Namibian-owned Pan-African firm Paratus has secured a major debt facility to accelerate the company’s growth in digital infrastructure across Africa.
Paratus has obtained a N600 million debt facility from the Emerging Africa Infrastructure Fund (EAIF), a member of the Private Infrastructure Development Group (PIDG), and its fund manager, Ninety One.
The financial injection is earmarked for expanding Paratus’ fibre and data centre operations over the next three years.
The funds are set to facilitate the construction of a state-of-the-art 10MW data centre in Angola.
Additionally, they will support the development of three new fibre routes, connecting strategic locations across Africa: Walvis Bay to Johannesburg to Maputo, Brazzaville to Johannesburg to Maputo, and Luanda to Lusaka to Dar Es Salaam.
These routes will significantly enhance internet connectivity in the region.
Ninety One, acting as the mandated lead arranger of the transaction, mobilized capital from two of its funds, the EAIF and Ninety One Africa Credit Opportunities, to finance this venture.
“This financing demonstrates the growing demand for connectivity and data on the continent. EAIF’s expertise has been crucial in channelling private capital into digital infrastructure in emerging economies.” Sine Zulu, an investment specialist at Ninety One said.
The planned data centre in Luanda, announced by Paratus in June, is poised to be Angola’s first Tier IV data centre.
Occupying a 30,000 square metre plot, the facility will boast an IT capacity exceeding 10MW across 2,000 racks.
Paratus Angola, formerly known as ITA, already operates two data centres in Luanda, one launched in 2017 and another in 2019, with capacities for 1,500 and 7,000 servers, respectively.
“This support from EAIF and Ninety One is a strong endorsement of our mission to enhance connectivity and technological advancement in Africa. It aligns perfectly with our goal to drive development and inclusive growth across key African markets.” Schalk Erasmus, the Chief Executive Officer of Paratus said.
The PIDG, an infrastructure project developer and investor, focus on driving private investment into sustainable infrastructure in sub-Saharan Africa, and South and Southeast Asia.
Ninety One manages EAIF for PIDG, providing debt for various infrastructure projects, including telecommunications and renewable energy.
The company recently activated the Namibian branch of the Equiano Subsea Cable and began constructing a new teleport in Pretoria, South Africa.
This development marks a significant milestone for Paratus and the broader African continent, heralding a new era of digital connectivity and infrastructure growth.