African Infrastructure Investment Managers (AIIM), via consortiums led by it, has been quietly building a powerhouse presence in South Africa's fibre market. With the acquisition of controlling stakes in two of South Africa's largest Fibre Network Operators (FNOs)—Octotel and MetroFibre—AIIM is cementing itself as a key player in the telecommunications market in the nation.
AIIM's consortium currently fully owns 100% of Octotel and holds the largest stake in MetroFibre, with 28.5% ownership of the company. Combined, the two networks would form South Africa's third-largest fibre network, going head-to-head with fibre giants such as Vumatel and Openserve.
Strategic Acquisitions in the Fibre Industry
AIIM initiated its foray into MetroFibre by acquiring an 18.14% stake from African Rainbow Capital in 2022. It later raised this stake to 25.8% with the further acquisition of shares from Sanlam Private Equity and a minority shareholder.
Having invested in MetroFibre, AIIM set its sights on Octotel. In March 2024, it agreed to buy Octotel from Actis, a private equity firm which had itself acquired the FNO for R2.3 billion in 2020. The deal secured regulatory approval in August 2024, clearing the path for AIIM to strengthen its hold over South Africa's fibre market.
The Growing Competitive Fibre Market
South Africa's fibre market is dominated by behemoths such as Vumatel and Openserve. That being said, MetroFibre and Octotel have managed to secure significant market shares:
- MetroFibre is South Africa's fourth-largest FNO, boasting a big open-access network spanning Gauteng, KwaZulu-Natal, Eastern Cape, North West, and Mpumalanga.
- Octotel is the sixth-largest FNO, with a Western Cape-based open-access fibre network.
Combined, the two firms' networks would go a long way in reducing the gap with the country's top providers.
How They Compare to Competitors
As of December 2024, the leading FNOs in South Africa had the following coverage:
| FNO | Homes Passed | Homes Connected | Connectivity Ratio |
|---|---|---|---|
| Vumatel | 2,003,584 | ~1,000,000 | Unknown |
| Openserve | 1,340,565 | 667,465 | 49.80% |
| MetroFibre + Octotel (Combined) | 870,000 | 284,500 | 32.70% |
| Herotel | 574,976 | 213,883 | 37.20% |
| MetroFibre (alone) | 510,000 | 172,000 | 33.70% |
| Frogfoot | 406,000 | 169,000 | 41.70% |
| Octotel (alone) | 360,000 | 112,500 | 31.30% |
| Zoom Fibre | 191,636 | 65,100 | 40.00% |
| Evotel | 141,000 | 39,000 | 27.70% |
Merging MetroFibre and Octotel, AIIM's network would edge out Herotel to rank as the third-largest fibre provider with 870,000 homes passed. Only Vumatel and Openserve would have larger national footprints.
AIIM's Further Expansion Into ISPs
Aside from its investments in Fibre Network Operators, AIIM has made incursions into the Internet Service Provider (ISP) market. In February 2025, it received Competition Tribunal approval to acquire RSAWeb, a well-established South African ISP.
RSAWeb is a fibre-to-the-home (FTTH) and fibre-to-the-business (FTTB) provider with additional services in cloud infrastructure, enterprise connectivity, and mobile data management services. The acquisition was effected by Tario 892, which has AIIM's Newlands, Cape Town headquarters as its business address.
The Competition Commission approved the transaction on 21 January 2025, and the Tribunal later confirmed AIIM's sole control of RSAWeb.
Future of AIIM's Fibre Strategy
AIIM's active expansion into South Africa's fibre business signals it is set to become a serious competitor to the country's largest telecom incumbents. By merging MetroFibre and Octotel and acquiring RSAWeb, AIIM is constructing a vertically integrated stack on both network infrastructure and retail broadband offerings.
MyBroadband reached out to AIIM for further detail on its long-term plan and whether it plans to directly tackle South Africa's fibre heavyweights. The company had not responded by the time of publication.
Conclusion
AIIM is gradually emerging as a key fibre player in South Africa, with potential mergers and acquisitions paving the way for a highly competitive telecom landscape. As the company is poised to make further strategic investments, it could reshape broadband access across the country, offering better competition and enhanced connectivity to customers.
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