Convergence Partners has unveiled a new infrastructure fund dedicated to the information and communications technology (ICT) sector in Africa, with a first close of $145 million.
The Convergence Partners Communications Infrastructure Fund (CPCIF) is targeting a final close of $250 million, and will target communications infrastructure and related services and technologies across sub-Saharan Africa.
The group noted that no single country or region is expected to dominate in terms of capital allocation. “CPCIF will look to deploy capital in both regional and in-country opportunities,” it said.
The first close of an initial $120-$130 million of the Convergence Partners Communications Infrastructure Fund was expected a year ago, as part of a $500 million African fund to invest in information and communication technology, announced in June 2012.
CPCIF reached its first close with capital commitments from the following investors: Convergence Partners (as sponsors), the International Finance Corporation (IFC), the European Investment Bank (EIB), the Dutch Development Bank (FMO), the Development Bank of Southern Africa (DBSA) and the CDC Group (CDC).
Convergence Partners is an investment management firm focused on the telecommunications, media and technology sector in Africa. It has investments in Vodacom, Internet Solutions, through Didata, Seacom and FibreCo.
“As specialist ICT investors and innovators, Convergence Partners is dedicated to accelerating investment capital, digital access and ICT infrastructure development on the continent,” said Andile Ngcaba, chairman of Convergence Partners.
“As a result, we focus strongly on initiatives that increase the availability of communications, broadband services and new technology offerings to African people. The launch of this fund will enable us to achieve these objectives on a greater scale.”
According to a recent McKinsey report, increased use of the Internet in Africa could result in a contribution of $300 billion a year to the continent’s gross domestic product (GDP) by 2025. However, according to Convergence Partners, the infrastructure to enable such increased use remains significantly underdeveloped.
Brandon Doyle, CEO of Convergence Partners, said: “Based on World Bank data, we estimate that there is an ICT infrastructure deficit of $20 billion a year in Africa. The evolution of the ICT landscape, with its increasing focus on shared, open access models, provides significant investment opportunity for a specialised infrastructure fund.”
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Quelle/Source: BusinessTech, 27.11.2013
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