Onatel’s planned IPO gets IFC support in Burkina Faso
The IFC, a division of the World Bank Group has announced that it will support the upgrade of fixed and mobile networks at Onatel, Burkina Faso’s telecommunications operator. The €7.5 million investment will be part of a broader effort to develop a competitive telecommunications market in Burkina Faso, increase connectivity, and improve opportunities for the business sector.
Onatel began increasing private participation in the telecommunications sector in December 2006, when the government sold a 51 percent stake of the company to Morocco’s Itissalat Al-Maghrib (Maroc Telecom). The government of Burkina Faso is planning to sell an additional 20 percent stake through an initial public offering, which will be the first by a Burkinabé company. IFC and the government are discussing ways that IFC can support the transaction, help attract private investments to the country, and further develop domestic and regional capital markets.
“IFC’s global expertise in telecommunications and experience in various legal and regulatory environments will be valuable assets as we upgrade our networks and seek to increase private sector participation in the sector,” Mohammed Morchid, Onatel’s General Manager.