Vox and its fiber infrastructure subsidiary, Frogfoot, have successfully raised $900 million in new debt facilities, primarily from Investec, with contributions from Standard Bank and Rand Merchant Bank. This substantial funding injection is earmarked to accelerate the deployment of high-speed fiber broadband infrastructure throughout South Africa, enabling Frogfoot to connect more homes and businesses, particularly in smaller towns and underserved areas.
Frogfoot, which currently conducts approximately 4,000 installations monthly, aims to significantly expand its footprint, including into townships and outlying regions adjacent to existing infrastructure. This expansion is driven by the increasing demand for reliable and fast internet, a need highlighted by the rise of remote work and e-learning. Vox's CEO, Jacques du Toit, emphasized that this investment is crucial for bridging the digital divide in South Africa and supporting economic growth through enhanced connectivity.
The telecommunications company had previously undertaken a recapitalization in 2019, valued at $130 million, where shareholders including Rand Merchant Bank and Metier Private Equity bought out Investec. However, Investec has since re-engaged as a key financial partner, acting as the mandated lead arranger for the latest debt package. This renewed partnership underscores the financial sector's recognition of the significant growth opportunities in South Africa's fiber market, where 27 million people, or about 46% of the population, still lack fiber coverage. Frogfoot has also been expanding through strategic acquisitions, including taking over American Tower Corporation's (ATC) 11,000 km fibre portfolio in South Africa for an undisclosed sum, further bolstering its network capacity and reach.
