Fibre cable maker Yangtze Optics Africa Cable has opened a R160 million facility — the biggest optical fibre cable manufacturing plant on the continent — at the Dube TradePort special economic zone north of Durban. (Lyse Comins/M&G)
Fibre cable maker Yangtze Optics Africa Cable has opened a R160 million facility — the biggest optical fibre cable manufacturing plant on the continent — at the Dube TradePort special economic zone north of Durban.
YOA Cable is a joint venture between Chinese-owned Yangtze Optical Fibre and Cable Joint Stock Limited Company (YOFC) and JSE-listed Mustek Limited. It moved to the state-of-the-art 14 000m2 factory from a smaller rented facility where it has operated in the zone since 2016.
The company initially invested R150 million to establish a local presence in optical fibre cable manufacturing, YOA Cable chief executive Pieter Viljoen said at the launch.
“This latest strategic move is set to transform our operations, significantly increase production capacity of locally manufactured optical fibre cable and explore new opportunities for growth across the Southern African region,” he said.
The facility has a production capacity of more than three million fibre kilometres annually, the largest in Africa. The company employs 155 people but this will rise to 210 this year, with 25% of newly created positions being learnerships and internships.
Viljoen said the expansion of the facility was in response to the growing demand for high-speed internet connectivity, fuelled by rapid digital transformation across industries, including education, healthcare, e-commerce and government services in the region.
“The growth initiative will enable YOA Cable to tap into new opportunities beyond South Africa, including neighbouring countries where it has previously seen success, and further enhance efforts to contribute towards the country’s skills development efforts in this highly specialised sector,” he said.
He said the company was working with its partners to locally supply the essential material, natural polyethylene, needed to produce its optical fibre cable.
“This is the first locally produced polyethylene product used in the manufacturing of optical fibre cable in South Africa, in more than 20 years,” Viljoen said.
“Local optical fibre cable manufacturing and expertise will enable direct collaboration with telecom operators and fibre network owners to develop fit-for-purpose products supplied cost effectively. In turn, this will be important in expanding broadband access, bridging the connectivity gaps, and particularly providing connectivity in remote and rural areas to enable great economic participation.”
YOFC senior vice-president Jan Bongaerts said optical fibre cable was the “backbone of the modern digital economy” enabling faster internet speeds and improving telecommunications.
“By establishing this plant, we’re not only strengthening South Africa’s position in the global telecom industry, but also ensuring that millions have access to reliable, high speed internet,” Bongaerts said.
“By producing high quality optical fibre cables locally, we are reducing the reliance on imports and ensuring that South Africa, and Africa as a whole, has access to world class infrastructure that will drive progress and inclusivity in the digital economy.”
KwaZulu-Natal economic development, tourism and environmental affairs MEC Musa Zondi said the company had generated R66 million in exports over the past three years and 80% of its maintenance budget supported local businesses.
The expansion marks a pivotal moment in the push towards achieving digital inclusivity, said Yunus Hoosen, the acting deputy director general at the department of trade, industry and competition’s investment promotion agency, Invest SA.
“There are several key drivers behind this investment and the continued growth of the fibre optic sector, including the rapid growth in digital demand,” he said.
He noted that the country had seen an exponential increase in demand for high speed internet connectivity, because of the growing reliance on digital platforms for work, education and entertainment, the expansion of e-commerce, the digital economy and cloud-based services and the rise in the use of data centres.
“Fibre optic cables are the back wall of modern telecommunications as the world moves towards 5G networks, smart infrastructure and the Internet of Things. South Africa must position itself as a key player in the digital economy.”
