Mawingu Raises KES 1.9 Billion to Acquire Tanzanian ISP Habari, Accelerating East Africa Expansion

Mawingu, a Kenyan-based Internet Service Provider (ISP), has announced the acquisition of Habari, a prominent Tanzanian ISP with over 25 years of experience. The acquisition marks a significant milestone in Mawingu’s expansion strategy and positions it as East Africa’s largest ISP catering to rural and peri-urban markets. The deal is supported by KES 1.9 billion ($15 million) in new financing, which will drive the company’s efforts to enhance digital connectivity across East Africa.

Key Details of the Acquisition and Funding

Mawingu’s acquisition of Habari brings a robust infrastructure and a shared commitment to connecting underserved communities. Habari operates in seven regions in Tanzania and has a strong track record of delivering Internet and ICT solutions to rural households and businesses. This acquisition provides Mawingu with the foundation to replicate its success in Kenya on a broader East African scale.

The funding includes:

• KES 1.4 billion ($11 million) in long-term senior debt from the Africa Go Green Fund (AGG), managed by Cygnum Capital.
• KES 500 million ($4 million) in equity financing from InfraCo Africa and the Dutch Entrepreneurial Development Bank (FMO).

This financial boost will enable Mawingu to scale its affordable Internet services and execute its disciplined “buy-and-build” strategy targeting successful ISPs in East Africa.

Expanding Affordable Internet Access

Mawingu’s CEO, Farouk Ramji, emphasized the transformative impact of this acquisition:

"Today marks an incredibly important day for the African telecommunications market. 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 the additional $15 million in financing, will enable Mawingu to deliver its value proposition of affordable Internet connectivity to homes in Tanzania and beyond."

Mawingu’s goal is to positively impact 1,000,000 East Africans by 2028. The company’s model involves building, owning, and operating sustainable networks tailored for rural and peri-urban areas. Habari’s integration into Mawingu’s operations is expected to accelerate the provision of reliable and affordable Internet to underserved regions, addressing the significant digital gap in East Africa.

Bridging the Digital Divide in East Africa

Despite the growing importance of Internet access for education, employment, and economic development, many rural areas in Kenya and Tanzania remain underserved. Mawingu’s acquisition of Habari is a strategic step toward bridging this gap. According to Mr. Ramji, while Tanzania has 14 million households, only 300,000 currently have Internet connections.

Mawingu’s innovative approach leverages wireless, fiber, and green-energy technology to adapt to the unique challenges of rural and peri-urban connectivity. With a network of 175 towers and robust transmission infrastructure, Mawingu has already connected over 20,000 homes and businesses across 30 Kenyan counties.

Sustainability at the Core of Expansion

The acquisition aligns with Mawingu’s mission to provide sustainable Internet solutions. Laurène Aigrain, Managing Director of Africa Go Green Fund, stated:

"We’re thrilled to support an ISP expanding Internet access to remote communities while prioritizing sustainability. This investment underscores our commitment to a climate-resilient Africa, where connectivity and sustainability go hand in hand."

This sentiment was echoed by InfraCo Africa and FMO, who highlighted the importance of digital connectivity as a driver of social and economic development. Mawingu’s inclusive business model and commitment to affordability have garnered strong backing from international investors, further bolstering its growth trajectory.

Looking Ahead

The acquisition of Habari marks the beginning of Mawingu’s international expansion and reinforces its commitment to democratizing Internet access. With ambitious goals and a clear strategy, Mawingu aims to become a leading force in connecting East Africa’s underserved communities, unlocking opportunities for education, commerce, and economic growth.

For more information about Mawingu and its initiatives, visit Mawingu Networks.