08 September 2022

South African fibre broadband connectivity provider MetroFibre Networx has secured a R5bn (US$299.8m) loan from Standard Bank Group, which will enable the company to finance the expansion of its fibre network across the rainbow nation.

Competition has increased in the fibre segment since 2020, so the company is ramping up actions and investments to strengthen its position.

The funds will be used to extend MetroFibre’s fibre connectivity offering to homes and businesses in underserved communities across South Africa. It is also expected to help significantly increase MetroFibre’s reach.

MetroFibre Networx had already raised R1.5bn from private equity fund manager African Infrastructure Investment Managers (AIIM) by November 2020. In March 2021, South African banking group Investec had invested R2.5bn in the company. This latest investment enabled the company to acquire Link Africa’s FTTH network and infrastructure in Gauteng and KwaZulu-Natal.

“Internet access is fundamental to bridging the digital divide and empowering people to participate in the globally connected economy,” said Nishela Ramgoolam, head of structured capital at Standard Bank Corporate and Investment Banking.