(Ecofin Agency) - The Commonwealth Development Corporation (CDC), the UK government’s sovereign wealth fund for developing countries, announced an additional $40 million investment in Liquid Telecom, a Johannesburg-based telecom company founded by Zimbabwean billionaire Strive Masiwiya.

This investment is part of a larger transaction that has already enabled the company to raise $307 million through a capital increase for its shareholders. It will support Liquid Telecom's plan to further expand its pan-African data center operations.

Commenting on the strategy, Nick O’Donohoe, CDC Group’s Chief Executive, said: “We remain committed to improving digital infrastructure in Africa and helping the continent’s governments, businesses, and people gain access to quality online services. Our aggregate investment to Liquid Telecom now stands at US$220 million, this will play an important role in addressing the increasing demand for digital services and help close the digital divide between Africa and other regions. Investing in Africa’s digital infrastructure is vital for building resilience within African economies and accelerating their growth.”

Idriss Linge