CSquared, a pan-African technology firm, has raised $25 million in new equity from Convergence Partners Digital Infrastructure Fund (CPDIF), the International Finance Corporation (IFC), and the International Development Association (IDA). According to a corporate release, this is the first installment of a $65 million investment program to fund CSquared’s expansion and growth. CPDIF has also bought Google LLC’s share in CSquared at the same time.
In 2011, Google established CSquared as a carrier-neutral operator of shared infrastructure with the goal of establishing urban fiber optic networks in Sub-Saharan Africa. The company’s long-term objective is to expand internet adoption and lower internet connection costs in Sub-Saharan Africa by investing in the infrastructure required to promote digital transformation in the region.
Lanre Kolade, Chief Executive Officer of CSquared Group, commented on the transactions, saying that he is still excited about the company’s future and its role in directly addressing the continent’s digital transformation challenge.
“CSquared has a track record of developing and commercializing carrier-neutral, open-access networks throughout Africa. We are solely focused on changing lives through the region’s digitalization and the provision of #InternetForAll. Our ability to deliver on this vision will be transformed by the support of our existing and future investors. This includes increasing the digital broadband infrastructure footprint in all of our current markets – Uganda, Ghana, Liberia, Kenya, the Democratic Republic of the Congo, and Togo – as well as entering new markets in the near future. The future is here now, more than ever, #ADigitallyConnectedAfrica,” he said.
Andile Ngcaba, Chairman and Founding Partner of Convergence Partners, also spoke: “The opportunity to increase our investment in CSquared through our recently raised fund comes at a critical juncture in African digital development.”
Sarvesh Suri, IFC’s Regional Industry Director for Infrastructure, Africa, is of the view that broadband access is crucial 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,” he went on to say.