Vodacom
View on WikipediaVodacom Group Limited is a South African mobile communications company, providing voice, messaging, data and converged services to over 130 million customers across Africa.
Key Information
From its roots in South Africa, Vodacom has grown its operations to include networks in Egypt, Tanzania, the Democratic Republic of the Congo, Mozambique, and Lesotho, and provides business services to customers in over 32 African countries, including Nigeria, Zambia, Angola, Kenya, Ghana, Côte d'Ivoire, and Cameroon.[2][1]
History
[edit]
It was owned in a 50/50 partnership by the South African telecommunications giant Telkom and British multinational operator Vodafone.[4] On 6 November 2008, Vodafone announced that it had agreed to increase its stake to 64.5%, and Telkom said that it would spin off its remaining holding by listing it on the Johannesburg Stock Exchange (JSE).[2][5] On 1 April 2011, Vodacom officially unveiled its new change in branding from blue to red, using the same style as its parent company, Vodafone.[6]
Vodacom provides coverage to Mount Kilimanjaro, which was the highest point in the world to be covered by GSM, until Axiata (through its subsidiary Ncell) provided coverage at the top of Mount Everest, the highest point in the world. Vodacom was aided by its optimistic advertisements at the early stages of the democratic South Africa, including the yebo gogo campaign which is still in effect today in Africa. Vodacom is the leading cellular network in South Africa with a market share of over 40% and more than 45 million users.[7] The company has an estimated market share of 58% and more than 103 million customers across Africa.[8]
In 2021, Vodacom proposed a merger with fibre group Maziv.[9] In October 2024, the South African Competition Tribunal blocked the proposed merger.[10] In November 2024, Vodacom said it would not look into other M&A deals.[11]
In August 2025, Vodacom announced that it had made South Africa's first native call over 5G. The call used Vodacom’s Single Packet Core, and was made using Vodacom's test network - a step towards the company officially rolling out native 5G call services in SA.[12]
In the same month, Vodacom's proposed acquisition of a 30% to 34.95% shareholding in fiber network operator Maziv (the parent company of Vumatel and Dark Fibre Africa), was approved by the South African Competition Appeals Court.[13]
The Court set aside the order of the Tribunal that prohibited the merger. However, on top of existing terms that were proposed, to limit anti-competitiveness in the South African fiber market, additional concessions were agreed upon to limit Vodacom’s influence over Maziv, and expand the former's capital expenditure commitments.[13]
Technology
[edit]Vodacom South Africa provides 3G, 4G, and UMTS networks in South Africa, and also offers HSPA+ (21.1 Mbit/s), HSUPA (42 Mbit/s, 2100 MHz), Wi-Fi, WiMAX, and LTE services. Vodacom was the first cellular provider to introduce LTE in South Africa.[14] On 21 October 2015, Vodacom launched its fibre product to the home user.[15] On 7 April 2017, Vodacom's 4G+ network in Brooklyn Mall, Pretoria achieved 240 Mbit/s in a speed test.[16] In early 2020 Vodacom also became the second network operator in Africa to launch a live 5G network, initially available in Johannesburg, Pretoria and Cape Town.[17]
Member companies
[edit]As at March 2023, the companies that comprised the Vodacom Group include, but are not limited to the following:
| Name of member company | Vodacom Group's
ownership (%) |
Country | No. of
employees |
No. of
customers |
Ref |
|---|---|---|---|---|---|
