Google invests $90 million in Cassava to strengthen Africa’s digital infrastructure

with the cloud spends continues to wavertech companies are struggling to meet the demand for the necessary infrastructure with the growing need for artificial intelligence computing. it only adds fuel to the fire.

For example, Microsoft and BlackRock They created a fund of 30 billion dollars and Meta to support new data centers and power infrastructure for the emerging AI boom Plans to build a new submarine cable worth 10 billion dollars will cover the whole world. Google, in turn, recently announced UmojaThe first undersea fiber-optic cable connecting Africa and Australia — and it’s closing in on a $90 million funding round. Cassava TechnologiesOne of the partner companies involved in the Umoja project.

With him the first African data center operates for a year between other infrastructure projects like Equiano submarine cable, Google confirmed to TechCrunch that it is now taking a direct equity stake in Cassava, although it did not comment on the rationale behind the investment. However, it is clear that he is trying to improve infrastructure across the continent. Africa has indeed been dealt a blow widespread outages During the year 2024 has been attributed for flawed submarine cables, so it makes sense that Google would want to fund efforts to boost connectivity for consumers and businesses that want to use its services.

Cassava announced A total of $310 million in financing, although $220 million of that is in the form of a loan facility for one of its subsidiaries. The $90 million equity tranche includes investments from the US federal government’s International Development Finance Corporation.DFC); A Finnish development finance company Find it; and Google itself. The funding will help Cassava: “… strengthen its balance sheet, deliver sustainable profitable growth and strengthen its position as a global technology company of African heritage,” according to a press release that also detailed the company’s broader restructuring.

Cassava CEO and President: “This is a significant milestone that we expect to unlock tremendous value and catalyze the further expansion of our digital infrastructure and services to bridge the digital divide across the continent.” Hardy Pemhiwa (pictured above) he said.

Liquid assets

African telecommunications company Econet turned around In 2021, Cassava serves as a stand-alone business for Econet’s various digital services and infrastructure initiatives covering data centers, fiber broadband, renewable energy, cloud, cybersecurity and more. While Africa is the main focus for Cassava, it also operates in other “key growth markets” including the Middle East, India and Latin America.

Among its business units Fluid Smart TechnologiesWorking with Google to build the ground segment of Umoja; the cable starts in Kenya and passes through the Democratic Republic of the Congo, Rwanda, Uganda, Zambia and Zimbabwe before ending its overland journey in South Africa.

Separately, another business unit of Cassava, Liquid C2announced this year Collaboration with Google and Anthropic Providing “advanced cloud, cyber security solutions and generative artificial intelligence” services to companies in Africa. It used to be part of Google commitment to invest dollars In Africa’s digital economy.

“Businesses are increasingly turning to generative artificial intelligence to improve operational efficiency, improve customer experience and empower their employees like never before,” Google Cloud CEO Thomas Kurian said of the partnership with Liquid C2 at the time. “This partnership has the opportunity to transform and engage African businesses in the way they serve their customers as we create the foundation for innovation.”