Convergence Partners’ $296M to fund African tech assets

Africa’s population is expanding quickly, and the continent urgently needs investments to close the digital divide, which is the difference between those who have access to computers and the internet and people who don’t. To close this deficit by 2030, the continent will require an additional 700 data centers and almost $100 billion in investment. One of the first private equity funds to be set aside for sub-Saharan Africa this year is the $296 million raised by buyout company Convergence Partners recently for the purpose of purchasing African technological assets. The capital increase would boost Convergence‘s total assets under control to over $600 million, according to Chairman Andile Ngcaba.

The money was mostly obtained through prior investors, development organizations, and as well as pension plans in the US, UK, Europe, and Africa. The company has already identified a pipeline of potential candidates for the funds and is aiming to invest in technology assets like data centers and optical fiber on land and at sea.
Even while private equity deal-makers have been wary of investing in Africa, the continent is increasingly growing, and there are more chances for deal-making and exits for these companies. For 20 years, Convergence has operated in Africa and has made investments in businesses including Vodacom Group and Nedbank Group.

The growing international involvement of tech behemoths like Alphabet, Amazon Web Services, and Equinix has also contributed to the market’s maturation. In conclusion, Africa’s population is expanding quickly, and its youth are becoming more tech-savvy, creating several chances for investment in technological assets. The latest fund round by Convergence Partners is an important step in bridging Africa’s digital divide and reflects increased optimism about the continent’s possibilities.
Investors should monitor the company’s development in the upcoming years because it is in a strong position to significantly alter the technology landscape of the continent.