The staggering cost of connecting every South African home

South Africa needs Between R108 billion and R142 billion will be invested to connect all households to 100Mbit/s broadband internet by 2035, according to a new report from the Development Bank of South Africa.dbsa).

Speaking at the launch of South Africa's Digital Infrastructure Investment Study (sadis) on Monday at the DBSA offices in Midrand, Peter GrootsNetworks Anonymous' digital economy strategist said the 100Mbit/s mark is key to meaningfully increasing connectivity for South Africa's population.

This report was produced by the DBSA in partnership with the National Planning Commission.

Groots led the compilation of the report, which used data from a variety of sources, including telecommunications market intelligence firm Africa Analysis. Investment figures were derived using the World Bank beyond the gap modus operandi.

The study focuses on the period from 2026 to 2035, with 100Mbit/s as the universal service target – the same speed committed to the government's SA Connect plan in 2013. The total cost of infrastructure is divided into three components: new construction capital expenditure, replacement capital expenditure and operating expenditure.

Meaningful connectivity is a key focus throughout the report, driven primarily by the observation that over 98% of South Africa's population has 4G coverage but huge gaps in usage exist.

demand-side factors

Groots said it is not enough to deploy infrastructure alone, but rather money should be spent on demand-side factors to ensure that people want and are empowered to use digital tools to improve their lives.

Affordability was identified as the major barrier to usage, with most users relying on mobile connections typically using “buckets of data” to maintain connectivity. The high cost of devices also plays a restrictive role, with reports showing that a “decently capable” device costs more than 16% of South Africa's universal basic minimum wage.

“Now, if I need a new phone, am I going to spend about 20% of my money on the new phone, or am I going to buy electricity? So, it's not even the cost of services that is a barrier to participating in the digital economy; it's the cost of the device,” Groots said.

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Despite this, there are policy barriers contributing to connectivity barriers in South Africa.

The report cites fragmentation as a major constraint on development at both the national and municipal levels. At the national level, digital infrastructure policy remains fragmented across different mandates and institutions. Examples of this include the National Development Plan from 2012, the SA Connect program from 2013 and the National Infrastructure Strategy from 2014.

“We have all the policies in place, but there are significant delays in implementation,” Groots said.

At the municipal level, fragmented regulation hinders implementation, with companies seeking access to wave leaves “being told different things by different parts of the government”. Municipalities also increase the cost of doing business through non-standardized fee structures for waybills and other permits. These costs are ultimately passed on to consumers and contribute to high rates of exclusion from the digital economy.

“Meaningful connectivity really means that you spend a maximum of 2% of your household income per month on high-speed broadband, and high-speed broadband is always on, and that's the main issue,” Groots said.

DBSA CEO Boitumelo Mosako, who also spoke at the event, said the report highlights the fact that the key question around digital infrastructure investment is no longer about the importance of digital infrastructure, but whether South Africa is going to move fast enough to effectively establish itself in the digital economy – or will be left behind.

“Countries around the world are restructuring their economies around AI, data connectivity and digital platforms. Investment is flowing not only into roads, ports and power, but also into fiber networks, data centres, the data economy and other digital capabilities,” Mosaco said.

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“This means that investment decisions cannot be guided by coverage alone. A network that exists but cannot be used is not infrastructure, it is just unrealized capacity,” she said. – © 2026 NewsCentral Media