Paratus Group secures US$31 million funding for expansive infrastructure growth
Pan-African telecommunications company, Paratus Group on Friday announced that it has successfully secured a funding injection of US$31 million, a move poised to propel the realisation of the company’s ambitious infrastructure expansion plans.
According to a statement, this substantial capital infusion, facilitated by Cirrus Capital, a 100% Namibian-owned financial services company, is anticipated to significantly enhance connectivity across key and presently underserved regions. The strategic aim is to double the Group’s revenue within the next five years.
The transaction was orchestrated by Cirrus Capital, acting as the financial advisor and lead arranger for Paratus Group.
The funding, provided by the Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG), and Ninety One, a global asset manager, will be allocated over the next three years. The primary focus is on creating additional fiber routes linking Angola, the Democratic Republic of Congo (DRC), Botswana, Namibia, South Africa, Mozambique, and Zambia.
In addition to reinforcing connectivity, the investment will fund the completion of Paratus’s first Tier IV data center in Angola. This state-of-the-art 10MW facility is designed to catalyze the digital economy, capitalize on opportunities presented by subsea cable systems, and establish a regional hub in Angola.
It will be Paratus’s fifth carrier-neutral data centre in southern Africa and complement two other Tier-III (by design) data centers in Luanda, Angola.
Ninety One mobilized capital from its funds, EAIF and Ninety One Africa Credit Opportunities, to enhance last-mile connectivity and provide more reliable internet services across Angola, Botswana, the Democratic Republic of Congo, Mozambique, Namibia, South Africa, and Zambia.
This transaction aims to strengthen the core digital infrastructure of the continent, playing a crucial role in advancing African economies, the statement added.
Schalk Erasmus, Chief Executive of Paratus Group, emphasized the significance of this investment, stating, “This is a significant sign of our intent to greatly enhance cross-border fiber connectivity and facilitate economic development in the region. It is good news for African businesses, entrepreneurs, and consumers throughout the continent.”
Chastin Bassingthwaighte, Corporate Finance Associate at Cirrus Capital, highlighted the meticulous process undertaken to secure the best funding for Paratus Group’s long-term infrastructure rollout. This marks the sixth capital raising for the Paratus Group since 2017, reflecting the successful partnership between the two entities.
In closing, Sine Zulu, Investment Specialist at Ninety One, noted, “Building world-class digital infrastructure and facilitating fiber expansion is critical to unlocking the potential across Africa. The collaboration of Ninety One’s Africa Credit Opportunities and EAIF is a progressive partnership designed to deliver high-impact infrastructure projects, contributing to meeting the growing demand for connectivity and data in Africa.”
