CDC commits additional US $40 million to Liquid Telecom

27 Oct 2020

CDC Group, the UK’s development finance institution and impact investor, has announced an additional US$40 million equity investment into Liquid Telecom, Africa’s largest independent fibre, data centre and cloud technology provider. This marks CDC’s second investment in the company, following a US$180 million equity investment in 2018.

CDC’s additional investment is made as part of Liquid Telecom’s wider fundraise where the company attracted  US$307 million through a rights issue to shareholders. This investment will support Liquid Telecom’s plan to further expand its pan-African data centre operation business, Africa Data Centres, and consolidate its position as the leading data centre operator on the continent.

Africa Data Centres is well positioned to service increasing demands for data storage and cloud-based applications across the continent. Currently, it is estimated that less than 20% of potential telecommunications enterprise demand is being served in Africa, with London having three times more cloud computing power available than the entire continent.

Liquid Telecom’s development of data centres will boost economic activity by reducing IT related costs for companies. 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.

This investment will contribute to the UN Sustainable Development Goals 8 (Decent Work and Economic Growth) and 9 (Industry, Innovation and Infrastructure).

Tony Morgan, CDC’s Managing Director, Direct Equity said: “We remain committed to improving digital infrastructure in Africa and helping the continent’s governments, businesses and people 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. Investing in Africa’s digital infrastructure is vital for building resilience within African economies and accelerating their growth.”

Nic Rudnick, Group Chief Executive Officer of Liquid Telecom added: “CDC’s additional equity investment into Liquid Telecom represents another crucial step in connecting businesses in Africa, with Liquid Telecom at the forefront of the continent’s eruption in technology adoption. Africa has significant untapped economic potential that is being unlocked by improving connectivity, data storage and the use of cloud-based applications. This investment will bring significant economic benefits to developing markets across the continent.”

 

ENDS

Media Contact:

Toyosi Adebayo / M. +44 (0) 7880 372 305 / tadebayo@cdcgroup.com | press@cdcgroup.com

Notes to Editors

 

About CDC

CDC Group is the UK’s first impact investor with over 70 years of experience of successfully supporting the sustainable, long-term growth of businesses in South Asia and Africa.

CDC is a leading player in the fight against climate change and a UK champion of the UN’s Sustainable Development Goals – the global blueprint to achieve a better and more sustainable future for us all.

The company has investments in over 1,200 businesses in emerging economies and a total portfolio value of £5.8bn. This year CDC will invest over $1.5bn in companies in Africa and Asia with a focus on fighting climate change, empowering women and creating new jobs and opportunities for millions of people.

CDC is funded by the UK government and all proceeds from its investments are reinvested to improve the lives of millions of people in Africa and South Asia.

CDC’s expertise makes it the perfect partner for private investors looking to devote capital to making a measurable environmental and social impact in countries most in need of investment.

 

About Liquid Telecom

Liquid Telecom is a leading communications solutions provider across 13 countries primarily in Eastern, Southern and South Africa that serves mobile operators, carriers, enterprise, media and content companies and retail customers with high-speed, reliable connectivity, hosting and co-location and digital services. It has built Africa’s largest independent fibre network, stretching more than 70,000km, and operates state-of-the-art data centres in Johannesburg, Cape Town and Nairobi, with a combined potential 19,000 square metres of rack space and 78 MW of power. This is in addition to offering leading cloud-based services, such as Microsoft Office365 and Microsoft Azure across our fibre footprint. Through this combined offering Liquid Telecom is enhancing customers’ experience on their digital journey. In October 2019, Liquid Telecom was recognised as ‘The Best African Wholesale Carrier’ for 8th consecutive year at the Global Carrier Awards. www.liquidtelecom.com

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