Actis, a leading global investor in sustainable infrastructure, in partnership with Royal Bafokeng Holdings, will acquire Telkom’s Swiftnet, a leading telecom tower portfolio in South Africa. With an enterprise value of ZAR6.75 billion (c.US$355 million), the acquisition marks a strategic investment for Actis, expanding its presence in South Africa’s digital infrastructure sector.
Swiftnet’s extensive portfolio comprises over 4,000 sites across South Africa, bolstered by long-term contractual revenue and strong relationships with Telkom and other anchor tenants. Actis aims to leverage its expertise in digital infrastructure to position Swiftnet as the leading independent towerco in the South African market.
The investment builds on Actis’ existing digital infrastructure portfolio in South Africa, and its ninth investment in the digital infrastructure sector, with more than US$1.5 billion currently committed in the sector. The transaction will also mark Actis’ second investment into telecom towers this year following the recent acquisition of a macro tower portfolio in the Western Balkans, comprising about 1,800 macro towers in Serbia, Bosnia & Herzegovina, and Montenegro.
Commenting on this acquisition, David Cooke, Partner at Actis, highlighted Actis’s track record of success in South Africa and digital infrastructure investment, expressing confidence in Swiftnet’s growth prospects under Actis’s ownership. “Providing the infrastructure to deliver universal telecommunications access across the country, including the roll-out of 5G connectivity, presents great growth prospects. Our deep understanding of the region and our global network of towers expertise provide the basis to create a strong performing platform with scale-up opportunities” he said.
The company had earlier announced the sale of Octotel, a leading South African fiber network operator, to a consortium led by African Infrastructure Investment Managers (AIIM), and includes STOA and Thebe Investment Corporation.
Actis’s investment in Octotel since 2020 has resulted in significant growth, expanding the fiber network’s coverage by 79% and increasing connected customers by 96%.
Thor Corry, Investment Director at AIIM, expressed enthusiasm for the acquisition of Octotel, citing its potential to drive connectivity in the Western Cape and contribute to South Africa’s ongoing digital transformation.
“The acquisition represents a landmark transaction for the IDEAS Fund and adds to the portfolio’s complement of high-quality growth infrastructure assets” he commented.
