Malawi: IFC proposes funding for Harith-backed ICT company

The International Finance Corporation (IFC) is proposing a loan of up to $10 million in Malawian Kwacha to Open Connect Limited (OCL), the leading provider of carrier services to telecom operators in Malawi.

Having recently been unbundled from Malawi Telecommunications and privatised through a competitive tender process, OCL now requires debt funding to complement equity investments from its new investors, for its capital expenditure programme for the next two years. Pan-African Infrastructure Development Fund II (PAIDF II), a fund managed by Harith General Partners, was the preferred bidder for the acquisition of a 60% stake as part of a competitive tender process organised by Ernst and Young. Other shareholders of OCL are the Press Corporation Limited (22%), Old Mutual Malawi (15%), the Malawian Government (2%), NICO Holdings (1%) and Investments Alliance (0.2%).

Since the acquisition by PAIDF II, the company has benefited from significant capital injection for network upgrades and fibre deployment as well as increased company efficiencies and quality of services provided by the company.

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