The International Finance Corporation (IFC) is considering an anchor investment of up to US$75 million in Axian Telecom’s US$550M bond issuance, a move expected to accelerate the rollout of digital infrastructure and mobile connectivity across underserved African markets.
The financing will be used to refinance Axian Telecom’s existing debt, support the acquisition of Wananchi Group; a broadband internet provider headquartered in Kenya and fund general corporate initiatives. The transaction represents a pivotal step in IFC’s strategy to strengthen Africa’s digital economy by promoting private sector-led investment in telecommunications.
Axian Telecom, an integrated telecommunications and digital infrastructure provider, operates in 10 African countries including Madagascar, Tanzania, Uganda, Togo, and the Comoros Islands. Through its subsidiaries and operating companies, Axian offers mobile, fixed, and internet services, as well as financial and energy solutions that rely on robust connectivity infrastructure.
The IFC’s proposed investment reflects growing global interest in Africa’s fast-evolving digital economy. By providing early-stage capital to support Axian’s bond, IFC is helping to mobilize additional financing from global investors to strengthen broadband penetration across the continent.
Axian’s major footprint includes a vast network of mobile towers, fiber infrastructure, and data services that connect millions of users. The business operates under a tiered contracting structure, engaging main contractors to oversee and execute key projects such as tower construction, operation and maintenance, and for fiber network laying. Main contractors typically hire subcontractors for specific tasks, such as security services, transportation and refueling among others.
The acquisition of Wananchi Group, best known for its “Zuku” brand in East Africa, is expected to enhance Axian’s presence in Kenya and surrounding markets. It marks one of the largest regional consolidations in the broadband sector in recent years, potentially transforming internet affordability and service delivery in the region.
IFC’s relationship with Axian Telecom dates back to 2019, with the company previously receiving support under multiple IFC-backed projects, including Telco SA, Axian Togo, and Axian Comoros II & Tanzania. These projects, valued at hundreds of millions of dollars, have consistently demonstrated strong environmental and social (E&S) performance in line with IFC’s sustainability standards.
In 2022, IFC also acted as an anchor investor in Axian Telecom’s US$420 million bond issuance, a move that laid the foundation for the company’s subsequent growth. Under the new investment, IFC is expected to continue its role as both financier and development partner, ensuring compliance with international environmental and governance benchmarks.
Under the existing investments, the company has implemented various E&S performance improvement programs across its operations, including Telma Comoros, to comply with IFC’s Performance Standards.
According to IFC disclosures, Axian’s ongoing projects have achieved “satisfactory environmental and social performance,” with initiatives that promote local employment, ethical supply chains, and sustainable infrastructure design. These outcomes have positioned Axian as a model for responsible private sector investment in Africa’s telecommunications sector.
The demand for reliable internet in sub-Saharan Africa continues to surge as governments, businesses, and consumers increasingly depend on digital services for education, healthcare, and finance. Yet, the broadband penetration rate in many African nations remains below 40%, highlighting the urgency of investments like Axian’s.
With IFC’s support, Axian is expected to expand network coverage, improve service quality, and reduce connectivity costs, aligning with regional development goals under the African Union’s Digital Transformation Strategy (2020–2030).
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