CSquared Raises $25M in Funding with Convergence Partners Leading Investment Round

A continental tech giant forging digital connections across Africa, CSquared, recently secured a significant boost with a $25 million infusion of new equity. This strategic investment comes from the Convergence Partners Digital Infrastructure Fund (CPDIF), the International Finance Corporation (IFC), and the International Development Association’s (IDA).

This financial injection represents the initial phase of a more extensive $65 million investment program, earmarked to fuel CSquared’s expansive growth initiatives. Simultaneously, CPDIF has acquired the stake in CSquared that was previously held by Google LLC.

CSquared originated as a Google project in 2011, with a lofty mission to construct metropolitan fiber optic networks in Sub-Saharan Africa. Positioned as a carrier-neutral operator of shared infrastructure, the company envisions a long-term impact on the region by increasing Internet penetration and decreasing access costs. The overarching goal is to invest in the critical infrastructure required to propel digital transformation in Sub-Saharan Africa.

Expressing optimism about the future, CSquared’s Group CEO, Lanre Kolade, emphasized the company’s commitment to addressing the digital transformation challenge in Africa. Kolade stated, “CSquared has demonstrated a proven track record in developing and commercializing carrier-neutral, open-access networks across Africa. We remain singularly focused on changing lives through the digitalization of the region and providing #InternetForAll.”

The injection of funds from existing and new investors is expected to significantly enhance CSquared’s capability to expand its digital broadband infrastructure footprint across its current markets, which include Uganda, Ghana, Liberia, Kenya, the Democratic Republic of Congo (DRC), and Togo. Moreover, CSquared has its sights set on venturing into new markets in the near future. In Kolade’s words, “Now, more than ever, the future is here #ADigitallyConnectedAfrica.”

Andile Ngcaba, Chairman and Founding Partner of Convergence Partners, remarked on the opportune moment for increased investment in CSquared, noting its pivotal role in African digital development. He commented, “The benefits of world-class connectivity span all layers of society and have never been more tangible.” Having been investors in the company since 2017, Convergence Partners sees the tremendous impact of open-access networks on the development of the African ICT ecosystem. Ngcaba highlighted the combination of developmental impact and strong commercial returns as factors making CSquared an attractive investment for CPDIF.

IFC’s Regional Industry Director for Infrastructure, Africa, Sarvesh Suri, emphasized the critical role of broadband connectivity in Africa’s development. He noted that the investment in CSquared aligns with IFC’s regional strategy to develop digital infrastructure and promote the digital economy. Suri stated, “Our investment in CSquared is aligned with our regional strategy to develop digital infrastructure and promote the digital economy which can help leapfrog development for many African countries, support economic growth, and stimulate job creation.”

CSquared articulated that the newly acquired investment will be instrumental in network expansion. The company is resolute in its commitment to driving digital infrastructure development across its existing footprint and the broader African region. As the continent stands on the brink of a digital revolution, CSquared’s strategic investments and partnerships position it as a key player in shaping the digital landscape of Sub-Saharan Africa.