The Credit Fund of the African Continental Free Trade Area (AfCFTA) Adjustment Fund says it has successfully closed its first investment – and it’s a big one. AfCFTA is committing US$10 million to wholesale voice and SMS services and enterprise connectivity solutions provider Telecel Global Services.

AfCFTA says that the transaction, through a senior secured amortising loan, marks a significant milestone in the operationalisation of the Fund.

The Credit Fund is one of three Funds under the AfCFTA Adjustment Fund, established by the AfCFTA Secretariat and African Export-Import Bank (Afreximbank) to provide targeted transitional support to AfCFTA State Parties and private sector entities as they adjust to the requirements and opportunities presented by the AfCFTA Agreement.

The African Continental Free Trade Area (AfCFTA) entered into force on 30 May 2019. It is a high-ambition trade agreement, which aims to bring together all 55 Member States of the African Union, covering a market of more than 1.3 billion people, with a comprehensive scope that includes critical areas of Africa’s economy, such as digital trade and investment protection, amongst other areas. 

By eliminating barriers to trade in Africa, the objective of the AfCFTA is to significantly boost intra-Africa trade, particularly trade in value-added production and trade across all services sectors of Africa’s economy.

Telecel Global Services, a subsidiary of the Mauritius-based Telecel Group, provides wholesale voice and SMS services and enterprise connectivity solutions to more than 250 telecom operators across Africa and globally.

AfCFTA says that this facility will support Telecel’s expansion in Ghana and Liberia, strengthen its infrastructure, and contribute to bridging Africa’s digital divide through enhanced connectivity and digital inclusion.

By investing in digital infrastructure in underserved markets, AfCFTA says, the Fund is helping reduce trade barriers, foster cross-boarder productivity and accelerate inclusive industrialisation.

AfCFTA adds that the Credit Fund will continue to prioritise commercially viable investments that enable trade, support diversification, and promote inclusive growth in line with the broader AfCFTA implementation agenda.