EDC invests in Africa fund first

In a first for the export credit agency, Export Development Canada (EDC) will invest up to US$20mn into an African fund.

The US$100mn Africa Telecommunications, Media and Technology Fund I will target investments for the information computer technology (ICT) sector in East Africa, and is managed by East Africa Capital Partners (EACP).

EDC hopes that its involvement in the fund will encourage Canadian exporters to provide equipment and services to Africa’s growing ICT sector, as Stephen Poloz, senior vice-president financing products group at EDC, comments: “The explosive pace of wireless and broadband growth in East Africa offers tremendous opportunities for Canada’s telecom and technology sectors, and our involvement in the fund will have a direct impact on helping Canadian companies entering the market.”

He adds: “The fund offers a great balance between near-term export sales and long-term future benefits for the Canadian sector overall.”

The fund has already seen results for Canadian exporters, after Canadian-based International Datacasting Corporation and fund portfolio company Wanachi collaborated to offer multi-channel television to 300 million people across East Africa.

The project was financed by EACP, who also funded the development of the Wanachi group.

"We’re thrilled to be EDC’s first fund investment in Africa and very excited about the key strategic role Canadian technology will play in bringing high-speed internet, multi-channel television and 21st century telephony to Sub-Saharan Africa,” says Richard Essex, partner at EACP.