IFC and Solcon Capital have announced a cooperation agreement aimed at identifying and nurturing investment opportunities in the deep tech sector within India and South Africa, with the goal of propelling the digital economy in these burgeoning markets.

Under the terms of this agreement, IFC and Solcon Capital will collaboratively work to pinpoint and provide growth capital to promising companies in the deep tech domain. This initiative will focus on critical areas such as 5G, AI, IoT, big data, and cybersecurity.

“This exciting partnership combines IFC’s expertise in supporting private sector growth in emerging markets with Solcon Capital’s deep tech investment, acumen and outstanding global investment track record,” says Sarvesh Suri, IFC’s regional industry director for infrastructure and natural resources, Africa.

“This is an exceptional opportunity to leverage our combined strengths to make a lasting impact by fostering innovation and growth in the deep tech sectors in South Africa and India, in the context of IFC expanding its scope into infratech globally.”

The deep tech space is experiencing an unprecedented growth trajectory. The 5G deepstructure market alone, a crucial segment of this sector, was valued at about $20,19-billion in 2022 and is expected to skyrocket to $348,76-billion by 2030, marking a compound annual growth rate (CAGR) of 45,2%.

Similarly, the IoT market, with a valuation of approximately $544,38-billion in 2022, is anticipated to expand to $3,35-trillion by 2030, at a CAGR of 26,1%. These sectors are thriving due to the rising demand for high-bandwidth and the integration of advanced technologies in diverse industries.

“This is a move that promises to reshape the deep tech landscape in both India and South Africa. It’s a partnership that represents the strategic alliance aimed at unlocking and nurturing significant investment opportunities within the deep tech sector and by combining IFC’s extensive experience and Solcon’s two-decade journey of spearheading deep tech innovations, these investments will catalyse the digital economies of both markets,” says Pramod Venkatesh, CEO of Solcon Capital.

Andile Ngcaba, chairman of Solcon Capital, comments: “Through our partnership with IFC, we aim to accelerate the development of deep tech companies in both regions and facilitate cross-collaboration, leveraging diverse talents and markets. We are committed to fostering a thriving technological ecosystem that drives innovation and growth.”