IFC as implementing entity of the IDA20 PSW Blended Finance Facility and the Canada GROW Facility is expected to provide up to US$ 30 million in the form of a subordinated loan comprised of up to US$23 million from IDA20 PSW and up to US$7 million from Canada GROW (“blended finance co-investment”). The blended finance co-investment will fill an important financing gap that enables the Company to pursue its ambitious plan for the development of the ten data centers in the target countries mentioned in the Description of Project section above. The construction of the data centers will improve accessibility and affordability of digital services to businesses operating in these countries. Without the blended finance co-investment, IFC will not be able to invest in the project and the Company will have to reduce its investment in the development of key digital infrastructure. The level of concessionality (i.e., “subsidy”) provided by the blended concessional finance co-investment is estimated to be 2.3% of the total project cost of US$300 million. This estimate is based on the difference between (i) a “reference price” (either a market price if available; the price calculated using IFC’s pricing model, which comprises three main elements: risk, cost and profit; or a negotiated price) and (ii) the “concessional price” being charged by the blended concessional finance co-investment. As is the case with all of IFC’s blended concessional finance co-investments, this project has been assessed against the Enhanced Blended Concessional Finance Principles for DFI Private Sector Operations adopted by IFC and more than 20 other DFIs in 2017. Further information on these Enhanced Principles, IFC’s blended finance approach and governance, and historical information on estimated subsidy levels in IFC’s blended finance portfolio can also be found at: www.ifc.org/blendedfinance

70.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	70.0
Equity

* These investment figures are indicative

IFC anticipates that the project would result in increased access to data hosting services for businesses, resulting in higher availability of digital services for individuals and enhanced productivity growth for businesses. Such outcomes would result from the addition and uptake of DC capacity across Uganda, the DRC, Ethiopia, Cote d’Ivoire, Mozambique, Angola, and Tanzania. Beyond the Project, this investment has the potential to increase the competitiveness of the market for data hosting services across the target countries, by supporting the expansion of data center facilities focused on retail clients. This will be achieved through demonstrating the commercial viability of the data colocation business model in nascent markets, and increase competition intensity in underdeveloped markets, thereby inducing entry or expansion of competitors.

IFC’s additionality would be both financial and non-financial. Financial additionality would involve ‘financing structure’ on the basis of limited availability of credit in target countries, including IDA/FCS countries (e.g., Uganda, Tanzania, Ethiopia, DRC and Mozambique). IFC’s non-financial additionality involves (i) Knowledge, innovation, and capacity building by leveraging its expertise in the DC market to support the Company as part of the sustainability-linked loan, and (ii) Standard setting by supporting the adoption and implementation of a framework to manage environmental and social risks.

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.