| Vodacom (Pty) Ltd | 100 | South Africa | 5,007 | 44,200,000 | [2] |
| VM, SA | 85 | Mozambique | 530 | 10,700,000 | [2] |
| Vodacom Lesotho (Pty) Ltd | 80 | Lesotho | 209 | 1,700,000 | [2] |
| Vodacom Tanzania Ltd | 75 | Tanzania | 537 | 16,700,000 | [2] |
| Vodafone Egypt Telecommunications S.A.E. | 55 | Egypt | Unavailable | 45,500,000 | |
| Vodacom Congo (RDC) s.p.r.l. | 51 | DRC | 578 | 21,000,000 | [2] |
| Safaricom | 34.94 | Kenya | 6,477 | 43,900,000 | [18] |
| Safaricom Telecommunications Ethiopia | 6.20 | Ethiopia | Unavailable | 2,100,000 | [19] |
Ownership
[edit]The shares of Vodacom Group are listed and traded on the JSE, under the ticker symbol: VOD. The shareholding in the group's stock was as depicted in the table below in May 2022.[20]
| Name of owner | Shareholding (%) |
|---|---|
| Vodafone Investments SA (Pty) Ltd | 65.1 |
| Government Employees Pension Fund (GEPF),
wholly owned by South African Government |
13.54 |
| YeboYethu Investment Company (Pty) Ltd | 6.23 |
| Wheatfield Investments 276 (Pty) Ltd | 0.84 |
| Institutional investors | 15.76 |
| Retail positions | 2.96 |
| Others | 0.17 |
| Total | 100.00 |
Institutional investors include, in order of held stock, the Public Investment Corporation (also known as PIC, wholly owned by the South African Government), Lazard (US), Blackrock (US), The Vanguard Group (US), Government of Singapore Investment Corporation (also known as GIC, Singapore), Old Mutual (ZA), Abax (ZA), Sanlam (ZA), and State Street Global Advisors (US).[2]
Sports sponsorships
[edit]This article needs additional citations for verification. (June 2022) |
Vodacom is a sponsor of many South African sports.
In provincial rugby union, they are the sponsors of the Pretoria-based Vodacom Blue Bulls and own the naming rights to the union's home stadium, Loftus Versfeld.
As part of their rugby union sponsorship portfolio, Vodacom has been the title sponsor of the Super Rugby tournament in South Africa since 1996.
In football, they sponsor two clubs in the Premier Soccer League: the Kaizer Chiefs and Orlando Pirates. They also sponsor the South African Football Association and the national teams Bafana Bafana (men), Amajita (under 20s), and previously Banyana Banyana (women). However, competitor MTN was one of the sponsors of the 2010 FIFA World Cup held in South Africa.
Past sponsorships include the national rugby union team, the Springboks, from 1994 to 2017, and the South African Shelby Can-Am series between 2000 and 2005.
Controversies
[edit]JSE listing
[edit]On May 17, 2009, a court dismissed a joint Congress of South African Trade Unions (COSATU) and ICASA application to stop Vodacom's JSE listing. Chegoane Mabelane, the South African article writer and prominent supporter of both African National Congress (ANC) and its alliance; in one of his articles stated that the interdict to stop the listing was fair.[21]
In January 2010, the Sunday Times alleged that Alan Knott-Craig (Senior), former Vodacom CEO, helped his son, Alan Knott-Craig with business ventures using Vodacom's resources. He also allegedly awarded a multimillion-rand contract to a marketing and advertising company run by his family members.[22][23][24]
"Please Call Me"
[edit]In 2008, former employee Nkosana Makate took Vodacom to court, claiming that the profitable "Please Call Me" message service was originally his invention and demanding compensation. Eight years later, Makate eventually won his case in the Constitutional Court. Makate then entered negotiations with Vodacom for a 15% cut of the R70 billion ($4.74 billion) he claims "Please Call Me" has earned for Vodacom since its inception.
