Convergence Partners, an investment management firm focused on the telecommunications, media and technology sector in Africa, today announced the launch of the Convergence Partners Communications Infrastructure Fund (CPCIF).
This is the only infrastructure fund globally that is dedicated entirely to the ICT sector in Africa. With a first close of $145 million under management, it is one of the largest African based infrastructure funds ever raised.
Convergence Partners has invested in a number of landmark African transactions, including SEACOM, which brought cost effective broadband services to East Africa.
CPCIF, which has a targeted final close of $250 million and aims to invest in communications infrastructure & related services and technologies across sub-Saharan Africa. With a strong focus on East Africa, the organization intends to set up an East African office in this market next year.
The fund reached its first close with capital commitments from; Convergence Partners (as sponsors), the International Finance Corporation (IFC), the European Investment Bank (EIB), the Dutch Development Bank (FMO), the Development Bank of Southern Africa (DBSA) and the CDC Group (CDC).
“As specialist ICT investors and innovators, Convergence Partners is dedicated to accelerating investment capital, digital access and ICT infrastructure development on the continent,” says Andile Ngcaba, Chairman of Convergence Partners. “As a result, we focus strongly on initiatives that increase the availability of communications, broadband services and new technology offerings to African people. The launch of this Fund will enable us to achieve these objectives on a greater scale.”
Convergence Partners’ founders are seasoned pan-African private equity professionals, experienced in developing value-add investments that deliver shareholder returns whilst underpinning continental transformation. The Fund is committed to facilitating regional ICT infrastructure and integration, ultimately fostering the advancement of a sustainable and more prosperous Africa.
Some of Convergence Partners’successful investments in Kenya are: SEACOM, Dimension Data, New Dawn Satellite Co., AccessKenya, Internet Solutions, Plessey, Inala Technologies and Comsol Wirless Solutions. The firm has immediate plans to establish an office in Nairobi to oversee this and other interests currently being pursued in the region.