Strive Masiyiwa’s Africa Data Centers secures $110 million from RMB for expansion

Oluwatosin Racheal Alabi -

Key Points:

  • Africa Data Centers secures R2 billion ($110 million) from RMB to expand services in South Africa.
  • The bespoke financing solution will increase hyperscale data center capacity by 20MW.
  • This funding addresses the significant supply-demand gap and supports digital economy development in South Africa.

Africa Data Centers (ADC), a subsidiary of Cassava Technologies — a fiber and telecom solutions group founded by Strive Masiyiwa, Zimbabwe’s richest man and a leading African tech billionaire — has announced the securing of R2 billion ($110 million) in funding from Rand Merchant Bank (RMB). The financing arrangement will allow ADC to meet the growing demand for cloud computing services in South Africa.

ADC, a leading carrier-neutral data center provider, operates hyper-scale and edge data centers in Cape Town, Midrand, Centurion, Nairobi, and Lagos. The company aims to leverage this R2 billion facility to accelerate and expand its hyperscale data centre capacity by an additional 20MW to meet the increasing demand for digital services in the region.

RMB, a corporate and investment bank under FirstRand Bank, coordinated and arranged the funding for the transaction. Nana Phiri, head of the corporate client group at RMB, noted that South Africa has a significant shortage of data centers. This funding supports RMB’s goal of developing a sustainable digital economy in the country.

Cassava Technologies, the holding company of ADC, provides communication solutions in 13 countries across Africa. This expansion is part of ADC’s broader strategy to become the continent’s leader in digital services and solutions. The company’s growth plans reflect the unprecedented demand for digital services, apps, broadband, and cloud technologies, driving data demand to previously unimagined levels.

Bridging the Digital Infrastructure Gap

Tesh Durvasula, CEO of ADC, explained that this financing will enable the company to meet the surging demand for cloud computing services in South Africa. Despite the significant growth in digital services, many regions still lack adequate digital infrastructure. ADC’s expansion aims to bridge this gap and ensure more comprehensive digital coverage.

This development follows recent investments by ADC, including the opening of a massive data center facility in Lagos, Nigeria. With the new funding from RMB, ADC is well-positioned to continue its expansion and strengthen its leadership in the African digital infrastructure market.

RMB sees this investment as a strategic move to support digital infrastructure development in South Africa and the broader African continent, recognizing the vast opportunities in this sector. The R2 billion facility is a testament to ADC’s commitment to driving digital transformation and meeting the evolving needs of businesses and consumers in the region.

“We see this funding as part of RMB’s mandate of financing the development of a sustainable digital economy in South Africa,” said Phiri.

The new facility, launched in 2022, follows the opening of a massive 10.65-megawatt data center in Lagos, Nigeria, six months earlier. Billionaires.Africa reported that the data center will support the expansion of digital services and solutions across West Africa, making ADC the largest provider in the region.