A pan-African technology company digitally connecting Africa, CSquared has raised $25 million in new equity from Convergence Partners Digital Infrastructure Fund (CPDIF) International Finance Corporation (IFC) and the International Development Association’s (IDA).
According to a statement from the company, this is the first tranche in a broader $65 million investment program to finance CSquared’s expansion and growth. Additionally, CPDIF has simultaneously acquired the stake in CSquared held by Google LLC.
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 to reduce Internet access costs by investing in the infrastructure necessary to drive digital transformation in the region.
What they are saying
Commenting on the transactions, CSquared Group Chief Executive Officer, Lanre Kolade, shared that he remains enthusiastic about the company’s future and its role in directly tackling the continent’s digital transformation challenge.
- “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 digitalisation of the region and providing #InternetForAll. The support from our investors, both existing and new, will transform our ability to deliver on this ambition. This involves expanding the digital broadband infrastructure footprint in all our current markets – Uganda, Ghana, Liberia, Kenya, DRC & Togo, as well as expanding into new markets in the near future. Now, more than ever, the future is here #ADigitallyConnectedAfrica,” he said.
Also speaking the Chairman and Founding Partner of Convergence Partners, Andile Ngcaba, added:
- “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. 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”.
Commenting on its investment in CSquared, Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure, Africa, said 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,” he added.
Csquared said the new investment into the company will be used for network expansion as it continues to drive digital infrastructure developments across its footprint and the broader African region.
