Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

4G/5G

Vodacom Selling Enterprise Operations in 5 African Markets

Article Image
The Vodacom Group is selling out of its enterprise businesses in Nigeria, Zambia, Angola, Ghana and Cote d'Ivoire

Vodacom said on Friday that it is undertaking a strategic repositioning of its Vodacom Business Africa operations that will result in three separate share purchase agreements involving its enterprise businesses in the five countries.

"Subject to various regulatory and statutory body approvals, Vodacom will enter into service provider agreements with Synergy Communications in Nigeria, Zambia and Cote d'Ivoire; Internet Technologies Angola (ITA) in Angola and Vodafone Ghana in Ghana," it said in a statement.

The South Africa-based mobile operator said that in each market its partners will acquire all of the operations and assets held by Vodacom.

"The transactions support Vodacom Group's enterprise strategy in Africa, which has been refocused to grow and strengthen its core business. It will no longer directly service global enterprise customers in these five markets but will instead continue to operate as a pan African telecommunications network provider through local service provider agreements," the group said.

"Vodacom has a clear vision for strengthening our position as a leading pan-African business and will work with local service providers to grow in these markets," added Vodacom Group CEO Shameel Joosub.

"Crucially, Vodacom is not exiting any of the territories related to this transaction and remains focused on continuing to deliver exceptional service to our global and multinational clients in these markets through long-term commercial agreements."

Vodacom Group CEO Shameel Joosub
Vodacom Group CEO Shameel Joosub

Vodacom has over the years grown its mobile network business to include operations in Tanzania, the Democratic Republic of the Congo, Mozambique and Lesotho with over 110 million customers if you also include its almost 35% stake in Kenya's Safaricom.

However, through Vodacom Business Africa the group offers business managed services to enterprises in 50 countries.

"To support the sustainable growth of pan-African digital economies and building connected societies, Vodacom will, via local service providers, continue to service clients in each market. We seek to leverage our collective strengths to meet the changing requirements of clients across each of these markets. Joosub added.

Vodacom says the various entities are in the process of concluding the required agreements, the financial terms of which are confidential.

Vodacom believes its new model is better suited to the digital economy and will encourage greater local collaboration.

"It will also provide pan-African customers with the opportunity to access specialist business divisions such as Vodacom's Internet of Things business as well as its subsidiary Mezzanine, a Mobile Business and Enterprise Solutions provider," the group said.

Synergy Communications is an enterprise and wholesale service provider, which amalgamates fixed and wireless technologies across sub-Saharan Africa. It currently has operations in Botswana, Malawi and Mozambique. Synergy Communications is a subsidiary of prominent South African businessman Andile Ngcaba's investment firm, Convergence Partners.

ITA was founded in 2005 and has grown to be the largest independent enterprise telecommunications provider in Angola. It offers an integrated set of solutions including Internet and MPLS connectivity, cloud services, data center service and voice. Vodafone in Ghana is an operating company of Vodafone Group Plc. Vodacom is over 60% owned by the UK's Vodafone.

Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Five mobility startups to watch in 2024

Connecting Africa has compiled a list of five mobility startups that are making a difference in the communities they serve.

Story

Orange Ventures, Digital Africa promise more funding for startups

Orange Ventures and Digital Africa are teaming up to invest more in tech startups in Africa and the Middle East through Digital Africa's Fuz program and the Orange Digital Center network.

More Innovation hub

Latest video

More videos

Partner perspectives

All Partner Perspectives

Sponsored video

More videos

Follow us on X

Industry announcements

More Industry announcements

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives

Story

Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.

Story

The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Guest Perspectives

Story

How e-mobility could transform Africa's transport sector

By Francis Hook

ICT analyst Francis Hook delves into Africa's e-mobility sector and unpacks the challenges faced locally and the benefits the move to electric vehicles could bring to urban transport systems.

Story

Omdia View: April 2024

By Omdia Analysts

April 2024's telecoms highlights in the Middle East and Africa included a license for Starlink in Ghana, new mobile termination rates in Ethiopia, and 6G trials in Bahrain – that and more in the latest Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up
Tag id test-002