Frontiir

South Asia Communications and IT Services

Frontiir is a leading internet service provider in Myanmar.

  • Active
  • Exited

This investment was made when British International Investment was named CDC Group.

We are invested in Frontiir through Myanmar Opportunities Fund II, which is managed by Delta Capital.

We do not hold direct relationships with the companies that investment funds invest in. Instead, we hold relationships directly with the fund. When investing through investment funds, British International Investment takes an active role as a limited partner to the fund, working with the fund manager to ensure best practices, including in environment, social and governance matters, and investment management oversight.

For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
:
South Asia
Countries:
Myanmar
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
:
Communications and IT Services
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
:
Intermediated investment
Fund:
Myanmar Opportunities Fund II
Fund Manager:
Delta Capital
Start date

For direct investments, this is the date British International Investment committed capital to the business or project.

For funds, this is the date that British International Investment committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e
:
December 2017
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.
:
Singapore

This investment was made when British International Investment was named CDC Group.

Our investment

Despite recent growth in Myanmar's mobile broadband penetration, access to digital services is very low and presents a challenge for many communities and business development. Data use remains unaffordable and even inaccessible in rural and low-income areas. Improving access to affordable and reliable internet is central to Myanmar's development and economic growth.

Impact
  • Increase and improve access to information and access to the internet (SDG 9C), leading to better quality of life.
  • Improve economic opportunities by creating jobs (SDG 8.5).
How?
  • CDC’s investment will support value-added services, infrastructure expansion and network enhancement.
    • Business growth will create direct and indirect jobs.
Stakeholder Geography Characteristics
Consumers

Myanmar
  • Expanding from Yangon and Mandalay to 22 cities across the country.
  • Wide reach including access to and affordable for the poor.
Employees

Myanmar
  • 50 per cent of the workforce is aged under 24 and approximately 80 per cent of the workforce is under 30.
  • 2X qualified.
  • Resellers operating in the informal sector (likely to be at lowest income levels for urban areas).
Scale Depth/Duration
  • Consumers: Adding 2.9 million users.
  • Employees: Creating thousands of new jobs.
  • Consumers: Many subscribers benefitting from roll-out may previously have not had access to data services so the degree of difference it will make to them is likely to be significant. Evidence shows that people value faster and more affordable connections and this network enhancement will help improve both for subscribers.
  • Employees: Frontiir offers employees training opportunities and support. Resellers earn up to 50 per cent of their income from selling Myanmar Net scratch cards.
Grid Score Contribution

This investment is made under an approved Catalyst Strategy, and therefore does not require a grid score.

To help us direct our investments, we use a tool called the Development Impact Grid. The Grid scores every investment we plan out of a score of four, based on two factors: the difficulty of investing in the country and whether investment in that sector will lead to jobs.
  • Financial: The commercial market does not offer capital in sufficient quantities to meet the company's plans / needs.
  • Value-add: CDC will support Frontiir on governance, finance function, environmental and social management and support for developmental strategies.
  • Mobilisation: CDC’s involvement helps mobilise capital from others that would not otherwise be available to the investee.
Risk
  • Execution: Network rollout to rural may take longer due to accessibility and supporting infrastructure readiness.
  • External: Addressing external barriers to internet usage, such as access to devices, remains an important challenge.

Understanding each ‘Impact Dashboard’ (PDF)

Environmental and social aspects

We are supporting the company to strengthen its health and safety management system, including for contractors, across all operations through our technical assistance facility. We are also working with Frontiir towards international best practice on data privacy and transparency.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.
:
South Asia
Countries:
Myanmar
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.
:
Communications and IT Services
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).
:
Direct Equity
Start date

For direct investments, this is the date British International Investment committed capital to the business or project.

For funds, this is the date that British International Investment committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e
:
June 2019
Amount

For direct investments, this is the total amount that British International Investment has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that British International Investment has committed to the fund.
:
$23m
Domicile

This is the investee company’s place of incorporation; or a fund’s jurisdiction.
:
Singapore
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