{"id":2317,"date":"2026-03-31T09:28:04","date_gmt":"2026-03-31T09:28:04","guid":{"rendered":"https:\/\/primelinktelecoms.co.za\/?p=2317"},"modified":"2026-03-31T09:29:22","modified_gmt":"2026-03-31T09:29:22","slug":"the-staggering-cost-of-connecting-every-south-african-household","status":"publish","type":"post","link":"https:\/\/primelinktelecoms.co.za\/index.php\/2026\/03\/31\/the-staggering-cost-of-connecting-every-south-african-household\/","title":{"rendered":"The staggering cost of connecting every South African household"},"content":{"rendered":"\n

South Africa needs<\/strong> between R108-billion and R142-billion in investment to get all households connected to 100Mbit\/s broadband internet by 2035, according to a new report by the Development Bank of South Africa (DBSA<\/a>).<\/p>\n\n\n\n

Speaking at the launch of South Africa\u2019s Digital Infrastructure Investment Study (Sadis<\/a>) at the DBSA\u2019s offices in Midrand on Monday, Pieter Grootes<\/a>, digital economy strategist at Networks Anonymous, said the 100Mbit\/s mark is key to driving meaningful connectivity for South Africa\u2019s population.<\/p>\n\n\n\n

The report was commissioned by the DBSA in partnership with the National Planning Commission.Nations are reorganising their economies around AI, data connectivity and digital platforms<\/p>\n\n\n\n

Grootes led the compilation of the report, which used data from various sources including telecommunications market intelligence firm Africa Analysis. The investment figures were derived using the World Bank\u2019s Beyond the Gap<\/a> methodology.<\/p>\n\n\n\n

The study focuses on the period from 2026 to 2035, with 100Mbit\/s as the universal service target \u2013 the same speed government\u2019s SA Connect plan committed to in 2013. The total cost of infrastructure is broken down into three components: new build capex, replacement capex and operational expenditure.<\/p>\n\n\n\n

Meaningful connectivity is a key focus throughout the report, driven largely by the observation that over 98% of South Africa\u2019s population has 4G coverage but that a much larger usage gap exists.<\/p>\n\n\n\n

Demand-side factors<\/h2>\n\n\n\n

Grootes said deploying infrastructure alone is not enough, but money must be spent on demand-side factors to ensure people want \u2013 and are empowered to \u2013 use digital tools to improve their lives.<\/p>\n\n\n\n

Affordability was identified as the major constraint on usage, with most users reliant on a mobile connection typically making use of \u201cbuckets of data\u201d to maintain connectivity. The high cost of devices also plays a restrictive role, with the report showing that the cost of a \u201cdecently capable\u201d device is more than 16% of South Africa\u2019s universal basic minimum wage.<\/p>\n\n\n\n

\u201cNow, if I need a new phone, am I going to spend almost 20% of my money on a new phone, or am I going to buy electricity? So, it\u2019s not even the cost of services that are a bottleneck to participate in the digital economy; it\u2019s the cost of the device,\u201d said Grootes.<\/p>\n\n\n\n

Read: South Africa puts data centres on par with energy, ports in big policy shift<\/a><\/h3>\n\n\n\n

This notwithstanding, there are policy constraints contributing to connectivity bottlenecks in South Africa.<\/p>\n\n\n\n

The report cites fragmentation as a key dampener on growth, both at the national and municipal level. Nationally, digital infrastructure policy is spread piecemeal across varying mandates and institutions. Examples of this include the National Development Plan of 2012, the SA Connect programme from 2013 and the National Infrastructure Policy from 2014.<\/p>\n\n\n\n

\u201cWe have all the policy, but implementation lags significantly,\u201d said Grootes.<\/p>\n\n\n\n

At the municipal level, fragmented regulation hampers implementation, with companies seeking access to wayleaves being \u201ctold different things by different parts of government\u201d. Municipalities also inflate the cost of doing business through non-standardised fee structures for wayleaves and other permits. These costs eventually get passed onto consumers and contribute to higher rates of exclusion from the digital economy.<\/p>\n\n\n\n

\u201cThe true meaning of meaningful connectivity is that you spend a maximum of 2% of your household income per month on high-speed broadband, and that high-speed broadband is always on, and that\u2019s the key issue,\u201d said Grootes.A network that exists but cannot be used is not infrastructure, it\u2019s just unrealised potential<\/p>\n\n\n\n

DBSA CEO Boitumelo Mosako, who also spoke at the event, said the report highlights the fact that the major question around digital infrastructure investment is no longer about whether digital infrastructure matters, but about if South Africa is going to move fast enough to position itself effectively in the digital economy \u2013 or fall behind.<\/p>\n\n\n\n

\u201cNations around the world are reorganising their economies around AI, data connectivity and digital platforms. Investment is flowing not only into roads, ports and power, but into fibre networks, data centres, the data economy and other digital capabilities,\u201d said Mosako.<\/p>\n\n\n\n

Read: GSMA coalition targets $40 smartphone to connect millions across Africa<\/a><\/h3>\n\n\n\n

\u201cThis means that investment decisions cannot be guided by coverage alone. A network that exists but cannot be used is not infrastructure, it\u2019s just unrealised potential,\u201d she said.<\/p>\n\n\n\n

The report was prepared by a multidisciplinary team consisting of ICT network infrastructure, network costing and investment, public policy, and economics expertise and include: Andre Wills, project director at Africa Analysis, Walter Moldenhauer, GIS expert and econometric modeller at Africa Analysis, Roald Kvevli, telecoms technical and financial analyst at Krafttech, and Dominic Cull, policy and regulatory expert at Ellipsis Consulting.  \u2013 \u00a9 2026 NewsCentral Media<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

South Africa needs between R108-billion and R142-billion in investment to get all households connected to 100Mbit\/s broadband internet by 2035, according to a new report by the Development Bank of South Africa (DBSA). Speaking at the launch of South Africa\u2019s Digital Infrastructure Investment Study (Sadis) at the DBSA\u2019s offices in Midrand on Monday, Pieter Grootes, digital economy<\/p>\n

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