A significant finance deal worth more than $50 million is expected to be given to the West Indian Ocean Cable Company (WIOCC) Group, a top supplier of high-capacity connectivity.
A group of multinational organisations working to close the digital gap in Africa are the source of this large funding injection. The funding infusion would help WIOCC expand in three important African countries: South Africa, Nigeria, and the Democratic Republic of the Congo (DRC).
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Navigating Investments in Africa’s Digital Landscape
The International Financing Corporation (IFC), a World Bank Group member; Proparco, a development financing agency and a division of the Agence Française de Développement Group; and RMB Corvest, a private equity firm, are among the group of international organisations supporting this project.
IFC is contributing $10 million and ZAR 200 million, or roughly $11.07 million, to the finance package, structured as a combination of loans. Proparco is adding $20 million.
Furthermore, WIOCC anticipates finalising a $10 million loan agreement with RMB Corvest in the coming weeks, specifically for its expansion plans in Nigeria. This comprehensive funding approach demonstrates the strong international support for improving digital infrastructure across the African continent.
The funding package’s structure, which is tied to sustainability, is significant. WIOCC’s pledge to increase energy efficiency and obtain EDGE green building certification affects the loan rate.
By ensuring that data centres are resource-efficient and sustain no carbon emissions, EDGE, an IFC-provided certification, connects the project with global environmental goals.
WIOCC planned to allocate funds towards expanding its core and edge data centres in Nigeria, South Africa, and the DRC. This expansion aims to meet these countries’ growing demand for data centre services. Furthermore, the company intends to invest in growing its fibre networks, extending digital access to more people and fostering economic growth across Africa.
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Unleashing Africa’s Digital Potential
The CEO of WIOCC Group, Chris Wood, expressed zeal about this capital raise, highlighting its importance in enabling substantial expansion. He emphasised that the funding would facilitate the addition of further capacity to their open-access data centre operations and extend open-access hyper scale national, international, and metro connectivity across key markets.
Since its inception in 2007, WIOCC has consistently invested in Africa’s digital sector, since its inception in 2007. The company has focused on providing open-access infrastructure to meet the escalating demand for reliable connectivity throughout the continent. This latest funding round reinforces WIOCC’s commitment to improving digital infrastructure and accessibility in Africa.
International financial institutions fund WIOCC’s expansion, enhancing connectivity and data centre capabilities. This investment is crucial for Africa’s digital transformation and economic growth. The expansion will improve internet access and create opportunities for businesses, education, and sectors to leverage digital technologies for growth and innovation.