CSquared to expand digital broadband infrastructure after raising $25m  in new equity investment

CSquared Link Holdings Limited, an African technology company has successfully raised $25 million in new equity from CPDIF, IFC - International Finance Corporation and the International Development Association’s (IDA) Private Sector Window Blended Finance Facility.

This is the first tranche in a broader $65 million investment programme to finance CSquared’s expansion and growth.

Additionally, CPDIF has simultaneously acquired the stake in CSquared held by Google LLC.

The new investment into the company will be used for network expansion as CSquared continues to drive digital infrastructure developments across its footprint and the broader African region.

FTI Capital Advisors DIFC Limited (“FTICA”) acted as financial advisor to CSquared on the capital raise and concurrent sale of the stake in CSquared held by Google LLC.

Commenting on the transactions, Lanre Kolade, CSquared Group Chief Executive Officer, said   he remains enthusiastic about the company’s future and its role in directly tackling the continent’s digital transformation challenge .

“CSquared has demonstrated a proven track record in developing and commercialising carrier-neutral, open-access networks across Africa. We remain singularly focused on changing lives through the digitalisation of the region and providing internet for all,” Kolade said.

“ The support from our investors, both existing and new, will transform our ability to deliver on this ambition. This involves expanding the digital broadband infrastructure footprint in all our current markets - Uganda, Ghana, Liberia, Kenya, DRC and Togo, as well as expanding into new markets in the near future. Now, more than ever, the future is here for a digitally connected Africa.”

According to Andile Ngcaba, the chairman and founding partner of convergence partners, this is an opportunity to increase our investment in CSquared .

“Our most recently raised fund comes at a pivotal time for African digital development. The benefits of world-class connectivity span all layers of society and have never been more tangible. As investors in the company since 2017 we have had a front-row view of the tremendous impact of open-access networks on the development of the African ICT ecosystem. The combination of developmental impact, as well as strong commercial returns makes this an attractive investment for CPDIF and we are delighted to be able to shape the next phase of this journey,” Ngcaba said.

IFC’s regional industry director for infrastructure, Africa, Sarvesh Suri said “Broadband connectivity is critical for Africa’s development. Our investment in CSquared is aligned with our regional strategy to develop digital infrastructure and promote the digital economy which can help leapfrog development for many African countries, support economic growth and stimulate job creation.”

CSquared was launched as a project within Google in 2011 with the ambition of building metropolitan fiber optic networks in Sub-Saharan Africa as a carrier neutral operator of shared infrastructure.

The long-term vision for the company is to increase Internet penetration in Sub-Saharan Africa and to reduce internet access costs by investing in infrastructure necessary to drive digital transformation in the region.

In October 2017, in order to accelerate the scope and scale of the business, additional investors namely, Mitsui Co., Ltd., Convergence Partners Communication Infrastructure Fund and IFC came onboard to deepen existing market penetration and expand geographically as the partners looked to commercialize the company.

Under the guidance of its shareholders, the company has successfully established operations in six markets across the continent including  Uganda, Ghana, Liberia, Kenya, the Democratic Republic of Congo and Togo.

CSquared’s collaboration with Google in Togo was critical to delivering the first continental landing of the Equiano cable in Africa in March 2022.