The acquisition signals rising confidence in Africa’s digital infrastructure as a viable, long-term investment sector. It follows a wave of funding into telecoms, fibre networks, and digital connectivity, positioning the continent as a growth frontier for impact-driven private equity.

Kenyan internet service provider Mawingu Networks is set to sell a 35% stake to Pembani Remgro Infrastructure Fund II (PRIF II), a South African private equity vehicle, in a deal that will hand the investor controlling interest in the fast-growing rural connectivity firm.

Announced on July 17 by financial research firm Mwango Capital, the proposed equity transaction is currently under review by the Common Market for Eastern and Southern Africa (COMESA) Competition Commission (CCC). This move marks a major milestone in Africa’s digital infrastructure landscape, coming just eight months after Mawingu secured $15 million in debt financing to expand its operations in Kenya and pursue a strategic acquisition in Tanzania.

In a public notice released on June 10, the CCC stated it “will determine, among other things, whether the proposed transaction is likely to substantially prevent or lessen competition in the Common Market.”

PRIF II, managed by Pembani Remgro Infrastructure Managers (PRIM), is supported by a strong lineup of Development Finance Institutions (DFIs), including the African Development Bank, European Investment Bank, British International Investment, and the Coalition for Human Rights in Development.

PRIM operates two funds—PRIF I and PRIF II—with a portfolio spanning companies such as Icolo Data Centers in Kenya, Solar Saver in Southern Africa, and Lumos Power in Nigeria and Côte d'Ivoire. The Mawingu deal signals PRIF II’s continued commitment to expanding internet access and advancing digital inclusion across East Africa.

Mawingu initially deployed innovative technology, using unused TV spectrum (TV white spaces) to provide internet access to rural communities. It has since transitioned to more robust fibre and fixed wireless solutions, building a strong presence in underserved regions in Kenya.

According to the 2023/24 Kenya Housing Survey Basic Report, just 25.0% of Kenya’s rural population has access to the internet, compared to 56.5% in urban areas, highlighting a stark digital divide. The acquisition is expected to significantly boost Mawingu’s financial strength and help extend its network to reach more underserved communities.

Hikmatu Bilali