Tech Credit Funds, a subsidiary of Solcon Capital, has launched an initiative to support black-owned internet service providers (ISPs) and accelerate broadband connectivity in SA’s townships and rural communities. Solcon Capital is businessman Andile Ngcaba’s global investment firm. The credit fund is set to provide funding of up to R5 million per ISP.
The fund, established with backing from the Small Enterprise Development Finance Agency (SEDFA), aims to help qualifying ISPs secure growth-focused and sustainable financing. The funding is set to cover essential needs such as purchasing equipment for towers, routers and fibre infrastructure, as well as providing working capital to support activities like trenching, staff salaries, and daily business operations.
The fund will offer flexible disbursements with repayment terms tailored to each ISP’s cash flow, allowing them to expand in a financially sustainable way. Moreover, approved beneficiaries could also qualify for future equity co-investment opportunities in partnership with Solcon Capital.
In addition to funding, Tech Credit Fund will also offer hands-on support. This includes technical advice on building networks, help with negotiating deals with suppliers, and guidance on managing projects, the statement said.
SEDFA board chairperson Nonzuzo Makanda said the launch of the fund reflects the agency’s focus on sector-driven business development through strong partnerships in which SEDFA delivers tailored business development solutions that address the key challenges faced by entrepreneurs in their respective sectors.
“This initiative not only benefits ISPs but also contributes to advancing connectivity and expanding access to digital technology in underserved areas,” she said.
Andile Ngcaba, chairman of Solcon Capital, said the Tech Credit Fund marks a significant move toward greater connectivity and inclusion in South Africa.
“Tech Credit Fund represents a bold step towards a more connected and inclusive South Africa. This is more than financing – it is a commitment to building a digital future where every community can participate in the fourth industrial revolution. By enabling SMME ISPs, we are not just bridging the digital divide, we are creating jobs, fostering entrepreneurship, and building the foundation for AI-driven growth,” he said.
SMEs make up more than 98% of all businesses in South Africa, contributing over 34% to the country’s GDP and providing 60% of jobs in the private sector. Within the telecommunications industry, smaller ISPs play a key role by delivering flexible, last-mile broadband networks in communities that have long been overlooked by large-scale infrastructure projects.
In the telecom sector, small ISPs are well-placed to bring fast internet to communities that big network providers have often left out, especially in areas where major broadband projects haven’t reached.
Pramod Venkatesh, CEO of Solcon Capital, explained that the fund is built around the real financial needs of ISPs.
“Our approach is highly practical – this fund is designed to match the cashflow realities of ISPs and provide them with the runway to scale sustainably. By combining flexible credit capital with technical and operational support, we are reducing the barriers to entry for township and rural network operators and ensuring that every rand invested delivers measurable impact,” he said.
Nkosikhona Mbatha, acting CEO of SEDFA, said the initiative aims to empower small, black-owned ISPs and fibre network operators to grow internet access in townships and rural areas. He explained that this strategy not only opens doors for new service providers but also promotes the digital transformation of local businesses.
“Through digitalisation, small businesses gain access to tools that strengthen business management, improve funding readiness, and open market opportunities, thereby addressing some of the most pressing challenges faced by township and rural-based entrepreneurs in South Africa,” he said.
The Tech Credit Fund is set to transform internet access in South Africa’s townships and rural areas by supporting black-owned ISPs with funding, technical guidance, and operational support. By bridging the digital divide, the initiative not only creates business opportunities but also drives local economic growth and digital empowerment.
sipho@vutivibusiness.co.za
