Investors update: May 12 2023 - Raxio Group draws $33m debt facility from EAIF for data centers.

Raxio Group draws $33m debt facility from EAIF for data centers

Highlights

• The Emerging Africa Infrastructure Fund (EAIF), a Private Infrastructure Development Group (PIDG) company, has committed a $33 million sustainability-linked debt facility to Raxio Group, a leading pan-African data center developer and operator. 
• The funding enables the design, construction, operation, and management of a series of high-impact data centers in seven countries—Uganda, Ethiopia, the Democratic Republic of Congo, Mozambique, Angola, Cote D’Ivoire, and Tanzania—across sub-Saharan Africa.
• EAIF is acting as co-arranger on the transaction alongside Proparco, with whom it will mobilize a $110 million debt package to Raxio to further develop digital infrastructure – responding to the urgent demand for affordable internet connectivity in the region.

Source: ABC

Our Takeaway

The investment marks a significant step towards supporting connectivity and innovation and stimulates the growth of digital economies in Africa’s nascent but fast-growing data center markets. Africa’s data center market is among the fastest growing in the world and is a key pillar of the continent’s burgeoning digital economy, which is expected to grow 57% to reach $180 billion by 2025 and $712 billion by 2050. The new Tier III quality data centers are expected to be some of the first-ever independent, enterprise-standard data centers in the target countries.

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SA housing startup DigsConnect secures funding from Intaba

Highlights

• South African digital student accommodation platform DigsConnect has secured an undisclosed amount of funding from Intaba Capital as part of its ongoing Series A round.
• Launched in 2018, the DigsConnect platform allows landlords, estate agents, and property managers to post their property listings, with students then searching and filtering through these listings to find accommodation that suits their needs.
• The startup closed a pre-Series A round of funding last year to spearhead its international growth, with a focus on helping African students in the UK and the US secure more affordable, convenient, and safe housing.

Source: Disrupt Africa

Our Takeaway

Unlike many other traditional industries, the real estate and property space has not changed very much over the decades. But in recent times, the ongoing technology wave has seen a number of African startups emerge with a vision to give the sector a face-lift. DigsConnect is one such and has expanded quickly since its founding. The startup raised $830,000 in March 2019 and last year a $200,000 grant from the Michael & Susan Dell Foundation. DigsConnect currently has over 1.3 million beds and recently entered into an agreement with Student.com to expand its presence to approximately 30 new countries and 400 new cities.

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Mobile app usage is growing in Africa with over 270m users

Highlights

• As of December 2022, the total number of monthly active users of mobile apps in Africa exceeded 270 million, a 14% increase compared to the beginning of the year per a DataSparkle report.
• The study finds that a total of 575 apps already boasted over one million monthly active users in Africa while the average user spent more than four hours per day on mobile devices.
• Games, tools, and pan-entertainment were the most active categories, accounting for more than 56% of the top 500 apps in Africa in 2022 by active users.

Source: ABC

Our Takeaway

Africa’s mobile application market is experiencing exponential growth, driven by several key factors. Rising smartphone penetration, expanding internet connectivity, and a growing tech-savvy population have created a fertile ground for app development. The continent’s diverse industries, such as fintech, e-commerce, and healthcare, are embracing mobile apps to enhance efficiency and accessibility. Moreover, the increasing investment in tech startups, supportive government policies, and collaborations with international tech giants are fueling the expansion of Africa’s mobile application market, ushering in a new era of innovation and economic growth.