Government's beleaguered SA Connect broadband project may have finally found a workable formula after years of delays and missed deadlines, by letting the private sector do what it does best.
The initiative, which earned the nickname “SA Disconnect” due to repeatedly rolled-over deadlines and government's inability to execute, was first announced in 2013 with the ambitious goal of universal broadband access for all South Africans, prioritising rural and underserviced areas.
Now, through an incentive-driven model that subsidises private internet service providers (ISPs) to expand their networks into underserviced communities, the project appears to be gaining traction.
“You've really got a winning product,” says Mandla Ngcobo, founder and CEO of Accelerit, one of the ISPs participating in the programme. “It's the quickest way you can get it off the ground. Not to build it from the ground; get the guys who are already there, and who have shown a level of capacity.”
The turnaround represents a significant shift from the project's troubled history. Initially, SA Connect sought to connect 6 135 government facilities under its first phase. Budget constraints forced that down to 970 facilities. Targeted facilities include schools, health facilities, post offices, police stations and government offices in eight rural district municipalities.
Momentum building
Government has set an ambitious target, saying: “Through initiatives such as the SA Connect project, forged in collaboration with private sector entities and state-owned enterprises, we aim to achieve 80% broadband coverage by 2030.”
Despite the rocky start, the project is now “at the forefront of our agenda,” according to the Department of Communications and Digital Technologies’ latest Annual Performance Plan.
The initiative received R1.6 billion for the 2024/25 fiscal year, the plan says, with communications minister Solly Malatsi allocating R710 million to SA Connect over the medium-term expenditure framework in the 2025/26 budget, according to a statement on parliament.gov.za.
Progress is being made as, during the 2023/24 financial year, 984 of 1 474 planned government sites were successfully connected under phase two, according to the department. The State IT Agency (SITA) committed to delivering and maintaining connectivity for these sites using existing departmental allocations.
Under the revised implementation plan, key interventions include connecting 8 120 government sites across the country through SITA, as well as linking 706 350 communities and households through Broadband Infraco and Sentech.
How the model works
The success of the private sector partnership hinges on strategic targeting. Government works with ISPs that already have a presence in specific areas, such as townships, reducing investment risk for both parties.
Ngcobo says the free data provided easier access to e-services such as booking an ID appointment with Home Affairs.
“If you've already got a presence in a particular area, then [government will] work with you in that area,” Ngcobo explains. The subsidy doesn't cover an entire rollout but rather enables ISPs to expand their networks to reach more potential customers.
“It's easier for you to roll out some extra cable,” says Ngcobo.
For ISPs, the business case makes sense. Each connected household receives a 50GB data allocation. When users exhaust that allocation, the ISP already has infrastructure in place to sell additional data, notes Ngcobo.
“It does get us into a position where we can get to these communities much, much quicker than we would have been able to on our own.”
Ngcobo says it enables his company to reach homes in communities faster than without the subsidy.
However, it requires ISPs to determine how to provide the free data sustainably. “It is up to you and your business model to figure out how you will continue running it sustainably but still providing a certain amount of free data to end-users.”
Accountability measures
The department maintains oversight through regular reporting requirements. ISPs must submit quarterly progress reports and meet specific obligations before claiming subsidies.
“Monitoring involves field visits, holding regular meetings with stakeholders to discuss progress, taking into account the implementation plan and to address identified challenges,” the department's plan states.
Failure to meet obligations carries consequences. “The minister can then mandate certain actions,” says Ngcobo, including withdrawing subsidies, or requiring ISPs to provide free data without financial support.
For Ngcobo, the key to success lies in “empowering the private sector to actually fulfil government requirements” rather than attempting to build infrastructure from scratch. Accelerit has already connected several communities under SA Connect.
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