Liquid Telecom Holdings

Africa Information & communications technology

Liquid Telecom is the largest independent fibre and cloud provider in Africa. It has built Africa’s largest independent fibre network, approaching 70,000km, across 13 countries. It also operates state-of-the-art data centres in Johannesburg, Cape Town and Nairobi, and is a leading provider of cloud-based services across Africa.

  • Active
  • Exited

Our investment

In 2018, we made a $180 million equity investment to improve access to affordable and quality internet in Africa. The investment will accelerate Liquid's expansion along its Cape-to-Cairo route and further into Central and Western Africa.

Expected impact

Our investment will enable Liquid Telecom to build critical digital infrastructure to reach more countries in the continent, helping to connect millions more people and businesses. Improving the availability, quality and affordability of internet and digital services will increase labour productivity and improve access to information and services, enabling social and economic development. CDC and Liquid will work together to create a double impact from the investment: Expanded fibre infrastructure that improves access, quality and affordability for mobile broadband services. This will lower the cost of data and increase mobile broadband availability in countries like the Democratic Republic of the Congo, which had internet penetration of only 6 prer cent in 2016. The World Bank estimates that a 10 per cent growth in population connected to the internet leads to GDP growth of 1.38 per cent. Expanded networks within countries to improve access and quality of fixed broadband for business customers. By raising the productivity of existing activities and streamlining business systems, improved fixed broadband increases economic efficiency across firms and workers. World Bank data from 2016 show that African firms using the internet have 3.7 times higher labour productivity than non-users.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Information & communications technology
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Direct debt
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2016
Amount

For direct investments, this is the total amount that CDC has committed to the business or project (it may be a combination of equity and debt).

For funds, this is the total amount that CDC has committed to the fund.

:
$30m

Investec Africa Credit Opportunities Fund

We are invested in Liquid Telecom Holdings through Investec Africa Credit Opportunities Fund, which is managed by Investec Asset Management. For further information on the fund, the fund manager, and the expected impact of the fund’s investment, click here.

Key facts

Status:
Active
Region

Since 2012, we’ve only invested in Africa and South Asia. Investments outside these regions are from our pre-2012 portfolio.

:
Africa
Sector

We have seven priority sectors. However, we continue to invest outside these sectors, largely in the most challenging regions, as new investment supporting any sector helps to underpin the private sector, and create jobs and livelihoods for people.

:
Communications and IT Services
Investment type

We provide capital in three broad ways: direct equity, debt, and intermediated equity (principally through investment funds).

:
Intermediated investment
Fund:
Investec Africa Credit Opportunities Fund
Fund Manager:
Investec Asset Management
Start date

For direct investments, this is the date CDC committed capital to the business or project.

For funds, this is the date that CDC committed capital to the fund.

For underlying fund investments, this is the date that the fund invested capital into the business.e

:
December 2016