An internet service provider entrepreneur at work.
Tech Credit Fund, a subsidiary of Solcon Capital, has launched a credit fund to support black-owned internet service providers (ISPs) and accelerate broadband connectivity in SA’s townships and rural communities.
Solcon Capital is businessman Andile Ngcaba’s global investment firm.
According to a statement, the credit fund will provide funding of up to R5 million per ISP.
The fund, made possible with the support of the Small Enterprise Development Finance Agency (SEDFA), is designed to give qualifying ISPs access to funding that is structured for growth and sustainability, covering equipment procurement for towers, routers, and fibre builds, as well as providing working capital for trenching, salaries, and day-to-day operations.
The fund will utilise 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, including network architecture advisory, vendor negotiation support, and assistance with project management, says the statement
SEDFA board chairperson Nonzuzo Makanda comments: “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.”
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.”
Small, medium, and micro enterprises (SMMEs) account for over 98% of businesses in SA and contribute more than 34% of gross domestic product and 60% of private-sector employment.
In the telecoms sector, SMME ISPs are uniquely positioned to deploy agile, last-mile broadband infrastructure in areas that have historically been excluded from major network rollouts.
Pramod Venkatesh, CEO of Solcon Capital, notes: “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, acting CEO of SEDFA, comments “This initiative focuses on supporting small, black-owned ISPs and FNOs [fibre network operators] 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.”
