Community Investment Ventures Holdings (CIVH) is a leading specialised South African information and communications technology holding company with key investments in fibre network operators, Dark Fibre Africa (DFA) and Vumatel. Through its various subsidiaries, the Group’s capabilities range from dark fibre infrastructure and fibre-to-the-home (FTTH), to the provision of Internet services.
As a long-time funder of DFA, Futuregrowth was invited to participate in the R16 billion refinance transaction of CIVH in November 2019. Futuregrowth funded R540 million via several of its funds, including the Futuregrowth Infrastructure & Development Bond Fund.
DFA provides fibre service to business while Vumatel services the FTTH market. The transaction will ensure that the business sector continues to benefit from fibre - and will also enable deeper broadband penetration for the consumer across towns in the previously disadvantaged areas of South Africa. Vumatel has identified the lower LSM areas as a key growth opportunity for FTTH.
Roll out of Mitchells Fibre
In June 2019 Vumatel started rolling fibre in Mitchells Plain, a township located on the Cape Flats, about 32 km outside of Cape Town. By November 2019, uptake had far exceeded expectations.
Built on the success of the project in Mitchells Plain, Vumatel started offering the same service to the Soweto township in February 2020.
// Did you know?
According to Statistics South Africa, at the last census (2011) Mitchells Plain had:
- a total population of around 310 500 people;
- a population density of more than 7 000 people per km2;
- a dependency ratio of 46.3;
- only 21% with an annual income of more than R150 000;
- more than 68% of the population of working age;
- less than 6% of residents with higher education; and
- 52.3% of the residents with no access to the internet.
Source: Stats SA
Free fibre to schools
Schools in the previously disadvantaged areas will benefit from CIVH’s public interest obligations, that were imposed by the Competition Tribunal for the approval of the transaction. These require both DFA and Vumatel to provide free uncapped fibre services to all public and private schools that the networks bypass.
Get the PDF version of Lower LSM areas targeted for fibre