South Africa's flagship broadband initiative, SA Connect phase 2, was effectively frozen for most of the 2025/2026 financial year after expected funding of R1.1-billion collapsed to just R116-million due to delays in financial reporting system changes and approval processes. Funds only became available in January 2026, and equipment sourced from overseas was further delayed by Middle East conflict, arriving only in March. The department underspent its budget, achieving 63% of annual targets in Q3 and 81% in Q4. Despite the setbacks, 7,397 public facilities were connected during the year, and Wi-Fi deployment reached 101% of its goal through a social obligations programme funded by commercial telecoms operators.
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