Vodacom Group, the Johannesburg-based telecommunications company managed by South African executive Shameel Joosub, has suffered a serious setback in its development strategy after the Competition Tribunal rejected its bid for a 30% interest in Maziv.
The proposed $790.7-million investment aimed to combine Vumatel and Dark Fibre Africa into a single firm under the Maziv umbrella, but regulators raised worries about diminished competition and probable price increases, compromising Vodacom’s expansion plans.
The R14-billion ($790 million) deal was first announced in 2021, with Vodacom planning to invest R6 billion ($338.93 million) in cash and contribute fibre assets valued at R4.2 billion ($237.25 million) for a stake in Maziv, which was founded by Community Investment Ventures Holdings (CIVH), a Remgro subsidiary.
This merger planned to combine the assets of Vumatel and Dark Fibre Africa to become a dominant player in the country’s telecom infrastructure.
Despite the regulatory barrier, Vodacom CEO Shameel Joosub remains hopeful about the company’s long-term objectives, but voiced dissatisfaction with the outcome.
“I am deeply surprised and disappointed by the Tribunal’s decision,” Joosub stated. “South Africa urgently needs substantial investments, particularly in digital infrastructure for lower-income areas. Vodacom will explore all available options to address this regulatory challenge.”
Vodacom Group, managed by CEO Shameel Joosub, has over 200 million users in Africa, with substantial operations in South Africa, Tanzania, the Democratic Republic of the Congo, Mozambique, and Lesotho. The company’s focus on creating digital infrastructure seeks to connect underprivileged regions across the continent.
Vodacom had significant development under Joosub’s leadership, with a 0.09 percent interest in the firm valued at about $9.56 million (R175.1 million), claiming a 26.4 percent increase in sales to R150.59 billion for the fiscal year ended March 2024.
Although the Competition Tribunal’s decision to ban Vodacom’s 30% acquisition of Maziv raises regulatory concerns, it also demonstrates Vodacom’s commitment to lead Africa’s fibre and digital sectors. Despite this setback, Vodacom remains committed to its strategic goal of increasing connectivity and digital presence across the continent.
