Tech Credit Fund, a subsidiary of Solcon Capital, has officially launched a new credit facility designed to assist Black-owned internet service providers (ISPs) in expanding broadband access in South Africa’s townships and rural communities.
The company revealed that the fund will offer up to R5 million per ISP, featuring favourable interest rates and flexible repayment terms. The initiative’s primary goal is to drive digital inclusion and contribute to South Africa’s national target of achieving universal broadband access by 2030.
According to Tech Credit Fund, the funding will be vital for small and medium-sized ISPs to develop last-mile networks in underserved areas. This will not only enhance broadband connectivity but also stimulate local economies by creating jobs and empowering communities. The credit facility will support various operational needs, including equipment purchases and covering operational expenses. Milestone-based disbursements will be directly linked to project cash flow, ensuring a flexible and manageable approach for ISPs.
The launch of this initiative was made possible through a strategic partnership with the Small Enterprise Development Finance Agency (Sedfa), which played a critical role as a financing collaborator. Sedfa’s involvement underscores its commitment to fostering sector-specific business development. Nonzuzo Makanda, chairperson of Sedfa’s board, emphasized that the initiative aligns with the agency’s overall mission to promote the growth of businesses within key sectors. She noted, “This initiative not only benefits ISPs but also contributes to expanding access to digital technology in underserved areas.”
Solcon Capital’s chairperson, Andile Ngcaba, commented that the fund marks an important step in creating a more inclusive digital economy. The credit facility is designed to support the growth of small, local ISPs, ensuring they can play a pivotal role in the country’s broader economic and digital development efforts. CEO Pramod Venkatesh explained that the fund’s structure was carefully tailored to accommodate the cash flow challenges often faced by small network operators.
Acting CEO of Sedfa, Nkosikhona Mbatha, added that the partnership would enable township and rural enterprises to harness the benefits of digitalization, enhancing their market access and economic opportunities.
With broadband access becoming increasingly critical for businesses, education, and social inclusion, the Tech Credit Fund initiative stands as a key enabler in narrowing the digital divide and ensuring that South Africa’s underserved communities are not left behind in the rapidly evolving digital landscape. Through this initiative, South Africa is one step closer to achieving its ambitious broadband access goals and fostering greater economic growth and development in historically disadvantaged areas.