The Fund for Export Development in Africa (FEDA) has committed its first investment into Liquid Intelligent Technologies, a pan-African telecommunications technology group, according to the African Export-Import Bank (Afreximbank).
According to the Bank, this marks the first investment by FEDA, a development impact-oriented subsidiary of Afreximbank. FEDA’s objective is to provide equity and quasi-equity funding to companies developing trade and value-added export of goods and services.
“The mission of FEDA is to provide equity capital with a focus on delivering development impact in diverse sectors in Africa which are critical to driving intra-African trade and value-added export development, while providing a financial return to investors.”
Professor Benedict Oramah, President of Afreximbank.
Furthermore, this investment gives FEDA the opportunity to become a stakeholder in Africa’s fast-growing technology infrastructure landscape. Liquid Intelligent Technologies harnesses fibre optic network currently stretching over 100,000 km across sub-Saharan Africa.
Moreover, the technology has direct access to international submarine cable infrastructure. And also a significant investment in data centres across the continent. Liquid Intelligent Technologies is the only operator in Sub-Saharan Africa with a multi-country fiber network of such geographic breadth.
Liquid Intelligent Technologies’ infrastructure facilitates intra and extra-African connectivity. Therefore, this helps to reduce the cost of communication and trade, in line with the mandate of FEDA and Afreximbank.
Also, Liquid Intelligent Technologies, through its tailor-made digital solutions serves both private and public sectors across the continent. This includes network, cloud and cyber security through strategic partnerships.
Establishment and role of FEDA
Commenting on FEDA’s investment into Liquid Intelligent Technologies, Professor Benedict Oramah, President of Afreximbank, noted:
“FEDA’s investment in Liquid Intelligent Technologies is a landmark deal as the fund’s first investment. The transaction is a demonstration of FEDA’s ability to leverage African Export-Import Bank’s network and invest in opportunities that will drive the structural transformation of trade on the continent.
“Liquid provides vital digital infrastructure that supports Africa’s connectivity and trade with the rest of the world. This investment will pave the way for more investments by FEDA and commences the process of building an institutional track record of successfully investing and delivering development impact on the continent.”
Professor Benedict Oramah, President of Afreximbank
Afreximbank established FEDA to catalyze Foreign Direct Investment (FDI) flows into Africa’s trade and export sectors.
Furthermore, FEDA was also required to fill the equity funding gap that amounts to US$110 billion per annum. These were in the areas of intra-African trade and Export Development.
As of May 2021, three countries in the sub-region including Rwanda, Mauritania and Guinea had become signatories to the Establishment Agreement of FEDA.
According to Afreximbank, the Establishment Agreement grants FEDA legal capacity to conduct business in its own name as an international organization with privileges and immunities accorded to other Multilateral Financial Institutions on the continent.
Afreximbank seeks to support FEDA become a new multilateral development platform on the continent.
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