The latest news from Johannesburg is that fibre optic is winning the race for South Africa’s home internet. With this very modern broadband market maturing, following years of socio-economic disparity, some firms are taking this rapid fibre infrastructure rollout to heart. Meridiam is a classic case.
Traditionally, the digital transition In South Africa has been somewhat speedier in wealthy suburbs that in poorer townships. Fibre-optic internet is symbolic of this disparity. But things are changing. Backed by Meridiam’s investment in local operator Ilitha, affordable broadband is beginning to reshape access to education, entrepreneurship and economic opportunity in communities long left outside the country’s digital economy.
For years, South Africa’s digital transformation followed a familiar geography. Fibre networks expanded rapidly across business districts, affluent suburbs and commercial centres, while townships and rural communities remained largely excluded from the high-speed internet revolution.
The reasons were not technological, but economic. Traditional operators focused their investments on areas where returns appeared more immediate and predictable, leaving millions of South Africans dependent on expensive mobile data or limited connectivity options.
Yet as digital services increasingly determine access to education, employment, healthcare and financial services, connectivity has become far more than a telecommunications issue. It is now a question of economic inclusion.
This is the context behind Meridiam’s recent investment in township internet provider Ilitha Telecommunications, a South African company specialised in deploying affordable fibre networks in underserved communities. Announced in January 2025 through the Meridiam TURF B Fund, the operation aims to accelerate fibre deployment across township communities, with the ambition of connecting more than 500,000 households.
The project reflects a broader shift in how infrastructure investors increasingly view digital connectivity both as a commercial asset, and a form of essential infrastructure capable of generating long-term social and economic returns.
Bringing fibre beyond the traditional market
Meridiam’s investment targets a segment of the South African broadband market that has historically received limited attention from major operators.
According to Meridiam, Ilitha’s model is built around affordable prepaid internet packages and local fibre deployment in areas “neglected by mainstream providers of internet access.” The company combines fibre-to-the-home infrastructure with community Wi-Fi hotspots, allowing households to access unlimited broadband at significantly lower costs than traditional mobile data solutions.
“With this investment, we aim to play a catalytic role in the nascent but fast-growing internet market in the underserved areas of South Africa,” said Marie Lam Frendo, Partner and Chief Strategy Officer at Meridiam.
“But even more importantly, we expect to contribute to a tangible positive social and economic impact on township communities by providing them with reliable, affordable and fast internet connectivity.”
The scale of the challenge remains considerable. Despite being one of Africa’s most developed digital markets, South Africa continues to experience significant disparities in broadband access. Connectivity levels often decline sharply outside major urban centres, while data affordability remains a persistent concern for lower-income households.
For Ilitha, the objective is therefore both network expansion and market creation. By lowering barriers to access and adopting flexible payment models, the company is attempting to demonstrate that fibre deployment can be commercially viable even in communities traditionally viewed as difficult investment environments. This is an approach that has attracted growing attention across the telecommunications sector as operators increasingly search for new growth markets beyond saturated urban areas.
Connectivity for economic development
The significance of township broadband extends beyond internet access itself. Increasingly, policymakers and investors view digital infrastructure as a prerequisite for participation in the modern economy. Access to online education, digital banking, e-commerce platforms, public services and remote work opportunities all depend on reliable connectivity.
Vuyani Jarana, founder and CEO of Ilitha Telecommunications, has repeatedly framed the issue in those terms: “Access to affordable, high-speed internet is a fundamental human right and an enabler of economic opportunity,” he stated during the announcement of the Meridiam partnership. “Yet many people living in townships and rural areas lack access and remain locked out of opportunity.”
The company estimates that the expansion programme could ultimately impact more than two million South Africans. Beyond household connectivity, the rollout is expected to support local employment through network construction, installation, maintenance and technical services.
According to Ilitha, previous deployments have demonstrated that approximately one job can be created for every 36 homes connected, either directly through infrastructure works or indirectly through associated service activities.
Meridiam also highlights the role that digital infrastructure can play in skills development. The company expects the expansion to create opportunities for young people and women to acquire technical expertise in fibre installation, network maintenance and broader digital services.
The economic logic is straightforward. In many township communities, entrepreneurial activity already exists but often remains constrained by limited access to reliable digital tools. Affordable broadband can reduce transaction costs, improve access to information and allow small businesses to reach wider markets. For students, it can provide access to educational resources increasingly concentrated online. For families, it can improve access to government services, healthcare information and financial platforms. In this sense, fibre networks become more than telecommunications infrastructure. They become enabling infrastructure for broader economic participation.
The project also illustrates a broader evolution in infrastructure investment strategies across Africa. Historically, large infrastructure projects often focused on transport, energy or water systems. Digital infrastructure is now increasingly joining that category of essential long-term assets.
Meridiam’s involvement is particularly notable because the company has built its reputation around long-term infrastructure investments designed to generate both financial and social returns. The investment aligns with a growing recognition that Africa’s development challenges are increasingly linked to digital inclusion. While financing remains important, investors are also placing greater emphasis on execution and long-term operational sustainability.
As Mete Saracoglu, Head of Africa at Meridiam, recently observed in an interview with Ecofin Agency: “The hardest part of infrastructure projects isn’t funding, it’s follow-through.” This observation is particularly relevant in the digital sector. Fibre infrastructure requires capital expenditure, local partnerships, community engagement, maintenance capabilities and sustainable operating models all working in harmony. The partnership with Ilitha is therefore apt, as the firm works directly with local communities during deployment and has emphasised the importance of creating local ownership around network expansion.
For decades, South Africa’s digital economy developed unevenly, mirroring the social and spatial inequalities inherited from the past. High-speed internet flourished in wealthier districts while millions remained disconnected from the opportunities increasingly available online.
The partnership between Meridiam and Ilitha represents an attempt to challenge that reality. If the model succeeds at scale, it could help demonstrate that digital infrastructure investment in underserved communities is not merely a social objective, but a viable economic proposition. In that sense, South Africa’s townships may become one of the most important testing grounds for the future of inclusive broadband development on the African continent. This is one to keep an eye on.
