The staggering cost of connecting every South African household

A new Development Bank of South Africa (DBSA) study estimates that connecting every South African household to 100Mbit/s broadband by 2035 will require between R108-billion and R142-billion in investment. The report, compiled using World Bank methodology, breaks costs into new build capex, replacement capex, and operational expenditure. Despite over 98% of the population having 4G coverage, a large usage gap persists driven by affordability barriers — device costs alone exceed 16% of the universal basic minimum wage. Policy fragmentation at national and municipal levels further hampers rollout, with inconsistent wayleave regulations inflating costs passed on to consumers. The DBSA CEO warns that South Africa risks falling behind globally as nations reorganize economies around AI, data connectivity, and digital platforms.