OCL Malawi

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Open Connect Limited (“OCL” or the “Company”), was established as part of the restructuring of Malawi Telecom Limited (MTL) in 2016 and privatized through a competitive bidding process. OCL is licensed by the Malawi Communications Regulatory Authority to provide physical telecommunication infrastructure used principally for, or in connection with, the provision of network and services. OCL is the leading provider of lit and dark fiber services to Mobile Network Operators (MNOs), Internet Service Providers (ISPs) and terrestrial Television (TV) broadcasters in Malawi. The company plans to further expand coverage, improve the quality of its existing coverage, increase service offerings and build a Tier III data center.  To support the planned growth, IFC intends to provide (i) an A Loan of up to US$10 million equivalent in local currency (Kwacha); and (ii) an IDA-PSW Blended Finance Subordinated Loan of up to US$10 million. The IFC investment will be used to (i) build the FTTX business to initially service approximately 13,000 homes and 7,000 businesses in targeted clusters in Blantyre, Lilongwe, Mzuzu and Zomba cities; (ii) build a 100 rack Tier III data center in Lilongwe, and (iii) fund working capital and reserve accounts (the “Project”). The projects of the data center and the deployment of the cables for FTTX are in their initial stages and no contractors have been selected.