A 2014 judgement in the South Gauteng High Court supported Makate's claim to having originated "Please Call Me." The court heard that, in November 2000, Makate had shared his idea (initially termed the "buzz" idea) with Philip Geissler, then board member and director of product development and management at Vodacom. Geissler had agreed to give Makate a cut should the "Please Call Me" innovation prove a success (however, there was no such agreement, written, oral, or implied – and no evidence to support it). Makate's witnesses presented emails sent by Geissler (Geissler was never called to testify by either party, raising suspicion that both parties would not have benefited from what Geissler would say under oath) and an article in Vodacom's "Talk Time" internal newsletter (such newsletter was written, edited, and printed by a third party in Cape Town) which acknowledged and praised Makate for his idea and his contribution to the product.[25]
The court also rejected former CEO Alan Knott-Craig's claim that he had come up with the idea. Knott-Craig had published the claim in his autobiography, and later repeated in court, that he had the idea while watching two security guards trying to communicate on phones without airtime.[26] Yet the High Court found against Makate's claim for compensation, holding Vodacom's argument that Geissler had not had the authority to promise Makate such compensation and that the debt would have expired (in legal terms, been prescribed) within three years.[25]
Makate took the case on appeal, and then took it to the Constitutional Court. In April 2016, Justice Chris Jafta found in Makate's favour and against Vodacom, overturning both judgements by the High Court, finding that Geissler had the authority to promise compensation, and that Makate's case was not based on an unpaid debt. In Jafta's words: “In not compensating the applicant [Makate] [….] Vodacom associated itself with the dishonourable conduct of its former CEO, Mr Knott-Craig and his colleague, Mr Geissler, and this leaves a sour taste in the mouth. It is not the kind of conduct to be expected from an ethical corporate entity.”[27]
In an open letter to Makate on Facebook, civic society non-profit Right2Know congratulated Makate. Right2Know used the letter to draw attention to the hypocrisy of multinational corporations which claim to support young black South African innovators such as Makate, but whose anti-competitive practices often strangle meaningful innovation. The letter also drew attention to the fact that South Africa's telecommunications duopoly (Vodacom–MTN) had led to the kind of unaffordable tariffs which made the "Please Call Me" service so successful with impoverished consumers in the first place.[28]
Neotel attempted takeover
[edit]In October 2013, Vodacom announced it would be acquiring Neotel in a potential US$590 million deal.[29] Even though regulatory approval by the Independent Communications Authority of South Africa (ICASA) was obtained in 2015, the deal ultimately collapsed in March 2016 after competitors successfully challenged the transfer of Neotel's licenses and spectrum to Vodacom in court.[30][31]
Smartphone launches
[edit]Vodacom launched iPhone 7 in South Africa on 14 October 2016.[32][33] It launched the iPhone Xs and Xs Max on 28 September 2018 starting at R21,999 ($1,650) on a 24 month contract.[34]
The Samsung Galaxy S8 was officially launched on 5 May 2017.[35]
In 2017, TechCrunch reported that Vodacom partnered with GameMine in a $20 million deal to install subscription-based mobile games on Vodacom's smartphones.[36]
See also
[edit]References
[edit]- ^ a b "News releases | Vodacom Group". www.vodacom.com. Retrieved 2021-09-15.
- ^ a b c d e f g h i j k l "Vodacom Consolidated Financial Report 2018" (PDF). 31 March 2018. Archived (PDF) from the original on 25 October 2018. Retrieved 24 October 2018.
- ^ "Vodacom Integrated Report 2018" (PDF). 31 March 2018. Archived (PDF) from the original on 25 October 2018. Retrieved 24 October 2018.
- ^ "Telkom boosted by Vodacom figures". 14 November 2005. Archived from the original on 2018-07-19. Retrieved 2020-09-01.
- ^ Stewart, Robb M. (2008-11-07). "Vodafone Seeks Majority Control of Vodacom". The Wall Street Journal. ISSN 0099-9660. Archived from the original on 2018-11-20. Retrieved 2020-09-01.
- ^ "Vodacom goes red, restructures its business - TechCentral". TechCentral. 2011-04-01. Archived from the original on 2017-08-31. Retrieved 2017-08-31.
- ^ "Vodacom vs MTN vs Telkom vs Cell C — biggest mobile network battle". MyBroadband. 8 January 2023. Retrieved 8 January 2023.
- ^ "Vodacom adds 4.5 million more customers". IOL. 2018-05-14. Archived from the original on 2018-08-08. Retrieved 2018-08-08.
- ^ "South Africa's CompCom says no to Vodacom-MAZIV deal". www.connectingafrica.com. Retrieved 2024-11-12.
- ^ Dludla, Nqobile (29 October 2024). "South Africa's Competition Tribunal blocks Vodacom's merger with Maziv". Reuters. Retrieved 12 November 2024.
