A significant investment is set to boost Africa’s digital infrastructure as South Africa-based Liquid Telecom to raise $225 million equity by the end of 2024.
Per Hardy Pemhiwa, Chief Executive Officer (CEO) of Liquid Telecom, a US development agency, the International Development Finance Corporation, will be one of the main investors billed to participate in the investment round.
The US-born agency is said to be among the biggest participants in a $90 million — the first round of funding in the coming weeks. A second tranche of funding is slated for later in the year, Bloomberg News reports.
The new investment is poised to transform Africa’s connectivity and enable Liquid Telecom to manage upcoming financial obligations. Including a $156 million term loan and $620 million in bonds due in 2026.
In 2021, Liquid Telecom secured a $840 million bond and term loan financing package — $620 million bond sale and $220 million in debt refinancing.
Liquid, in collaboration with US multinational technology companies like Microsoft Corp. and Alphabet Inc.’s Google, focuses on expanding broadband access across the continent, particularly in parts of East Africa that have historically lacked robust infrastructure.
Pemhiwa assured that the partnership with Microsoft aims to bring affordable broadband access to 20 million people across Kenya and Zambia, directly addressing the digital divide and enabling greater access to online education, healthcare, and business opportunities.
Recall that three months ago, Microsoft South Africa disclosed it’d be investing R1.3 billion ($70 million) in the South African economy as part of a 10-year agreement with the Department of Trade, Industry, and Competition (DTIC).
Liquid Telcom to collaborate with Google
Additionally, Liquid’s collaboration with Google will involve building terrestrial fiber networks across:
- South Africa
- Kenya
- Uganda
- Rwanda
- Zambia
- Zimbabwe
- The Democratic Republic of the Congo (DRC).
This new infrastructure will not only enhance connectivity for several data centers. But also provide a critical alternative in case of subsea cable outages in the region, ensuring more reliable internet access.
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Liquid’s expansion is a response to the growing demand for high-speed internet and data storage across Africa. With over 110,000 kilometres (68,000 miles) of fibre already laid. This new funding will further support the continent’s digital economy. Helping to bridge the connectivity gap in some of the world’s least connected regions.
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