Barely a month after it was announced that Econet Wireless Global had raised US $150 million, we’re picking up that the global telecoms group is raising a similar figure as a loan and that this time it’s for the expansion of Liquid Telecom’s network across the continent. According to a post on Global Capital Liquid Telecom is looking to get a US $150 million loan in a deal fully underwritten by Standard Chartered.
With well over 17,000 km of terrestrial fibre on the continent (a figure from last year) Liquid Telecom has been aggressively expanding its fibre on the continent both backbone fibre and last mile (into homes). In Zimbabwe for example, in just a couple of years, the company has installed last mile fibre that’s currently available to 20,000 homes in Harare.
In May this year Liquid CEO, Nic Rudnick, revealed that their fibre expansion efforts would see them burn about $200 million over a period of a year and a half. The company has also expanding its satellite infrastructure to cater for remote areas where fibre is not the feasible connectivity option.
Needing to raise more money just goes to show how committed the company is in investing in building something that’s not going to make it any money in the short term (even medium term we think). Now if all of us on our dear continent could be this long term minded!