American companies are picking interest in investing, or aiding investment in the Pearl of Africa. After Roha owned Raxio Data Center Ltd started building a state of the art data center in Namanve, another American firm, OPIC has signed a UGX 130 million contract with Africell. The Overseas Private Investment Corporation said that this is for value addition.
OPIC is investing UGX 220 billion in Uganda’s economy through lending financial capital to private companies to promote value addition and increase their operational scope.
About Overseas Private Investment Corporation, OPIC
The Overseas Private Investment Corporation (OPIC) is a self-sustaining U.S. Government agency that helps American businesses invest in emerging markets. It was established in 1971. OPIC fosters economic development in emerging market countries, and advances U.S. foreign policy and national security priorities. OPIC helps American businesses gain footholds in new markets, catalyzes new revenues and contributes to jobs and growth opportunities both at home and abroad.
“We are targeting logistics, transportation, telecommunications, internet connectivity and value chain projects in sectors such as agriculture.” Said Mr. Ray W. Washburne, the president and chief executive officer OPIC. Mr Washburne added that their primary objective is to help to multiply the jobs in the supply chain and logistics.
Africell signs Contract with OPIC
This week, they signed a contract with Africell that is going to be in four countries in Africa. He also revealed that the contract is worth UGX 130 million. “Africell as a private company will work with other private companies. We shall strengthen that product and help women in a big way,” he added.
This investment could boost Africell’s financial muscle to compete effectively with major telecoms like MTN and Airtel. However, Africell did not disclose how they were going to spend the money.
OPIC fulfills its mission by providing businesses with financing, political risk insurance, advocacy and by partnering with private equity investment fund managers. However, Washburne explained that the money would be borrowed to exclusively private companies at an interest rate of about 5 per cent.
The company has not reached any specific agreement with any other local private companies, aside Africell. However, we shall update you in case they reach any other arrangement.
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