Specialist IT services and solution provider Dimension Data has allocated about R130 million for capital expenditure in its Internet Solutions (IS) business, a converged communications service provider.
This follows a R150 million investment in infrastructure during 2005, bringing the total investment in SA to more than R280 million over a two-year period, the group says.
IS CEO Angus MacRobert says this year`s spend will be aimed at upgrading and maintaining the company`s existing infrastructure, as well as growth and expansion into Africa and other regions.
MacRobert states that R50 million would be spent on the existing network, while R80 million would be invested in rolling out points of presence in various African countries, such as Zimbabwe, Malawi, Ghana and Angola.
In addition, he says the group would seek to set up two satellite hubs in Africa to back up its fibre optic network on the continent, following the installation of one satellite hub last year. These are expected to be in place by March.
IS says it supports over 46% of the entire South African leased-line market and supports 75% of corporate-hosted applications, 80% of the dialup market and provides services to over 80% of the top 250 listed companies in SA. It is also understood that the company is the main revenue driver for DiData Africa.
"Internet Solutions will continue to invest in SA in order to deliver fairer pricing, new technologies and a world-class service to businesses," says MacRobert.
DiData Africa CEO Allan Cawood says the continued investment in developing IT infrastructure in SA is critical to ensuring the group is able to continue to offer the latest technology solutions and services to corporates in this country.
Also in line with its African expansion strategy, DiData recently concluded a citizen empowerment partnership in Botswana, in terms of which Principal Investment - a Botswana consortium - acquired a 49% stake in the DiData operation in that country. The value of the transaction was not disclosed.
As part of the deal, DiData will offer inward investment of skills and a knowledge base, to boost skills, while also providing on the job training and knowledge sharing.
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