Convergence Partners Closes $296 Million to Promote Digital Infrastructure in Africa

Convergence Partners, the top private equity investor in sub-Saharan Africa’s technology industry, is pleased to announce the $296 million closure of its Convergence Partners Digital Infrastructure Fund (CPDIF), exceeding its original objective by more than 18%.

Despite tepid private capital raising across the continent in 2022, this accomplishment was made.

Convergence Partners’ largest fund to date, CPDIF, just closed, marking a key turning point for the business and bringing total assets under administration to more than $600 million.

Leading international and regional development finance institutions (DFIs), pension funds, and financial institutions based in Europe and Africa supported the closing with a combination of new and current investors.

CPDIF was introduced in June 2020, and in July 2021, it had its first closing of $120 million. The Fund’s primary area of interest is sub-Saharan Africa’s prospects for investment in digital infrastructure. The development of the region’s digital economy depends on investments in fiber networks, data centers, wireless, towers, cloud, Internet of Things (IoT), artificial intelligence (AI), and other crucial digital infrastructure. CPDIF aims to develop and fund initiatives that increase access to education, financial services, healthcare, and other important services through digital technology in addition to investing in tangible assets.

Due to investments in supportive infrastructure, internet penetration in sub-Saharan Africa has increased tremendously during the past 20 years. Convergence Partners has recognized the need to invest in this sector ever since it was founded, spurred on at the time by the ITU’s The Missing Link/Maitland Report. Even after many years, there is still work to be done if we want to reduce the digital divide and make sure that Africa can benefit from the most recent and next technological advancements.

According to Brandon Doyle, CEO and Founding Partner of Convergence Partners, “The closing of CPDIF is a major step forward for Convergence Partners and for the development of the digital economy in sub-Saharan Africa. This closing is just the beginning, and we look forward to working with our investors and partners to build the digital infrastructure required to support the growth of the region’s digital economy. We firmly think that these partnerships encourage creativity, entrepreneurship, skill development, and the creation of new jobs by greatly extending access to the internet and all of the vital digital tools it offers.

Convergence Partners has played a crucial role in ensuring the sustained growth of digital technologies across sub-Saharan Africa and is committed to continuing to support the growth and development of the region’s digital economy through investments in critical digital infrastructure.

“We are extremely grateful for the continued support of our repeat investors and the new support given to us from first-time investors that have joined us on this journey to address the challenge of the digital inclusion across the continent, one technology at a time. As we are 7 years away from 2030 we commit to addressing SDGs and preparing digital infrastructure for Africa which is soon to be home to 2 billion people with the youngest population on our planet,” says Andile Ngcaba, Chairman and Founding Partner at Convergence Partners. “We will continue to build on our original vision by investing in digital infrastructure that is a key enabler for digital inclusion.  This Fund will enable us to continue leveraging our deep knowledge of technology, investments and the African market to deliver measurable impact.”