• Kenyan-based internet provider, Mawingu has acquired Habari Node in a move to expand its market in East Africa in an undisclosed deal.
• The company has raised Sh39 billion ($15 million) to expand its network across East Africa.
• Mawingu is now East Africa’s largest ISP dedicated to the rural and peri-urban market, the company said.

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Dar es Salaam. Kenyan-based telecom, Mawingu, has acquired Habari Node, one of the long-serving internet service companies in Tanzania as part of $15 million (Sh39 billion) expansion plan in the East African market. 

The Arusha-based Internet Service Provider (ISP), Habari has nearly 30 years in the market in delivering Internet and ICT solutions to rural households and businesses, operating in seven regions in Tanzania. 

Habari is the sixth largest fixed wired internet provider in Tanzania with 2,822 subscribers as of September 2024 with customers twice that of Tigo and Halotel, according to Tanzania Communications Regulatory Authority (TCRA) data. The company said it has more than 3,000 customers.

Mawingu said in  a statement on Tuesday that the acquisition will rapidly accelerate its vision of opening opportunities through enhanced digital connectivity across East Africa in under prioritised areas due to the high capital cost and logistical complexities involved in ensuring a stable, reliable, and affordable service. Mawingu did not disclose the exact amount involved in the acquisition. 

“This acquisition, along with an additional $15 million of financing, will enable Mawingu to deliver its value proposition of affordable Internet connectivity to homes in Tanzania that has only connected 300,000 out of 14 million homes,” Mawingu’s Chief Executive Officer, Farouk Ramji said. 

An internet technician installing Habari internet service. Habari, formerly Habari Node, is the sixth largest fixed wired internet service provider in Tanzania according to TCRA. Photo|Mawingu/Handouts.

TCRA public notice released in July 2024 showed that Mawingu Networks Limited and the company’s CEO, Ramji have acquired all shares of Habari Node Ltd which was recently rebranded to Habari.   

More expansion funding

In the expansion deal, the Africa Go Green Fund (“AGG”), managed by Cygnum Capital, will provide $11 million (Sh28.7 billion) of long-term senior debt which will be supported by an additional $4 million (Sh10.4 billion) investment from InfraCo Africa, part of the Private Infrastructure Development Group (PIDG), and from Dutch Entrepreneurial Development Bank FMO. 

The statement said the acquisition will enable the company to replicate its wins in Kenya, into Tanzania and East Africa. The primary objective is to scale Mawingu’s affordable home Internet proposition to underserved communities in East Africa by acquiring and growing ISPs in the target markets.  

Ramji said the acquisition of Habari Node is putting them one-step closer to positively impacting one million East Africans by 2028. 

Internet access is one of the important drivers of the digital economy in Tanzania and in the East Africa region as it is key in transforming education, manufacturing, employment, and income and overall promotion of economic development.

However, Mawingu said in Kenya and Tanzania, rural customers tend to be unserved or underserved by existing broadband provision and access costs can be prohibitively high. 

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