Cassava Technologies, the pan-African digital infrastructure group founded by telecom tycoon Strive Masiyiwa, is confronting fresh scrutiny from creditors in recent days as its most reliable cash generator moves toward going private.
A November credit opinion from Moodys Ratings downgraded Cassava to Caa2 and warned that the companys interest coverage falls below 1.0 when Zimbabwe earnings are excluded. Put simply, the agency suggested Cassava struggles to service its debt without cash tied to Econet Wireless Zimbabwe, the groups flagship telecom operator.
The warning has landed at an awkward moment. Econet Wireless Zimbabwe announced in December that it plans to voluntarily delist from the Zimbabwe Stock Exchange, citing what it called a persistent valuation discount to African peers. Bloomberg reported the company said comparable operators trade at higher multiples and have already separated tower infrastructure to unlock value.
