Sylvia Duruson
The West Indian Ocean Cable Company (WIOCC) Group, a leading provider of high-capacity connectivity, is set to receive a substantial funding package exceeding $50 million. This significant financial boost comes from a consortium of international institutions aimed at bridging the digital divide in Africa. 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).
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 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 $10 million and ZAR 200 million (approximately $11.07 million), while Proparco is providing $20 million.
Additionally, WIOCC anticipates finalizing a $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 towards expanding its core and edge data centers in Nigeria, South Africa, and the DRC. This expansion aims to meet the growing demand for data center services in these countries. Furthermore, the company intends to invest in growing its fiber networks, a move that 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. By enhancing connectivity and data center capabilities, WIOCC’s expansion is poised to contribute significantly to the continent’s digital transformation and economic growth.
As Africa continues to embrace digital technologies, investments like these play a crucial role in ensuring that the necessary infrastructure is in place to support this digital revolution. The expansion of data centers and fiber networks will not only improve internet access but also create opportunities for businesses, education, and various sectors to leverage digital technologies for growth and innovation.
