Liquid Telecommunication Holdings Ltd., headquartered in South Africa, is preparing to bolster Africa’s digital landscape through a substantial injection of capital. CEO Hardy Pemhiwa has confirmed the company’s target of securing $225 million in equity by the end of 2024.
Key Role of International Development Finance Corporation (IDFC)
The International Development Finance Corporation (IDFC), a notable US development agency, is expected to play a pivotal role in the upcoming investment round. The IDFC is poised to be a significant contributor in the initial $90 million funding tranche, with further capital injections planned throughout the year, as reported by Bloomberg News.
Revolutionizing Africa’s Digital Connectivity
The fresh influx of funds is slated to transform the continent’s digital connectivity landscape, equipping Liquid Telecom to meet upcoming financial obligations, including a $156 million term loan and $620 million in bonds due in 2026. In 2021, Liquid Telecom successfully raised $840 million through a comprehensive financing package, directing $620 million towards a bond offering and $220 million for debt refinancing.
Strategic Collaborations with Tech Giants for Infrastructure Expansion
Liquid Telecom has been actively engaged in partnerships with prominent US tech entities such as Microsoft Corp. and Google, a subsidiary of Alphabet Inc., to expand broadband services across Africa. The focus lies on bolstering digital infrastructure in underserved East African regions.
Empowering Communities through Digital Inclusion
CEO Pemhiwa highlights the significance of Liquid Telecom’s partnership with Microsoft in delivering affordable broadband to 20 million individuals in Kenya and Zambia. This initiative aims to bridge the digital divide, providing enhanced access to online education, healthcare services, and business opportunities.
Infrastructure Development with Google for Enhanced Connectivity
Liquid Telecom plans to collaborate with Google to establish extensive terrestrial fibre networks spanning multiple African countries, including South Africa, Kenya, Uganda, Rwanda, Zambia, Zimbabwe, and the Democratic Republic of the Congo (DRC). This infrastructure development will significantly boost connectivity for various data centres in these regions.
Building Resilient Internet Networks
Additionally, the new fibre networks will serve as crucial contingency solutions to maintain internet reliability, particularly in the face of disruptions to subsea cable systems that have historically posed challenges to internet access in the region.
Enabling Digital Transformation Across Africa
With an existing network of over 110,000 kilometres (68,000 miles) of fibre optic cables deployed, Liquid Telecom’s forthcoming financial infusion is set to propel Africa’s digital economy. This initiative plays a vital role in enhancing connectivity in regions with limited access to digital services, promoting inclusivity and narrowing the digital divide across the continent.