Bitaka S.A.

This summary covers investments by Fons Mediterrània Capital, F.C.R. de Régimen Simplificado of Spain (FMC) in Bitaka S.A. (Bitaka) in Tunisia. The investor has applied for MIGA guarantees of €3.8 million ($5.1 million equivalent) for a period of up to three years against the risks of transfer restriction, expropriation, and war and civil disturbance.

The project involves coverage of Bitaka, an existing portfolio company of FMC, a Spanish private equity fund. Bitaka provides E-voucher (mobile electronic recharge), scratch cards, and SIM cards for telecom operators in Tunisia. The equity investment and shareholder loan being provided by FMC will help Bitaka develop its operations and expand its distribution network to cope with the growth of Tunisia’s mobile sector (the main client of Bitaka’s solutions).

Environmental Categorization

The Bitaka offices are located within an office block, connected to city water, sewage, and electricity. The municipality is responsible for waste collection. The activities of Bitaka consist of the following: electronic payment platform; supplier of SIM cards; supplier of scratch cards, and electronic recharge for mobile phones. These activities pose minimal adverse social or environmental risks. The company has provided MIGA with a social and environmental impact assessment that presents information in line with MIGA’s Performance Standards. This investment is a Category C project under MIGA’s Policy on Social and Environmental Sustainability.

Development Impact

Bitaka provides low-cost, innovative solutions to mobile operators in Tunisia. The mobile sector is mainly pre-paid (above 90 percent of overall connections) and relies on payment solutions to connect the majority of the population. Indirectly the project contributes to the continued growth of the mobile sector in Tunisia, which has an impact on GDP growth (a 10 percentage point increase in mobile penetration generates a 0.81 percentage-point increase in economic growth for low and middle-income economies).

MIGA’s proposed support to this project is consistent with the first pillar of the World Bank Group’s Country Partnership Strategy for Tunisia, which focuses on employment, growth, and competitiveness. The telecommunications sector has been identified as a key driver of the country’s growth.

In addition, the proposed project is consistent with MIGA’s efforts to mobilize $1 billion in insurance capacity to support foreign direct investment into the Middle East and North Africa.