- ^ Parakozov, Sfundo (11 November 2024). "Vodacom not looking for other M&A deals after blocked Maziv merger". Reuters. Retrieved 12 November 2024.
- ^ Jan Vermeulen (7 August 2025). "Vodacom makes first native 5G call in South Africa". MyBroadband. Retrieved 9 August 2025.
- ^ a b Daily Investor (15 August 2025). "Vodacom-Maziv R13 billion deal gets the greenlight". Daily Investor. Retrieved 16 August 2025.
- ^ "Vodacom Integrated report 2015" (PDF). Vodacom Group. Archived from the original (PDF) on 2015-08-14. Retrieved 2016-04-05.
- ^ "Fibre to the Home launches". Vodacom now. 21 October 2015. Archived from the original on 13 April 2017.
- ^ "Vodacom clocks 240Mbs on 4G+ network". itweb.co.za. 7 April 2017. Archived from the original on 13 April 2017.
- ^ "Vodacom launches 5G in three South African cities". RCR Wireless News. 2020-05-05. Retrieved 2020-12-24.
- ^ "Vodacom Group 2014 Annual Report" (PDF). Vodacom Group. March 31, 2014. Archived from the original (PDF) on December 31, 2014. Retrieved December 31, 2014.
- ^ Muiruri, Kepha (25 May 2021). "Safaricom to commence operations in Ethiopia next year". Citizen Digital. Citizen TV. Retrieved 25 May 2021.
- ^ "Who Really Owns Vodacom". My Broadband. May 2022. Retrieved 6 October 2022.
- ^ "Interdict to stop listing was fair". Archived from the original on 2017-04-12. Retrieved 2018-06-01.
- ^ Knott-Craig denies any wrongdoing at Vodacom Archived 2010-01-21 at the Wayback Machine M&G
- ^ Knott-Craig hits out at claims Archived 2010-01-22 at the Wayback Machine News24
- ^ 2nd is Nothing - Creating a Multi-Bilion Rand Cellular Industry by Alan Knott-Craig with Eunice Afonso - 2009 Archived 2012-03-20 at the Wayback Machine Business Day
- ^ a b "Makate v Vodacom (Pty) Limited (08/20980) [2014] ZAGPJHC 135 (1 July 2014)". www.saflii.org. 2014-07-01. Archived from the original on 2015-09-02. Retrieved 2016-04-28.
- ^ Knott-Craig, Alan; Afonso, Eunice (2009). Second is nothing: creating a multi-billion rand cellular industry. Johannesburg: Pan Macmillan.
- ^ "How Nkosana Makate won the Please Call Me case". moneyweb.co.za. 2016-04-28. Archived from the original on 2016-04-28. Retrieved 2016-04-28.
- ^ "AN OPEN LETTER TO NKOSANA MAKATE ON HIS VICTORY AGAINST VODACOM 28/4/2016". facebook.com. 2016-04-28. Archived from the original on 2016-03-26. Retrieved 2016-04-28.
- ^ South Africa's Vodacom looks to boost data with Neotel purchase, International: Reuters, 2013, archived from the original on 2015-09-24, retrieved 2017-07-03
- ^ "Vodacom abandons bid to buy Neotel". Archived from the original on 2016-08-27. Retrieved 2016-08-16.
- ^ "Vodacom, Neotel merger deal collapses". Archived from the original on 2016-08-22. Retrieved 2016-08-16.
- ^ Staff Writer. "Apple iPhone 7 registrations on Vodacom". Mybroadband. Mybroadband.com. Archived from the original on 7 October 2016. Retrieved 6 October 2016.
- ^ Venktess, Kyle. "iPhone 7 and 7 Plus available for pre-order now". Fin24. Fin24.com. Archived from the original on 8 October 2016. Retrieved 7 October 2016.
- ^ "Apple iPhone Xs – Vodacom contract prices". MyBroadband. 28 September 2018. Archived from the original on 26 October 2018. Retrieved 25 October 2018.
- ^ "Samsung Galaxy S8 – Launch Date and Price for South Africa". My Broadband. 29 March 2017. Archived from the original on 1 April 2017.
