Founded in 2006, Convergence Partners is an investment management and advisory firm focused on the ICT sector in emerging markets, with a principal focus on Africa. Since inception, the firm’s investment and research activities have been covering the full spectrum of industry sectors, across various phases of the investment cycle, including early stage/venture capital, expansion capital, private equity and project equity. In the recent years, Convergence Partners have been closely involved in the development phase of new communication infrastructure projects, bringing critical bandwidth to the African market and serving rapidly evolving communication needs of African businesses and consumers.

The management team comprises professionals with a solid track record of sourcing, structuring and managing investments in the ICT sector. The team has an on-the-ground presence and over the years has developed relationships with key business players and regulators in the region. All senior partners are significant shareholders in the business. The team is led by Andile Ngcaba, Chairman, Brandon Doyle, Chief Executive Officer, Idan Segal, Chief Investment Officer, and Stefan Ferreira, Chief Financial Officer.

IFC’s investment will consist of an equity commitment of up to US$45 million in Convergence Partners Communications Infrastructure Fund LLC. Total IFC’s exposure to the Fund will not exceed 15% of the Fund’s total final commitments.

35.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan
Equity	35.0

* These investment figures are indicative

The Fund Manager is based in South Africa. The Fund will make investments in ICT infrastructure companies across Africa region.

- Further Development of ICT Sector in Sub-Saharan Africa: Based on substantial expertise in ICT sectors and hands-on, value added approach to investees, the Fund Manager will continue to proactively source investment opportunities with significant socio-economic and developmental impact.

- Provision of Critical Funding and Expertise to Emerging Market Companies: The Fund will address critical funding needs by emerging market companies that due to their business stage or scale might face capital access constraints. The Fund''s investments will support entrepreneurship, innovative business models and technologies, and generate employment. The Fund Manager will provide operational, technical and managerial advice to its investees.

- Development of Africa Private Equity Sector: The importance of private equity for development of emerging market private sector, nurturing entrepreneurship and supporting business innovation is well recognized, and IFC''s commitment to the Fund will serve as a vote of confidence for Africa''s growing private equity industry.

- Stamp of Approval/Mobilization of Funds: IFC''s commitment to the Fund will serve as a stamp of approval to the Fund Manager''s credibility, business strategy as well as managerial and technical capabilities. IFC''s participation will be catalytic in mobilizing funds from other regional and sector investors as IFC will demonstrate its support for and confidence in growing Africa ICT sector.

- Regulatory Expertise/Business Networking: The Fund Manager will benefit from IFC''s expertise and knowledge in regulatory and governance issues as well as substantial business networks in telecommunication and other sectors in Africa.

- Guidance in Environmental, Social and Governance Issues: Convergence has committed to monitoring the social and environmental impact of the Fund''s portfolio projects and will be seeking IFC''s guidance in establishing an efficient E&S monitoring system compliant with IFC''s internationally acclaimed standards.

This transaction involves a Tier-II equity investment and the overall portfolio risk is considered medium. Therefore, the project has been categorized as FI-2 in accordance with IFC’s Environmental and Social Review Procedure. Convergence Partners Communications Infrastructure Fund s a dedicated private equity fund focusing on communication infrastructure and associated activities. The majority of the potential pipeline investments entail limited environmental and social (E&S) risks and impacts that can be readily addressed. The investments will focus primarily on the establishment of terrestrial communication networks and, to a more limited extent, marine networks. For this project, the client will be required to screen projects against IFC’s Exclusion List, national laws and IFC’s Performance Standards.