Published: July 22, 2010
Credit agency investment will pull more Canadian firms into the market.
East Africa’s telecom, media and technology sectors are to receive a multi-million dollar investment after Canada’s export credit agency agreed to invest up to US$20mn in a local private equity fund.
Export Development Canada (EDC) has supported the Africa Telecommunications, Media and Technology Fund I, which is managed by East Africa Capital Partners, to encourage more Canadian activity in the continent.
EDC sees potential in East Africa’s communication and technology sectors and the investment will give Canadian companies access to the funds’ networks and to create opportunities within its portfolio companies.
Stephen Poloz, senior vice-president of EDC’s financing products group, says backing the fund will help Canadian companies to enter the market. “The explosive pace of wireless and broadband growth in East Africa offers tremendous opportunities for Canada’s telecom and technology sectors.”
Richard Essex, a partner at East Africa Capital, adds that Canadian technology will play a “key strategic role” in bringing high-speed internet, multi-channel television and modern communications to Sub-Saharan Africa.
“It’s a great investment opportunity which also creates jobs in an important growth sector that also provides significant social development in the region,” he says.
EDC helps Canadian exporters and investors expand their international business. Its knowledge and partnerships are used by more than 8,400 Canadian companies and their global customers in up to 200 markets each year.