Investment management firm Convergence Partners on Wednesday unveiled a new multimillion rand infrastructure fund to accelerate the development of information and communications technology (ICT) infrastructure throughout Africa.

The newly established Convergence Partners Communications Infrastructure Fund (CPCIF) was already eyeing multiple potential projects with its first close of $145-million, with several projects set to come online “soon”.

Convergence Partners chairperson Andile Ngcaba told Engineering News Online that the fund, which has garnered international and local interest, would focus on developing open-access infrastructure in West and East Africa, as well as South Africa.

The ICT sector, which had rapidly grown in Africa, could stimulate economic development, with increased use of the Internet in Africa expected to result in a contribution of $300-billion a year to the continent’s gross domestic product by 2025.

However, the infrastructure to enable such increased use remains significantly underdeveloped.

“Based on World Bank data, we estimate that there is an ICT infrastructure deficit of $20-billion a year in Africa. The evolution of the ICT landscape, with its increasing focus on shared, open-access models, provides significant investment opportunity for a specialised infrastructure fund,” added Convergence Partners CEO Brandon Doyle.

CPCIF, which has a targeted final close of $250-million, would inject funds into new or existing companies or partner with companies in a joint venture to fast track ICT-driven socioeconomic development, while generating significant returns for investors.

Three new offices were being established in West Africa, Nairobi and Johannesburg to monitor opportunities and project progression, while seeking to deploy capital in both regional and in-country opportunities.

Convergence Partners had partnered with the International Finance Corporation, the European Investment Bank, the Dutch Development Bank, the Development Bank of Southern Africa and the CDC Group.