Vox Telecom SA and Frogfoot Networks, telecommunications units of a South African conglomerate, have raised $900 million (R14.4 billion) to expand broadband services and connections across South Africa.

According to a Bloomberg report on Monday, the companies, which are units of the Johannesburg-based Vivica Group, secured R8.4 billion in equity funding and R6 billion in debt. The main goal of the financing is to increase fibre deployment to about 360,000 homes a year.

Abraham van der Merwe, chief executive officer of the two companies, said Hypa Fibre Ltd., a unit of Vox, was also included in the fundraising deal. He said the infrastructure will be more focused on rural areas.

"We are anticipating quadrupling our fibre deployment to about 360,000 homes a year, mostly rolling out in townships ," said Van der Merwe.

The transaction comes as telecom companies step up efforts to expand infrastructure in South Africa's communications sector. Fibre rollout, base stations and network upgrades are central to efforts to reach more subscribers and improve service quality across the country.

As companies increasingly target South Africa's telecoms market, competition continues to shape the pace of service delivery. To attract more subscribers, operators are seeking to provide stronger networks for businesses and close connectivity gaps in townships and rural areas through broadband infrastructure.

Frogfoot operates open-access fibre networks that internet service providers can use to reach households, placing it in competition with rival fibre operators such as Vumatel, Openserve and MetroFibre, as well as fixed-wireless home internet services offered over mobile networks such as Rain's.

Van der Merwe said there are still many opportunities to explore in the industry. He added that telecom companies can connect as many as 15 million homes through fibre, compared with about 4.5 million South African homes currently connected to high-speed internet.

The private build-outs run alongside the government's SA Connect broadband programme, which targets affordable internet access for households, schools, clinics and other public facilities.

In addition to Hypa Fibre Ltd, the equity transaction included new investors such as a group led by DNI Group and EM-Three Investments Holdings, among others.

DNI Group is a South African technology distribution business that supplies telecoms and ICT products and services to network operators and retailers.

"There is a lot of strategic overlap between some of the things we do in our group and some of Frogfoot's needs ," said DNI CEO Ryan Noach. He said the group wants to add value beyond providing capital.

The deal also comes amid broader network expansion in South Africa, where 5G coverage is already advancing. South Africa has the highest 5G coverage and availability in Africa, with usage rising to 58% in 2025 from 46.6% in 2024. The country is also recognised for the best overall 5G availability and speed in Africa, according to a Global Network Excellence Index 2025 report.

Telecom operators including MTN and Vodacom are expanding 5G availability through cellular towers, while Telkom, Cell C, Rain and others are also using the country's infrastructure to improve network services.

Last week, Comsol, a telecoms company that leases its 5G network to operators, secured an undisclosed multibillion-rand investment to build a national wholesale 5G broadband network in South Africa. The operator plans to build 2,000 base stations nationwide and focus on business connectivity and the home internet market.

Those developments are significant for South Africa. By offering capacity to smaller businesses and allowing them to access its network without having to invest heavily in their own infrastructure, Comsol's plan could support the country's effort to connect more citizens.