Verdant Capital has advised WIOCC on its $80m private equity capital raise to expand its connectivity within Africa and internationally, and to launch a network of pan-African data centres.  

Out of $80m of equity, $75m was invested by CAPE IV, a fund managed by African Capital Alliance.  

The balance was invested by management and an existing shareholder.

The equity raised has been supplemented by a debt capital raise.  

The total capital raise of $200m will be used to expand its connectivity within Africa and internationally, and through Open Access Data Centres (OADC) - a newly created WIOCC Group company - to launch a network of pan-African data centres optimised to serve the needs of the cloud provider and wholesale community.

As well as introducing a strong new investor into the company, the capital will be used to support WIOCC’s expansion strategy across Africa and accelerate its investment in enhancing the continent’s digital infrastructure. Strategic investments in the new Equiano and 2Africa international subsea systems will augment and complement WIOCC’s existing core network infrastructure, cost-effectively adding multi-Terabits (Tbps) of capacity and significantly increasing its options for delivering the high-availability solutions demanded in markets across Africa. 

WIOCC’s terrestrial strategy, which includes deployment of metro and national networks in key locations, will be extended to include new countries and metropolitan areas, increasing its portfolio of end-to-end solutions for clients across Africa.

Part of the capital raise will be used in funding OADC, which is creating a transformational interconnected pan-African network of open-access, carrier-neutral data centres. 

First-phase locations will house key submarine cable landings in Lagos, Durban and Mogadishu, supporting the drive to land international submarine capacity directly into carrier-neutral data centres. 

Construction and fit-out is underway in Lagos and Durban, with both to be launched early in 2022, whilst the Mogadishu data centre will be ready before the end of 2022. 

Further phases of deployment will deliver more than 20 new data centres in strategic locations throughout the continent, focusing on major connectivity hubs in each country. 

African Capital Alliance was attracted to the investment by the clear vision to develop high quality and synergistic assets and solutions to support its long-term client partnerships. 

The investments will further position WIOCC to take advantage of the accelerating migration of infrastructure and services into the cloud, driving demand for data transmission, storage and processing in wholesale, enterprise and consumer end-markets in Africa, and bringing forward realisation of WIOCC’s vision to make an enduring contribution to Africa’s communications.

Separately, Verdant Capital has advised Kibo Capital Partners on the sale of its stake in Kenyan logistics company, General Cargo Group to Velogic, the logistics arm of the Mauritian-based Rogers Group.