dewar Hall
Model Auditor  PKF
Technical adviser  Detecon
Date of financial close  10 August 2007


Transaction Snapshot

Eastern Africa Submarine Cable System-EASSy

Financial Close:
West Indian Ocean Cable Company Ltd
$247.98m USD
Debt/Equity Ratio:
Full Details