AFRICA – The West Indian Ocean Cable Company (WIOCC) Group, a leading provider of high-capacity connectivity, is set to receive a substantial funding package exceeding US$50 million. 

The capital injection will support WIOCC’s expansion initiatives across three key African nations: Nigeria, South Africa, and the Democratic Republic of the Congo (DRC).

This significant financial boost comes from a consortium of international institutions aimed at bridging the digital divide in Africa. 

The consortium of international institutions backing this endeavor includes the International Finance Corporation (IFC), a member of the World Bank Group; Proparco, a development finance agency and a subsidiary of the Agence Française de Développement Group; and RMB Corvest, a private equity company. 

The financing package is structured as a combination of loans, with IFC contributing US$10 million and ZAR 200 million (US$11.07 million), while Proparco provides US$20 million.

Additionally, WIOCC anticipates finalizing a US$10 million loan agreement with RMB Corvest in the coming weeks, specifically for its expansion plans in Nigeria. 

This comprehensive funding approach demonstrates the strong international support for improving digital infrastructure across the African continent.

The financing package is noteworthy for its sustainability-linked structure. The pricing of the loans is tied to WIOCC’s commitment to enhancing energy efficiency and achieving EDGE green building certification. 

EDGE, an IFC-provided certification, ensures that data centers are resource-efficient and maintain zero carbon emissions, aligning the project with global environmental goals.

WIOCC plans to allocate the funds toward expanding its core and edge data centers in Nigeria, South Africa, and the DRC. This expansion aims to meet these countries’ growing demand for data center services. 

Furthermore, the company intends to invest in growing its fiber networks, which will extend digital access to more people and foster economic growth across Africa.

Chris Wood, CEO of WIOCC Group, expressed enthusiasm about this capital raise, highlighting its significance in enabling substantial expansion. 

He emphasized that the funding would facilitate the addition of further capacity to their open-access data center operations and extend open-access hyperscale national, international, and metro connectivity across key markets.

Since its inception in 2007, WIOCC has consistently invested in Africa’s digital sector. The company has focused on providing open-access infrastructure to meet the escalating demand for reliable connectivity throughout the continent. 

This latest funding round reinforces WIOCC’s commitment to improving digital infrastructure and accessibility in Africa.

The involvement of international financial institutions in this funding package underscores the global recognition of the importance of digital infrastructure development in Africa. 

WIOCC’s expansion is poised to enhance connectivity and data center capabilities, contributing significantly to the continent’s digital transformation and economic growth.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and moreSUBSCRIBE HERE