Vodacom Group has announced a strategic repositioning of its Vodacom Business Africa operations that will result in three separate share purchase agreements involving its enterprise businesses in Nigeria, Zambia, Angola, Ghana and Cote d’Ivoire. 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.
In each of the five Vodacom Business Africa markets, the
respective partners will acquire all of the operations and assets held by
Vodacom. The various entities are in the process of concluding the required
agreements, the financial terms of which are confidential.
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.
Shameel Joosub, CEO of Vodacom Group, says: “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.
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. 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.”
Vodacom went through a robust and lengthy process with
numerous interested applicants to find the right partners to reposition its
business on the continent. Synergy Communications and ITA were selected as the
successful bidders, amongst other reasons, for their wealth of pan African
experience.
The new model is better suited to the digital economy. It
will encourage greater local collaboration and position Vodacom as one of the
leading drivers of economic growth on the continent. 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.
