By Jeph Ajobaju, Chief Copy Editor
Some $50.9 million has been ring-fenced by CDC Group, UK’s Development Finance Institution (DFI), to expand digital infrastructure, rural connectivity, and tech access for rural and underserved communities across Africa.
The capital will support ICT growth especially in rural and underserved communities by helping to provide access to affordable mobile connectivity.
“Digital inclusion provides an unparalleled opportunity for African countries.
“Tapping into these opportunities require long-term investments and the right partnerships to help develop innovative, sustainable and inclusive solutions to bridging the continent’s connectivity gap,” CDC Group Managing Director & Head of Private Equity Funds, Claris De Franco, said, per Nairametrics.
“We are proud to be investing our patient and flexible capital in two partners that align with our goals to help improve digital infrastructure.
“We are thrilled to back CPDIF and AMN with investments that will support Africa’s digital transformation, connect millions of people across the continent, facilitate access to quality education and healthcare, enhance digital skills, and promote financial inclusion.”
Focus of $40m investment
The first tranche is a $40 million commitment to Convergence Partners Digital Infrastructure Fund (CPDIF), managed by Convergence Partners – a specialist Africa-focused ICT fund manager – supporting a first close together with other DFI and financial investors of $120 million and a target fund size of $250 million.
CDC’s funding will enable CPDIF to invest in digital infrastructure and the overlays needed to improve connectivity and access to ICT across the continent.
It will support investments in data centres, fibre networks, towers, software and wireless networks, as well as CPDIF to invest in fourth industrial revolution technologies such as 5G, cloud, Internet of Things, and Artificial Intelligence – to stimulate innovation that will help bridge Africa’s digital divide.
Focus of $10.9m investment
The second tranche is a $10.9 million equity commitment to a consortium led by Metier (a leading mid-cap fund manager in sub-Saharan Africa).
It will be done alongside fellow DFIs DEG, Proparco and other leading financial institutions investing just under $40m in Africa Mobile Networks (AMN) – the fifth-largest independent tower company operating in Africa.
The growth equity will enable the expansion of AMN’s mobile network infrastructure and rural connectivity, from the current level of circa 2,000 towers across 10 countries to 5,000 towers across more than 15 countries by 2023.
Increased delivery of 2G, 3G, and 4G services will substantially increase economic opportunities in sub-Saharan Africa.
Expansion of digital connectivity to people living in remote villages and settlements will improve access to information and facilitate inclusive development that will have generational impact for such communities.
“The World Bank estimates that approximately 45 per cent of Africa’s population is further than 10km from fibre network infrastructure, higher than any other continent.
“Delivering scalable solutions that enables lasting digital infrastructure will improve access and ultimately lower costs of services for end-users,” De Franco said.
“CDC’s investments in CPDIF and AMN further demonstrates the DFI’s commitment to making investments that help narrow the connectivity gap across its markets.
“CDC is helping to scale access to affordable and high-quality internet with its $220 million investment in Liquid Telecom, and its $12 million investment in Worldlink is helping to accelerate internet connectivity in Nepal.”