South Africa invests R710 million to expand free Internet access
Government pushes faster SA Connect rollout, despite financial strain
The South African government has allocated R710 million (over $40 million) to expand the SA Connect program, which provides free broadband internet to schools, hospitals, and rural areas.
Launched in 2013, SA Connect is a joint initiative between the state-owned telecom company Broadband Infraco and the State IT Agency, aiming to gradually connect underserved regions to high-speed internet.
According to Communications Minister Solly Malatsi, between October 2023 and March 2025, 1.8 million households have already gained access to the internet thanks to the program. In addition, 79 ISPs and small businesses have received support through SA Connect.
“From April 2023 to March 2025, Broadband Infraco installed 3,401 public Wi-Fi access points. With the right infrastructure in place, we aim to connect 5.5 million households by the end of 2026,” said Malatsi.
Originally, the government aimed to provide broadband to 80% of households by 2030, but has now accelerated the timeline. For the 2024/25 fiscal year, an additional R1.6 billion ($90 million) has been allocated to SA Connect.
“Coordinated efforts will be made to expand access to secure digital infrastructure and services through the implementation of the updated SA Connect model,” stated the Department of Communications and Digital Technologies (DCDT).
Challenges: Vandalism and insolvency hinder Internet rollout
Despite government efforts, industry sources highlight serious financial difficulties faced by Broadband Infraco, a key SA Connect partner.
The company recorded a R459 million loss over the past four fiscal years. In November 2024, the Department of Communications informed Parliament that Broadband Infraco is technically insolvent.
Its liquidity ratio was below 1.0, meaning it did not have enough assets to cover its liabilities. The company has not turned a profit since 2019 and lacks capital to fund the growth needed for positive cash flow.
Furthermore, Broadband Infraco’s most recent public report mentioned that vandalism has severely hindered its infrastructure and service delivery. Frequent load shedding also caused certain operational sites to go offline, disrupting service to customers.
However, during the company’s annual general meeting in February 2025, CEO Gift Zowa stated that efforts are underway to improve the financial situation.
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