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Finnfund, the Finnish development financier and impact investor, has made a follow-on investment of €2 million in Fibertime Group. It will support the expansion of affordable fiber internet access to underserved communities in South Africa. The latest funding will enable Fibertime Group to extend its reach to new townships. Thusly, enable it connect thousands more homes as part of its ambition to provide high-speed internet to up to 1.8 million households.
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This fresh investment builds on Finnfund’s initial €2 million commitment in 2023. It has already facilitated internet connectivity for over 65,000 homes across South African townships. The investment has significantly advanced digital inclusion in some of the country’s most marginalized communities.
At the heart of Fibertime’s innovative solution is its pay-as-you-go, time-based pricing model, which makes unlimited fiber internet access more affordable for low-income households. The model is combined with state-of-the-art fiber internet technology provided by Nokia, a global leader in network infrastructure.
Digital divide: One of South Africa’s most pressing challenges
The digital divide remains one of South Africa’s most pressing challenges, with approximately 80% of homes still lacking access to fast, affordable broadband. Fiber internet services have traditionally been limited to wealthier suburbs, leaving millions of people in low-income townships unconnected. Additionally, high banking fees associated with micropayments discourage digital payments, further excluding communities from the digital economy.
Finnfund’s follow-on investment will accelerate Fibertime’s mission to break this cycle of exclusion by combining affordable pricing, digital wallets, and world-class technology to bring unlimited fiber internet access to communities that have long been left behind.
“Finnfund is very pleased with Fibertime’s rapid growth and expansion, enabling more townships in South Africa to get access to the internet,” said Tuomas Vaulanen, Investment Associate at Finnfund.
“As a Finnish development financier and technology-driven impact investor, we are proud that Nokia’s cutting-edge fiber technology plays such a vital role in making this happen.”
Fibertime Group’s subsidiaries, fibertime™ and VulaCoin, play a crucial role in the initiative. Fibertime™ provides unlimited data on a time-based pay-as-you-go model, while VulaCoin offers digital wallets that enable micropayments for internet services, reducing reliance on cash transactions.
Building critical digital infrastructure in townships
Alan Knott-Craig, Founder of fibertime™, welcomed the renewed investment, saying:
“Finnfund doubling down is a vote of confidence in Fibertime and South Africa. Our country is attracting foreign direct investment to build critical digital infrastructure in townships so that all South Africans can have access to affordable, uncapped fiber internet.”
Nokia’s fiber access nodes and fiber modems form the technological backbone of the initiative, creating secure WiFi networks that deliver high-speed internet access.
“Fiber, the fastest and greenest broadband technology, is the foundation for connecting everything to high-speed internet services,” said Toni Pellegrino, South Africa Managing Director and Head of Network Infrastructure for Southern and Eastern Africa at Nokia.
“Our collaboration with Fibertime underlines our shared vision to enable digital transformation in underserved regions and drive long-term sustainable business across South Africa.”
Driving Digital Inclusion and Socioeconomic Development
The partnership between Finnfund, Fibertime Group, and Nokia is helping to address the digital usage gap—a critical barrier to economic and social development in South Africa.
Increasing access to reliable internet connectivity in underserved communities creates employment opportunities, and supports entrepreneurship. It also enhances access to education, and promotes financial inclusion. All of these are essential for reducing poverty and fostering inclusive economic growth.
The initiative also aligns with South Africa’s National Digital and Future Skills Strategy and the United Nations Sustainable Development Goals (SDGs). It particularly aligns with SDG 9 (Industry, Innovation, and Infrastructure) and SDG 10 (Reduced Inequality).
Future Outlook
Fibertime Group is set to transform South Africa’s township communities into vibrant hubs of digital connectivity and economic opportunity. This rests on growing support from impact investors like Finnfund and strategic technology partners like Nokia. The company’s innovative pay-as-you-go model offers a scalable blueprint for delivering affordable, high-quality internet access across Africa’s underserved regions.
“We are committed to closing the digital divide—not just in South Africa, but across the continent,” added Knott-Craig. “The ultimate goal is for every home in every township to have unlimited access to the internet.”
Significant step forward in bridging South Africa’s digital divide
Finnfund’s renewed investment in Fibertime Group marks a significant step forward in bridging South Africa’s digital divide. It is bringing affordable, high-speed internet access to thousands of underserved homes. The partnership demonstrates how impact investing, innovative business models, and cutting-edge technology can come together. Most importantly, how such investments could drive inclusive digital transformation and create a more connected future for all South Africans.
With the expansion of its services, Fibertime is unlocking new economic opportunities. It is also reshaping the digital landscape of South Africa’s townships—one connection at a time.
