Mawingu, a Kenyan internet service provider (ISP), on Tuesday announced its acquisition of Arusha-based Habari, which serves seven districts in Tanzania.
With over 25 years of experience providing Internet and ICT solutions to rural communities in Tanzania, Habari will help Mawingu accelerate its mission to provide affordable, reliable, and accessible internet services across East Africa.
Habari has over 25 years of expertise providing Internet and ICT solutions to Tanzanian rural companies and households.
Historically, rural regions have faced high capital costs and logistical challenges in obtaining stable and affordable internet services.This acquisition will help address these issues, allowing Mawingu to rapidly expand its digital connectivity efforts in underserved areas throughout East Africa.
By tackling issues like high capital costs and logistical complexity, the acquisition is anticipated to expedite Mawingu’s aim of improving digital access in underserved areas of East Africa.
Mawingu raised $15 million in debt and equity investment
To support its growth, Mawingu has raised $15 million in debt and equity investment. This includes $11 million in long-term senior financing from the Africa Go Green Fund (AGG), which is managed by Cygnum Capital, and $4 million from current investors InfraCo Africa (a division of the Private Infrastructure Development Group) and Dutch Entrepreneurial Development Bank FMO.
Mawingu’s CEO, Farouk Ramji stated, “Today marks an incredibly important day for the African telecommunications market. Mawingu has grown from a start-up to an established Kenyan telco player and now through the acquisition of Habari, a Tanzanian ISP, to expand both its footprint and impact in the East Africa region.”
“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 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,” he added.
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Mawingu’s ambition to expand beyond Kenya
By expanding its reasonably priced home Internet solutions to underprivileged communities in Kenya, Mawingu will be able to replicate its successes in Tanzania, thanks to Habari’s acquisition.
Ramji continued, “Mawingu has created overwhelming successes in its Kenyan business and we believe the Habari acquisition will provide a robust foundation from which to replicate and scale our successes in Tanzania and beyond. We are excited to be one-step closer to positively impacting 1,000,000 East Africans by 2028.”
By purchasing and growing regional ISPs, Mawingu hopes to expand its footprint in important markets and strengthen its resolve to close the digital divide in the area.