Millicom’s Tigo has outlined plans to spend $700 million on its mobile and broadband networks in Central America over the next two years, in response to calls made by US Vice President Kamala Harris encouraging private sector investment in the region.
In a statement, Millicom revealed it would spend the sum on its networks in Guatemala, Honduras, and El Salvador, following lobbying from the US Vice President last year.
Harris’ Call to Action initiative launched in May 2021, encouraging private investments to promote economic opportunity in Central America.
Millicom is also a member of the Partnership for Central America, an independent organisation launched to coordinate private sector projects supporting the Call to Action. The operator’s investment aims to bolster economic growth by improving connectivity in the region, where penetration rates for broadband are below average.
CEO Mauricio Ramos pointed to a 10 per cent rise in the penetration of mobile broadband services in the region, resulting in nearly a 2 per cent increase in GDP and rendering it “imperative to build these digital highways”.
The operator’s investments will occur in accordance with Race to Zero, a United Nations-backed campaign promoting a zero-carbon recovery.