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

Vodafone Uganda Files for Bankruptcy

Article Image
The Vodafone brand has taken a knock with the news that Vodafone Uganda has filed for bankruptcy protection and appointed administrators as it struggles to remain in business.

The operator, owned and run by the Afrimax Group that licenses the Vodafone brand to offer services in Uganda, has run into financial difficulties and filed for protection against its creditors.

Vodafone Uganda tried to build a business by focusing on 4G-enabled mobile data services, but with competition tough in the Ugandan market it has struggled to make inroads and announced that it will be "embarking on a new strategy that will involve a significant realignment of its commercial focus and operational model," for which it has needed to appoint an administrator to restructure the business. "The appointment of a Provisional Administrator is a standard business practice that aims to improve the fortunes of a company facing financial or administrative challenges," it added.

And the bad news doesn't end there for the operator. Having already experienced service disruptions towards the end of last year and early in 2018, Vodafone Uganda issued a note to its customers saying that they are likely to "experience a temporary deterioration in the quality of our network services as the Administrator implements the required changes and negotiates with suppliers. We apologise in advance for any disturbances and inconveniences caused and reassure all customers that any unused data will be reimbursed once our network is fully restored. We will keep customers updated on all progress as and when our services are restored."

The signs are not hopeful for the long-term survival of the operator. According to the latest statistics from research house Ovum, the six operators in Uganda between them have almost 23 million customers, but the market is dominated by clear leaders MTN and Airtel, which between them have more than 19.5 million customers (equivalent to 86% of the market). Vodafone Uganda, by contrast, has a market share of just 1.6% and lost market share and customers in the final quarter of 2017.

It seems likely the market will soon have fewer service providers.

— Ray Le Maistre, Editor-in-Chief, Light Reading for Connecting Africa.

Innovation hub

Story

Moya super app takes aim at SA fintech market

Super app Moya's fintech platform, MoyaPay, aims to be South Africa's most widely used mobile money payments platform.

Story

Hot startup of the month: Kenya's Shamba Pride

This month's hot startup, Shamba Pride, wants to revolutionize the rural agricultural trade ecosystem in Kenya by transforming agro-dealers into franchised 'DigiShops.'

More Innovation hub

Guest Perspectives

Story

Omdia View: April 2022

By Omdia Analysts

This month's Omdia View highlights indicate a shift to digital transformation and operational consolidation to maximize return on investments.

Story

Omdia View: March 2022

By Omdia Analysts

This month's Omdia summary of the biggest stories in the Middle East and Africa focuses on SA's spectrum auction and new submarine cables landing in Kenya and Togo.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Flash poll

All polls

Latest video

More videos

Archived webinars

Boosting Customer Experience in the Digital Age

From the first interaction to the last payment: convert leads into clients, drive loyalty and grow your bottom line.

The digital age has ushered in a new era of customer engagement. Consumer demands and expectations are higher than ever – where an affordable but seamless online experience is now the norm.

At a time when competition for your customers is fierce, ensuring a client journey that is tailored to their needs has never been more important. The ability to build these bespoke offerings starts with understanding, and that understanding is built on data.

This webinar will explore how gathering insight is key to growing and retaining a strong customer base; we’ll unpack how CRM platforms, mobile payment, lead capture, and online marketing are key factors in building a successful 21st Century digital business.

  • Customer Experience – understanding consumer expectations of today
  • What easy steps can you take to provide a complete, immersive digital customer experience?
  • How to leverage modern digital tools to build customer loyalty

More Webinars

Sponsored video

More videos

AfricaCom perspectives

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

Story

Accelerating women in STEM: In conversation with GirlCode's Tinyiko Simbine

GirlCode co-founder and CFO Tinyiko Simbine talks about why it's important to help girls and young women excel in science, technology, engineering and mathematics (STEM) fields.

Story

How Poa Internet is unlocking meaningful connectivity in East Africa

Poa Internet's CEO Andy Halsall shares his views on what it takes to develop last-mile connectivity and get Africans online in a meaningful way.

More AfricaCom perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up