RMB backs $120 million funding push for Net Nine Nine fibre expansion

Rand Merchant Bank has backed R1.95 billion ($118.6 million) in funding for South African fibre operator Net Nine Nine, a move aimed at accelerating internet access in lower-income communities where connectivity remains limited and costly. 

The syndicated package, arranged and underwritten by RMB alongside other lenders, supports the company’s plan to connect 1.5 million homes by 2028. It includes a R1.3 billion ($79.1 million) social loan facility focused on expanding fibre-to-the-home infrastructure in townships across the country. 

Led by chief executive Albert Oosthuysen, Net Nine Nine says the financing marks a key step in scaling a model built around affordability, local participation and rapid deployment in underserved areas.

Net Nine Nine tests Kagiso model

Net Nine Nine began in Kagiso, a township west of Johannesburg, where it tested its early rollout strategy by connecting roughly 5,000 to 10,000 homes. 

“Kagiso was our proof of concept,” Oosthuysen said, recalling how the company refined its approach before seeking external funding. 

From there, demand spread beyond the original pilot site. Communities in Westonaria on the West Rand and parts of Pretoria began requesting access, often through local development forums and councillors. Today, the company says it has a presence in eight of South Africa’s nine provinces, with the Western Cape next in line.

Community-driven expansion strategy

The company’s expansion strategy leans heavily on relationships within each community rather than a top-down rollout model. Before construction begins, teams spend time understanding local conditions, including leadership structures and operational constraints. 

That approach was shaped in part by early setbacks in Rustenburg, where the company struggled to move forward despite having regulatory approvals in place. A breakthrough came after engagement with local leadership helped unlock municipal coordination and installation work. 

“That opened our eyes,” Oosthuysen said. “We now first find out what the dynamics are in the areas where we plan to roll out and then work with it.” 

Local hiring is central to the model. Installation teams are recruited from within the communities they serve, and retail points are used for customer support, billing and maintenance requests such as damaged infrastructure or service interruptions.

RMB funding drives fibre integration model

The funding from Rand Merchant Bank is intended to support a system that combines network ownership and internet service provision under one structure. The company says this integration reduces operating costs and allows it to price services more competitively. 

Packages range from R379 ($23) a month for 20 Mbps to R699 ($42.5) for 100 Mbps, with lower-speed tiers accounting for the bulk of subscribers. Unlike mobile data, the company offers uncapped home fibre connections designed for household use. 

“If you put the fibre network operator and the internet service provider together, you cut fat out of the system,” Oosthuysen said. “And then you can lower the price.” 

The company argues that affordability is central to increasing adoption in areas where mobile data remains the default option despite its higher cost per gigabyte.

Township connectivity driven by Net Nine Nine

Net Nine Nine operates under a broader group structure alongside Evotel, a fibre business founded by Oosthuysen in 2015 that serves higher-income suburbs. Both brands sit under holding company Cynk. 

The group has passed roughly 600,000 homes in total, with Net Nine Nine accounting for just over 350,000 of those. 

Management opted to launch a separate brand for township markets rather than extend Evotel into the same segment. The decision was driven by differences in pricing expectations, product design and customer engagement. 

The Net Nine Nine name itself reflects its positioning. In local township slang, “nine nine” loosely means “for sure” or “definitely,” a phrase the company uses to anchor its identity in the communities it serves.

Digital literacy drive expands across communities

Beyond connectivity, the company says its rollout is creating jobs in installation, operations and retail services. Much of the capital spending is directed into local economies through wages and small business partnerships. 

Schools in covered areas receive free internet access, while an affiliated nonprofit, Internet for Education, is building computer labs to improve digital literacy. The company says these initiatives are intended to support long-term skills development rather than serve as core revenue drivers. 

“We are trying to get the formal banking sector involved in the informal sector,” Oosthuysen said. “We want to bridge it.” 

In one example shared by the company, a small township food vendor introduced Wi-Fi access to attract more customers, highlighting how connectivity is being adopted in everyday commerce.

$304 million rollout targets 1.5 million homes

The latest round builds on an earlier R850 million ($51.7 million) facility previously arranged for Net Nine Nine’s initial expansion phase. The new structure also includes participation from Investec and Absa as part of a broader syndicated group. 

The company estimates it will need about R5 billion ($304.1 million) in total funding to reach its rollout target of 1.5 million homes. It says its near-term pipeline is fully financed, although construction pace depends on local conditions and operational capacity. 

In 2024, Net Nine Nine also brought in Infinite Partners, a Black economic empowerment investor backed by the Public Investment Corporation, which became its majority shareholder. 

Oosthuysen said the company is open to future opportunities outside South Africa but is focused for now on domestic expansion. “There have been invitations from other countries,” he said. “But we’re still focused on getting this right at home.”

Net Nine Nine expands township fibre

Net Nine Nine, a South African fibre ISP, is expanding affordable broadband to underserved township communities. Founded in 2020 by CEO Albert Oosthuysen and Nicholas Thipe, it targets digital access for education and jobs. 

RMB, FirstRand’s investment bank, provides corporate finance and advisory services across Africa.