{"id":1446,"date":"2025-07-17T21:48:14","date_gmt":"2025-07-17T21:48:14","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/1446\/"},"modified":"2025-07-17T21:48:14","modified_gmt":"2025-07-17T21:48:14","slug":"what-the-south-african-fund-mawingu-deal-means","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/1446\/","title":{"rendered":"What the South African Fund Mawingu Deal Means"},"content":{"rendered":"

A South African private equity fund is seeking a 35 percent stake in Mawingu Networks, a Nairobi-based internet service provider backed by Microsoft and the U.S. Development Finance Corporation. The deal, if approved, would hand the fund a controlling interest in one of Kenya\u2019s fastest-growing ISPs.<\/p>\n

<\/a><\/p>\n

The Comesa Competition Commission (CCC) confirmed it is reviewing the proposed acquisition, which is set to take place through the Pembani Remgro Infrastructure Fund II (PRIF II). The fund is managed by Pembani Remgro Infrastructure Managers and counts heavyweight backers including the African Development Bank, the European Investment Bank, British International Investments, and the Coalition for Human Rights in Development.<\/p>\n

While the value of the transaction remains undisclosed, the timing is significant. It follows Mawingu\u2019s successful raise of Sh1.9 billion ($15 million) in debt financing late last year, with the Africa Go Green Fund contributing the lion\u2019s share\u2014Sh1.4 billion ($11 million)\u2014as a long-term loan.<\/p>\n

Mawingu CEO Farouk Ramji declined to provide details, saying the deal is in its early stages.<\/p>\n

Founded in 2013, Mawingu began by utilizing unused TV frequencies following Kenya\u2019s transition to digital broadcasting. The company has since evolved into a fibre and fixed wireless provider, expanding beyond its initial stronghold in Central Kenya to underserved regions in the north and west.<\/p>\n

Mawingu now ranks as the sixth-largest ISP in Kenya, with a 3.2 percent market share and more than 59,000 users as of March\u2014up from just over 16,000 two years ago.<\/p>\n

The CCC noted that the proposed deal does not pose competition concerns within the Comesa region. \u201cThe proposed transaction will not raise any horizontal concerns as there are no overlaps between the activities of the acquiring group and the target group,\u201d the commission said in its preliminary review.<\/p>\n

Mawingu\u2019s expansion momentum has been helped by its Microsoft affiliation and support from development finance partners. The company used part of the recent capital injection to enter Tanzania, acquiring Habari, an Arusha-based internet provider.<\/p>\n

If approved, this transaction would mark PRIF II\u2019s second known investment in Kenya, following its 2019 stake in iColo, a cloud and data center firm.<\/p>\n

The Kenyan fixed internet market remains dominated by Safaricom with a 37.4 percent share, followed by Jamii Telecom (22.5%), Zuku (14.4%), Poa Internet (14.1%), and Vilcom (3.9%). Mawingu\u2019s continued growth and now its pending equity deal signal a clear strategy to strengthen its position in a crowded field.<\/p>\n

Rising demand for reliable internet access, fueled by remote work, e-learning, and streaming, has intensified competition. Even Starlink, Elon Musk\u2019s satellite internet provider, has carved out a 0.9 percent share less than two years after launching in Kenya.<\/p>\n

As the industry consolidates and foreign capital flows into local ISPs, Mawingu\u2019s next chapter may offer insights into how smaller players can scale up with the right backing.<\/p>\n

Mark your calendars! TechTrends Pulse lands in Nairobi this August! Join top tech leaders, innovators & AI experts for a half-day of keynotes, showcases & sharp insights on business transformation. RSVP now -limited slots available! Register\u00a0here.<\/a><\/p>\n

Follow us on\u00a0WhatsApp<\/a>,\u00a0Telegram<\/a>,\u00a0Twitter<\/a>, and\u00a0Facebook<\/a>, or\u00a0subscribe to our weekly newsletter<\/a>\u00a0to ensure you don\u2019t miss out on any\u00a0future updates<\/a>. Send tips to editorial@techtrendsmedia.co.ke<\/p>\n

<\/p>\n

\t\t