IFC’s investments in digital infrastructure hit new record
For the second year in a row, IFC investments in the telecommunications, media, and technology sector surpassed the US$1 billion mark, totaling $1.3 billion and representing a five-fold increase in digital infrastructure commitments over the past five years. IFC’s investments reflect the growth opportunities presented by the telecom sector across emerging markets globally, including further rollouts of 4G and fibre networks and expansion of digital technologies, enterprise IT services, and cloud infrastructure.
This business opportunity is driven by accelerated digital transformation in recent years and a push to bridge the digital divide.
”Robust digital connectivity is the foundation of a flourishing digital economy and a fair, informed society. IFC’s investments in the digital infrastructure sector are breaking new ground, connecting the unconnected, and creating opportunities, particularly in Africa, where we secured 51% of our commitments,” said Morgan Landy, director for global infrastructure at the IFC.
eConomy Africa 2020, a report by IFC and Google, found that Africa’s internet economy has the potential to reach $180 billion by 2025, accounting for 5.2% of the continent’s GDP. By 2050, the projected potential contribution could reach $712 billion, 8.5% of the continent’s GDP.
In Africa, both small and large investments are making a difference. A $1.2 million commitment to CSquared supports the landing of Google’s Equiano submarine cable in Togo and the formation of the country’s first wholesale open-access fibre network, supplying high-quality and affordable digital connectivity. Larger change-making commitments include the $430 million anchoring of pan-African telecom operator Axian’s inaugural bond issuance to expand the company’s digital infrastructure across several countries. Other projects in the region include a deepening partnership with one of the leading pan-African digital connectivity providers, Liquid Intelligent Technologies, with a new $90 million equity investment to increase the company’s fibre network footprint and expand its data centre infrastructure.
IFC’s investment in digital assets managed by DigitalBridge in Southeast Asia and Latin America further exemplifies the corporation’s focus on strategic partnerships as a means to expand digital access and create economic opportunity while enhancing sustainability. Among the projects supported by the $100 million commitment are Brazilian data centre operator Scala’s expansion into Chile and Mexico, which includes plans for Latin America’s first data centre to run fully on renewable energy, and two independent tower platforms – Highline in Brazil, and EdgePoint, operating in Indonesia and Malaysia. This was followed by an additional $8.3 million indirect equity investment in EdgePoint to support its entrance into the tower market in the Philippines.