African Rainbow Capital (ARC) has invested in 20% of fixed and mobile data network operator Rain.
"We are delighted to partner with ARC and look forward to the strategic value they bring to the team," says Paul Harris, Rain chairman. "In addition, they enhance our already significant BEE ownership credentials".
ARC is a fully black-owned and controlled investment company. It is chaired by mining magnet Patrice Motsepe.
"We focus on South African and African businesses that deliver exceptional returns on equity, and it is exciting to invest in a company that is at the start of its growth trajectory", says Johan van Zyl, ARC co-CEO.
"There is great demand in our country for fast, reliable and affordable data coverage and Rain promises to deliver just that."
Rain, which rebranded from Wireless Business Solutions recently, is looking to invest "billions" of rands to expand its LTE-Advanced network in SA.
To date Rain has rolled out over 1 000 sites and 1 500 base stations, and is on track to meet its target of 2 000 sites by the end of the year and 5 000 within three years.
"The additional equity capital raised from ARC, over and above the funding already in place, ensures that we have the capital to achieve our aggressive rollout targets over the next three years," says Rain CEO, Duncan Simpson-Craib.
Rain has recently entered into an agreement whereby Internet Solutions and its partners will provide clients with wireless broadband services powered by the Rain network.
The company says LTE Advanced network, referred to as 'fibre-in-the-sky', is ideally positioned to be a pioneer in the future rollout of 5G networks.
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