To improve access to quality broadband internet and data hosting services for homes and businesses in Africa, IFC has expanded its relationship with West Indian Ocean Cable Company Holding Ltd (WIOCC Group), a leading digital connectivity and infrastructure provider in Africa, with US$30mn equity investment
The new investment will support WIOCC Group’s continued rollout of terrestrial fiber-optic networks, investment in new subsea cables, and the launch of world-class, open-access core and edge data center infrastructure across the continent.
Digital infrastructure is the backbone of Africa’s internet economy. Ongoing investment in fiber optic networks and data centers will allow increased access to more affordable and higher-speed internet across the African continent, according to eConomy Africa 2020, a report by IFC and Google. This expanded access could yield significant economic gains: a 10% increase in mobile broadband penetration in Africa would yield a 2.5% increase in GDP per capita, notes a study by the International Telecommunication Union.
“At IFC, we recognise that there is a critical need for reliable digital infrastructure, which is fundamental to improving the quality of people’s lives and driving business growth,” said Mohamed Gouled, IFC vice-president of industries, during a signing ceremony with WIOCC Group. “In the past fiscal year, ending in June 2022, IFC invested US$1.3bn in digital infrastructure, with over half of those investments taking place in Africa’s telecommunications, media, and technology sector. Our partnership with WIOCC Group underscores IFC’s commitment to closing the digital divide in Africa.”
IFC’s equity investment builds on its previous financing to WIOCC Group, in the form of a US$20mn loan issued in 2020 via IFC’s fast-track COVID-19 financing facility, a facility set up to help sustain economies and preserve jobs during the pandemic crisis.
“IFC is a true strategic partner that has been there for us since the start. IFC's role as one of the founding lenders in 2007 was critical in enabling WIOCC Group to grow and thrive. This new investment supports our goal of establishing an integrated, open-access, core-to-edge cloud ecosystem throughout the African continent, underpinned by truly scalable, carrier-neutral, open access, shared infrastructure that delivers high-quality and affordable digital connectivity,” said Chris Wood, WIOCC group CEO. “By decentralising the cloud and enabling content delivery to the point of use, we are establishing the infrastructure required to expedite successful deployment and adoption of 5G, the Internet of Things and other key developments that will deliver economic growth throughout the 2020s.”
