September 17, 08:38TechCentral

Washington invests $155 million in African company Wiocc to develop fiber optic infrastructure

The U.S. International Development Finance Corporation (DFC) announced on Wednesday its intention to invest up to $155 million in the African digital infrastructure provider Wiocc Group. This move underscores Washington's support for projects deemed vital for the expansion of American technology companies.

Washington is increasingly supporting telecommunications and digital infrastructure projects in Africa. This is part of efforts to provide alternatives to Chinese technology providers such as Huawei. One such example is the provision of a $100 million loan to the US-owned operator Africell.

DFC's Stance and Strategic Interests

Agency CEO Ben Black stated that 'President Trump and DFC aim to win the artificial intelligence race for America.' Since elements of digital infrastructure, such as data centers and fiber optic networks, are the foundation for implementing AI services, DFC views expanding this base in Africa as a key factor in U.S. competitiveness.

Black noted that DFC's largest equity investment, amounting to up to $155 million, will help create the next generation of digital infrastructure for Africa's growth by utilizing reliable networks that support American companies looking to enter one of the world's most dynamic markets.

DFC's investments will be made jointly with Vision Invest and the African Finance Corporation. Wiocc, based in Johannesburg, manages submarine cables, fiber optic networks, and data centers in over 30 African countries, and this investment will help it 'strengthen critical digital infrastructure across Africa,' DFC reported.

DFC emphasized that this investment aligns with 'U.S. strategic interests in supporting American hyperscalers and the ecosystem of American technologies.' The agency also added that Wiocc serves as a preferred partner for American tech firms expanding in Africa. The group utilizes an open and operator-neutral platform that provides wholesale connectivity and other services.

The Trump administration launched the 'clean network' initiative during its first term, aimed at reducing the use of Chinese telecommunications technologies, applications, and operators in the infrastructure of the U.S. and allied countries. Similar efforts continued during his second term. Last year, he signed an executive order mandating that U.S. agencies promote the use of American technologies abroad in the fields of AI, data storage in data centers, cloud services, and network technologies.

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business-standard.comSeptember 3, 16:52

Constl receives $90 million in project financing from NaBFID-led consortium to expand fiber optic networks

Constl, a subsidiary of Space World Group, has secured long-term project financing of approximately $90 million. This capital was attracted from a consortium of lenders led by the National Bank for Infrastructure and Development (NaBFID).

The company stated that the funds received will be used to deploy new fiber optic networks in developing artificial intelligence (AI) corridors in India, as well as to invest in next-generation network technologies.

This infrastructure is necessary to meet the growing connectivity demands from cloud service providers, AI infrastructure suppliers, and hyperscalers. Furthermore, the company plans to strengthen its capabilities in providing high-speed, low-latency connections.

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Ankit Goel, founder and chairman of Space World Group, noted that the growth of data centers and the development of the AI ecosystem in India are increasing the demand for network infrastructure. In his statement, Goel emphasized: 'As the AI ecosystem of India develops and new data centers emerge, the need for resilient, low-latency, and future-ready networks has never been greater.'

He added that this financing will help the company accelerate the implementation of new types of fiber optic infrastructure and continue to invest in modern network technologies.

AI Infrastructure Will Require Significant Investment: NaBFID

NaBFID indicated that expanding AI corridors, hyperscale data centers, and digital communication networks requires substantial investment. Samuel Joseph Jebaraj, Deputy Managing Director of NaBFID, stated in a media release: 'The development of AI infrastructure, including AI corridors, hyperscale data centers, and digital communication networks, will require significant capital investment.'

He also reported that NaBFID's goal is to provide infrastructure financing solutions to support the growth and expansion of these emerging sectors.

Financing to Strengthen the Digital Infrastructure Ecosystem

NaBFID stressed that its industry expertise and ability to assess and manage complex infrastructure deals will enable it to support new infrastructure projects related to AI, data centers, and associated digital infrastructure. Sharad Agarwal, Head of Lending and Project Finance at NaBFID, noted: 'Our support for Constl's financing marks an important step towards ensuring the development of this ecosystem.'

The received funding will support Constl's plans to expand a pan-India high-speed communication network and strengthen its digital capabilities for clients in telecommunications, cloud services, data centers, AI, and digital services ecosystems. Cadmus Capital acted as the sole financial advisor to Space World in this financing deal.