PanAfrican technology company CSquared has raised $25 million to invest in Africa’s telecommunication infrastructure.
Details
The equity investment came from new and existing shareholders and will be used to expand carrier-neutral, open-access broadband infrastructure.
The new equity is from CPDIF, the International Finance Corporation (IFC), and the International Development Association’s (IDA) Private Sector Window Blended Finance Facility.
Digging Deeper
This is the first tranche in a broader US$65 million investment program to finance CSquared’s expansion and growth. Additionally, CPDIF has acquired a Google LLC stake in CSquared.
Background
CSquared was launched as a project within Google in 2011 with the ambition of building metropolitan fiber optic networks in Sub-Saharan Africa as a carrier-neutral operator of shared infrastructure.
The long-term vision for the company is to increase internet penetration in Sub-Saharan Africa and reduce Internet access costs by investing in the infrastructure necessary to drive digital transformation in the region.
Csquared has established operations in six markets across the continent, including Uganda, Ghana, Liberia, Kenya, the Democratic Republic of the Congo, and Togo.
What They’re Saying
“The opportunity to increase our investment in CSquared via our most recently raised fund comes at a pivotal time for African digital development. The benefits of world-class connectivity span all layers of society and have never been more tangible,” Andile Ngcaba, Chairman and Founding Partner of Convergence Partners, added.
“As investors in the Company since 2017 we have had a front-row view of the tremendous impact of open-access networks on the development of the African ICT ecosystem. The combination of developmental impact, as well as strong commercial returns makes this an attractive investment for CPDIF and we are delighted to be able to shape the next phase of this journey.” he added.
“Broadband connectivity is critical for Africa’s development. Our investment in CSquared is aligned with our regional strategy to develop digital infrastructure and promote the digital economy which can help leapfrog development for many African countries, support economic growth and stimulate job creation,” Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure, Africa, said.
Source: Capital FM
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