Private equity investment firm Convergence Partners has successfully closed its Convergence Partners Digital Infrastructure Fund (CPDIF) at $296 million, exceeding its initial target by more than 18%.
The CPDIF aims to drive digital inclusion in Africa and will invest in digital infrastructure opportunities, including fiber networks, data centers, wireless, towers, cloud, Internet of Things, artificial intelligence and other critical digital infrastructure that is vital to the growth of the digital economy, in sub-Saharan Africa.
In addition to investing in physical assets, the CPDIF also aims to develop and support initiatives that promote access to education, financial services, healthcare and other essential services through digital technologies, says Convergence Partners.
The closing was backed by a mix of existing and new investors comprising development finance institutions, pension funds and leading global and regional financial institutions based in Europe and Africa.
“The closure of CPDIF is a great step forward for Convergence Partners and for the development of the digital economy in sub-Saharan Africa,” says the CEO and founding partner of Convergence Partners. Brandon Doyle.
“This shutdown is just the beginning and we look forward to working with our investors and partners to build the digital infrastructure necessary to support the growth of the region’s digital economy. We strongly believe that such collaborations promote innovation, entrepreneurship, skills development and job creation by vastly expanding access to the Internet, as well as all the essential digital tools it provides.”
Over the past 20 years, Internet penetration in sub-Saharan Africa has grown exponentially due to investments in enabling infrastructure.
Since its inception, Convergence Partners has seen the need to invest in this space, motivated at the time by the United Nations specialized agency International Telecommunication Union The Missing Link/Maitland Report. Years later, there is still work to be done if we are to close the digital divide and ensure that Africa can reap the benefits of the current and next iteration of technologies, says Doyle.
Convergence Partners is committed to continuing to support the growth and development of the region’s digital economy through investments in critical digital infrastructure, noting that it has played a crucial role in ensuring the sustained growth of digital technologies in sub-Saharan Africa.
“We are extremely grateful for the continued support from our regular investors and the new support from first-time investors who have joined us on this journey to address the challenge of digital inclusion across the continent, one technology at a time. ” says the president and founding partner of Convergence Partners andile ngcaba.
“As we are seven years away from 2030, we commit to addressing the United Nations Sustainable Development Goals and preparing the digital infrastructure for Africa, soon to be home to two billion people with the youngest population on our planet.
“We will continue to build on our original vision by investing in digital infrastructure that is a key driver for digital inclusion. This CPDIF will allow us to continue to leverage our deep understanding of African technology, investment and market to deliver measurable impact,” he adds.
