Cassava Technologies secures $90 million for African expansion
Cassava Technologies, a leading African ICT platform, has secured a $90 million investment from a partnership between the U.S. International Development Finance Corporation (DFC), Finnfund, and Google LLC.
The funding will be used to expand Cassava’s digital infrastructure across Africa, addressing the significant digital divide in Sub-Saharan Africa despite the region’s rapidly growing internet demand.
Cassava plans to use the investment to extend its existing network of over 110,000 kilometers of fibre optic cables and expand its network of data centres. This expansion aims to connect millions of more individuals and businesses to the internet, fostering economic growth and development across the continent.
“This investment by DFC, Google and Finnfund is a major step forward in our mission to become the leading provider of digital solutions in Africa,” said Hardy Pemhiwa, President and Group CEO of Cassava Technologies. Highlighting the company’s existing shareholder support, Pemhiwa further solidified Cassava’s position as Africa’s largest technology company.
The investment is expected to have a widespread economic impact, fostering growth across various industries throughout Africa.
“Our investment in Cassava Technologies is a prime example of DFC’s commitment to expanding digital infrastructure and unlocking economic potential in developing markets,” said Scott Nathan, DFC CEO. “Reliable internet access fosters connections and creates new opportunities for prosperity throughout Africa.”
Finnfund, a strong supporter of private sector growth in Sub-Saharan Africa with a particular focus on digital development, echoed this sentiment.
“We are excited to support Cassava’s platform rollout as it fuels the digital revolution across the region,” stated Jaakko Kangasniemi, CEO and Managing Director of Finnfund. He further emphasized the investment’s positive impact on micro, small, and medium-sized enterprises (MSMEs) through improved internet access, facilitating digital and financial inclusion.
According to Pemhiwa, U.S. International Development Finance Corporation, Google and Finnfund now join Econet Group, British International Investment, Public Investment Corporation, Royal Bafokeng Holdings, Gateway Partners, and African Export-Import Bank (Afreximbank) as shareholders.
Meanwhile, writing on his LinkedIn page, Pemhiwa said subsidiary, Liquid Intelligent Technologies, has signed a US$220 million equivalent ZAR debt refinancing with the support of Standard Bank Group, RMB – Rand Merchant Bank Nedbank and IFC – International Finance Corporation further strengthening our balance sheet.
“This US$310 million of financing, combined with our strategic reorganisation, is part of our repositioning to an integrated digital solutions platform delivering: Broadband Connectivity, Co-location (data centres), Cloud, Cybersecurity, AI Computing and Fintech services in our chosen markets.
“These milestones are not just numbers – they represent trust from global investors, dedication of our teams, trust of our customers and support of our shareholders and partners who believe in our vision of a digitally connected future that leaves no African behind,” said Pemhiwa.-ebsinessweekl
