LONDON – Cassava Technology and infrastructure group has pushed back against mounting speculation over the stability of its balance sheet, insisting it is not selling its prized Africa Data Centres (ADC) business and that key refinancing plans are already in motion.
The clarification comes amid heightened scrutiny from the market following credit downgrades at Liquid Intelligent Technologies, the group’s pan-African fibre and enterprise connectivity arm, and concerns over a heavy refinancing calendar stretching into 2026.
Speaking to The Zimbabwe Mail, management said a recently announced minority investment by Stanlib in ADC’s South African subsidiary forms part of a capital-recycling strategy rather than a disposal of strategic assets. ADC, one of Africa’s largest independent data-centre platforms, remains under the control of Cassava Technologies, Econet’s digital infrastructure holding company.
The group also sought to reassure the market over near-term maturities. It said credit approvals have already been secured to refinance a US$131mn facility due at the end of February. The loan has amortised from US$220mn in 2021, with the remaining US$141mn structured as a bullet repayment from the outset. Executives stressed the facility is therefore not in default.
Attention is now turning to a larger liability further out on the curve. Liquid plans to replace its existing US$620mn bond, due in September 2026, with a smaller US$300mn issue. The refinancing is targeted for completion by March 2026, six months ahead of maturity — a timetable designed to reduce rollover risk in volatile emerging-market credit conditions.
The company pointed to improving operating performance to support its case. Liquid reported its strongest quarterly results on record in the third quarter, while its bonds have rallied to around 93 cents on the dollar. That pricing, management argues, is consistent with yield expectations given the relatively low 5.5 per cent coupon attached to the notes in a higher global interest-rate environment.
Mid-cycle strain, not structural decline
The debate surrounding Econet, Cassava and Liquid has increasingly been framed as a story of overexpansion and unsustainable leverage. But the group’s leadership contends the current pressure reflects a familiar phase in capital-intensive infrastructure cycles rather than strategic failure.
Liquid operates more than 100,000km of fibre across over 20 African countries, linking landlocked markets to subsea cable systems, data centres, financial institutions and multinational corporates. Such networks require heavy upfront investment, while revenue and cash flow typically lag behind physical build-out.
This dynamic — strong asset growth paired with weak near-term credit metrics — is common across digital infrastructure globally. Subsea cable systems, tower companies and hyperscale data centres often appear most leveraged just before utilisation rates and operating leverage begin to rise.
Zimbabwe’s role and regional diversification
Rating agencies have highlighted earnings concentration risks, particularly the importance of Zimbabwean traffic to parts of Liquid’s network. While this underpins cash generation, executives argue it reflects structural geography rather than narrow dependence.
Liquid functions as a primary international gateway for multiple Zimbabwean telecoms operators, aggregating traffic across the market. At the same time, its revenue base has broadened significantly, with South Africa now the largest single contributor following earlier acquisitions and enterprise expansion.
From an operational perspective, the group positions Zimbabwe as one component of a wider Eastern and Southern African system, rather than a standalone profit engine.
Data centres and AI ambitions
ADC’s continued expansion, including facilities designed to support artificial intelligence and cloud workloads, sits at the centre of the group’s longer-term strategy. Partnerships with global technology companies and institutional investors are intended to reduce balance-sheet strain while preserving exposure to fast-growing digital demand.
Industry investors say African data-centre capacity is entering a new phase of institutional ownership, with pension funds and insurers increasingly treating facilities as infrastructure assets with long-term contracted revenues rather than pure technology bets.
Refinancing test ahead
Despite management’s reassurances, risks remain. Liquid’s ratings sit deep in speculative territory, and refinancing conditions for emerging-market issuers have tightened sharply since the low-rate environment in which its 5.5 per cent bond was issued.
Failure to execute planned refinancing on schedule could put pressure on covenants and liquidity. But for now, bond price recovery suggests investors are distinguishing between funding stress and fundamental demand for connectivity.
The outcome will hinge on whether Econet can translate its vast physical network and data-centre footprint into stronger, more predictable cash flows before its next major maturities fall due.
For a group that has spent two decades building the digital backbone of large parts of Africa, the challenge is less about relevance than about navigating the financial midpoint between expansion and harvest.
