The International Finance Corporation (IFC) has allocated US$ 25.1 million to promote increased digital connection and access to digital across Africa through an equity investment in Convergence Partners. According to the development institution, the Digital Infrastructure Fund will provide the investment that supports vital digital infrastructure companies and projects such as broadband networks, fibre cable systems, mobile towers, digital service provider platforms, and data centres.
According to the World Bank-owned company, this is in response to the COVID-19 pandemic, highlighting Africa’s digital gap. IFC notes that Africa has a significant urban-rural connectivity difference, with 28 per cent of urban households having Internet access compared to only 6 per cent in rural regions, according to statistics from the International Telecommunication Union.
The IFC’s investment in Africa follows Convergence Partners’ statement that it has raised US$ 114.9 million of the US$ 243.4 million it needs to complete its digital infrastructure projects on the continent.
“Broadband connectivity boosts economic growth, job creation, and quality of life,” adds IFC managing director Makhtar Diop. “By supporting funds like the Convergence Partners Digital Infrastructure Fund, we can help connect more homes and companies in Africa by bridging the US$100 billion digital infrastructure finance gap to achieve universal connectivity by 2030.”
“Convergence Partners is pleased to prolong their connection with IFC, who were previously investors in the last fund and co-investors in underlying portfolio firms,” says Andile Ngcaba, chairman of Convergence Partners. Their shared goal is to invest in businesses on the African continent, making a significant contribution to closing the digital divide.
“Africa is ready for high-throughput, pervasive fibre networks, independent hyper-scale data centres, edge computing, AI, 5G, and the Internet of Things. The new Digital Infrastructure Fund will serve as the foundation for future generations to develop a Digital Africa.”
