IFC backs Hassanein Hiridjee’s AXIAN with $62.5 million for Wananchi deal

AXIAN Telecom, the pan-African telecom group led by Malagasy businessman Hassanein Hiridjee, has secured a $62.5 million funding package from the International Finance Corporation to support its proposed purchase of Wananchi Group, the East African pay-TV and internet provider behind the Zuku brand.

The package includes $25 million from IFC’s own account and a further $37.5 million mobilized from partner lenders. The capital will help Axian strengthen broadband infrastructure and widen its reach across Kenya, Uganda, Rwanda, and Malawi.

Expanding in East Africa

Buying Wananchi marks another step in Axian’s push to build scale in East Africa’s data market. Zuku, Wananchi’s flagship service, held roughly 17 percent of Kenya’s fixed internet market as of mid-2023, according to the Communications Authority of Kenya.

Regulators at the COMESA Competition Commission are still reviewing the proposed transaction, which also covers Wananchi’s operations in the Democratic Republic of Congo and other member states.

By combining assets, Axian hopes to deliver faster, more stable broadband to households and businesses. The move will also give long-term investors in Wananchi a path to exit, a sign of renewed appetite for Africa’s growing digital economy.

For IFC, the deal deepens its collaboration with Axian, which has become one of the continent’s key telecom investors. The Mauritius-based operator has previously drawn backing from British International Investment, DEG, and Proparco for infrastructure rollouts.

Building Africa’s digital backbone

Founded in 2003, AXIAN Telecom has grown into one of Africa’s leading telecom operators, serving more than 42.9 million mobile subscribers and 15.2 million users of mobile financial services. 

The telecom group ranks as the continent’s sixth-largest mobile operator, with operations spanning Tanzania, Madagascar, Togo, Uganda, Senegal, the Comoros, Réunion, Mayotte and the Democratic Republic of Congo. Its services cover mobile, broadband, mobile money, and ICT infrastructure solutions across these markets.

The planned Wananchi deal fits into Axian’s broader goal of closing Africa’s connectivity gap and making high-speed internet more accessible. With IFC’s latest support, AXIAN is set to deepen its East African presence and deliver affordable broadband to millions across the region.