The Project Sponsors are Telma Mobile SA (a mobile national operator in Madagascar) and NJJ Indian Ocean S.A.S (a telecommunications investment company). Telco SA is a private company owned 50% by NJJ Indian Ocean S.A.S, 15% by Societe Financiere Malgache LTEE and 35% by Telma Mobile SA. The ultimate beneficiary owners are mainly Mr. Hassanein Hiridijee and Mr. Xavier Niel.

 The total project cost is currently estimated at US$74 million. The proposed IFC investment consists of an A loan of up to US$16 million (or Euro equivalent).

15.88 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	15.88
Equity

* These investment figures are indicative

 The Company is headquartered in Moroni, Comoros and provides mobile network services throughout the country.

Assessment of Project Outcomes: Stakeholders: IFC anticipates that the project will increase availability of mobile broadband by creating the first 4G network in Comoros. More specifically this project is expected to provide full 4G coverage to all of Comoros. As a result, the project will improve the capacity and quality of the mobile network through the construction of 4G-enabled towers. Finally, the project is expected to enhance the uptake of mobile broadband. Penetration of mobile broadband in Comoros is amongst the lowest in the East African region. Economy-wide effects: IFC anticipates that this project has the potential to significantly contribute to Comoros' economic growth due to the envisaged increase in mobile broadband penetration. Robust mobile and broadband connectivity enables economic and social transformation as it delivers multiple benefits ("digital dividends") to virtually all economic sectors, by allowing access to knowledge and information, boosting productivity of a variety of businesses, promoting technological improvements and entrepreneurship, enabling greater financial inclusion through mobile banking and generating employment and education opportunities. Assessment of Contribution to Market Creation: Competitiveness: IFC anticipates that by introducing 4G mobile services, the project will help improve competition in the MNO market in Comoros, currently dominated by the incumbent, and stimulate innovation. This is expected to result in better quality and service availability for consumers. Integration: The project has the potential to enhance Comoros' economic integration in the global markets. Access to quality broadband services has the potential to enhance the digitalization of Comoros's businesses, for example tourism and agriculture, to improve the islands' international competitiveness, and to promote its exports.

i. Provision of long term debt (financial additionality): Comoros has an under-developed and under-capitalized lending sector so relatively long term loans are not available. IFC has continued to play a significant role in investing in the most challenging markets. IFC will provide long-term debt with a customized repayment structure that suits Telma's cash generation profile. ii. Establish appropriate environmental and social practices (non-financial additionality): Through IFC's environmental and social action plan, IFC will provide guidance to the company on developing and implementing an E&S management system consistent with IFC's performance standards. iii. Knowledge of the policy and regulatory environment (non-financial additionality): The World Bank played a significant role in the liberalization of the telecom sector in Comoros and has been actively involved in working with the regulator to improve its efforts to develop a best practice regulatory framework. Given the current hostility among the different operators in the sector and the current weak regulatory environment which is not untypical of a nascent liberalized telecom sector, IFC will continue to actively engage with the World Bank to address the current challenges.

The key E&S risks associated with the project are in the construction of towers; labor and working conditions (including employee and contractor occupational health and safety); possible pollution and diesel and oil spillage from refuelling and servicing generators; risks to communities as a result of vehicle movement and tower safety, including risk of tower collapse, illegal access to the tower and the base stations, with risks of falling and electric shock. In addition, risk may be posed by security guards if not trained in use of minimum force and appropriate conduct toward workers and Affected Communities. The islands have important biodiversity areas and cultural heritage but these risks can generally be avoided and mitigated effectively through siting of towers and base stations.

As there are no major adverse environmental or social impacts expected to result from the proposed project, and it is possible to avoid or mitigate any limited adverse impacts that might result, the proposed investment has been classified as a Category B project according to IFC’s Policy on Environmental and Social Sustainability.

Please refer to the related Environmental and Social Review Summary (ESRS) document for this project.

Please refer to the Environmental and Social Action Plan (ESAP) tab in the related Environmental and Social Review Summary (ESRS) document for this project.