After five years of investing in Metrofibre, the South African Housing and Infrastructure Fund (SAHIF), led by its founder and CEO Rali Mampeule, has announced its decision to exit the business.
SAHIF aims to diversify into the emerging market independently, with the expectation of high returns.
SAHIF had a busy year in 2024, raising R700 million for expansion in the first half of the year alone.
As part of its expansion plans, the fund is acquiring a majority stake in one of South Africa’s emerging fibre network operators specialising in prepaid fibre services.
The Fibre to the Home (FTTH) market in South Africa still has significant potential, with approximately 19 million households yet to be connected to the internet.
The majority of these households are located in the emerging markets of townships.
SAHIF has notified its co-shareholders, AIIM of Old Mutual and French DFI STOA, of its intention to sell its entire investment in Metrofibre, valued at over R1.3 billion.
The sale is subject to acceptance of the offer, meeting other conditions, and obtaining possible regulatory approval.
SAHIF initially acquired a stake in Metrofibre in late 2019, during the peak of the Fibre land grab and just before the COVID-19 lockdowns.
Metrofibre Networx, founded in 2010, is a South African Fiber-To-The-Home (FTTH) and Fiber-To-The-Business (FTTB) provider.
The company owns and manages South Africa’s first globally-compliant Carrier Ethernet 2.0 open access fiber network.
Apart from providing services to over 60 internet service providers and international telcos, Metrofibre also offers voice and data connectivity products in the enterprise space.
Mampeule explains that while Metrofibre is a good business, the decision to sell the stake is driven by the need for Metrofibre to further improve corporatization to attract institutional investors and remain an infrastructure player in the long term.
In addition to divesting from Metrofibre, SAHIF has increased its stakes in existing businesses and will provide loans where necessary to support its strategy of promoting digital inclusivity and accelerating the delivery of affordable housing across the continent.
“SAHIF is in the process of wrapping up its current fund as it has established a new fund called the African Housing and Infrastructure Fund (AHIF). This equity investment fund will operate across multiple industries and is committed to being a market-leading, black-owned investment specialist. The fund’s vision includes offering comprehensive services in various sectors such as Digital Infrastructure, Telecommunications, Green Economy, Financial Services,Real Estate, Affordable Housing and Sport. AHIF is actively exploring new avenues for investment and growth.”
