NAIROBI, Kenya, Nov 14 – PanAfrican technology company CSquared Link Holdings has raised Sh3.8 billion ($25 million) to invest in Africa’s telecommunication infrastructure.
The equity investment came from new and existing shareholders and will be used to expand carrier-neutral, open-access broadband infrastructure.
The new equity is from CPDIF, the International Finance Corporation (IFC), and the International Development Association’s (IDA) Private Sector Window Blended Finance Facility.
“CSquared has demonstrated a proven track record in developing and commercialising carrier-neutral, open-access networks across Africa. We remain singularly focused on changing lives through the digitalisation of the region and providing #InternetForAll,” Lanre Kolade, CSquared Group Chief Executive Officer, said.
“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 added.
This is the first tranche in a broader US$65 million investment program to finance CSquared’s expansion and growth.
Additionally, CPDIF has acquired a Google LLC stake in CSquared.
“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,” Andile Ngcaba, Chairman and Founding Partner of Convergence Partners, added.
“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.”
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 reduce Internet access costs by investing in the infrastructure necessary to drive digital transformation in the region.
In October 2017, in order to accelerate the scope and scale of the business, additional investors, namely Mitsui & Co., Ltd., Convergence Partners Communication Infrastructure Fund, and IFC, came onboard to deepen existing market penetration and expand geographically as the partners looked to commercialize the company.
Under the guidance of its shareholders, the company has successfully established operations in six markets across the continent, namely Uganda, Ghana, Liberia, Kenya, the Democratic Republic of the Congo, and Togo.
Moreover, CSquared’s collaboration with Google in Togo was critical to delivering the first continental landing of the Equiano cable in Africa in March 2022, significantly transforming the affordability and availability of internet access in this previously underserved market.
“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,” Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure, Africa, said.
FTI Capital Advisors DIFC Limited (“FTICA”) acted as a financial advisor to CSquared on the capital raise and concurrent sale of the stake in CSquared held by Google LLC.
