Liquid Telecom has raised US$307 million from its shareholders to expand upon its data centre operations. The figure rose to the final sum after a commitment of US$40 million by CDC Group, a development financial institution owned by the UK govt. This latest investment is an addition to the US$180 million equity investment made by CDC Group in 2018.
The overall investment has been an ongoing fundraising effort from the company shareholders through a rights issue. The investment will support Liquid Telecom as it broadens its Pan-African data centre 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
This push from Liquid Telecom aims to boost local capacity, this will hopefully mean more affordable data storage and Software-as-a-Service (SaaS) application for small to medium enterprises.
According to Liquid Telecom, Africa’s current cloud computing capacity is three times less than that of London. The company estimates that there is less than 20% of potential telecommunications enterprise demand being served in Africa.
The expansion of data centres in Africa will hopefully provide an economic boost as well as support the tech start-up ecosystem on the 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.”
Tony Morgan, CDC’s Managing Director, Direct Equity
This investment will also strengthen the company’s position as the leading data centre operator on the continent. Liquid Telecom recently won the “Best MEA (Middle East and Africa) Wholesale carrier” at the Global Carrier Awards. The awards recognise innovation across a number of different products and services.-techzim