Maroc Telecom raises $330 million to boost its 5G investment

Morocco’s leading telecom operator, Maroc Telecom, has raised $330 million (3 billion dirhams) in its first-ever private bond issuance on the domestic market. According to the company, on Tuesday, the bond, with a two-year maturity and bullet repayment, was issued at a fixed rate of 2.37%.

The funds raised will now be deployed to help the company refinance a part of its debt and support its investments in 5G and fibre optic development.

Maroc Telecom, 53% owned by the United Arab Emirates’ Etisalat and 22% by the Moroccan state, has been navigating a competitive domestic market while leveraging its other African markets to upscale its operations.

About 40% of its revenue is generated outside Morocco, signifying the success of its internationalisation strategy. Strong performances in Burkina Faso and Côte d’Ivoire, coupled with rising demand for mobile data and diverse service offerings, have solidified the importance of these markets for the telecom company.

Besides Morocco, Burkina Faso and Cote d’Ivoire, it operates subsidiaries in Benin, the Central African Republic, Chad, Gabon, Mali, Mauritania, Niger and Togo.

Meanwhile, Maroc Telecom is going through a turbulent period financially.

The Moroccan-based company reported a 5.9% decline in first-quarter profit for 2025, with shareholders amounting to $154 million (143 billion dirhams) for the January-March period. The company attributed the profit drop to a 2% YoY decrease in consolidated revenue, which fell to 8.8 billion dirhams.

Also, the profit drop was primarily driven by a 3.7% decrease in revenue in its core Moroccan market, though growth in its African subsidiaries, branded as Moov Africa, provided some offset with a 4.1% revenue increase.

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.

Also Read: Maroc Telecom reports 5.9% drop in profit Q1 2025 amid revenue challenges in Morocco.

In its outlook for 2025, the telecom company is focused on strengthening its digital infrastructure and supporting Morocco’s digital economy.

Maroc Telecom has been making significant investments in infrastructure, particularly in high-speed fixed broadband, which the company has prioritised to meet growing digital demands.

Jassem Alzaabi, Chairman of UAE Etisalat, emphasised the company’s commitment to long-term investment, stating:

“This strategic collaboration with Inwi reflects institutional maturity and underscores our dedication to building a comprehensive digital model that supports Morocco’s transformation.”

Maroc Telecom moves to accelerate 4G expansion

The fundraising comes in light of Maroc Telecom’s 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 totalling $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. According to DataReportal, at the beginning of 2025, only 13.2% of the Chadian population (about 2.74 million users) had internet access. In Mali, the figure reached 35.1%, or nearly 7.82 million users. The statistics reveal the digital divide in these African countries.