In line with its strategy to raise debt in Airtel Africa’s local operating companies, the facility will include both local currency and US dollar denominated debt and has a tenor which extends to September 2024.

The facility provides potential interest rate savings in exchange for achieving social impact milestones relating to digital inclusion and gender diversity, with a focus on rural areas and women, and aligning with the Group’s sustainability strategy, launched in October 2021. 

The facility, which will be used to support Airtel Africa’s operations and investments in four of its subsidiaries, will further strengthen the telecom company’s commitment to transforming lives across the communities in which it operates.

The deal was executed by Citi’s Indian unit, where Airtel Africa’s parent company, Bharti Airtel is headquartered.

K Balasubramanian, Head of Corporate Banking at CitiBank said: “This is the first performance-indicator based deal executed by Citi India in the area of telecommunications. This sustainability linked loan facility with Airtel Africa is aligned to expand digital inclusion and gender diversity.”

He added that the Airtel Africa transaction will contribute to its stated goal of $1 trillion towards sustainable finance by 2030.

Present in 14 markets across Africa, Airtel Africa is providing solutions to the ever-growing need for data, mobile voice, and mobile money services across sub-Saharan Africa. The limited infrastructure faced by the increasing population and need for everyone to connect seamlessly are the factors driving the company’s goal.

Leveraging the fund, which includes $30,000,000 in equity and $5,000,000 in debt from CitiBank, mPharma seeks to employ more engineers to build its data infrastructure and support expansion plans in its current and new markets. The company is also investing in other skilled talent such as doctors and nurses, professionals relevant to its work.

Investors who participated in the round include JAM Fund; a venture capital firm founded by Tinder co-founder Justin Mateen, Unbound; a growth investment firm by Shravin Mittal the managing director Bharti Global limited (Bharti family investment arm) and the first investment in Africa for Lux Capital; a New-York City based VC firm investing in science and tech ventures. Other investors were Northstar, Social Capital, Novastar and TO Ventures.

mPharma also targets growing its Mutti community pharmacies across eight markets in Africa, reaching a height where it becomes the go-to healthcare service provider for patients.

The startup’s Mutti pharmacies are essentially mini-hospitals offering a wide-range of services including medical consultation, diagnostic and telehealth services, all on mission to increase accessibility and affordability of quality medication.

Founded in 2013 by Rockson, Daniel Shoukimas and James Finucane, mPharma was built to manage prescription drug inventory for pharmacies and their suppliers, retail pharmacy operations and provide market intelligence to hospitals, pharmacies and patients.

In October last year, the startup added telehealth services to its portfolio, tapping into the telemedicine wave that took off after the Covid pandemic.

Patients in Ghana, Nigeria, Kenya, Zambia, Malawi, Rwanda and Ethiopia, where mPharma has a presence, now have access to the virtual services. mPharma is also present in Gabon where it has a contract with the government to build a drug supply chain infrastructure.

In recent times, the company has embarked on diversification, partnerships and expansion strategies to ensure its continuous growth. A few months ago it acquired a 55% stake in Uganda’s Vine Pharmacy, which was previously held by the Abraaj Group. mPharma also entered Ethiopia in March last year by signing a franchise agreement with Belayab Pharmaceuticals through its subsidiary, Haltons Limited.