Convergence Partners raises $296 million despite reduced private capital investment in Africa last year

Convergence Partners, the leading private equity investor dedicated to the technology sector across sub-Saharan Africa, has successfully closed its Convergence Partners Digital Infrastructure Fund (CPDIF) at $296 million.

Convergence Partners invests as value-adding partners in private equity and infrastructure opportunities in technology and digital sectors across sub-Saharan Africa. With its strong sector focus and primary strategy of growth stage investing, it brings its skills, relationships, experience and capital to actively grow its investments, including catalyzing new investment opportunities directly and via its portfolio companies.

The recent closing of CPDIF is a significant milestone for the company as it represents Convergence Partners’ largest fund to date, bringing total funds under management to over $600 million. The amount raised exceeded its initial target by more than 18%, despite subdued private capital fundraising on the mainland in 2022.

The closing 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.

CPDIF launched in June 2020 and had a first close of $120 million in July 2021. The Fund is focused on investing in digital infrastructure opportunities across sub-Saharan Africa. This includes investments in fiber networks, data centers, wireless, towers, cloud, Internet of Things (IoT), artificial intelligence (AI) and other critical digital infrastructure essential to the growth of the digital economy in the region.

In addition to investing in physical assets, CPDIF aims to develop and support initiatives that promote access to education, financial services, healthcare and other essential services through digital technologies.

Convergence partners and for the development of the digital economy in Africa south of the Sahara

Over the past 20 years, internet penetration in sub-Saharan Africa has grown exponentially due to investments in enabling infrastructure. Since its inception, Convergence Partners has seen the need to invest 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 are to close the digital divide and ensure that Africa can reap the benefits of the current and subsequent iterations of the technologies.

“The closure of CPDIF is a major step forward for Convergence Partners and for the development of the digital economy in sub-Saharan Africa,” said Brandon Doyle, CEO and Founding Partner of Convergence Partners.

Brandon Doyle, CEO and Founding Partner of Convergence Partners.

“This closure is just the beginning, and we look forward to working with our investors and partners to build the digital infrastructure needed to support the growth of the region’s digital economy. We strongly believe that such collaboration promotes innovation, entrepreneurship, skills development and job creation by greatly expanding access to the Internet and all the essential digital tools it provides.”

Convergence Partners has played a pivotal role in ensuring the continued growth of digital technologies across sub-Saharan Africa and is committed to supporting 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 who have joined us on this journey to address the challenge of digital inclusion across the continent, one technology at a time. Andile Ngcaba, chairman and founding partner at Convergence Partners, said.

“As we are 7 years from 2030, we commit to addressing SDGs and preparing digital infrastructure for Africa, which will soon be home to 2 billion people with the youngest population on our planet.”

“We will build on our original vision by investing in digital infrastructure which is a key enabler for digital inclusion. This Fund will enable us to continue to leverage our deep knowledge of technology, investments and the African market to deliver measurable impact.”

Convergence Partners was awarded the Best TMT Impact Investment Strategy for Africa 2021 by CFI.co.