State-owned long-distance connectivity provider Broadband Infraco (BBI)is looking to improve its financial standing, reducing cash flow constraints and long-term debt obligations.
This came to light during the entity’s recent annual general meeting, when the company also reaffirmed its commitment to broadband rollout.
BBI offers long-distance national and international backhaul connectivity. Its wholesale broadband connectivity products are supplied to private and public customers across South Africa, as well as neighbouring Southern African nations.
As a schedule two company, in terms of the Public Finance Management Act, BBI has a profit mandate. However, it has a history of recording financial losses and its struggles to fulfil its broadband access mandate are also documented.
However, CEO Gift Zowa has indicated BBI is working towards “evolution into a more commercially-sustainable entity”, while staying true to its dual mandate.
To achieve a better financial standing, BBI aims to diversify products and commercialise project opportunities.
“With the demand for high-speed internet rising, our role in delivering affordable, high-quality connectivity is more critical than ever,” Zowa says.
“With leadership from key stakeholders, including our shareholders, we are committed to strengthening our financial sustainability position, investing in improving our network performance, including with cutting-edge technology, and ensuring even the most underserved areas have access to reliable broadband.”
According to the entity, its key projects − the Broadband Access Fund and SA Connect phase two − remain central to its mission of driving South Africa’s digital transformation.
BBI was awarded an individual electronic communications network services licence in 2009, allowing it to sell high-capacity long-distance transmission services to licensed fixed and mobile network operators, internet service providers and other value-added network service providers.
It was created by an Act of Parliament solely for the purpose of rolling out strategic broadband infrastructure, with a focus on underserviced areas. The company reports its activities and performance to the Department of Communications and Digital Technologies and the Industrial Development Corporation, in their capacity as its shareholders.
Aligned with the BBI Strategy 2040, Zowa notes the focus includes expanding digital infrastructure, enhancing financial stability, and positioning BBI as a key partner in government’s digital transformation.
Looking ahead, BBI will prioritise capital investment, debt management, operational excellence and revenue diversification to ensure long-term sustainability and growth.
“Our vision is clear: to intelligently connect government, people, devices and communities to access the transformative opportunities presented by a digitally-enabled world in a sustainable manner,” states Zowa.
According to statistics, approximately 80% of homes in SA remain unserved by fast and affordable broadband internet. Only about 10% of the population has access to internet connectivity through fibre or fixed wireless access.
To bridge the country’s connectivity divide, government is betting on SA Connect – its ambitious national broadband project – with the support of state‐owned entities like BBI and the State IT Agency.
SA Connect is meant to ensure universal access to broadband services for all South Africans, prioritising rural and underserviced areas.
Phase one of SA Connect was aimed at connecting government facilities, with phase two of the project targeting provision of internet access on an ongoing basis.
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