The pan-African tech firm Cassava Technologies has raised $310 million to expand its digital services and infrastructure throughout the continent.
The investment comprises a $220 million debt refinance arrangement for one of its companies, Liquid Intelligent Technologies, as well as $90 million in equity from the Finnish Fund for Industrial Cooperation (Finnfund), Google, and the US International Development Finance Corporation (DFC).
The goal of the fundraising round, which was revealed on Tuesday, is to further establish Cassava as one of Africa’s top technological companies. With operations in over 30 African nations, the company offers enterprise and hyperscale clients cloud computing, cybersecurity, data centres, broadband access, and financial services.
Although sub-Saharan Africa is one of the regions with the fastest-growing Internet demand in the world, the $90 million equity investment comes as the continent struggles with a rising digital gap and underinvestment in infrastructure. With a vast network that includes more than 110,000 kilometres of fibre and connects data centres throughout the continent, Cassava’s platform meets this demand.
“We are proud to partner with Cassava Technologies” – DFC’s CEO
Scott Nathan, CEO of the DFC, underscored the strategic importance of the investment.
“DFC is committed to expanding digital infrastructure to connect local communities to the world and unlock economic potential. Our investment in Cassava Technologies is a premier example of this effort,” he said. “We are proud to partner with Cassava, Google, and Finnfund to help bridge the digital divide in Africa.”
Jaakko Kangasniemi, CEO of Finnfund, underlined the investment’s potential for broad economic benefit.
“Improved and more reliable internet access enabled by Cassava’s platform will contribute to digital and financial inclusion for micro, small, and medium-sized enterprises,” he said.
Kangasniemi added that the European Union is funding the investment through the European Fund for Sustainable Development Plus (EFSD+), which is a component of the Global Gateway program.
President Pemhiwa applauds global partners
Cassava Technologies President and Group CEO Hardy Pemhiwa praised the support of its international partners.
“The investment by DFC, Google, and Finnfund validates our vision of becoming the leading digital solutions provider in our chosen markets. It further cements our position as the largest technology company in Africa,” Pemhiwa said.
A $220 million debt refinance agreement has been executed by Liquid Intelligent Technologies, one of Cassava’s major business units, in addition to the equity investment.
It is anticipated that the arrangement, which was made possible by the International Finance Corporation (IFC), Standard Bank Group, Rand Merchant Bank (RMB), and Nedbank, will improve Cassava’s balance sheet and supply the funds required for future growth.
Liquid Intelligent Technologies provides connectivity to governments and businesses by running one of Africa’s biggest independent fibre networks.
As part of Cassava’s larger repositioning into an integrated digital solutions platform, the refinance will assist in further scaling its operations. The financing comes as demand for digital infrastructure rises throughout Africa due to the expansion of cloud-based services, growing enterprise needs, and rising internet penetration.
Read also: Liquid and Globalstar join forces to advance 5G network in Africa
Cassava Technologies expansion to bridge Africa’s digital gap
The continent is still severely neglected, though. Industry estimates indicate that more than 60 percent of Africans do not now have access to the Internet, and critical industries including financial services, healthcare, and education continue to experience connectivity issues.
By implementing broadband infrastructure, co-location services via data centres, and financial solutions that promote digital inclusiveness, Cassava’s expansion seeks to address these issues.
Liquid Intelligent Technologies, Africa Data Centres, and Sasai Fintech are among the companies in the company’s portfolio that are well-positioned to provide African markets with comprehensive digital services.
Growing investor interest in Africa’s tech infrastructure
The increased investment shows that investors are becoming more interested in Africa’s technological infrastructure. With the addition of Google and Finnfund to the list of shareholders that also includes Public Investment Corporation, Royal Bafokeng Holdings, Gateway Partners, British International Investment (BII), and African Export-Import Bank (Afreximbank), Cassava is becoming more and more recognised as a means of advancing digital transformation on the continent.
Cassava Technologies, which was founded by Strive Masiyiwa, a Zimbabwean entrepreneur, aims to provide Africa a “digitally connected future.”
The company’s integrated approach addresses the demands of both enterprises and consumers by fusing physical infrastructure with services like cloud computing, finance, and AI computing.
Cassava’s latest investment to facilitate critical digital infrastructure
With the help of the most recent investment, Cassava will be able to expand its business and put out vital digital infrastructure more quickly, which will have an impact on economic growth in a number of industries.
According to analysts, by assisting companies, improving the quality of education, and promoting financial inclusion for marginalised groups, this could promote overall economic growth.
Investments like those made by DFC, Google, and Finnfund into Cassava Technologies demonstrate a growing understanding of the region’s ability to advance into the digital era as Africa’s digital economy continues to pick up steam. Cassava continues to lead this endeavour at the moment, providing a basis for Africa’s digital revolution.
Strive Masiyiwa created Cassava Technologies, a prominent African-based technology corporation. The company provides digital infrastructure and services in Africa, the Middle East, and beyond through its business units, which include Sasai Fintech, Africa Data Centres, and Liquid Intelligent Technologies.