Cassava Technologies will use the funds to boost connectivity across the African continent, which has historically suffered from underinvestment of its digital infrastructure.
The Finnish Fund for Industrial Cooperation (Finnfund), Google and the US International Development Finance Corporation (DFC) took part in a $90m (€87.5m) equity investment round for Cassava Technologies, the pan-African technology company.
Founded in 2021 Strive Masiyiwa, a Zimbabwean telecommunications and technology entrepreneur, investor and philanthropist, Cassava Technologies provides broadband connectivity, data centres, cloud, cybersecurity and payment technology across 30 countries in Africa, the Middle East, India, and Latin America.
The equity investment will help Cassava Technologies grow its network of interconnected data centres and over 110,000 kilometres of fibre network in sub-Saharan Africa. Although this region is one of the world’s fastest growing markets for internet demand, it has historically suffered from underinvestment in its digital infrastructure.
A 2023 report by the World Bank, which compiled nationally representative household surveys from 48 African countries, found that only 1 in 4 people have access to the internet, 1 in 10 have access to a computer, while 3 in 4 have access to a mobile phone, for example.
Finnfund has “a longstanding commitment towards supporting private sector development in sub-Saharan Africa with a special focus on digital sector growth”, said Jaakko Kangasniemi, chief executive officer and managing director of the Finnish development financier and impact investor.
Areas of impact
Prior to the equity round, Cassava’s roster of shareholders included Econet Group, British International Investment, Public Investment Corporation, Royal Bafokeng Holdings, the Africa-Export Import Bank and Gateway Capital.
The joint investment “will have high development impacts across Cassava’s business verticals”, Kangasniemi said. For example, better access to the internet will boost “the digital and financial inclusion of micro, small, and medium-sized enterprises.”
The closing of the equity round formed part of a re-organisation of Cassava’s business. This also included a legal re-organisation, and a debt refinancing in South African Rands, worth $220m, with the help of Standard Bank of South Africa, Rand Merchant Bank, Nedbank of South Africa, and the International Finance Corporation.
Hardy Pemhiwa, president and group chief executive officer of Cassava, called the overhaul “a pivotal milestone that we expect to unlock immense value and catalyse the further expansion of our digital infrastructure and services to bridge the digital divide on the continent”.
Scott Nathan, chief executive officer of the DFC, called the investment a “premier example” of his organisation’s commitment to “expanding digital infrastructure in the markets where we work to connect local communities to the world and unlock economic potential”.
