Csquard, a pan-African technology company
committed to digitally connecting Africa by making impactful investments in
telecommunications infrastructure throughout the region has announced that it
has raised US$ 25 million in new equity from CPDIF, IFC-International Finance
Corporation and the International Development Association’s (IDA) Private Sector
Window Blended Finance Facility to accelerate the expansion of its carrier
neutral, open-access broadband infrastructure.
According to a statement issued on Tuesday, this
is the first tranche in a broader US$65 million investment programme to finance
CSquared’s expansion and growth. Additionally, CPDIF has simultaneously
acquired the stake in CSquared held by Google LLC.
The new investment into the Company will be
used for network expansion as CSquared continues to drive digital
infrastructure developments across its footprint and the broader African
region. The well-established developmental impact of such investments is a
cornerstone of CSquared’s vision and that of its shareholders. Such vision is
to facilitate job creation, innovation, entrepreneurship and other
developmental objectives which are enhanced by the uptake of internet access
and digitalisation of the economy
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 to reduce Internet access costs by investing in
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 Congo and Togo.
In addition, 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
under-served market. Commenting on the transactions, Lanre Kolade,
CSquared Group Chief Executive Officer, shared that he remains enthusiastic
about the company’s future and its role in directly tackling the continent’s
digital transformation challenge - he states “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. 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”.
Andile Ngcaba, Chairman and Founding Partner
of Convergence Partners, added “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. 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”.
Commenting on its investment in CSquared,
Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure, Africa, said
“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.”
FTI Capital Advisors DIFC Limited (“FTICA”)
acted as financial advisor to CSquared on the capital raise and concurrent sale
of the stake in CSquared held by Google LLC.
By: Nana Appiah Acquaye