ANNOUNCEMENT 16 Apr 2021
In April 2021, the South African government provided funding for the national telecommunication company Broadband Infraco (BBI).
NUMBER OF INTERVENTIONS
Broadband Infraco, 2021 Integrated Annual Report. Available at: https://infraco.co.za/wp-content/uploads/2021/10/BROADBAND_INFRACO_ANNUAL_REPORT_2020-2021.pdf
On 16 April 2021, the government of South Africa provided support in the form of equity to the South African telecommunication company Broadband Infraco (BBI). The total value of the equity support was R1.83 billion (USD 126 million). Specifically, on this date, BBI’s shareholders, namely the Department of Communications and Digital Technologies, and the Industrial Development Corporation (IDC) of South Africa converted their loans to BBI into equity to strengthen the balance sheet of the company.
Established through the Broadband Infraco Act of 2007, BBI is entitled to provide ICT infrastructure and broadband capacity in South Africa. BBI’s main objective is to expand the availability of access to electronic communications across South Africa. BBI incurred a net loss of R106.3 million during the financial year 2020-21. With this net loss, BBI’s liabilities exceeded its current assets by R256.1 million and the company’s accumulated losses have reached R 1.4 billion.