Maroc Telecom Raises $330 Million for 5G and Fiber Optic Development

Maroc Telecom, the leading telecom operator in Morocco, has successfully raised $330 million through its inaugural private bond issuance on the domestic market. The bond, which has a two-year maturity and a fixed interest rate of 2.37%, will be used to refinance part of the company's debt and to support its investments in 5G and fiber optic development.

Maroc Telecom, which is 53% owned by the United Arab Emirates’ Etisalat and 22% by the Moroccan state, has been navigating a competitive domestic market while leveraging its operations in other African countries to expand its reach. The company generates about 40% of its revenue from markets outside Morocco, with strong performances in Burkina Faso and Côte d’Ivoire contributing significantly to its success. These markets have seen rising demand for mobile data and diverse service offerings, making them crucial for the telecom company's growth strategy.

In addition to Morocco, Burkina Faso, and Côte d’Ivoire, Maroc Telecom operates subsidiaries in Benin, the Central African Republic, Chad, Gabon, Mali, Mauritania, Niger, and Togo. The company's internationalization strategy has been instrumental in its success, allowing it to diversify its revenue streams and mitigate risks associated with a single market.

Despite the financial challenges, Maroc Telecom reported a robust 3.6% growth in its customer base, reaching nearly 80 million subscribers by the end of March 2025. This expansion was largely fueled by a 6.5% increase in subscribers at its Moov Africa subsidiaries, which operate in ten African countries. The company's focus on strengthening its digital infrastructure and supporting Morocco’s digital economy is expected to drive further growth in the coming years.

Maroc Telecom's recent fundraising efforts come in light of its partnership with the International Finance Corporation (IFC), the World Bank Group’s private sector arm. Last week, IFC signed an agreement with the telecom provider to provide two loans totaling $425 million to enhance mobile connectivity and mobile internet quality in markets like Chad and Mali. These two nations were signalled as key markets in Maroc Telecom’s regional strategy for sub-Saharan Africa. The goal is to accelerate its 4G rollouts in these markets and meet increasing demands for mobile connectivity while promoting the development of significant offerings such as Mobile Money. This service has been a crucial tool for financial inclusion in countries where large segments of the population remain excluded from traditional banking systems.

In Chad and Mali, where Maroc Telecom operates, internet access remains limited. The statistics reveal the digital divide in these African countries, highlighting the need for increased investment in mobile connectivity and internet infrastructure. Maroc Telecom's recent fundraising efforts and partnership with IFC are expected to play a crucial role in bridging this digital divide and promoting economic development in the region.