Convergence Partners Raises $296m to Drive Digital Inclusion across Africa

Convergence Partners, the leading private equity investor dedicated to the technology sector across sub-Saharan Africa, is proud to announce the successful closing of its Convergence Partners Digital Infrastructure Fund (CPDIF) at $296 million, surpassing its initial target by over 18percent. This achievement is despite subdued private capital fundraising on the Continent in 2022.

A statement by the organisation said the recent close of CPDIF marks a significant milestone for the company, as it represents Convergence Partners’ largest fund to date, bringing total funds under management to more than $600m.

The statement also noted that the close was backed by a combination of existing and new investors comprising leading global and regional development finance institutions (DFIs), pension funds and financial institutions based in Europe and Africa.
The statement further explained that CPDIF was launched in June 2020 and had a first close of $120m in July 2021.

It hinted that the Fund is focused on investing in digital infrastructure opportunities across sub-Saharan Africa, also noting that this includes investments in fibre networks, data centres, wireless, towers, cloud, Internet of Things (IoT), artificial intelligence (AI) and other critical digital infrastructure that is vital for the growth of the digital economy in the region.
The statement remarked that in addition to investing in physical assets, CPDIF is also aimed at developing and supporting initiatives that promote access to education, financial services, healthcare, and other essential services through digital technologies.

According to the statement: “The last 20 years have seen internet penetration in sub–Saharan Africa grow exponentially as a result of investments in enabling infrastructure. Since inception, Convergence Partners has seen the need to invest the in this space, motivated at the time by the ITU’s The Missing Link/Maitland Report.

Years later there is still more work to be done if we wish to close the digital divide and ensure that the Africa is able to reap the benefits from the current and next iteration of the technologies.”

Founding Partner of Convergence Partners, Chief Executive Officer, Brandon Doyle stated: “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 strongly believe such collaborations promote innovation, entrepreneurship, skill development, and job creation by vastly expanding access to the internet and all the essential digital tools it provides.”

The statement that 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.

The Chairman and Founding Partner at Convergence Partners, Andile Nagbala, said: “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 seven 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. 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.”