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CDC Group, the UK development finance institution, announced an additional US $ 40 million equity investment in Liquid Telecom, Africa’s largest independent provider of fiber, data center and cloud technology.
This marks CDC’s second investment in the company, following a capital investment of US $ 180 million in 2018.
CDC’s additional investment is made as part of Liquid Telecom’s broader fundraiser, where the company attracted $ 307 million through a rights issue to shareholders. This investment will support Liquid Telecom’s plan to expand its pan-African data center operations business, Africa Data Centers, and consolidate its position as the leading data center operator on the continent.
Currently, it is estimated that less than 20 percent of potential demand from telecommunications companies is served in Africa, and London has three times more available cloud computing power than the entire continent.
Liquid Telecom’s data center development will boost economic activity by reducing IT-related costs for businesses. Increasing local capacity will stimulate innovation by offering affordable data storage and software-as-a-service (Saas) applications to SMEs.
In addition, the company’s cloud-based services will also help accelerate the growth of Africa’s tech startup ecosystems, while also supporting the needs of established companies across the continent.
CDC CEO Nick O’Donohoe said: “Our total investment in Liquid Telecom is now $ 220 million, this will play an important role in addressing the growing demand for digital services and will help bridge the digital divide between Africa and other regions ”.
Nic Rudnick, CEO of Liquid Telecom, said: “Africa has significant untapped economic potential that is being unlocked through improved connectivity, data storage and the use of cloud-based applications. This investment will bring significant economic benefits to developing markets across the continent. “
