South Africa’s Tech Credit Fund, a subsidiary of Solcon Capital, has launched a credit facility to help Black-owned internet service providers (ISPs) expand broadband access in South Africa’s townships and rural communities.
According to the company, the new fund will provide up to R5m per ISP at favourable interest rates. There will be flexible repayment terms to advance digital inclusion and support the national target of achieving universal broadband access in the country by 2030.
Tech Credit Fund said the funding will help small and medium ISPs build last-mile networks in underserved areas. It aims to stimulate local economies and create jobs. It will cover equipment purchases and operational expenses, with milestone-based disbursements linked to project cash flow.
The launch was made possible through a partnership with the Small Enterprise Development Finance Agency (Sedfa). The fund said Sedfa played a key role as a financing collaborator. Sedfa board chairperson Nonzuzo Makanda said the initiative aligns with the agency’s approach to sector-focused business development.
“This initiative not only benefits ISPs but also contributes to expanding access to digital technology in underserved areas,” Makanda said.
Solcon Capital chairperson Andile Ngcaba said the fund represents a step towards building a more inclusive digital economy, while CEO Pramod Venkatesh added that its design reflects the cash flow realities faced by small network operators.
Acting Sedfa CEO Nkosikhona Mbatha said the partnership would help township and rural enterprises benefit from digitalisation and improved market access.
