- Vodafone Group developed a business tailor-made to deal with Africa’s rising digital economy
- Etisalat, Vodafone’s largest shareholder, is currently exploring options for investment in Vodacom Africa.
- A decision to divest assets in a specific market or sell a stake in Vodacom Africa to fund new projects is also on the table
Vodafone Group is mulling strategies of extracting more value from its 65% stake in Vodacom Africa. According to Bloomberg, the telco is working with several advisers to evaluate the various strategic options available including mergers and acquisitions. A decision to divest assets in a specific market or sell a stake in Vodacom Africa to fund new projects is also on the table With the recent decline in Vodacom Africa and its market value in Safaricom, the organization is considering other alternatives.
This new take is crucial given that Vodafone has acquired new interested investors. Liberty Global, Xavier Niel, and Emirates Telecommunications Group have each openly expressed their interest in helping Vodafone in future projects. It is still, however, unclear about its stake in Safaricom and Vodacom Africa. Nevertheless, the organization stated that between both assets, the latter is a vital component in its overall operations.
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Furthermore, Etisalat, Vodafone’s largest shareholder, is currently exploring options for investment in Vodacom Africa. This includes buying out Vodafone. Vodafone has also stated it is not against a merger with Vodacom Africa to improve its place in Africa’s market.
The Vodafone brand
In 2001, Vodafone introduced the concept of a Partner Network. This led to the introduction of Vodafone International services to the local market. This new concept extended its brand throughout the globe without the need for investments. As a result, it became one of the most lucrative organizations.
Later on, in 2010, Vodafone took note of Africa’s mobile industry and its potential to boost its digital economy. Those revelations led to the creation of Vodacom Africa, Vodafone’s African-based organization that would eventually dominate its respective market.
Vodafone Group developed a business tailor-made to deal with Africa’s rising digital economy and have the necessary tools, incentives and approach to capitalize on it.
This branch of the Vodafone group currently has establishments in the following countries; Democratic Republic of Congo, Ghana, Kenya, Lesotho, Mozambique, South Africa and Tanzania
In 2015 the group established a Middle East & Africa headquarters in Dubai. UEA also approved of their goals and supported the organization by aiding their operations throughout the entire region.
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Vodacom Africa’s headquarters is in Johannesburg, South Africa and is currently one of the top mobile communications companies in the region. Aside from assisting Africa’s mobile industry the corporate also invested in a tier 1 internet capability which has gradually improved Africa’s digital economy. In addition, it has also gated a national MPLS VPN boosting its efficiency and security.
Despite the uncertain atmosphere, it remains a fact that Africa’s mobile Industry and Digital Economy is about to gain significant contributor. The already growing market is steadily increasing its revenue, and we might see more competitors pouring into Africa’s ecosystem.
