Tech Credit Fund, a subsidiary of Solcon Capital, has announced the launch of a dedicated credit fund focused on accelerating broadband connectivity in South Africa’s townships and rural communities.
This initiative will provide funding of up to R5-million per ISP, offered at attractive interest rates with flexible repayment terms. The fund is designed to support Black-owned Internet Service Providers (ISPs) and fiber network operators in building and expanding networks that bring reliable internet to underserved households, aligning with South Africa’s national goal of universal broadband access by 2030.
Small, medium and micro enterprises (SMMEs) account for over 98% of businesses in South Africa and contribute more than 34% of GDP and 60% of private-sector employment. In the telecom sector, SMME ISPs are uniquely positioned to deploy agile, last-mile broadband infrastructure in areas that have historically been excluded from major network rollouts.
By enabling SMME ISPs with patient, well-structured Credit capital, Tech Credit Fund aims to stimulate township economies, create thousands of jobs, and connect millions to education, healthcare, fintech, and AI-powered services.
This launch also signals Tech Credit Fund’s long-term commitment to alternative credit and digital infrastructure financing in Africa. The success of this vehicle will lay the foundation for future opportunities to co-invest alongside additional investors seeking exposure to South Africa’s rapidly growing digital economy — spanning broadband networks, data centers, and emerging AI infrastructure.
Through this Credit Fund, qualifying ISPs will gain access to funding up to R5-million that is structured for growth and sustainability, covering equipment procurement for towers, routers, and fiber builds, as well as providing working capital for trenching, salaries, and day-to-day operations. The fund will utilize milestone-based disbursements that align repayment schedules with cash flow, ensuring that ISPs can scale responsibly. In addition, successful recipients may gain access to future equity co-investment opportunities with Solcon Capital.
Beyond capital, Tech Credit Fund will provide technical expertise and operational guidance to help ISPs succeed. This includes network architecture advisory, vendor negotiation support, and assistance with project management, enabling operators to optimize cost per connection and deploy resilient, scalable infrastructure.
The launch of this Credit Fund was made possible with the support of the Small Enterprise Development Finance Agency (SEDFA), which has played an important role as a financing partner and ecosystem collaborator. SEDFA’s participation ensures that this initiative aligns with South Africa’s economic transformation goals and supports the growth of black-owned enterprises, says Nonzuzo Makanda, chairperson of the SEDFA Board.
“The launch of this fund demonstrates our sector-based business development approach through strategic partnerships, in which Sedfa delivers tailored business development solutions that address the key challenges faced by entrepreneurs in their respective sectors. This initiative not only benefits ISPs but also contributes to advancing connectivity and expanding access to digital technology in underserved areas,” she adds,
Andile Ngcaba, chairman of Solcon Capital, adds: “Tech Credit Fund represents a bold step towards a more connected and inclusive South Africa. This is more than financing — it is a commitment to building a digital future where every community can participate in the Fourth Industrial Revolution. By enabling SMME ISPs, we are not just bridging the digital divide, we are creating jobs, fostering entrepreneurship, and building the foundation for AI-driven growth.”
Pramod Venkatesh, CEO of Solcon Capital, says: “Our approach is highly practical — this fund is designed to match the cashflow realities of ISPs and provide them with the runway to scale sustainably. By combining flexible Credit capital with technical and operational support, we are reducing the barriers to entry for township and rural network operators and ensuring that every rand invested delivers measurable impact.
Nkosikhona Mbatha, CEO of SEDFA (acting), commentsa: “This initiative focuses on supporting small, black-owned Internet Service Providers (ISPs) and Fibre Network Operators (FNOs to expand internet access in townships and rural areas. This is a strategic intervention that not only creates new opportunities for emerging service providers but also drives the digitalisation of township and rural enterprises. Through digitalisation, small businesses gain access to tools that strengthen business management, improve funding readiness, and open market opportunities, thereby addressing some of the most pressing challenges faced by township and rural-based entrepreneurs in South Africa.”