The US International Development Finance Corporation (DFC) will be a major investor in African fiber company Liquid Telecommunication Holdings Ltd., as the firm seeks to raise $225 million in equity by the end of the year, according to CEO Hardy Pemhiwa.
DFC is set to contribute to an upcoming $90 million tranche, with Liquid planning a second equity round later in the year, Pemhiwa revealed in an email to Bloomberg News.
As geopolitical competition between the US and China intensifies in Africa, development institutions like DFC are key to strengthening economic ties with the continent, which is rich in minerals and has a rapidly growing population. Although Africa remains the least connected region globally, digital services are beginning to close the infrastructure gap in many countries.
The new investment will help Liquid meet upcoming debt obligations, including a $156 million term loan and $620 million in bonds due in 2026.
Liquid is also collaborating with US tech giants Microsoft Corp. and Alphabet Inc.’s Google on broadband initiatives in East Africa. The Microsoft project aims to deliver affordable broadband to 20 million people in Kenya and Zambia through last-mile connections.
Meanwhile, the partnership with Google will expand terrestrial fiber across South Africa, Kenya, Uganda, Rwanda, Zambia, Zimbabwe, and the Democratic Republic of Congo. This route will enhance connectivity to data centers and provide an alternative during subsea cable outages between South Africa and Kenya.
To date, Liquid has installed over 110,000 kilometers (68,000 miles) of fiber across Africa, responding to the growing demand for high-speed internet and data storage.
