MTN protects Afghan investment, expands network

14 Jul 2011

South African MTN Group has secured political risk insurance for an investment in MTN Afghanistan. MTN is investing USD88.5 million in MTN Afghanistan to improve its mobile telecoms infrastructure. The cellco is planning to use the money to increase its geographical coverage and improve the quality of its GSM network. MTN has secured protection on the investment from a section of the World Bank, the Multilateral Investment Guarantee Agency (MIGA), which is providing coverage of USD82.1 million to MTN against risks of transfer restriction, expropriation, war and civil disturbance for ten years; a further USD2 million is covered by the Afghanistan Investment Guarantee Facility (AIGF). MIGA and AIGF already cover USD76.5 million from MTN’s startup under a previous agreement. The investment from MTN is one of only six backed by MIGA in Afghanistan since 2006.

According to TeleGeography’s GlobalComms Database, between March 2006 and March 2011 the total number of mobile subscribers in Afghanistan rose from 1.3 million to 17.99 million, an increase of 1284%.

Afghanistan, MTN Afghanistan