Africa Data Centres Secures R2-Billion Funding to Expand Operations

Africa Data Centres, a subsidiary of Cassava Technologies, has secured R2 billion in funding arranged by Rand Merchant Bank (RMB). This financial boost is intended to enhance the company’s data centre capacity and cater to the increasing demand for cloud computing services in South Africa.

Key Details of the Funding

• Funding Amount: R2 billion
• Arranged By: Rand Merchant Bank (RMB)
• Purpose: To expand data centre capacity by an additional 20MW
• Regions Covered: Southern, East, and West Africa

Statements from Key Figures

• Hardy Pemhiwa, CEO of Cassava Technologies: Described the funding as a “significant milestone” and emphasized their confidence in the South African data centre market. Pemhiwa highlighted the company’s commitment to growth and the bright future of the local data centre industry.
  

  “It underscores our commitment to growth and our confidence in the future of the South African data centre market.”

• Nana Phiri, Head of Corporate Client Group at RMB: Emphasized the bank’s role in financing the development of a sustainable digital economy in South Africa.
  

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

Role of Rand Merchant Bank

RMB played multiple roles in the arrangement of the R2-billion facility:

• Coordinator
• Initial Mandated Lead Arranger
• Bookrunner

Implications of the Funding

The financing will enable Africa Data Centres to significantly expand its infrastructure, addressing the growing demand for reliable and scalable cloud services across the African continent. This expansion is expected to bolster the digital economy, providing enhanced data storage and processing capabilities essential for various industries.

Conclusion

The R2-billion funding secured by Africa Data Centres marks a pivotal moment in the company’s expansion efforts. With the support of Rand Merchant Bank, the company is poised to strengthen its footprint in the African data centre market, contributing to the broader objective of developing a robust and sustainable digital infrastructure across the continent.