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The International Finance Corporation in partnership with Google, Convergence Partners, and Mitsui & Co. have agreed to invest up to $100 million in CSquared – a company focused on deploying wholesale, “carrier-neutral,” open-access fiber optic networks across Sub-Saharan Africa.

According to a statement released on Wednesday, IFC said the investment will help to improve broadband connectivity in the region, where the lack of dependable internet access impairs economic growth, competitiveness, and the development of basic services. It will also expand Google’s existing operations in Uganda and Ghana, with the goal of entering several new markets over the next five years.

“This project demonstrates IFC’s commitment to increasing affordable and reliable internet access under the global Digital Infrastructure Initiative,” said Aniko Szigetvari, Global Head of Telecom, Media and Technology Investments at IFC. “By supporting broadband business models that promote shared infrastructure, the initiative will reduce entry barriers and deployment costs in the telecommunications sector, increase affordability, and enable the development of digital economies.”

Sub-Saharan Africa needs about 500,000 extra kilometers of fibre optic to deliver better broadband penetration for its burgeoning population. But fibre optic cables are expensive. According to the IFC, one kilometer of cable costs between $15,000 and $30,000.

CSquared, however, deploys and operates fibre optic infrastructure on a shared basis, helping to lower installation and consumer costs. The company aims to offer high-quality, affordable wholesale services to all licenced operators.

In Uganda, CSquared has built over 800 km of fiber in Kampala and Entebbe; while the company has laid over 840 km of fiber in the Ghanaian cities of Accra, Tema, and Kumasi. Over 25 internet service providers and mobile network operators currently use
CSquared’s fiber networks to offer broadband services and 4G data, with over 1,200 tower and commercial building sites connected directly to the company’s fiber infrastructure.

“We believe that together under CSquared, we can get more done to roll-out and operate affordable, high-speed, and reliable infrastructure to expand internet access in Africa,” said Marian Croak, Vice-President at Google. “Project Link is demonstrating the impact of shared wholesale infrastructure, and we’re excited to see CSquared bring more infrastructure to more service providers and their customers.”