Affordable Fibre Broadband Boosts Job Prospects in South African Townships
The research shows that employed individuals, in particular, are benefiting by using the internet to explore better or alternative job opportunities.
A recent study by the Bureau for Economic Research (BER) at Stellenbosch University reveals that the rollout of affordable, high-speed fibre broadband is significantly improving work prospects for residents in South African townships. The research shows that employed individuals, in particular, are benefiting by using the internet to explore better or alternative job opportunities.
The study tracked households in the Kayamandi township over a three-year period and found a direct link between home fibre access and increased online job-searching behaviour among those already in the workforce. Employed respondents with fibre connections were more likely than their counterparts without fibre to actively search for new employment online. Notably, these changes were observed immediately after households received a connection and strengthened over time.
This development is part of what researchers are calling a “township fibre revolution,” in which fibre network operators (FNOs) have adapted their business models to serve low-income, high-density areas that were previously considered commercially unattractive. Companies like fibertime™ and Vumatel are now offering uncapped prepaid fibre plans for as little as R5 per day or around R100 per month. Many providers also waive installation fees and provide Wi-Fi routers in every electrified home at no extra cost, bringing high-speed connectivity to tens of thousands of households for the first time.
The study also highlights broader socioeconomic benefits. Households with fibre were able to reduce spending on mobile data without increasing overall connectivity costs, making digital access more affordable. Beyond employment, residents with home fibre were more likely to engage in online learning, such as research and educational courses, indicating that fibre connectivity is enabling more productive use of the internet.
The BER report concludes that affordable fibre broadband, when made accessible to low-income households, not only enhances employment prospects but also delivers welfare gains and supports broader economic development in South Africa.
