Africazine:
The DNI consortium is set to transform fibre connectivity in South Africa’s townships.
The consortium has acquired shares in Frogfoot, Vox, and Hypa, valuing the companies at R14.4-billion. The deal includes an equity component of R8.4-billion and aims to connect 360,000 homes per year, focusing on lower-income regions.
DNI Consortium’s Ambitious Fibre Connectivity Goals
The DNI consortium’s investment aims to significantly increase the pace of fibre connectivity in South Africa. The target is to more than quadruple the current connection rate, reaching 360,000 homes annually within a year. This initiative primarily focuses on townships and lower-income areas, addressing a critical need for improved internet access.
The transaction reflects an equity value of R8.4-billion, following approximately R6-billion in debt. This financial structure indicates a robust commitment to reinvestment from existing shareholders and the entry of new investors, such as Simphiwe Mehlomakulu’s investment vehicle.
South Africa: Key figures on fibre connectivity
- R14.4-billion
- R8.4-billion
- 360,000 homes per year
- R6-billion of debt
Future Steps for the DNI Consortium
- Expand fibre connectivity to 360,000 homes within 12 months.
- Involve significant reinvestment from previous shareholders.
- Integrate new investors into the project.
This initiative marks a significant step towards enhancing digital access in underserved communities.
