Vodafone Ghana is 70% owned by Vodafone Holdings B.V. and 30% owned by the Government of Ghana. Vodafone Group is a leading global telecommunications company that provides mobile telecommunications services in twenty countries, including Albania, Egypt, India, Qatar and Turkey. It is publicly traded on the London Stock Exchange.

The total project cost covering the period beginning with acquisition in August 2008 and ending March 31, 2012 is estimated to be $500 million. The proposed IFC investment is up to $100 million, which is proposed to be a combination of $75 million senior A Loan and $25 million C Loan, for IFC’s account. In addition, IFC will help mobilize up to $200 million in the form of parallel (bilateral/multilateral) and/or syndicated loans.

100.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	100.0
Equity

* These investment figures are indicative

The project consists of the nationwide expansion and upgrade of the Company’s nationwide mobile, fixed and broadband networks in Ghana. The Company is headquartered in Accra.

i) Expand access. This Project will increase the availability of reliable and affordable telecommunications services for consumers and businesses in Ghana. Ghana’s teledensity, at 54%, indicates that there is potential for further growth in the market. The lack of teledensity is pronounced in semi-urban and rural areas, where it is less than 10%. This project will enable Vodafone Ghana to upgrade technology, increase capacity, and improve coverage, giving more consumers and businesses access to reliable and affordable telecommunications services. Furthermore, Vodafone Ghana will be expanding what constitutes the largest fiber optic network in Ghana in order to expand its broadband service capabilities in a country with a low broadband penetration rate (~ 4%). ii) Spur Competition. The Project will enhance competition in the sector, leading existing telecommunication operators to: (i) invest further in their networks, thereby increasing availability and improving the quality of telecommunication services; and (ii) lower tariffs. iii) Product and service innovation. Vodafone Ghana’s relationship with Vodafone Group is resulting in several benefits, including knowledge transfer for product and service innovation. The Project will enable Vodafone Ghana to further improve the quality and variety of services offered as its upgraded network will utilize state-of-the-art mobile technologies to provide value added services and to enable multimedia and data applications.

i) Mobilize International Financing: IFC will act as the anchor lender in the financing, helping Vodafone Ghana raise long-term financing from international commercial banks and DFIs in a challenging international capital market; ii) Strengthen Partnership with an Existing Client: This would be IFC's second financing with Vodafone. This will be Vodafone's first investment in West Africa, and Vodafone aims to increase its presence in Africa in the future. Therefore, there is considerable scope for further IFC assistance, particularly in IDA countries which Vodafone is now targeting; and iii) Support during Volatile Economic Cycles: Despite its solid balance sheet and sustained growth, the greater volatility in global and local capital markets has limited financing options for all mobile operators. IFC’s participation in the proposed investment will send a positive signal to the market about the telecommunications sector in Ghana, as well as of cellular projects in developing countries more generally.

The key issues associated with the project are environmental, health, safety, and social management; construction of new telecommunications facilities; labor and working conditions (including occupational health and safety); pollution prevention and abatement; and community engagement. This has been classified as a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects. As a condition of IFC’s investment, Vodafone Ghana will commit to an action plan for ensuring that all relevant social and environmental risks and impacts are managed as appropriate. Specific information about how risks, impacts and opportunities will be addressed by Vodafone Ghana is summarized in the Environmental and Social Review Summary for the project.