State-owned telecoms infrastructure group Broadband Infraco will soon be R500m better off after state-owned finance institution, the Industrial Development Corporation (IDC), approved an equity investment to that amount.

Broadband Infraco is planning to build a $510m undersea cable network from Cape Town to London, which is designed to lower broadband costs in South Africa, and thereby help to stimulate economic growth.

The IDC, which is ready to make the investment, is said to be looking to acquire a maximum interest of about 25% in the group.