Project Company

Seacom Limited is an established player in the African telecommunication sector, having brought the first subsea cable to Southern Africa in 2009. Since then, the Company has evolved in line with market dynamics and evolution into providing terrestrial transmission networks across several markets (including fragile and conflict-affected states (“FCS”) markets in the region. The Company is currently embarking on a five-year plan to diversify from its subsea cable operations in Southern, East and West Africa by building out its integrated enterprise business and expanding its footprint in the region. The Company is principally owned by Remgro (30%), IPS Cable System (40%), Convergence Partners (15%), and Sanlam (15%).

Shareholders

Remgro: Founded in 1968, Remgro is one of the leading investment holding companies in South Africa. It invests in listed and non-listed companies across various sectors and countries in Africa. To date, the company has invested about US$6.5 billion across its active markets and sectors. It also has other interests in the telecommunication sector in Africa., such as Dark Fiber Africa (“DFA”) and Vumatel (Pty) Limited.

IPS Cable System (IPS): IPS is the industrial development arm of the Aga Khan Fund for Economic Development (AKFED), formed in 1963. The company invests in financially sustainable and ethical projects capable of promoting economic development. To date, the company has more than $200m worth of assets in diversified sectors. 

Convergence Partners Investments (CPI): Established in 2006, CPI is an evergreen fund owned by the partners of Convergence Partners Africa, a highly respected investment management firm focused on Africa’s telecommunication and technology sectors. Convergence’s core strategy is premised on investing in companies focusing on inputs for the digital economy of sub-Saharan Africa, including digital technologies and ICT infrastructure. Convergence Partners Africa ha over US$400 million under management.

Sanlam: Sanlam is a listed financial services provider in South Africa established in 1918. It is a diversified financial services group operating across several selected global markets. The company has over US$3 billion under management across the group.

The total Project costs are currently estimated at approximately USD 563 million. The proposed IFC investment includes an IFC A Loan of up to USD 100 million. IFC will also mobilize USD 160 million of debt from other commercial banks and parallel lenders for the Project. The balance will be funded by new equity and internally generated cashflow.

Seacom is domiciled in Mauritius. However, its main office is located in South Africa, and it has a presence in six other countries – Kenya, Djibouti, Uganda, Tanzania, Mozambique, and Rwanda. The Project will enable Seacom to expand its geographical footprint to at least another 12 African countries. 

This is a category B project according to IFC's Policy on Environment and Social Sustainability (2012). Based on information reviewed by IFC, the proposed project will have limited adverse E&S impacts that are few, site specific, largely reversible and readily addressed through existing mitigation measures and good international industry practices (GIIP).

Key areas of E&S focus include: (i) development and implementation of a corporate E&S management system (ESMS) and relevant procedures and plans to screen, assess and manage the limited adverse E&S risks and impacts applicable to the business of the company in line with IFC PSs during projects, operations, terrestrial and subsea fiber network maintenance, expansion and acquisitions, including land access and land acquisition; (ii) HR policies and procedures, labor and working conditions, occupational health and safety (OHS) management during projects and operations and maintenance (O&M) of its network (e.g. marine safety, electrical safety, trenching/ confined space working); (iii) emergency preparedness and response, including risk controls associated with the COVID-19 pandemic; (iv) waste and hazardous material management; (v) community health and safety including motor vehicle safety; (vi) security management; and (vii) stakeholder engagement and grievance mechanism.