CDC commits additional US $40 million to Liquid Intelligent Technologies supporting Africa’s digital transformationOctober 26, 2020
CDC’s commitment is part of a US$ 307million fundraise via a rights issue offer to Liquid Intelligent Technologies shareholders
Follows CDC’s initial US$180 equity million equity investment made in 2018
Contributes to a more digital and productive economy across Africa
CDC Group, the UK’s development finance institution and impact investor, has announced an additional US$40 million equity investment into Liquid Intelligent Technologies, Africa’s largest independent fibre, data centre and cloud technology provider. This marks CDC’s second investment in the company, following a US$180 million equity investment in 2018.
CDC’s additional investment is made as part of Liquid Intelligent Technologies’s wider fundraise where the company attracted US$307 million through a rights issue to shareholders. This investment will support Liquid Intelligent Technologies’s plan to further expand its pan-African data centre operation business, Africa Data Centres, and consolidate its position as the leading data centre operator on the continent.
Africa Data Centres is well positioned to service increasing demands for data storage and cloud-based applications across the continent. Currently, it is estimated that less than 20% of potential telecommunications enterprise demand is being served in Africa, with London having three times more cloud computing power available than the entire continent.
Liquid Intelligent Technologies’s development of data centres will boost economic activity by reducing IT related costs for companies. Increased local capacity will also spur innovation by offering affordable data storage and Software-as-a-Service (Saas) applications to SMEs. Additionally, the company’s cloud-based services will also help accelerate the growth of Africa’s tech start-up ecosystems whilst also supporting the needs of established enterprises across the continent.
This investment will contribute to the UN Sustainable Development Goals 8 (Decent Work and Economic Growth) and 9 (Industry, Innovation and Infrastructure).
Tony Morgan, CDC’s Managing Director, Direct Equity said: “We remain committed to improving digital infrastructure in Africa and helping the continent’s governments, businesses and people gain access to quality online services. Our aggregate investment to Liquid Intelligent Technologies now stands at US$220 million, this will play an important role in addressing the increasing demand for digital services and help close the digital divide between Africa and other regions. Investing in Africa’s digital infrastructure is vital for building resilience within African economies and accelerating their growth.”
Nic Rudnick, Group Chief Executive Officer of Liquid Intelligent Technologies added: “CDC’s additional equity investment into Liquid Intelligent Technologies represents another crucial step in connecting businesses in Africa, with Liquid Intelligent Technologies at the forefront of the continent’s eruption in technology adoption. Africa has significant untapped economic potential that is being unlocked by improving connectivity, data storage and the use of cloud-based applications. This investment will bring significant economic benefits to developing markets across the continent.”