Mawingu, a Kenyan-based internet service provider focused on bridging the digital divide, has announced a $15 million funding round to support its acquisition of Habari, a leading Tanzanian ISP. The move marks Mawingu’s first foray into the Tanzanian market and underscores its commitment to expanding affordable connectivity across underserved regions in East Africa.
The funding round comprises KSh 1.4 billion ($11 million) in long-term senior debt from the Africa Go Green Fund (AGG), managed by Cygnum Capital, and an additional KSh 0.5 billion ($4 million) from InfraCo Africa and the Dutch entrepreneurial development bank FMO. This financial injection will enable Mawingu to replicate its successes in Kenya while scaling its impact regionally.
Habari, headquartered in Arusha, has over 25 years of experience providing internet and ICT solutions to rural and peri-urban communities across seven Tanzanian regions. Its acquisition positions Mawingu to rapidly scale its operations and bring affordable, reliable internet to Tanzania, where only 300,000 of 14 million households are currently connected.
Mawingu’s CEO, Farouk Ramji, emphasized the significance of the acquisition:
“Habari has built an incredible business over the years, and this partnership allows us to combine strengths to deliver meaningful connectivity across East Africa. Our mission remains to bridge the digital divide, and this acquisition is a significant step towards positively impacting one million East Africans by 2028.”
A Buy-and-Build Strategy for Regional Growth
Founded in 2021 by former Telkom Kenya executive Farouk Ramji, Mawingu has established itself as Kenya’s largest ISP focused on underserved markets. Its model combines affordability and community-led support, addressing the high costs and logistical challenges associated with rural internet deployment.
The acquisition of Habari is part of Mawingu’s broader buy-and-build strategy to scale its footprint in East Africa. By identifying and integrating established ISPs, Mawingu aims to expand connectivity beyond Kenya and Tanzania, ultimately supporting social and economic development through enhanced digital access.
According to Ramji, this approach reflects a vision for inclusive growth:
“We have created overwhelming successes in Kenya, and with Habari’s foundation, we are confident in our ability to scale these successes across Tanzania and beyond.”
Strategic Investor Support
The funding partners view Mawingu’s growth strategy as aligning with broader regional goals for sustainability and economic development. Laurène Aigrain, Managing Director of the Africa Go Green Fund, said:
“This investment underscores our commitment to a climate-resilient Africa. Mawingu is not just expanding connectivity but doing so with sustainability at its core, ensuring long-term impact for underserved communities.”
Claire Jarratt, Chief Investment Officer at InfraCo Africa, added:
“Mawingu exemplifies how innovative businesses can unlock private sector investment in critical sectors like rural connectivity. This expansion will further strengthen digital infrastructure in East Africa.”
Access to affordable internet is a critical enabler for education, employment, and economic growth. Yet in East Africa, rural and peri-urban communities often face limited options due to high costs and inadequate infrastructure. By acquiring Habari, Mawingu aims to address these barriers, delivering internet access that fosters development and supports equitable opportunities.
The company’s disciplined expansion strategy signals its ambition to become a transformative player in East Africa’s telecommunications sector. Ramji concluded:
“Today is a milestone for Mawingu and the African telecommunications market. With this acquisition and funding, we are one step closer to connecting one million East Africans and opening opportunities for communities traditionally left behind.”
As Mawingu enters this new chapter with Habari, the Tanzanian market is only the beginning. The company’s vision extends across the East African region, promising greater digital inclusion and economic empowerment for underserved populations.