Ilitha Telecommunications, an internet service provider (ISP) founded by former Vodacom Business and South African Airways CEO Vuyani Jarana, has secured an undisclosed sum of funding to expand fibre connectivity in SA’s low-income areas.
The ISP received a “significant” investment from Meridiam at the United Nations International Telecommunication Union conference in Geneva, Switzerland.
According to the company, its ambition is to expand Ilitha’s high-speed fibre network to at least 500 000 low-income homes, impacting over two million South Africans, and unlocking economic opportunity and job creation in these underserved communities.
“Access to affordable, high-speed internet is a fundamental human right and an enabler of economic opportunity,” said Jarana, CEO and founder of Ilitha Telecommunications.
“Yet many people living in townships and rural areas lack access and remain locked out of opportunity. This investment from Meridiam will help bridge that gap by significantly expanding broadband access and opening doors to education, healthcare and economic participation, while directly contributing to job creation and fostering entrepreneurship in the communities that need it most.”
Jarana launched Ilitha in 2019, promising affordable internet in underserviced areas. The company debuted its brand and services in Mdantsane, Eastern Cape.
The ISP received its initial investment from Microsoft Airband.
Ilitha notes the Meridiam funding will focus on rolling out affordable, high-speed fibre internet to underserved communities across South Africa, starting in the Eastern Cape.
By offering flexible, pay-as-you-go broadband internet plans for as low as R3 per day, or R90 per month, using fibre to the home and on-the-go WiFi from hotspots rolled-out in the area, Ilitha says it is making connectivity accessible to households that would otherwise struggle to afford it.
“This will empower communities by providing access to essential online services in education and healthcare, and create much-needed economic opportunity,” says the ISP.
In addition to connectivity, it notes this expansion will create significant employment opportunities, helping address persistent unemployment challenges, especially among youth and women.
According to the firm, previous deployments have shown that for every 36 homes connected, one job is created throughout the project, either directly in infrastructure deployment, or indirectly through local service and support roles.
It adds that with reliable internet access, township entrepreneurs can expand their businesses, students can learn, and families can access critical services that are increasingly delivered online.
“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,” says Marie Lam Frendo, Meridiam partner and chief strategy officer.
“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.”
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