CSquared Secures $25 Million Investment to Expand Digital Infrastructure in Africa

Editorial Desk
By Editorial Desk 5 Min Read

CSquared has secured a $25 Million equity investment to further its mission of digitally connecting Africa.

The pan-African technology company based in Mauritius raised the equity from CPDIF, International Finance Corporation (IFC), and the International Development Association’s (IDA) Private Sector Window Blended Finance Facility.

This investment represents the first tranche in a broader $65 million program aimed at financing CSquared’s expansion and growth.

In addition to the new investment, CPDIF has acquired the stake in CSquared previously held by Google. This infusion of capital will be utilized to expand CSquared’s network, driving digital infrastructure development across its footprint and the broader African region.

The company’s vision, aligned with that of its shareholders, is to facilitate job creation, innovation, entrepreneurship, and other developmental objectives through increased internet access and the digitalization of the economy.

Established in 2011 as a project within Google, CSquared has evolved into a carrier-neutral operator of shared infrastructure, with a focus on building metropolitan fiber optic networks in sub-Saharan Africa.

The company aims to increase internet penetration in the region and reduce access costs by investing in the necessary infrastructure to drive digital transformation.

Under the guidance of its shareholders, CSquared has successfully established operations in six African markets, including Uganda, Ghana, Liberia, Kenya, the DRC, and Togo.

Notably, the company’s collaboration with Google in Togo led to the first continental landing of the Equiano cable in Africa in March 2022, significantly improving internet access in an underserved market.

Lanre Kolade, CSquared Group’s CEO, emphasized the company’s commitment to changing lives through digitalization, stating that CSquared has demonstrated a proven track record in developing and commercializing carrier-neutral, open-access networks across Africa.

We remain singularly focused on changing lives through the digitalization of the region and providing #InternetForAll.

Andile Ngcaba, Chairman and Founding Partner of Convergence Partners, highlighted the impact of open-access networks on African ICT ecosystem development, emphasizing the combination of developmental impact and strong commercial returns as key factors driving their continued investment in CSquared.

Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure, Africa, stressed the critical role of broadband connectivity in Africa’s development, emphasizing the potential for digital infrastructure to support economic growth and job creation.

FTI Capital Advisors DIFC Limited acted as the financial advisor to CSquared on the capital raise and concurrent sale of the stake previously held by Google.

CSquared’s commitment to a digitally connected Africa extends to its investment in open-access broadband infrastructure, enabling local Internet Service Providers (ISPs) and mobile network operators (MNOs) to bring high-quality broadband access across the continent.

Convergence Partners, a private equity investment manager focused on the technology sector in sub-Saharan Africa, has a successful track record of investing in digital infrastructure in the region, with a focus on long-term investments in various digital technologies.

IFC, a member of the World Bank Group, is focused on leveraging the power of the private sector to create markets and opportunities in developing countries. In fiscal year 2023, IFC committed a record $43.7 billion to private companies and financial institutions in developing countries.

The International Development Association’s (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries.

Recognizing the key role of the private sector in achieving IDA’s objectives and the World Bank Group’s twin goals, the window provides a source of co-investment funding and guarantees to de-risk private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA).

The IDA PSW is an option when there is no commercial solution, and the World Bank Group’s other tools and approaches are insufficient.

Share This Article
Leave a comment
WP2Social Auto Publish Powered By : XYZScripts.com