Jan 30, 2023

Convergence Partners has raised $296 million for its Africa fund to buy African technology assets and thus promote digital inclusion across Africa, the frim's chairman and majority shareholder Andile Ngcaba has stated, as cited by media. 2023-01-30T14:15+0000 https://cdnn1.img.sputniknews.com/img/07e6/0c/1f/1105957055_0:0:3237:1821_1920x0_80_0_0_09ba34fd6b55fe2598506ba119bf7058.jpg Convergence Partners has raised $296Mln for its Africa fund to buy technology assets and thus promote digital inclusion throughout Africa, the firm's chairman and majority shareholder Andile Ngcaba has said, as cited by media. According to the South African businessman, the group has successfully closed its Convergence Partners Digital Infrastructure Fund (CPDIF) surpassing its initial target by more than 18 percent despite poor private capital fundraising on the continent last year.The fund was launched in June 2020 and had a first close of $120Mln in July 2021.He stated that the recent close of CPDIF marks an important milestone, as it represents the company's biggest fund to date, making total funds under management to more than $600Mln. The financing mainly came from previous investors, development agencies, as well as pension funds and financial institutions based in Europe, Africa, the US and the UK. The fund is focused on investing in digital infrastructure opportunities in sub-Saharan Africa, including investments in fiber networks, data centers, wireless, Internet of Things (IoT), artificial intelligence and other infrastructure that is necessary for the development of digital economy on the continent. Apart from investing in physical assets, the fund is aimed at supporting initiatives that facilitate access to education, healthcare, and financial services through digital technology. According to the company's chairman, there is a significant digital gap in Africa between those who have access to the internet and computers, and those who don’t. To address this issue and reach the gap, he highlighted that the continent needs another 700 data centers and about $100Bln in investment by 2030.He also noted a positive change in terms of digital development in Africa, saying that more tech-savvy youth appear on the continent with the fastest-growing population, who increasingly use digital services through their mobile phones, including banking and online shopping. Over the past 20 years, the internet penetration across sub–Saharan Africa has been growing because of an increase in investments in critical infrastructure. Apart from Convergence Partners, other funds such as Helios Investment Partners and Development Partners allocated great amounts of capital for technology investments in Africa. Ngcaba also mentioned that the interest of tech giants has been increasing, including such companies as Alphabet and Amazon. Convergence Partners has been operating in Africa for almost two decades and invested in companies such as Vodacom Group and Nedbank Group. The chairman noted that there is still more work to be done to make Africa reap the benefits of the current technology enhancement as the continent lacks behind in terms of digital infrastructure. https://sputniknews.com/20230115/tanzania-considers-introduction-of-central-bank-digital-currency-1106332462.html Convergence Partners, founded in 2006, is an investment management company focused on the development of the technology, media, and telecom sectors in Africa. The investment group created a fund aimed at investing in digital infrastructure opportunities throughout the continent. Convergence Partners has raised $296Mln for its Africa fund to buy technology assets and thus promote digital inclusion throughout Africa, the firm's chairman and majority shareholder Andile Ngcaba has said, as cited by media. According to the South African businessman, the group has successfully closed its Convergence Partners Digital Infrastructure Fund (CPDIF) surpassing its initial target by more than 18 percent despite poor private capital fundraising on the continent last year. The fund was launched in June 2020 and had a first close of $120Mln in July 2021. He stated that the recent close of CPDIF marks an important milestone, as it represents the company's biggest fund to date, making total funds under management to more than $600Mln. The financing mainly came from previous investors, development agencies, as well as pension funds and financial institutions based in Europe, Africa, the US and the UK. The fund is focused on investing in digital infrastructure opportunities in sub-Saharan Africa, including investments in fiber networks, data centers, wireless, Internet of Things (IoT), artificial intelligence and other infrastructure that is necessary for the development of digital economy on the continent. Apart from investing in physical assets, the fund is aimed at supporting initiatives that facilitate access to education, healthcare, and financial services through digital technology. “We are looking to invest in technology assets ranging from data centers to optic fiber on land and sea,” said Ngcaba, adding: “We have already identified quite a pipeline of targets for the money.” According to the company's chairman, there is a significant digital gap in Africa between those who have access to the internet and computers, and those who don’t. To address this issue and reach the gap, he highlighted that the continent needs another 700 data centers and about $100Bln in investment by 2030. He also noted a positive change in terms of digital development in Africa, saying that more tech-savvy youth appear on the continent with the fastest-growing population, who increasingly use digital services through their mobile phones, including banking and online shopping. Over the past 20 years, the internet penetration across sub–Saharan Africa has been growing because of an increase in investments in critical infrastructure. Apart from Convergence Partners, other funds such as Helios Investment Partners and Development Partners allocated great amounts of capital for technology investments in Africa. Ngcaba also mentioned that the interest of tech giants has been increasing, including such companies as Alphabet and Amazon. “That contributes to a slowly maturing market, and also increases deal-making and exiting opportunities for private equity and others,” he said. Convergence Partners has been operating in Africa for almost two decades and invested in companies such as Vodacom Group and Nedbank Group. The chairman noted that there is still more work to be done to make Africa reap the benefits of the current technology enhancement as the continent lacks behind in terms of digital infrastructure.