SC MOBILES

completed

SCM is one of two nationwide cellular operators in Cameroon. In July 1999, SCM was awarded a license, through competitive tender, to build and operate the second nation-wide GSM digital cellular phone network in Cameroon. Under the license agreement, SCM is required to achieve pre-determined coverage levels with its network, commencing with coverage of the country''s three major commercial centers and the interconnecting highways within the first year, and culminating in coverage of all towns with more than 50,000 inhabitants within five years. The company launched services in January 2000 and has since experienced strong demand for its services. The project represents the initial three years of the company''s investment program.The project is expected to have significant development impact by: (i) providing much needed telecommunications infrastructure; (ii) supporting the liberalization of the sector and introducing competition; (iii) lowering the entry barrier to telecommunications services; and, (iv) providing access to telephony in previously unserved areas.This would be IFC’s first investment in the telecommunications sector of Cameroon. It will complement the World Bank strategy for Cameroon''s telecommunications sector by supporting private sector participation, fostering competition and, through its demonstration effect, opening the country to foreign investment. As private capital is scarce in Cameroon, IFC would fulfil an important role by helping facilitate local currency long-term financing on terms and maturities not otherwise available. Since the company''s revenues are primarily denominated in local currency, local currency financing would help SCM mitigate devaluation risk.