Africa50 announces USD15 million investment in Raya Data Center

• Transaction supports the growth of Egypt’s digital economy and startup ecosystem
• Key project in Africa50’s drive to develop, finance and scale sustainable data centers in Africa

Cairo, 10 December 2024 - Africa50, the pan-African infrastructure investor and asset manager, today announced a USD15m investment in Raya Data Center (RDC). The investment, which is subject to regulatory approvals, will strengthen RDC’s existing operations and fund the development of a greenfield tier III data center in Egypt, driving the country’s digital economy and startup ecosystem.

The data center industry in Egypt requires substantial investment, driven by high demand amid the country's growing digital economy and internet usage.

Since its establishment in 2012, RDC has earned a strong reputation as a reliable provider of colocation and cloud services to both local and international enterprise customers. RDC, which is wholly-owned by Egypt Exchange-listed conglomerate Raya Holding for Financial Investment (Raya Holding), currently operates two tier III data centers in Cairo.

The new equity financing not only allows RDC to sustainably expand its capacity but also provides an opportunity for the company to leverage Africa50’s data center expertise and networks across the continent.      

Commenting on this strategic partnership, Ahmed Khalil, CEO of Raya Holding, said: "We are thrilled to announce this strategic partnership with Africa50, which highlights the confidence investors have in Raya Holding’s vision and success in building a diverse portfolio of investments in high-potential sectors This partnership is a fundamental step towards achieving our ambitious expansion and growth goals while delivering sustainable value for our shareholders." He added: "Egypt's data center market is brimming with potential, with an expected annual growth rate of 12.8% until 2030. Through Raya Data Center, we are committed to meeting the region's increasing demand for digital services and playing a pivotal role in the digital transformation of Egypt and beyond.”

Eng. Hisham Abdelrasoul, CEO of Raya Information Technology, emphasized: “At Raya Information Technology, we prioritize entrepreneurship in digital transformation. We are dedicated to delivering integrated solutions that cater to our customers’ evolving needs in today’s fast-paced digital world.” He further added: “Raya Data Center is committed to providing a world-class cloud infrastructure, marked by exceptional security and reliability. This partnership with Africa50 will significantly bolster our ability to support digital economic growth and drive innovation, ensuring the sustainable delivery of critical services with unmatched efficiency.”

Raza Hasnani, Managing Director and Head of Infrastructure Investments at Africa50 said “We are delighted to enter one of Africa’s largest data center markets alongside a proven operator such as Raya Data Center. This investment is a key building block in our fast-growing pan-African data center portfolio. RDC’s current and future data centers will not only support the Egyptian government’s digitization push but also provide the necessary digital infrastructure on which the country’s thriving SME and startup ecosystem can build. Raya Holding’s commitment to reducing emissions by transitioning to renewable energy aligns perfectly with Africa50’s commitment to building sustainable economies and investing in climate-resilient infrastructure. The investment positions RDC to attract international hyperscale customers in North Africa, the Middle East and Europe, given Egypt’s strategic location.”

 

Raya Data Center was advised on this transaction by CI Capital as its financial advisor and Backer McKenzie as its legal advisor. Africa50 was advised by Herbert Smith Freehills and Matouk, Bassiouny & Hennawy as legal advisors.

 

ENDS

 

About Africa50:

Africa50 is a pan-African infrastructure investor and asset manager that contributes to Africa's growth by developing and investing in bankable projects, catalyzing public sector capital, and mobilizing private sector funding, with differentiated financial returns and impact. Africa50 currently has 35 shareholders, comprised of 32 African countries, the African Development Bank, the Central Bank of West African States (BCEAO), and Bank Al-Maghrib. For more information, visit: africa50.com

About Raya Data Centre:

Established in 2012 under Raya Information Technology, Raya Data Center leads the regional data services sector by empowering organizations through innovative digital solutions and enhanced customer service. It offers a comprehensive range of services, including public and private cloud hosting, cybersecurity, managed services, business continuity support, and more, catering to clients across diverse industries in the Middle East and Africa.

Media Contact:

Helga Okounou, Director of Communications, Tel: +212669125839, h.okounou@africa50.com  

Category: Press Release