Tech Credit Fund, a subsidiary of Solcon Capital led by businessman Andile Ngcaba, has launched a R5 million credit fund aimed at supporting black-owned internet service providers (ISPs) and enhancing broadband connectivity in South Africa’s townships and rural communities.
The fund, made possible through collaboration with the Small Enterprise Development Finance Agency (SEDFA), will provide qualifying ISPs with access to funding structured for growth and sustainability. This includes financing for equipment procurement—such as towers, routers, and fibre builds—as well as working capital for trenching, salaries, and day-to-day operations.
The fund is designed to align repayment schedules with cash flow, allowing ISPs to scale responsibly. Successful applicants may also gain access to future equity co-investment opportunities with Solcon Capital.
Beyond Financial Support
In addition to funding, the Tech Credit Fund will offer technical expertise and operational guidance, including network architecture advisory, vendor negotiation support, and project management assistance.
SEDFA board chairperson Nonzuzo Makanda remarked, “The launch of this fund demonstrates our sector-based business development approach through strategic partnerships, delivering tailored solutions that address the key challenges faced by entrepreneurs in their sectors. This initiative not only benefits ISPs but also advances connectivity and expands access to digital technology in underserved areas.”
Andile Ngcaba, chairman of Solcon Capital, emphasized the fund’s broader vision, stating: “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 laying the groundwork for AI-driven growth.”
Impact on the Economy
Small, medium, and micro enterprises (SMMEs) account for over 98% of businesses in South Africa and contribute more than 34% of the country’s gross domestic product, as well as 60% of private-sector employment. In the telecommunications sector, SMME ISPs are uniquely positioned to deploy agile last-mile broadband infrastructure in areas historically excluded from major network rollouts.
Pramod Venkatesh, CEO of Solcon Capital, highlighted the fund’s practical approach: “This fund is designed to match the cash flow 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 barriers to entry for township and rural network operators, ensuring that every rand invested delivers measurable impact.”
Nkosikhona Mbatha, acting CEO of SEDFA, stated, “This initiative focuses on supporting small, black-owned ISPs and FNOs [fibre network operators] to expand internet access in townships and rural areas. It creates new opportunities for emerging service providers while driving the digitalisation of township and rural enterprises.”
Through digitalisation, small businesses in these areas will have access to tools that strengthen business management, improve funding readiness, and open up market opportunities, addressing some of the most pressing challenges faced by entrepreneurs in South Africa.