Proparco invests US$20 million in Frogfoot, Vox and Hypa to expand affordable fibre connectivity in South Africa

Proparco is investing US$20 million in Frogfoot, Vox and Hypa as part of a broader consortium managed by Metier, a longstanding investment partner of Proparco. The Metier-led consortium brings together European DFIs British International Investment, BIO and DEG alongside South African commercial investors including Ke Nako Capital, Nedbank and Standard Bank. Proparco, Metier and their co-investors are investing alongside the companies’ management team and private capital to support their next phase of growth.Frogfoot is one of South Africa’s leading fibre network operators, while Vox and Hypa provide connectivity and internet services to households and businesses across the country. Together, the businesses provide an established platform for expanding access to high-speed connectivity to underserved communities across South Africa.

Expanding connectivity where it is most needed

A key focus of the companies’ growth strategy is the expansion of fibre networks into lower-income and township communities. These markets remain significantly underpenetrated, despite strong demand for reliable and affordable broadband services.

Proparco will contribute new capital to support the expansion of fibre networks and the development of connectivity solutions adapted to the needs of these communities. The companies expect the expansion programme to bring fibre connectivity to up to 360,000 additional homes per year, while supporting the creation of approximately 5,000 direct jobs through network deployment and related activities.

A longstanding partnership with Metier

The investment also marks a further step in Proparco’s longstanding partnership with Metier. Metier has been closely involved with the businesses and their management team for the last twenty years and is managing the co-investments by Proparco, the other DFIs and South African commercial investors.

For Proparco, the transaction represents a second co-investment alongside Metier after the investment in Africa Mobile Networks (AMN), reinforcing a relationship built around supporting experienced African investment partners and high-impact businesses. 

“Through its investment in Frogfoot, Vox and Hypa, Proparco is supporting digital inclusion in South Africa through the expansion of infrastructure solutions that are increasingly essential to economic and social participation,” said Tibor Asboth, Head of Private Equity Africa and Middle East. “We are pleased to continue our longstanding partnership with Metier and to invest alongside a strong group of private and institutional investors in the next phase of Frogfoot and Vox/Hypa’s development. By extending affordable high-speed connectivity to local communities, this investment will improve access to education, employment opportunities and essential digital services. Better connectivity can also open up new economic and social opportunities, helping communities participate more fully in South Africa’s economy and society, while contributing to narrowing the digital divide.”

Mobilising private capital for essential infrastructure

The transaction highlights the catalytic role that DFIs can play in mobilising private investment into essential infrastructure. With a substantial share of the capital coming from private investors, the transaction brings together commercial and development-oriented capital to support the expansion of scalable infrastructure. 

This approach is particularly relevant to digital infrastructure, where further investment is needed to extend networks, improve affordability and meet growing demand for connectivity. 

“We are delighted to welcome Proparco and our broader group of co-investors as we renew our longstanding support for Frogfoot, Vox and Hypa through their next phase of growth. The combination of long-term capital, strong management and experienced investment partners provides a solid foundation to expand fibre connectivity into new communities and create greater access to the digital economy,” said Grant Howarth, Principal at Metier.

Finally, the investment reflects Proparco’s continued commitment to supporting private-sector development and infrastructure investment in South Africa. It builds on Proparco’s longstanding presence in the country and its broader focus on supporting the development of inclusive digital infrastructure across emerging markets.