UK development finance firm CDC Group has invested an additional $40 million (R651 million) into Liquid Telecom.
This follows the R2.6-billion investment from CDC Group concluded in 2018, furthering the investment of the UK firm into the African ICT company.
CDC’s additional investment was made as part of Liquid Telecom’s wider fundraiser, where the company attracted $307-million (R5 billion) through a rights issue to shareholders.
The UK firm said this investment will support Liquid Telecom’s plan to further expand its Africa Data Centres business and consolidate its position as the leading data centre operator on the continent.
Liquid Telecom’s development of data centres will boost economic activity by reducing IT-related costs for companies, CDC said.
“Increased local capacity will also spur innovation by offering affordable data storage and Software-as-a-Service (Saas) applications to SMEs.”
“Additionally, the company’s cloud-based services will also help accelerate the growth of Africa’s tech start-up ecosystems whilst also supporting the needs of established enterprises across the continent,” CDC said.
CDC chief executive Nick O’Donohoe said they remain committed to improving digital infrastructure in Africa and helping the continent gain access to quality online services.
“Our aggregate investment to Liquid Telecom now stands at US$220 million, this will play an important role in addressing the increasing demand for digital services and help close the digital divide between Africa and other regions,” he said.
“Investing in Africa’s digital infrastructure is vital for building resilience within African economies and accelerating their growth.”
Liquid Telecom Group CEO Nic Rudnick said this additional investment is a crucial step in connecting businesses in Africa.
“Africa has significant untapped economic potential that is being unlocked by improving connectivity, data storage and the use of cloud-based applications,” Rudnick said.
“This investment will bring significant economic benefits to developing markets across the continent.”