MTN Afghanistan

This issuance replaces an earlier contract of guarantee for $76.5 million issued by MIGA that covered investments into the first phase of the project. MIGA’s gross exposure under the project now stands at $154.9 million. The additional coverage is supporting the expansion of operations by MTNA, which is being financed through a shareholder loan and an equity investment from its holding company MTN Dubai Limited. (MTND). The purpose of the new investment is to improve MTNA’s mobile communication services, increase geographical coverage, and enhance quality of signal. An additional amount of $1.9 million of first-loss coverage is insured under the Afghanistan Investment Guarantee Facility (AIGF).
MTNA has contributed to the development of the telecommunications sector in Afghanistan and continues to do so by providing mobile telecommunication services, including the installation, operation, and maintenance of a Global Systems Mobile (GSM) network, wireless communication and internet services. Afghanistan’s mobile network has increased by seven-fold in the past five years from two million mobile subscribers in 2006 to around 13.7 million in 2010, with a penetration rate of 47 per 100 inhabitants. MTNA is playing an important role in helping expand coverage in remote areas of the country, with the number of subscribers expected to grow to over 18 million by 2014.