- ^ "Game publisher GameMine inks a $20 million partnership with South Africa's Vodacom". TechCrunch. 30 June 2017. Archived from the original on 14 January 2018. Retrieved 13 January 2018.
External links
[edit]Vodacom
View on GrokipediaOrigins and Historical Development
Inception and Initial Operations (1994–2000)
Vodacom was established in 1993 as a joint venture between South Africa's state-owned Telkom (holding 50%), the United Kingdom's Vodafone (35%), and Venfin Limited (15%), a company associated with South African entrepreneur Johann Rupert.[9][10] This partnership aimed to develop and operate a cellular network amid South Africa's transition to democracy, with Telkom providing infrastructure expertise and Vodafone contributing international GSM technology know-how.[11] In 1993, Vodacom received a license from the South African government to deploy the country's first GSM-based cellular network, positioning it as a pioneer in mobile telecommunications on the continent.[11] Commercial operations commenced on 1 June 1994, with the first base station activated in Pretoria, shortly after South Africa's inaugural democratic elections.[12] An initial limited switch-on in March 1994 had already drawn over 24,000 users, reflecting pent-up demand for mobile services in a nation previously reliant on fixed-line telephony controlled by Telkom.[13] Vodacom supported the 1994 elections by providing communication infrastructure, underscoring its role in national events from inception.[14] Early operations focused on rapid network expansion, achieving a rollout rate of two base stations per day in 1994 and extending coverage across more than 3,000 kilometers of South African territory within the first year.[13] Services initially centered on mobile voice calls using GSM technology, which offered superior capacity and quality compared to analog systems. By the end of 1994, the network connected approximately 10,000 customers, surpassing modest initial expectations.[11] Subscriber growth accelerated dramatically through the late 1990s, driven by falling handset prices, prepaid billing innovations, and increasing urbanization. Original projections anticipated only 250,000 subscribers after a decade, yet Vodacom exceeded 3 million users by 2000, capturing a dominant market share in South Africa's nascent cellular sector.[9][15] This expansion was fueled by investments in spectrum-efficient GSM infrastructure and partnerships with retailers for distribution, establishing Vodacom as the leading operator ahead of competitors like MTN. Operations remained confined to South Africa during this period, with emphasis on voice services and basic connectivity to underserved areas under government mandates.[16]Growth in South Africa and Early Expansion (2001–2010)
During the early 2000s, Vodacom experienced substantial subscriber growth in its core South African market, expanding from 5.1 million customers as of 31 March 2001 to 12.8 million by the end of the 2005 financial year, reflecting a 32% year-on-year increase in the latter period.[17][18] This growth was driven by rising mobile penetration, prepaid service adoption, and network expansions, with subscribers surpassing 10 million in 2004.[9] By mid-2006, the base reached 20.38 million, marking a 42.63% annual rise, and further climbed 20.1% to 23 million by 2007, sustaining Vodacom's position as the market leader with approximately 55% share of connections as of 2008.[19][20][21] Vodacom invested heavily in infrastructure during this decade, including the rollout of 3G services and data offerings like Vodafone Live! launched in South Africa in 2005, which supported diversification beyond voice into mobile internet amid intensifying competition from MTN and the entry of Cell C in 2001.[9] Non-South African operations, primarily in Lesotho and Tanzania, also contributed to overall expansion, growing from about 2.7 million customers in 2005 to 7.1 million by 2007, representing early footholds in regional markets.[18][20] A pivotal corporate milestone occurred in 2008 when Vodafone acquired an additional 15% stake in Vodacom for 22.5 billion rand, increasing its ownership to 65% and paving the way for Vodacom Group's independent listing on the Johannesburg Stock Exchange on 18 May 2009.[22][23] This unbundling from Telkom enabled greater strategic autonomy, including the acquisition of Gateway Telecommunications in December 2008, which bolstered international connectivity across 40 African countries without direct subscriber additions.[24] By the end of the 2010 financial year, these developments positioned Vodacom for further pan-African scaling while solidifying its South African dominance, with total group customers exceeding 30 million.[25]Pan-African Expansion and Key Milestones (2011–2020)
