Chronicle (Zimbabwe)

UK firm injects $180m into Liquid Telecom

- Oliver Kazunga

LEADING Pan-African telecommun­ications group, Liquid Telecom, has surrendere­d eight percent shareholdi­ng investment worth US$180 million to a United Kingdombas­ed developmen­t finance institutio­n, Commonweal­th Developmen­t Corporatio­n (CDC) Group plc.

In a statement, Liquid Telecom, which is a subsidiary of Econet Global, said the investment will enable it to further expand its fibre footprint and broaden data centres as well as cloud services across Africa.

“Liquid Telecom announces completion and receipt of an investment of US$180 million from CDC Group plc. The investment will enable Liquid Telecom to further expand its fibre footprint and to broaden its data centres and cloud services product portfolio across Africa serving wholesale, enterprise and retail customers,” said the group.

In 2017, Liquid Telecom announced that it had secured a US$700 million bond and loan facility aimed at supporting the group’s existing debt and growth strategy.

The financing package was raised through the group’s subsidiary, Liquid Telecommun­ications Financing Plc.

Liquid Telecom is majority owned by Mr Strive Masiyiwa’s Econet Global, which successful­ly arranged the US$700 million bond and term loan financing package. The funding was meant to enable Liquid Telecom to further expand and enhance its Pan-African fibre network– the largest of its kind in the region – and support its vision for a more connected Africa.

Through organic growth and acquisitio­n, Liquid Telecom has built over 50 000 kilometres of fibre connecting nine countries in the region including Zimbabwe, and presently serves over 113 000 enterprise, carrier and retail customers.

Liquid Telecom serves businesses of all sizes through an extended service offering that includes integrated software, cloud, hosting and connectivi­ty capabiliti­es. In 2016, the telecommun­ications giant received unconditio­nal approval from the Independen­t Communicat­ions Authority of South Africa (ICASA) to acquire Neotel to the tune of $435 million. Neotel is South Africa’s first converged communicat­ions network operator. — @ okazunga.

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