(Ecofin Agency) - Africa's digital connectivity challenges hinder economic growth. Expanding digital infrastructure could integrate millions into the digital economy. Cassava Technologies, with its Broadband Connectivity, Data Centres, and AI-driven solutions, plays a key role in addressing these issues.

Cassava Technologies, a global technology powerhouse with African roots, has achieved three transformative milestones: a $90 million equity injection, the successful refinancing of its South African Rand (ZAR) debt, and the completion of a legal reorganization. These strategic moves, announced on December 17, bolster the company's financial foundation and position it for accelerated growth across its markets.

Hardy Pemhiwa, President and Group CEO of Cassava highlighted that the completion of the equity round, the ZAR debt refinancing, and the reorganization “represent more than just capital – it’s a pivotal milestone that we expect to unlock immense value and catalyze the further expansion of our digital infrastructure and services to bridge the digital divide on the continent.”

The $90 million equity round attracted investments from the U.S. International Development Finance Corporation (DFC), the Finnish Fund for Industrial Cooperation (Finnfund), and Google LLC. This funding is integral to Cassava’s strategy to enhance its balance sheet, drive sustainable profitability, and solidify its reputation as a leading global technology company of African heritage.

Coinciding with this investment, Cassava has restructured its operations into an integrated digital solutions platform. This platform spans Broadband Connectivity, Data Centres, Cloud, Cybersecurity, Compute (AI), and Payment services across over 30 markets, including Africa, the Middle East, India, and Latin America.

Adding to its achievements, Liquid Intelligent Technologies, a Cassava business, has successfully refinanced its South African Rand term loan with new facilities valued at $220 million. The funding, secured from Standard Bank of South Africa, Rand Merchant Bank, Nedbank of South Africa, and the International Finance Corporation (IFC), reinforces the company’s financial flexibility.

Africa’s digital economy is projected to reach $180 billion by 2025, or 5.2% of GDP, and $712 billion by 2050, or 8.5% of GDP, according to the IFC in its e-Conomy Africa 2020 report. Companies like Cassava, with its integrated digital solutions, are key to driving this growth. Cassava’s recent $90 million investment from Google, DFC, and Finnfund highlights growing confidence in Africa’s tech sector.

Cassava Technologies operates an impressive portfolio of subsidiaries, including Liquid Intelligent Technologies, Africa Data Centres, Liquid C2, Cassava.ai, and Sasai Fintech, each a leader in its respective fields. Through these integrated business units, Cassava is working toward a future where every African benefits from digital connectivity.

Hikmatu Bilali

Editing by Sèna de Sodji