IFC and Maroc Telecom Help Burkina Faso's Onatel Expand

The IFC, a division of the World Bank Group has announced that it will support the upgrade of fixed and mobile networks at Onatel, Burkina FasoÃ's telecommunications operator. The €7.5 million investment will be part of a broader effort to develop a competitive telecommunications market in Burkina Faso, increase connectivity, and improve opportunities for the business sector.

Onatel began increasing private participation in the telecommunications sector in December 2006, when the government sold a 51 percent stake of the company to MoroccoÃ's Itissalat Al-Maghrib (Maroc Telecom). The government of Burkina Faso is planning to sell an additional 20 percent stake through an initial public offering, which will be the first by a Burkinabé company. IFC and the government are discussing ways that IFC can support the transaction, help attract private investments to the country, and further develop domestic and regional capital markets.

"IFCÃ's global expertise in telecommunications and experience in various legal and regulatory environments will be valuable assets as we upgrade our networks and seek to increase private sector participation in the sector," Mohammed Morchid, OnatelÃ's General Manager.

Many Moroccan companies are looking to increase cross-border investments in Sub-Saharan Africa. They are encouraged by better macroeconomic policies, a stronger commitment by many governments to the private sector, and greater political stability. IFC and the Confederation of Moroccan Industries sponsored a conference in November 2007 in Casablanca to help local businesses identify investment opportunities in Africa.

Posted to the site on 7th May 2008