The FINANCIAL — The European Bank for Reconstruction and Development (EBRD) is supporting Georgia’s one of the leading telecoms company MagtiCom with a US$ 100 million loan to improve and expand its broadband networks in the regions of Georgia.
The EBRD financing package will enable MagtiCom to acquire the fixed-line broadband internet network platform from Caucasus Online in order to further expand into regions outside of Tbilisi. MagtiCom, already renowned for its drive for technological development, will be able to offer better and higher-speed internet services to its customers across the country. The expansion of higher quality internet connectivity will also increase competition in the telecommunications market of Georgia by encouraging other operators to follow by improving the quality of their networks and services.
Helping innovative private sector companies such as MagtiCom develop and expand in rural areas is part of the EBRD’s efforts to boost the Georgian economy through economic inclusion and innovation, according to EBRD.
“Georgia is a growing economy where the rural areas need greater connectivity and this project is yet another example of the EBRD’s efforts to support economic inclusion in the country,” said Bruno Balvanera, EBRD Director for the Caucasus, Moldova and Belarus. “Investing in the knowledge economy is part of the EBRD’s efforts to foster innovation in Georgia. This investment will support the development of higher quality mobile networks, internet connectivity and TV platforms in the country’s more remote regions. This in turn will help boost the local economies and Georgia’s telecom sector as a whole. We are glad to work with such a strong partner as MagtiCom who has extensive expertise in the telecoms sector and high corporate governance standards.”
MagtiCom constantly strives to offer the latest technological solutions to its customers. Since launching in 1997, MagtiCom has been vigorously innovative by introducing all stages of the mobile evolution, offering 2G, 3G, 4G and 4.5G networks, along with fixed telephony and satellite television.
“The financial support of the EBRD will assist MagtiCom to accomplish its goals of providing customers with easier solutions, high quality network access, and a full communications ecosystem, especially in the rural parts of the country,” said a representative from MagtiCom.
The EBRD is a leading institutional investor in Georgia. Since the start of its operations in the country, the Bank has invested over €2.73 billion in 195 projects in the financial, corporate, infrastructure and energy sectors, with 91 per cent of those investments in the private sector.
The EBRD’s strategic plan for the countries where it invests, including Georgia, for the period 2016-18 has three priorities: strengthening economic resilience, addressing global challenges and supporting regional integration.