Cassava Technologies, a leading digital infrastructure and services provider in Africa, has announced the successful closure of a $90 million equity investment. The funding round saw participation from notable investors, including the U.S. International Development Finance Corporation (DFC), the Finnish Fund for Industrial Cooperation (FinnFund), and tech giant Google.

This strategic investment is part of a larger $310 million financing package aimed at reinforcing Cassava’s balance sheet, driving sustainable growth, and enabling the expansion of its integrated digital solutions platform. With operations spanning over 30 countries across Africa, the Middle East, India, and Latin America, Cassava Technologies is positioning itself as a pivotal player in bridging the digital divide across emerging markets.

A Comprehensive Digital Ecosystem

Cassava Technologies has carved out a robust portfolio of businesses under its umbrella, each catering to critical aspects of the digital economy. These include:

• Liquid Intelligent Technologies: A leader in broadband connectivity solutions across Africa.
• Africa Data Centres: Providing state-of-the-art co-location services and data center infrastructure.
• Liquid C2: Specializing in cybersecurity and cloud solutions.
• Cassava.ai: Focused on harnessing artificial intelligence for business and societal advancement.
• Sasai Fintech: Offering financial technology solutions, including mobile payments and e-commerce services.

The integration of these services under one platform creates a synergistic ecosystem that addresses the continent’s pressing digital infrastructure needs, from connectivity to secure data management and financial inclusion.

Significance of the Investment

The $90 million equity investment from high-profile international stakeholders underscores the confidence in Cassava Technologies’ vision and potential. The U.S. International Development Finance Corporation, an institution focused on advancing development in emerging markets, brings not only funding but also strategic expertise to the table. Similarly, FinnFund, known for its emphasis on sustainable development, and Google, a global tech leader, lend further credibility to the initiative.

This funding comes at a time when Africa’s digital economy is poised for exponential growth. With internet penetration rates steadily rising and an increasingly tech-savvy population, the demand for reliable broadband, cloud services, and digital payment solutions is higher than ever.

Debt Financing and Financial Reorganisation

Beyond the equity investment, Cassava Technologies has successfully secured $220 million in South African Rand-denominated debt facilities. These facilities, provided by Standard Bank of South Africa, Rand Merchant Bank, Nedbank of South Africa, and the International Finance Corporation (IFC), will be used to refinance existing debt and support the company’s ambitious growth plans.

The completion of these financial arrangements coincided with a legal reorganization within the company, aimed at streamlining its operations and creating a unified platform for its diverse range of services.

“This is a pivotal milestone in which we expect to unlock immense value and catalyze the further expansion of Cassava’s digital infrastructure and services to bridge the digital divide in the continent,” said Hardy Pemhiwa, Group CEO and President of Cassava Technologies.

Bridging the Digital Divide in Africa

Cassava Technologies’ overarching mission is to bridge the digital divide across Africa—a goal that aligns with the continent’s socio-economic development priorities. Despite Africa’s rapid technological advancements in recent years, significant challenges remain. Millions of people across the continent still lack access to affordable internet, secure data storage, and digital financial services.

The company’s initiatives, including the rollout of high-speed broadband and advanced cybersecurity solutions, aim to address these gaps. The integration of artificial intelligence and fintech into its service offerings further underscores its commitment to driving innovation and inclusion.

The Role of Strive Masiyiwa

Cassava Technologies’ journey has been profoundly influenced by its founder and Group Chairman, Strive Masiyiwa. Known as one of Africa’s most influential entrepreneurs, Masiyiwa has consistently championed the role of technology in driving socio-economic development. His vision for Cassava Technologies revolves around creating a self-sustaining ecosystem that leverages technology to solve some of Africa’s most pressing challenges.

Under Masiyiwa’s leadership, the company has expanded its footprint across multiple continents, establishing itself as a key player in the global digital economy while maintaining a strong focus on Africa.

Global Partnerships and Their Impact

The involvement of international institutions such as the DFC, FinnFund, and Google is a testament to the global community’s recognition of Africa’s potential as a hub for digital innovation. These partnerships are not just financial but also strategic, as they bring expertise, technology, and best practices that can accelerate Cassava Technologies’ growth.

Google, in particular, has been deeply involved in Africa’s digital transformation. Through initiatives like the Google for Startups Accelerator and investments in undersea internet cables, the tech giant has demonstrated a long-term commitment to the continent’s digital future.

Similarly, DFC’s investment aligns with its broader mandate to support infrastructure development in emerging markets, while FinnFund’s involvement highlights the importance of sustainable and inclusive growth.

Challenges and Opportunities

While the investment represents a significant step forward, Cassava Technologies faces challenges typical of companies operating in emerging markets. These include regulatory complexities, the high cost of infrastructure deployment, and geopolitical risks.

However, the opportunities far outweigh the challenges. With Africa’s population projected to double by 2050 and a growing middle class demanding better connectivity and digital services, the potential for growth is immense. The company’s focus on innovative technologies such as AI and fintech positions it well to capitalize on these trends.

The Road Ahead

As Cassava Technologies embarks on this next phase of growth, the company is poised to play a transformative role in Africa’s digital economy. By leveraging the $90 million equity investment and additional financial resources, it aims to expand its reach, enhance its service offerings, and create a more connected and inclusive digital future for Africa.

“This investment is a powerful testament to the vision of our founder and the dedication of our teams across the Group,” said Pemhiwa. “We are excited about the opportunities ahead and remain committed to driving sustainable growth and innovation.”

With a strong foundation, visionary leadership, and strategic international partnerships, Cassava Technologies is not just building a business—it’s shaping the future of digital infrastructure in Africa and beyond.

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photo source: Google

By: Montel Kamau

Serrari Financial Analyst

8^th January, 2024