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Maziv plans multibillion-rand infrastructure investment

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 28 Oct 2024
Since inception, Maziv has spent R30 billion on putting fibre in the ground in SA. (Photograph by Lesley Moyo)
Since inception, Maziv has spent R30 billion on putting fibre in the ground in SA. (Photograph by Lesley Moyo)

Maziv, the parent company of Dark Fibre Africa (DFA) and Vumatel, has spent R30 billion on its fibre network infrastructure projects since inception, and plans to invest another R10 billion in the next phase of the business.

It was created in 2022 by Remgro-owned Community Investment Ventures Holdings after it folded fibre infrastructure providers Vumatel and DFA into one giant fibre infrastructure company.

Over the past year, it has been on a drive to provide fibre coverage in underserviced areas, including Soweto, Khayelitsha, Umlazi and Alexandra.

In December, the company secured a debt package of R25 billion from a consortium of lenders, led by Standard Bank, for its fibre expansion projects across SA.

At the time, Maziv said the transaction would support its broadband expansion and infrastructure upgrade, and create jobs.

Suveshnan Arumugam, head of communications at Maziv, spoke to ITWeb on the side-lines of a business update dinner last week.

Maziv has been investing significantly in expanding its network footprint and infrastructure, as it turns its focus to the lower income homes in South Africa, he noted.

“We’ve spent in excess of R30 billion on putting fibre into the ground since inception, and that’s a significant milestone for us. Our aim is to spend at least another R10 billion, in terms of building infrastructure,” noted Arumugam.

“We don’t have a timeline, but this will be within the next phase of the business. A big portion of that is going to be devoted to reaching unserved and underserved communities.

“I won’t be able to give you more details on this, but we’ve already started doing some of the planning on the areas that we want to move into, but it will obviously be dependent on certain factors in the business environment and we have already started planning what those networks will look like.”

Arumugam noted that Maziv, through its subsidiaries, has since inception seen its fibre network pass well over two million homes in SA, with more than 25 000 commercial buildings connected so far through its fibre-to-the-business network.

Suveshnan Arumugam head of communications at Maziv.
Suveshnan Arumugam head of communications at Maziv.

Discussing Vuma’s R99 per month prepaid offering − Vuma Key − he noted it has seen huge demand since being piloted in Alexandra last year.

Vuma Key – which the company claims is the most affordable uncapped fibre service in SA – provides 20Mbps uncapped fibre connectivity to underserviced communities.

The product has since been introduced to other parts of the country, including Khayelitsha and Kayamandi in the Western Cape.

“The R99 per month product works out to be R3 per day, and users can connect up to four devices in the home. The uptake of this service has been very positive, I think South Africans have been waiting for a long time for a product like this. It’s affordable and it’s also something that supports the whole family, helping to bridge the digital divide in SA,” added Arumugam.

Some community members have become resellers and distributors of the Vuma Key product, and are already making a living from it, according to Vumatel.

Internet for all

Vumatel and DFA have extensive reach throughout SA, with a combined network of over 50 000km of fibre laid, he continued.

A year ago, Maziv kicked off DFA’s R400 million fibre expansion project, to enable high-speed connectivity to more businesses around SA.

According to Arumugam, the fibre network has since passed over 400 000 commercial buildings.

Vuma and DFA have over the years grown their internet service provider (ISP) partners, with Vuma notching up a network of over 75 ISP partners, to date.

“DFA has a lot more partners because it has fibre-to-the-business ISPs and it also services many of the mobile networks and hyperscalers in SA.”

Addressing guests at the event, Maziv CEO Dietlof Mare noted the firm has connected over 800 schools in remote areas to free high-speed fibre internet, to date. This initiative has positively impacted more than 620 000 learners, advancing digital inclusion and socio-economic development.

He emphasised partnerships as key to unlocking the potential of internet connectivity and narrowing the digital divide in SA.

“We believe high-quality broadband is critical to allow all South Africans to access connectivity and enable opportunities on the global stage. BritelinkMCT − our fibre infrastructure planning and construction arm − delivers 23 000 home installations per month at this point.

“Fibre-to-the-home connectivity growth is happening faster than the population growth, and we are sitting with this amazing challenge, but it’s also an opportunity – to connect South Africans at a fast pace.

“Maziv is doing it, but not fast enough; we need partnerships. Through partnerships we would be able to create a tsunami of development – partnerships with government and everybody that is able to make a decision in this industry,” stated Mare.

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