Comsol Wireless Solutions raises funding for SA 5G network

What's the deal? South African telecoms infrastructure firm Comsol Wireless Solutions is completing a multi-billion-rand debt and equity raise to build a new 5G network, founder and chief executive officer Iain Stevenson said. The company plans to deploy 2,000 base stations nationally and complete the build-out by the end of 2028.

Who's backing it? Comsol raised debt from FirstRandDealroom has a profile for this one. Try Dealroom →'s Rand Merchant BankDealroom has a profile for this one. Try Dealroom → unit and added Platform Investment PartnersDealroom has a profile for this one. Try Dealroom → and Wimsey Capital as new equity shareholders. Stevenson and pan-African private equity firm Convergence PartnersDealroom has a profile for this one. Try Dealroom → — whose chairman Andile Ngcaba is a former South African telecoms policymaker — have become shareholders again, while Nedbank Private EquityDealroom has a profile for this one. Try Dealroom → exited.

What's the endgame? Comsol will build the wholesale, business-to-business network on its 3.7GHz spectrum, which it says suits 5G. It plans to scale from 450 sites covering about 1 million households to national coverage by the end of 2028, and to take part in upcoming spectrum auctions.

Why now? South Africa's broadband market is growing fast, with revenue potentially reaching R82.8 billion by 2029, according to local consulting firm BMITDealroom has a profile for this one. Try Dealroom →. Only about 15% of households have connected through fibre over the past decade, mostly in metros, leaving room for cheaper 5G fixed mobile-access networks elsewhere.

In their words: "We build for demand that is coming, not for demand that is here," Stevenson said. "At the moment, the space is growing in excess of 30% and we are expecting even more than that — people need capacity."

The signal: BMIT expects 5G to make up 67% of residential fixed-mobile router connections by 2029, up from 35% in 2024. Fixed mobile-access — 5G broadband via a home router — works where fibre is too costly, positioning Comsol to capture demand beyond high-density urban areas.

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