Convergence Partners obtains R5.1 billion for a fund to invest in digital infrastructure

The Convergence Partners Digital Infrastructure Fund (CPDIF) has reached a total capitalization of $296 million (R5.1 billion). It stated that this was 18% greater than its intended goal.

Convergence Partners is a private equity firm that focuses in the technology sector in Sub-Saharan Africa.

“This achievement is despite subdued private capital fundraising on the continent in 2022,” it said in a statement on Monday.

“The recent close of CPDIF marks a significant milestone for the company, as it represents Convergence Partners’ largest fund to date, bringing total funds under management to more than $600m.”

According to Convergence Partners, the closing was supported by a mix of current and new investors, including significant global and regional development financing organisations, pension funds, and European and African financial institutions.

CPDIF was established in June 2020, with a first closing of $120 million in July 2021.

It focuses on digital infrastructure potential in Sub-Saharan Africa.

“Years later there is still more work to be done if we wish to close the digital divide and ensure that the Africa is able to reap the benefits from the current and next iteration of the technologies,” Convergence Partners stated.

“This closing is just the beginning, and we look forward to working with our investors and partners to build the digital infrastructure required to support the growth of the region’s digital economy,” said Convergence Partners CEO and founding partner Brandon Doyle.

“We strongly believe such collaborations promote innovation, entrepreneurship, skill development, and job creation by vastly expanding access to the Internet and all the essential digital tools it provides.”

Convergence Partners’ chairman and founding partner, Andile Ngcaba, expressed gratitude for repeat investors’ and first-time investors’ continuous support.

“We will continue to build on our original vision by investing in digital infrastructure that is a key enabler for digital inclusion,” Ngcaba said.

“This Fund will enable us to continue leveraging our deep knowledge of technology, investments and the African market to deliver measurable impact.”