OPIC and Microsoft Commit to Support Wireless Internet Expansion in Kenya

(OPIC) Increase to internet access will have development impact in rural areas of Kenya

New York, N.Y. – The Overseas Private Investment Corporation (OPIC), the U.S. Government’s development finance institution, today announced commitment and first disbursement to Mawingu Networks, a provider of solar-powered wireless Internet across rural Kenya. OPIC committed to financing a $4.1 million loan. Mawingu Networks was able to establish their current operating model using an initial grant in 2013 from Microsoft’s 4Afrika initiative, and the U.S. Agency for International Development (USAID). They received equity funding from Angel Investor Jim Forster, Paul G. Allen’s Vulcan Inc., and Microsoft Corporation two years after their first phase of support.

Using a network of solar-powered “nomadic” wireless internet stations, Mawingu provides last-mile connectivity access to areas that cannot economically access the internet. Spurred on by the promise of Mawingu’s initial pilot operations, OPIC’s loan will allow a commercial expansion of a proven model to utilize existing technology of TV White Space (TVWS) connectivity for off-grid internet access.

“We are excited to announce during this week’s Africa U.S. Business Forum OPIC support for a highly-developmental investment in Africa,” said Elizabeth L. Littlefield, OPIC’s President and CEO. “Mawingu’s technology and ingenuity will make it possible to provide affordable, solar powered wireless internet to communities throughout rural Kenya. Its extensive reach will connect many of these developing communities to the World Wide Web for the first time, and we look forward to the growth and unlimited potential that this project will unveil with OPIC financing.”

“As a partner of the Mawingu project since its inception in 2013, it is exciting to see it reaching the next stage of commercial roll-out. Our studies show that Mawingu’s business model is affordable for consumers even in the least developed areas,” said Amrote Abdella, Regional Director 4Afrika Initiatives. “Ultimately, the expansion will build Africa’s knowledge economy by connecting more people to educational and advancement opportunities.”

“Mawingu is proud and honoured to be working with the support of OPIC and the American government. We see this as a tremendous opportunity to build upon our successful pilot project, and this funding will help us to accelerate the roll out of our network in rural areas across Kenya and beyond,” said Tim Hobbs, Director Mawingu Networks Ltd. “It is becoming increasingly clear that affordable access to the internet is a powerful driver of economic growth and Mawingu is committed to making sure that this opportunity is available to as many Kenyans as possible.”

“This partnership is a perfect example of how stakeholders can come together from government and industry to bring those online who might not otherwise be connected,” said Catherine A. Novelli, Under Secretary of State for Economic Growth, Energy and the Environment, U.S. Department of State. “The State Department commends OPIC and Microsoft for this important step toward bridging the digital divide and supporting the goals of the Global Connect Initiative to help bring an additional 1.5 billion people online by 2020.”

“Paul G. Allen’s Vulcan Inc. believes in the untapped potential and persistence of Africans to develop innovative solutions that meet the needs of their communities,” said Lauren Kickham, head of Vulcan Inc.’s Impact Investing program. “That’s why he’s supporting Mawingu, whose scalable model holds promise for deep social impact in Kenya and beyond. Our work is focused on finding those local entrepreneurs who can provide African communities sustainable opportunities to develop and grow.”