Business
Vodacom Pushes for R13 Billion Deal to Expand Fibre Access and Bridge South Africa’s Digital Divide

Vodacom is making waves in South Africa’s telecom sector as it pushes for a R13 billion deal that would significantly boost fibre access across the country. The company is appealing the Competition Tribunal’s decision to block its proposed acquisition of a joint stake in Maziv, a subsidiary of Community Investment Ventures Holdings (CIVH).
CEO Shameel Joosub argues that this acquisition, which could see Vodacom take a 30% to 40% stake in Vumatel and DFA, is a crucial step towards closing South Africa’s digital divide. With plans to invest R10 billion into fibre rollout in underserved areas, the deal is expected to drive economic growth and increase connectivity for millions of South Africans.
Vodacom’s Growing Financial Footprint
In the operational update for the quarter ending December 31, 2024, Vodacom reported impressive growth across its markets. While the overall group service revenue dropped slightly by 1.4%, the South African business saw a positive 3.2% growth. The group’s service revenue, excluding currency fluctuations, accelerated to 11.6%, surpassing its medium-term target.
Vodacom’s performance was particularly strong in Egypt and Tanzania, and the company’s capital expenditure plans remain robust. Vodacom invested R3.2 billion in the quarter and expects to invest between R11.0 and R11.2 billion for the financial year. This ongoing investment is expected to further enhance the customer experience and support the company’s long-term growth strategy.
International Expansion and Strong Demand for Digital Services
Egypt has become a standout performer for Vodacom, with service revenue reaching R6.8 billion. The company’s commercial momentum in Egypt was driven by a 40.7% increase in financial services customers and a 25.6% rise in data traffic. Vodacom’s ambition is clear—expand its customer base to connect the next 100 million Africans to the digital economy.
Financial services, which now contribute significantly to Vodacom’s revenue, continued to thrive, processing a staggering US$1.2 billion in daily mobile money transactions. These numbers highlight the massive scale of Vodacom’s operations and its commitment to addressing financial inclusion across the continent.
The Road Ahead: Digital Infrastructure and Economic Value
Looking ahead, Vodacom is confident that executing its strategy will unlock immense economic value in its markets, particularly in South Africa. Through expanded access to smartphones, financial services, healthcare, and education, Vodacom aims to combat inequality and help build a more inclusive digital economy.
The R13 billion deal, despite the regulatory challenges, remains a pivotal move for Vodacom as it strives to accelerate fibre deployment and digital infrastructure in South Africa. The support of industry figures like MTN’s Ralph Mupita further underscores the significance of this deal in transforming the country’s digital landscape.
As Vodacom continues to advocate for the deal, the company’s strategic vision remains clear: invest in infrastructure that will foster long-term growth, enhance customer experiences, and contribute to the broader development of South Africa’s digital economy.
Vodacom’s R13 billion appeal is not just about a financial transaction; it’s a critical step toward closing the digital divide and fostering economic development. As the company pushes for approval, the potential benefits of expanded fibre access, increased investment in low-income areas, and the continued growth of its digital services business could have a lasting impact on the telecom landscape in South Africa.
Major Twist in Vodacom’s R13 Billion Fibre Deal: Government Appeals Tribunal Block
Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram
For more News in Johannesburg, visit joburgetc.com