Finnfund invests in CREI to improve mobile connections in South Sudan

South Sudan has one of the lowest rates of mobile access and connectivity in the world. Finnfund provides a 5 million US dollar mezzanine loan to Communication & Renewable Energy Infrastructure (CREI) in order to facilitate installing, operating and maintaining 413 telecom site hybrid power solutions in South Sudan. The project will contribute to a significant increase in solar power production and a decrease in diesel usage. It is expected to benefit over 2 million people by enhancing the reliability of the connection in a country that has the world’s poorest mobile connection.

“I can’t think of a better project to kick off the Africa Connected program and Finnfund’s path as an implementing partner of the EFSD+ Guarantees”, says Valtter Louhivuori, Head of Finnfund’s Nairobi office. The Africa Connected program seeks to accelerate investments in impactful digital infrastructure and solutions companies in Africa. “Improved mobile connections contribute to economic growth and improve living standards and inclusivity through increased access to financial, education and healthcare services”, Louhivuori adds.

The financing package includes investments from The Facility for Energy Inclusion (“FEI”) and the asset management company of ieng Group, Communication & Renewable Energy Infrastructure (CREI) and will be used to finance CREI’s Telecom Energy Service Company in South Sudan. The financing will enable CREI to provide “energy as a service” to a telecom stakeholder in South Sudan by developing, building, operating, and maintaining energy assets.

“The Facility for Energy Inclusion continues to play a leading role in the TESCO sector in Africa where the Funds has been able to leverage its experience to provide a tailored and pragmatic financial solution to deliver this landmark transaction in South Sudan. This is a testimony of FEI and Cygnum Capital’s ability to support investment across frontier markets” said Carmen de Castro, Managing Director and FEI Fund Lead at Cygnum Capital.

“We are thrilled to join forces with FEI, and Finnfund in the financing of our TESCO project in South Sudan. This partnership aligns with our mission to lead the transition towards sustainable telecom and energy infrastructure across Africa and Asia; and achieve lasting positive impact. We are confident that our combined efforts will enable the telecom stakeholder to expand and contribute to the Telecom sector development of South Sudan”, said Kadri El Hakim, CEO at CREI.

More information: Valtter Louhivuori, Head of Nairobi office, valtter.louhivuori@finnfund.fi, tel. +254 757 248 789
Media contacts: Valpuri Mäkinen, Communications and Marketing Manager, valpuri.makinen@finnfund.fi, tel. +358 50 384 2105

This investment is made with support from the European Union and the European Fund for Sustainable Development Plus (EFSD+), one of the financing tools of Global Gateway, promoting sustainable investments in the EU’s partner countries. Finnfund has utilised an EFSD+ guarantee under the Africa Connected program, which supports investments into rural connectivity solutions, access to data, and digital solutions in sub-Saharan Africa.