Investment

Mawingu Raises Ksh 1.9 Billion To acquire Tanzanian ISP Habari And expand Its Network In East Africa

BY Soko Directory Team · November 26, 2024 11:11 am

Internet Service Provider (ISP), Mawingu, has announced the acquisition of Habari, an Arusha-based ISP with operations across 7 regions in Tanzania.

Habari has more than 25 years of experience delivering Internet and ICT solutions to rural households and businesses across Tanzania. This acquisition will rapidly accelerate Mawingu’s vision of opening opportunities through enhanced digital connectivity across East Africa in areas that have traditionally not been given priority due to the high capital cost and logistical complexities involved in ensuring a stable, reliable, and affordable service.

Mawingu has raised KSh 1.9 Billion ($15 million) of debt and equity financing to enable this expansion into East Africa.

The Africa Go Green Fund (“AGG”), managed by Cygnum Capital, will provide KSh 1.4 Billion ($11 million) of long-term senior debt. This is supported by an additional KSh 0.5 Billion ($4 million) investment from InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), and from Dutch Entrepreneurial Development Bank FMO. This acquisition will enable the company to replicate its wins in Kenya, into Tanzania and East Africa. The primary objective is to scale Mawingu’s affordable home Internet proposition to underserved communities in East Africa by acquiring and growing ISPs in the target markets.

Mawingu’s Chief Executive Officer, Farouk Ramji says: “Today marks an incredibly important day for the African telecommunications market. Mawingu has grown from a start-up to an established Kenyan telco player and now through the acquisition of Habari, a Tanzanian ISP, to expand both its footprint and impact in the East Africa region. Mawingu and Habari share the same values, strong financial metrics, and the same dedication to connecting the rural and peri-urban market. This acquisition, along with an additional $15 million of financing, will enable Mawingu to deliver its value proposition of affordable Internet connectivity to homes in Tanzania that has only connected 300,000 out of 14,000,000 homes.”

Mr. Ramji continues: “Mawingu has created overwhelming successes in its Kenyan business and we believe the Habari acquisition will provide a robust foundation from which to replicate and scale our successes in Tanzania and beyond. We are excited to be one-step closer to positively impacting 1,000,000 East Africans by 2028.”

Internet access has been shown to deliver benefits for education, employment, and income, as well as promoting wider economic development.[i] However, in Kenya and Tanzania, rural customers tend to be unserved or underserved by existing broadband provision and access costs can be prohibitively high. To address this ‘digital gap,’ Mawingu builds, owns, and operates sustainable networks which can be deployed in challenging rural and peri-urban environments. The Habari acquisition will enable Mawingu to enter the Tanzanian market, however, Mawingu’s ambition does not stop there. The company aims to deliver meaningful connectivity to communities across the entire East Africa region through a disciplined ‘buy-and-build’ strategy. The identification and acquisition of successful ISPs will rapidly broaden the scale of Mawingu’s impact, enabling the company to open opportunities for 1,000,000 people across East Africa by 2028.

Laurène Aigrain, Managing Director of Africa Go Green Fund, says: “We’re thrilled to support an ISP that’s not only expanding Internet access to remote communities but doing so with sustainability at its core. This investment aligns perfectly with Africa Go Green’s mission to back climate-friendly solutions that drive real change. This investment underscores our commitment to a climate-resilient Africa, where connectivity and sustainability go hand-in-hand to support economic growth and environmental stewardship.”

InfraCo Africa’s Chief Investment Officer, Claire Jarratt, says: “Through its dedicated investment arm, InfraCo Africa is proud to support the further expansion of Mawingu’s offering in the region. PIDG is committed to unlocking the development potential of digital connectivity on the continent, and Mawingu’s growth – underpinned by a commitment to affordability and climate change mitigation – is a great example of how, with the right support, an innovative business can scale with a view to attracting further private sector finance into the region’s rural Internet sector.”

Marieke Roestenberg, Manager of FMO’s Ventures Program, says: “We are excited to support Mawingu’s acquisition of Habari as a first step in their international expansion strategy to extend their offering of affordable Internet access to the broader East Africa region. Internet connectivity is a crucial and powerful enabler for social and economic development and access to digital services is still lagging on the African continent, especially in rural and peri-urban areas. We are proud of the scaling trajectory that Mawingu’s inclusive business model has demonstrated in Kenya and are confident the company will be able to replicate and further strengthen its proposition internationally.”

About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory