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Mawingu Secures $15 Million to Acquire Tanzanian ISP Habari

Caleb Sama by Caleb Sama
November 26, 2024
in News
Reading Time: 2 mins read
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Mawingu Acquires Tanzanian ISP Habari

Mawingu Networks is revolutionizing internet access in East Africa through a calculated expansion strategy that combines technological innovation, strategic acquisitions, and a mission to connect underserved rural communities.

The Kenyan internet service provider has secured Ksh. 1.9 billion ($15 million) in financing to acquire Habari, a Tanzanian ISP, reaching a major milestone in its mission to expand digital connectivity across the region. This move positions Mawingu as East Africa’s largest ISP dedicated to rural and peri-urban markets.

Mawingu has developed a robust network infrastructure comprising 175 towers strategically positioned to provide wireless, fiber, and smart green-energy connectivity. This flexible infrastructure allows the company to adapt to challenging terrain and market conditions – a critical advantage in rural African regions.

Farouk Ramji, CEO of Mawingu Networks, celebrated this achievement, stating, “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.”

Mawingu Networks CEO, Farouk Ramji.
Mawingu Networks CEO, Farouk Ramji.

The company’s network architecture is designed with redundancy and diversity, using dedicated fiber trunks and high-capacity microwave links. This ensures reliable internet access in areas traditionally overlooked by major telecommunications companies due to high capital and logistical costs.

The Habari acquisition is a calculated step in Mawingu’s “buy-and-build” strategy. The financing for this expansion comes from notable impact investors, including:

  • Africa Go Green Fund: Providing Ksh. 1.4 billion ($11 million) in long-term senior debt
  • InfraCo Africa: Contributing part of the Ksh. 500 million ($4 million) additional investment
  • Dutch Entrepreneurial Development Bank FMO: Supporting the expansion efforts

Mawingu’s vision extends beyond providing internet access, as the company aims to positively impact 1 million East Africans by 2028 through democratizing access to knowledge, commerce, entertainment, and social connections.

Research indicates that internet access can significantly boost education, employment, and income opportunities. By focusing on affordable connectivity in rural and peri-urban areas, Mawingu is addressing a critical digital divide that has long hindered economic development in the region.

The company’s approach has attracted praise from investors who see it as a model of sustainable, climate-friendly technological development. As Laurène Aigrain from Africa Go Green Fund commented, “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.”

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Caleb Sama

Caleb Sama

Friendly neighborhood films, games, and tech reviewer. Expect dad jokes - lots of dad jokes.

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