Via Quartz, commentary on Africa’s digital infrastructure:

Liquid Telecom’s recent $620 million bond sale—one of the largest by an African telecoms company—should provide a big boost to the continent’s digital infrastructure, which has been a major barrier to more widespread internet access.

One of Africa’s biggest internet and cloud computing companies, Liquid Telecom hopes to use the fresh financing to roll out connectivity infrastructure in existing areas and grow its presence. The financing included $220 million in loans, bringing the total amount of capital raised to $840 million. The company’s bond offering was oversubscribed, a signal that investors are seeing enormous value in the business of connecting Africans to the web.

The pandemic has reinforced the critical importance of increased internet access. Africa is still largely playing catch-up on universal internet connectivity, even though the circumstances of last year helped to accelerate some changes. Poor infrastructure rollout is to blame in many areas, but it’s only part of the picture. Half of consumers who are covered by mobile broadband networks don’t use the internet, according to GSMA, with many citing a lack of digital skills as a barrier. Some telecom operators believe expensive gadgets and high import tariffs are holding millions of Africans back from being fully online. Politics and electricity supply are also significant factors.

Boosting internet connectivity across Africa through increased network and infrastructure deployment would accelerate the growth of sectors like e-commerce, logistics, and other value-added digital services.

The International Finance Corporation snapped up about $100 million of Liquid Telecom’s $620 million bond listing for these reasons. It believes its investment will be amplified by the African Continental Free Trade Area (AfCFTA), as well as the continent’s growing young urban population and startup scene.

Connecting the unconnected will require that a variety of players collaborate to not only develop infrastructure, but also liberalize sectors, and diversify and democratize connectivity options.