MainOne Cable to raise $300 for West African expansion

10 Jul 2015
Financial Nigeria

Summary

"I think if we have Nigeria, Ghana and Ivory Coast, we have probably covered 60 to 75 percent of the market,” Funke Opeke said.

Funke Opeke, CEO, MainOne Cable

MainOne, a Lagos-based company that delivers communications services to institutions across West Africa, plans to raise $300 million to finance its expansion in the sub-region.

According to the Funke Opeke, CEO of the company, the fund will be used to expand internet services and connectivity in Nigeria and the wider sub-region.

She said in an interview on July 7th that the fund would be raised from additional shareholder equity, loans or through a bond sale within the next five years.

MainOne has already invested $300 million in the past five years, and it plans to expand its data centres and submarine cable infrastructure in Cameroon, Ghana, Ivory Coast and Nigeria as more companies move “their business model online,” Opeke said.

Nigeria has significant potential for growth in internet data services. The country currently has about 147 million mobile-phone subscribers, and the National Broadband Plan for 2013 – 2018 aims to increase broadband penetration five-fold.

“When you look at where the market opportunities exist in West Africa, I think if we have Nigeria, Ghana and Ivory Coast, we have probably covered 60 to 75 percent of the market,” Opeke said.

According to information on its website, MainOne – which operates an undersea cable, is owned by the MainOne Cable Company Mauritius; a company founded by Main Street Technologies.

The company in Mauritius serves as the holding company for operational subsidiaries to deliver wholesale international telecommunications services and land the cable in various countries. It has operational subsidiary companies in Nigeria, Ghana and Portugal.


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