IFC has announced that it is going to invest in a new fund by Convergence Partners in Africa which is focused on Tech, Media, and Telecom sectors. The International Finance Corporation (IFC), a member of the World Bank Group, is a global development institution whose mission is to advance economic development and improve the lives of people by encouraging the growth of private enterprise in developing countries
The fund which is being managed by Convergence Partners, will be used to strengthen broadband infrastructure and improve online access to digital services in more than 12 countries in sub-Saharan Africa. Africa’s mobile broadband penetration stands at around 35%, while fixed broadband has a penetration rate of 5%.
“We are very pleased to extend our relationship further with IFC, who were also investors in our last fund and co-investors with us in underlying portfolio companies. We share a joint ambition to invest in those businesses on the African continent that are contributing meaningfully towards addressing the digital inclusion gap that exists. Africa is ready for high throughput pervasive fibre networks, independent hyperscale data centers, edge, AI, 5G and IoT. Connectivity is at the foundation of 4IR. Our new Digital Infrastructure Fund is the platform for building Digital Africa for future generations,” said Andile Ngcaba, Chairman, Convergence Partners.
IFC, outlined the growth in the adoption of digital technologies and the demand for digital infrastructure which has enabled easy connection between businesses, customers, suppliers, creating new channels to access health and education services, etc.
“Increased broadband connectivity supports economic growth, job creation, and quality of life. Together, we can help connect more homes and businesses in Africa by supporting funds such as the Convergence Partners Digital Infrastructure Fund to bridge the $100 billion digital infrastructure financing gap to reach universal connectivity by 2030.”, said Makhtar Diop, Managing Director, IFC.
This round of investment will support critical digital infrastructure companies and projects including broadband networks, fibre cable systems, mobile towers, digital service provider platforms, and data centers, adding new connectivity and data center capacity in many countries in Africa where such infrastructure is currently limited.