During the 2011–2020 period, Vodacom deepened its presence in existing Pan-African markets, including Tanzania, the Democratic Republic of Congo (DRC), Mozambique, and Lesotho, through network upgrades and the rollout of advanced services rather than major new-country entries. The company focused on enhancing connectivity infrastructure to support growing data demand, with international operations contributing increasingly to group revenue amid rising mobile penetration in these regions. Customer bases in these subsidiaries expanded significantly, driven by affordable data bundles and prepaid services tailored to low-income populations.[26] A pivotal technological milestone was the deployment of 4G LTE networks across international operations, starting with pilots and commercial launches that improved speeds and capacity. In Tanzania, Vodacom Tanzania initiated 4G LTE services in Dar es Salaam on June 10, 2016, marking the first such rollout in the country and targeting urban users for high-speed internet access.[27] Similar expansions followed in DRC and Mozambique, enabling better support for video streaming and mobile commerce, though coverage remained concentrated in urban and semi-urban areas due to infrastructural challenges like terrain and power instability. These upgrades aligned with spectrum allocations and investments exceeding billions of rands, boosting data usage and ARPU in international segments.[11] Financial services emerged as a growth driver, with M-PESA adaptations expanding remittances, payments, and microloans in subsidiaries. By 2017, M-PESA had scaled in Tanzania and Lesotho, processing millions of transactions and integrating with agent networks to reach unbanked users, though adoption varied due to regulatory hurdles and competition from local alternatives.[28] In DRC, M-PESA launched around 2016–2018, facilitating cross-border transfers amid economic volatility. A strategic investment milestone occurred in 2017 when Vodacom acquired a 35% stake in Kenya's Safaricom, enhancing its East African footprint through an associate company renowned for M-PESA innovation and providing indirect access to Kenya's 40+ million subscribers.[26] By 2020, amid the COVID-19 pandemic, Vodacom restructured its international enterprise units, divesting non-core business operations in select markets like Nigeria, Zambia, and Côte d'Ivoire to Synergy Communications (via Convergence Partners) on May 12, 2020, to streamline focus on consumer mobile and digital services.[29] This period saw international revenue grow to represent about 30% of group total, with milestones underscoring Vodacom's shift toward data-centric, inclusive connectivity in Africa despite geopolitical and economic risks in volatile markets like DRC.[30]Recent Developments and Strategic Shifts (2021–Present)
In November 2021, Vodacom Group announced an agreement to acquire a 55% stake in Vodafone Egypt from Vodafone Group for an equity consideration of approximately R48.1 billion, marking its largest-ever transaction and a significant expansion into North Africa.[31] The deal was completed on December 13, 2022, integrating Vodafone Egypt's operations—serving over 46 million customers—into Vodacom's portfolio and bolstering its pan-African presence amid efforts to diversify beyond South Africa.[32] This acquisition contributed to revenue surges, including a 35.5% group revenue increase in the interim period ending September 2023, driven by Egyptian service growth and synergies in financial services and data offerings.[33] A key infrastructure shift materialized in August 2025, when South Africa's Competition Appeal Court approved Vodacom's acquisition of a 30% stake in fiber network operator Maziv for around R13-14 billion, overturning an earlier prohibition by the Competition Tribunal.[34] [35] The merger, initially announced in 2022 and delayed by regulatory scrutiny over market concentration, enables accelerated fiber rollouts targeting underserved areas, enhancing broadband access and supporting Vodacom's pivot toward fixed-line and digital infrastructure amid rising data demand.[36] This aligns with broader investments in non-mobile services, including expanded agent networks for financial products, which drove second-half FY2025 performance despite macroeconomic headwinds like South African energy shortages.