The South African government has allocated R710 million over the medium-term expenditure framework to expand the SA Connect programme.
The funds will be used to accelerate the expansion of free broadband connectivity to schools, clinics, and rural communities with limited access to connectivity.
Presenting his Budget Vote debate speech on 11 July 2025, Communications Minister Solly Malatsi said the SA Connect programme is expected to reach 5.5 million households by the end of 2026.
He said this was in addition to the significant progress his department has made in expanding access to broadband connectivity since October 2023.
“Through SA Connect, we have provided broadband to 1.8 million households and supported 79 Internet service providers and SMMEs between October 2023 and March 2025,” he said.
“Between April 2023 and March 2025, Broadband Infraco connected 3,401 public Wi-Fi hotspots. With the infrastructure backbone now in place, we expect to reach 5.5 million households by the end of 2026.”
The government launched the SA Connect project in 2013 to address the issue of South African residents who remain unserved by reliable broadband Internet.
It is estimated that this includes roughly 80% of homes in South Africa, with only 10% of the population accessing the Internet via fibre or fixed-wireless connections.
The project is a combined effort between state-owned telecoms company Broadband Infraco and the State Information Technology Agency.
Through a phased approach, SA Connect is intended to ensure universal access to broadband services for all South African residents and government facilities.
The first phase prioritises connecting government facilities, and the second phase prioritises underserved households.
The Department of Communications and Digital Technologies (DCDT) allocated R1.6 billion to the SA Connect project in the 2024/25 financial year.
According to its annual performance plan, the funds were earmarked for phase two of the project, which kicked off in April 2024.
“There will be a concerted effort to expand access to secure digital infrastructure and services by coordinating the implementation of the revamped SA Connect Model,” the plan said.
The department said it aimed to achieve an 80% broadband access rate for citizens by 2024, allocating R1.6 billion of its budget to help it reach the goal.
This represented an ambitious revision to the department’s goals. It previously aimed for 80% connectivity by 2030.
Broadband Infraco financial problems
One of the primary players behind the SA Connect project, Broadband Infraco, is in major financial trouble.
The state-owned telecoms company has lost R459 million in its past four financial years, and the communications department told Parliament that it was technically insolvent in November 2024.
Its liquidity ratio was less than one, meaning its assets were insufficient to cover its long-term liabilities, and Broadband Infraco could not settle its short-term liabilities.
The department also warned that Broadband Infraco didn’t have the capital to realise the growth plans necessary to generate positive cash flows in the near future.
The state-owned entity’s poor finances result from ongoing mismanagement. It hasn’t turned a profit since 2019.
Its financial statements for the most recent financial year haven’t been publicly released, but in its latest publicly available report, it said infrastructure vandalism was hindering its ability to provide connectivity.
It also said regular load-shedding isolated some of its Point of Presence sites across South Africa, limiting service to its clients.
However, speaking at the company’s annual general meeting in February 2025, Broadband Infraco CEO Gift Zowa said the company was working to improve its financial standing.
To help it become financially sustainable, the firm plans to diversify its products and commercialise project opportunities.
“With the demand for high-speed internet rising, our role in delivering affordable, high-quality connectivity is more critical than ever,” said Zowa.
He also reiterated that Broadband Infraco’s key priorities are the Broadband Access Fund and the SA Connect project phase two.