Rand Merchant Bank (RMB) has partnered with Bandwidth and Cloud Services Group (BCS) to provide a $47-million funding package, marking a significant transition for the telecoms infrastructure operator as it moves from Development Finance Institution (DFI) reliance to commercial capital.
RMB has classified its portion of the funding as a Social Loan, recognising the direct societal benefits of BCS’s network expansion.
RMB acted as joint mandated lead arranger, structurer and funder on the deal, leading a complex execution process under tight timelines. The transaction is part of a broader shift in which African digital infrastructure operators are increasingly accessing private capital to scale their networks and reach underserved communities.
Headquartered in Mauritius, BCS operates a rapidly expanding fibre network across East, Central, and Southern Africa with more than 80-million end users and over 80 000km of connectivity. The funding will unlock additional capital that will support further rollout of critical wholesale telecommunications infrastructure, providing improved digital access to millions of users across the continent, including schools, hospitals, and public institutions.
“This transaction reflects a growing recognition that digital inclusion is fundamental to social equality,” says Beth Rivett-Carnac from RMB’s sustainable finance team. “By structuring it as a Social Loan, we’re reinforcing our commitment to aligning capital with outcomes that improve education, healthcare, and inclusion across underserved regions.”
RMB’s role includes active financial advisory support, helping BCS manage the refinancing of existing DFI debt and restructure its capital base for scalable, sustainable growth. The bank’s deep understanding of the digital infrastructure sector and the business model played a key role in unblocking execution delays in the broader transaction.
“BCS has a compelling long-term vision underpinned by a strong operating model. We have worked closely with their team over the past four years and are well positioned to provide strategic input, guide stakeholder alignment, and structure a fit-for-purpose capital solution to enable this next phase of growth. We are proud to support the growth of BCS and the positive social impact as it grows its footprint in Africa,” says Blessings Magagane, debt financing solutions: client group lead (TMT and retail) at RMB.
“This partnership is an important milestone in our journey as we continue to build the digital backbone of Africa. RMB brought sector insight, responsiveness, and a problem-solving mindset throughout. We are pleased to have a long-term partner who understands the realities of our operating environment,” says Yonas Maru, MD of BCS Group.
The transaction includes a $42-million term loan that closed in June 2025, a $15-million uncommitted accordion to be used for fibre expansion in the DRC, and a further $5-million short-term facility scheduled for finalisation in the coming months. It forms part of RMB’s broader strategy to support digital infrastructure on the continent and drive connectivity across Africa.