The Emerging Africa Infrastructure Fund (EAIF), part of the Private Infrastructure Development Group (PIDG), together with its fund manager, Ninety One, has pledged a significant investment to revolutionize Africa’s digital landscape. A US$31 million debt facility has been committed to Paratus Group Holdings Limited (Paratus) to drive the expansion of its pivotal fibre and data centre business across the continent over the coming three years.
Ninety One, serving as the mandated lead arranger, has successfully orchestrated capital mobilization from two funds, EAIF and Ninety One Africa Credit Opportunities. This strategic move aims to enhance last-mile connectivity and elevate the reliability of internet services within three sub-regions, spreading across six African countries including Angola, Mozambique, Namibia, Republic of Congo, South Africa, and Zambia.
This financial maneuver is a cornerstone for boosting Africa’s central digital infrastructure, a critical component for the emergence of more sophisticated economies. Paratus’s expansion is set to incorporate three innovative fibre routes; Walvis Bay to Johannesburg to Maputo, Brazzaville to Johannesburg to Maputo, and Luanda to Lusaka to Dar Es Salaam. This network extension, contributing to an existing fibre network surpassing 10,000km, is poised to significantly advance cross-continent connectivity, data exchange, and access to digital services.
The EAIF investment is particularly notable for financing Angola’s first Tier IV data centre, augmenting Paratus’s southern African footprint, which includes two other Tier III data centres in Luanda. The upcoming 10MW facility will establish Paratus’s Angolan network as a central regional hub, capitalizing on the opportunities sprouting from the Equiano subsea internet cable that forges a connection from Europe to the western coast of Africa.
Paratus’s initiative is not merely about technological expansion but also underpins its dedication to nurturing African businesses through stable data connections. It resonates with PIDG’s alignment to Sustainable Development Goal 9, focusing on building resilient infrastructure that fosters digitally-driven economic prospects.
This expansion is vital for unlocking the massive potential within Africa, where connecting 1.1 billion new unique users is the key to achieving universal broadband access by 2030. The creation of top-tier digital infrastructure is anticipated to empower local entrepreneurs, stimulating service diversification through innovative and rapidly scaling businesses.
Sine Zulu, Investment Specialist at Ninety One, remarked on the importance of this transaction, “This financing reflects the surging need for connectivity and data across the continent. EAIF’s prowess in structuring and attracting private capital to digital infrastructure in emerging markets is vital for directing finances where they can create the most impact. The synergistic efforts of Ninety One’s Africa Credit Opportunities and EAIF represent a forward-thinking alliance aimed at delivering impactful infrastructure projects.”
At the forefront of this ambitious project, Schalk Erasmus, CEO of Paratus, highlights the developmental strides this investment promises. “Expanding fibre and data centre access in key African markets is essential for progress and inclusive growth, maximizing opportunities in nations brimming with entrepreneurial vigor. The commitment from EAIF and Ninety One sends a strong message to the market and solidifies our mission to nurture a more interconnected, technologically forward Africa.”
With this financial backing, Paratus is set to be at the helm of Africa’s technological revolution, expanding the digital horizons for millions and powering an inclusive, interconnected future.
