Convergence Partners, a leading private equity investor focused on the technology sector in sub-Saharan Africa, has announced the successful raising of $296 million for the Convergence Partners Digital Infrastructure Fund (CPDIF). This amount exceeds the fund’s initial target by over 18%, a noteworthy achievement considering the subdued private capital fundraising environment on the continent in 2022. The closing of CPDIF marks a significant milestone for the company, as it represents Convergence Partners’ largest fund to date, bringing the total funds under management to more than $600 million, according to Tech Economy.
The fund’s closing was supported by a diverse group of existing and new investors, including prominent global and regional Development Finance Institutions, pension funds, and financial institutions from Europe and Africa. Launched in June 2020, CPDIF had its first close of $120 million in July 2021. The fund is dedicated to investing in digital infrastructure opportunities throughout sub-Saharan Africa, focusing on areas such as fibre networks, data centres, wireless towers, cloud services, the Internet of Things, Artificial Intelligence, and other essential digital infrastructure critical for the growth of the region’s digital economy.
In addition to investing in physical assets, CPDIF aims to develop and support initiatives that enhance access to education, financial services, healthcare, and other essential services through digital technologies. Over the past 20 years, internet penetration in sub-Saharan Africa has grown exponentially due to investments in enabling infrastructure. Convergence Partners recognized the need for investment in this area early on, motivated by the ITU’s The Missing Link/Maitland Report. However, there remains significant work to be done to close the digital divide and ensure that Africa can fully benefit from current and future technological advancements.
Brandon Doyle, CEO and Founding Partner of Convergence Partners, stated, “The closing of CPDIF is a major step forward for Convergence Partners and for the development of the digital economy in sub-Saharan Africa. This closing is just the beginning, and we look forward to collaborating with our investors and partners to build the digital infrastructure necessary to support the region’s digital economy. We strongly believe that such collaborations will foster innovation, entrepreneurship, skill development, and job creation by significantly expanding access to the internet and the essential digital tools it provides.”
Andile Ngcaba, Chairman and Founding Partner at Convergence Partners, expressed gratitude for the ongoing support from repeat investors and the new backing from first-time investors. He emphasized the commitment to addressing the challenge of digital inclusion across the continent, stating, “As we approach 2030, we are dedicated to addressing the Sustainable Development Goals (SDGs) and preparing digital infrastructure for Africa, which is soon to be home to 2 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 enabler for digital inclusion. This fund will allow us to leverage our extensive knowledge of technology, investments, and the African market to deliver measurable impact.”
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