IFC has provided new financing to three of Airtel Africa plc’s subsidiaries with the aim of bringing high-speed mobile connectivity to more than 37 million subscribers in sub-Saharan Africa.

IFC’s $200 million loan will support the expansion and modernization of Airtel Africa’s network, as well as further investment into its distribution infrastructure, with a continued focus on rural areas.

Across Africa, approximately 600 million people lack access to 4G mobile coverage. In many countries across sub-Saharan Africa, the availability of mobile internet, and network performance, are below regional averages.

Despite this connectivity gap, up to 86 percent of firms on the continent use mobile phones for business operations, according to IFC’s recent report on digital connectivity in Africa. IFC’s financing is intended to help close this gap.

The new financing will take the form of a sustainability-linked loan, with key performance indicators related to the main pillars of Airtel Africa’s sustainability strategy: digital connectivity focused on smartphone adoption rates, financial inclusion for women, and gender balance within Airtel Africa’s own management team.

These three metrics will contribute to bridging the digital divide in Africa and support the equitable distribution of economic opportunities, poverty reduction, and financial stability across the continent. Most of the financing package is denominated in local currency, which IFC is providing to reduce the impact of currency volatility.

“IFC’s partnership with Airtel is critical to expanding high-speed connectivity in Africa,” said Mary Porter Peschka, IFC’s Regional Director for Eastern Africa. “Better connectivity means more opportunity. Our work with Airtel will help millions more people not only to come online but also gain access to high-speed networks so that they can better leverage the digital economy opportunities.”

With limited banking infrastructure in East Africa, mobile network operators are, in many cases, the only providers of financial services for consumers in these markets. In particular, women are especially reliant on this form of mobile banking.

Increasing digital connectivity is therefore a way to increase financial and gender inclusion.

Airtel Africa intends to partner with local and regional financial institutions to further enhance the mobile money eco-system by providing additional financial services to all customers across the region, further enabling the economic empowerment of women.

Airtel Africa’s Group CEO, Sunil Taldar said: “The expansion of our network is critical to our ambition of bridging the digital divide across Africa. This ambition can only be unlocked through continued investment into the region, and we welcome the partnership with IFC to enable this and further support our sustainability strategy of transforming lives and building better futures for communities across Africa.”