Liquid Telecommunications, a prominent African fiber company, is on track to secure a significant investment from a US development agency as part of its ambitious plan to raise US$225 million in equity by the year’s end, CEO Hardy Pemhiwa has revealed.
The International Development Finance Corporation (IDFC) is set to be a major investor in the upcoming funding rounds. IDFC will contribute to a substantial US$90 million tranche expected to close in the coming weeks. Following this initial round, Liquid Telecommunications is gearing up for a second tranche to be launched later in the year, as it works towards its total equity target.
This strategic financial move underscores the confidence of international investors in the growth potential of Liquid Telecommunications and the broader African telecommunications sector.
The geopolitical tug-of-war between the United States and China is intensifying on the African continent, with its burgeoning population and rich trove of mineral resources. In this strategic landscape, development finance institutions like the US International Development Finance Corporation (DFC) are becoming pivotal in fostering economic ties with Africa.
The DFC’s involvement is particularly significant in the digital sector, which is rapidly evolving to bridge infrastructural gaps in African countries that have historically lacked such foundations. Despite Africa being the least connected region globally, digital services are making substantial inroads.
In this context, the DFC’s investment is a crucial boost for Liquid Telecommunications as it seeks to navigate upcoming financial obligations. The company is preparing to address impending maturities, including a US$156 million term loan and US$620 million in bonds, both due in 2026.
Liquid Telecommunications is not only attracting attention from development agencies but is also collaborating with US technology behemoths like Microsoft and Google to enhance broadband access in East Africa. CEO Hardy Pemhiwa highlighted the partnership with Microsoft, which is focused on providing affordable broadband and last-mile connectivity to 20 million people in Kenya and Zambia.
Furthermore, Liquid is joining forces with Google to expand terrestrial fiber networks. This project will span multiple African nations, including South Africa, Kenya, Uganda, Rwanda, Zambia, Zimbabwe, and the Democratic Republic of Congo, offering robust connectivity to data centers and a contingency route to maintain traffic flow in case of disruptions to subsea cables between South Africa and Kenya.
As the demand for high-speed internet connections and data storage surges, Liquid has been proactive in laying an extensive network of over 110,000 kilometers of fiber across Africa, positioning itself as a key player in the continent’s digital transformation.
