In line with Celtel policy to increase local currency financing, Celtel Chad sought additional CFA financing for capital expenditure and to refinance USD shareholder loans. The joint guarantee by FMO and GuarantCo enabled Afriland First Bank to increase its loan beyond its normal lending cap to meet Celtel Chad’s full debt requirements.
The link between mobile phone use and development has been widely documented, particularly in Africa. The further network expansion, partially financed by the GuarantCo covered loan, has helped expand the network into more rural areas. Celtel Chad leads the way in expanding the mobile network, so for many areas this will be the first time they have had access to a mobile services. In addition, the ability to roam over a larger proportion of the country is particularly useful for Chad as it has a significant nomadic population.