Summary of Proposed Investment
Project Number
23495
Company Name
SCANCOM LIMITED
Date SPI Disclosed
Dec 30, 2004
Country
Ghana
Industry
Telecommunications and Technology
Projected Board Date
Feb 3, 2005
Status
Completed
Sector
Mobile Telephony
Department
TMT, Venture Capital & Funds
Environmental Category
B - Limited
Previous Events
Approved : Apr 6, 2005
Signed : May 27, 2005
Invested : Oct 20, 2005
Project Description
Scancom Limited (Scancom or the company) is the leading provider of GSM mobile telecommunication services in Ghana, with just under one million subscribers or a 65% market share expected end of 2004. The company launched its operations in 1996. As of December 2, 2004, Scancom is a fully licensed operator (Scancom, like all the other operators in the country, was only authorized operator until then) for a duration of 15 years. The company has also been granted a license to operate its own international gateway.
Scancom currently offers coverage in all major cities in Ghana. In addition to its GSM mobile phone services, Scancom has developed alternative wireless GSM products, including community-shared GSM handsets offering substitution for fixed line access. Scancom is also in the process of introducing a broad range of value added services.
The project supports the expansion of Scancom’s network in capacity and coverage to sustain the subscriber base growth over the next three years (subscriber numbers are expected to more than double by end of 2007). The project also supports Scancom’s improvement of its operating status through the funding of the company’s new operating license. The project will allow also the optimization of Scancom’s capital structure by increasing its leverage (the company currently has no long-term debt, the only long term liability it has is the one for the repayment of license fee).
The project is expected to cost approximately $160 million throughout 2005-2007. Scancom is seeking total external financing of $50 million.
Scancom currently offers coverage in all major cities in Ghana. In addition to its GSM mobile phone services, Scancom has developed alternative wireless GSM products, including community-shared GSM handsets offering substitution for fixed line access. Scancom is also in the process of introducing a broad range of value added services.
The project supports the expansion of Scancom’s network in capacity and coverage to sustain the subscriber base growth over the next three years (subscriber numbers are expected to more than double by end of 2007). The project also supports Scancom’s improvement of its operating status through the funding of the company’s new operating license. The project will allow also the optimization of Scancom’s capital structure by increasing its leverage (the company currently has no long-term debt, the only long term liability it has is the one for the repayment of license fee).
The project is expected to cost approximately $160 million throughout 2005-2007. Scancom is seeking total external financing of $50 million.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Pascal Leccia, Investment Officer
International Finance Corporation
Global Information and Communication Technologies Department
2121 Pennsylvania Ave. NW
20433 Washington, DC
USA
Tel: +1 202 473 3980
Pleccia@ifc.org
International Finance Corporation
Global Information and Communication Technologies Department
2121 Pennsylvania Ave. NW
20433 Washington, DC
USA
Tel: +1 202 473 3980
Pleccia@ifc.org