UK based investment firm CDC has invested a further $40 million in Liquid Telecom, as part of the company's latest round of fundraising. The move follows CDC’s initial investment of $180 million in Liquid Telecom in 2018.
Liquid Telecom is currently Africa’s biggest provider of data centre services and CDC’s $40m investment will support Liquid Telecom’s plan to expand its pan-African data centre operation business, Africa Data Centres.
“CDC’s additional equity investment into Liquid Telecom represents another crucial step in connecting businesses in Africa, with Liquid Telecom 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,” Nic Rudnick, group chief executive officer of Liquid Telecom.
Africa is seeing rapid growth in demand for data storage solutions and cloud based applications, right across the continent. It is currently estimated that less than 20 per cent of potential telecommunications enterprise demand is being served in Africa, with London having three times more cloud computing power available than the entire continent.
“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 Telecom 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,” said Nick O’Donohoe, CDC’s chief executive.