Narayan AmmachchiThe International Finance Corporation (IFC) has loaned US$60 million to Mexican telecom firm Axtel, a move that aims to boost the company’s expansion and help Mexico capitalize on its nearshoring potential.
Axtel will utilize the funds to expand its optical fiber network, broaden its cell tower footprint and bolster its data center presence.
These enhanced broadband networks and data centers will equip manufacturing companies with the digital infrastructure necessary to optimize their operations and drive productivity gains.
Many American manufacturers are shifting production facilities from China to Mexico in response to high tariffs imposed by the White House. This trend has resulted in a surge of investment in Mexico.
The nearshoring boom is projected to increase Mexico’s annual export revenue by US$36 billion over the next seven years, creating up to 4 million jobs, according to IFC’s Country Manager Juan Gonzalo Flores.
A member of the World Bank Group, IFC says it would continue to “provide the necessary investment and advisory tools so the country [Mexico] can fully take advantage of its nearshoring potential.”
The IFC has established itself as a prominent lender within the technology and telecom sectors of developing countries, with loan commitments exceeding US$2 billion in 2023 alone.
Axtel, headquartered within the Monterrey metro area, delivers telephone, internet and television services through fiber optic cables in 45 Mexican cities.
The company currently ranks as the second-largest fixed-line telecom service provider in Mexico.
Add comment