Isizwe, a South African internet service provider that encourages connectivity for low-income areas, has received a $460,000 investment from the Global Innovation Fund (GIF). This investment is offered by GIF as part of ADVANCE, a partnership with Anglo American that enables private sector investment to scale novel business models towards the UN Sustainable Development Goals.
“This is a great investment for Isizwe and shows us that the world really cares about connectivity in Africa,” says Isizwe CEO Tim Genders. “Over 90% of homes in Africa only have mobile data as the way of connecting to the internet — this is on a per gigabyte billing basis, so it is incredibly expensive to connect.”
“The cost is similar to the cost of bathing in bottled water. Governments in developed countries understand the dangers of a digital divide and give significant investment to connect their rural communities. Connectivity is the new key to unlock the poverty trap, so it is great to see GIF and Anglo American applying this to Africa.”
Isizwe provides low-cost, pay-per-use unlimited WiFi connection in townships and informal settlements. Users pay R5 ($0.33) for 24 hours of internet connection, compared to R100 ($6.63) per gigabyte in South Africa.
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Isizwe provides internet connectivity in low-income areas by constructing WiFi Zones with hardware that links to Internet Service Providers (ISPs), allowing it to avoid investing in expensive backhaul infrastructure.
As a result, every home has a WiFi Zone within walking distance, with each zone covering around 100 residences. Since its inception in 2020, the team has established 80 Wifi Zones, including one for a group of educators trying to promote remote learning during the COVID-19 pandemic.
By 2022, Isizwe hopes to have installed over 25 000 Wifi Zones in South Africa.
Isizwe works with local communities in a collaborative manner, utilizing sales agents known as WiFi entrepreneurs to engage with the community and produce direct sales. It also gets into offtake agreements with corporate partners to provide WiFi connectivity to employees and full-time students.
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More cheap internet access can also help close the digital gender divide, with males being 21% more likely than women to be online globally.
Women and girls who are unable to connect to the internet are limited in their opportunities, but innovations like Isizwe help to improve gender equality by allowing them greater access to the internet, potentially allowing them to identify additional income-generating activities and employment opportunities.
“We have seen the benefits of last-mile connectivity in India, Latin America, and parts of Africa, and aim to show that our investment can sustainably provide internet access to those living in South Africa’s rural and peri-urban areas, while generating both large-scale social benefits for users and attractive financial returns for investors,” says GIF Investment Director Khuram Hussain.
Anglo American prioritizes digital connectivity, particularly as a means of assisting mining communities in South Africa in establishing alternative livelihoods and sources of revenue in the wake of mine closures.
Isizwe South Africa Isizwe South Africa
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer