South African private equity company secures a 35% ownership in Kenya's Mawingu Networks
The COMESA Competition Commission (CCC) is currently reviewing Pembani Remgro Infrastructure Fund II’s (PRIF II) proposed acquisition of a 35% stake in Mawingu Networks, a Kenyan internet service provider. This acquisition would give PRIF II controlling interest in Mawingu, which is the sixth largest ISP in Kenya with about 2.8% market share, trailing behind major players like Safaricom and Jamii.
The CCC’s review mainly focuses on assessing whether this transaction will substantially prevent or lessen competition within the COMESA regional economic bloc. The commission has noted that there are no direct overlaps between the acquiring entity (PRIF II) and Mawingu Networks, suggesting potentially limited horizontal consolidation concerns.
Mawingu Networks operates primarily in rural areas in Kenya and has recently expanded through debt financing and acquisition into Tanzania, indicating a growing footprint in East Africa’s internet infrastructure sector. The acquisition by a South African fund backed by multiple Development Finance Institutions (such as the African Development Bank and European Investment Bank) signals increased investor confidence in African digital infrastructure as a long-term growth and impact investment sector.
From a competition perspective across the COMESA region, the key impacts are likely:
- Market consolidation: The acquisition may concentrate control of rural connectivity assets under an experienced PE fund, potentially enabling scaling of infrastructure but also raising questions on market power if similar acquisitions happen elsewhere in the bloc.
- Cross-border integration: As Mawingu expands regionally (e.g., in Tanzania), the investment might encourage deeper integration of digital infrastructure markets within COMESA, potentially enhancing competition by improving service availability.
- Infrastructure investment: With PRIF II’s backing, Mawingu might accelerate infrastructure rollout, particularly in underserved rural sectors, benefiting users by increasing choice and connectivity.
- No immediate anti-competitive overlap: Since the CCC found no overlapping business interests between the fund and Mawingu, near-term risks of reduced competition due to horizontal mergers appear limited.
In sum, the COMESA Competition Commission’s ongoing review will weigh these factors to ensure the acquisition fosters competitive digital markets across the regional bloc without enabling monopolistic behavior or harming consumer choice. The involvement of Development Finance Institutions underscores the strategic developmental role of this investment in enhancing digital connectivity in COMESA countries.
[1] PRIF II is managed by Pembani Remgro Infrastructure Managers. [2] PRIF II is backed by several development finance institutions, including the African Development Bank, European Investment Bank, and British International Investment. [3] The acquisition by PRIF II will give the fund controlling interest in Mawingu Networks, but the proposed transaction is currently under review by the Comesa Competition Commission (CCC). [4] Mawingu has grown from just over 16,000 subscribers in 2022 to nearly 59,000 by March 2025, driven partly by early support from development financiers such as Microsoft and the US International Development Finance Corporation.
- The potential acquisition of Mawingu Networks by Pembani Remgro Infrastructure Fund II (PRIF II) could lead to significant infrastructure investment in rural sectors, as PRIF II's funding and finance from Development Finance Institutions like the African Development Bank and European Investment Bank might accelerate Mawingu's rollout of internet services.
- The involvement of Development Finance Institutions in the acquisition of Mawingu Networks by PRIF II signifies a strategic investment in digital infrastructure growth and impact in the COMESA region, potentially fostering competition and increased connectivity across the regional economic bloc.