[37] On February 19, 2025, Vodacom unveiled its Vision 2030 strategy, evolving from the prior Vision 2025 framework to target double-digit EBITDA growth—up from high single-digits—through scaled connectivity, financial services expansion, and partnerships.[38] [39] Ambitions include growing the overall customer base to 260 million and financial services users to 120 million by 2030, with emphasis on 5G deployment, AI integration, and sustainable technologies across operations in eight African markets.[40] Financially, FY2025 (ended March 31, 2025) saw total revenue of ZAR152.2 billion (+1.1% YoY) and headline earnings per share of 857 cents (+1.3%), reflecting resilience via African customer additions that nearly doubled the base since 2021, though South African service revenue faced pressures.[41] Early FY2026 results indicated acceleration, with Q1 service revenue growth of 13.8% on a normalized basis.[42] Leadership adjustments, including appointing the former Vodafone Egypt CEO to oversee African scaling in June 2025, underscore integration efforts.[43]Corporate Structure and Ownership
Ownership Breakdown and Governance
Vodacom Group Limited is majority owned by Vodafone Group PLC, which controls 65.1% of the voting shares, providing strategic oversight while allowing operational autonomy.[44] [45] The Public Investment Corporation SOC Ltd., South Africa's state-owned investment vehicle, holds 12.24% (254,385,551 shares), reflecting government influence on national telecommunications policy.[46] YeboYethu (RF) Limited, a broad-based black economic empowerment trust, owns 5.51% (114,451,180 shares), aimed at promoting equity ownership among historically disadvantaged groups as mandated by South African legislation.[46] [47] The balance consists of institutional investors, including BlackRock Inc. (1.82%) and Coronation Fund Managers (1.59%), alongside public shareholders traded on the Johannesburg Stock Exchange (JSE: VOD).[47]| Major Shareholder | Percentage | Shares Held |
|---|---|---|
| Vodafone Group PLC | 65.1% | 1,352,606,124 |
| Public Investment Corporation | 12.24% | 254,385,551 |
| YeboYethu (RF) Limited | 5.51% | 114,451,180 |
Subsidiaries and Acquisitions
Vodacom Group operates primarily through majority-owned subsidiaries in South Africa and several other African markets. Its core South African entity, Vodacom (Pty) Limited, is 100% owned following the completion of a transaction that increased ownership from 93.75%.[51] Other key operating subsidiaries include Vodacom Tanzania Limited (75% owned), Vodacom Democratic Republic of Congo s.p.r.l. (51% owned), and Vodafone Egypt Telecommunications S.A.E. (55% owned). The group also maintains majority stakes in subsidiaries serving Lesotho, Mozambique, and additional infrastructure entities, contributing to service coverage across consumer and enterprise segments in these regions.[2] A significant associate interest is held in Safaricom Plc through Vodafone Kenya Limited (VKL), a subsidiary in which Vodacom owns 87.5%; VKL holds 39.94% of Safaricom, yielding Vodacom an effective stake of approximately 30.65% and integrating Safaricom's operations into group reporting for over 200 million total customers.[52] Vodacom has executed several strategic acquisitions to bolster its regional presence and capabilities. In 2022, it completed its largest deal by acquiring a 55% controlling interest in Vodafone Egypt from Vodafone Group for R43 billion (approximately $2.9 billion at the time), marking entry into North Africa and adding over 40 million customers.[9] In April 2020, Vodacom and Safaricom jointly acquired the M-Pesa brand, intellectual property, and support services from Vodafone Group, enabling accelerated expansion of mobile money services across Africa without specifying a transaction value.[53] More recently, in October 2025, Vodacom finalized a R14 billion merger with Maziv (parent of Vumatel and Dark Fibre Africa), acquiring a significant stake in South Africa's fiber infrastructure after initial regulatory blockage in 2024 and subsequent approval by the Competition Appeal Court; this deal, first announced in November 2021, aims to enhance broadband rollout despite antitrust concerns over market concentration.[54]Technological Infrastructure and Innovations
Core Network Technologies
Vodacom's core network infrastructure began with the deployment of a GSM (Global System for Mobile Communications) core in June 1994, coinciding with the commercial launch of mobile voice services in South Africa and connecting initial subscribers via circuit-switched architecture.[11][55] This 2G foundation supported voice and basic SMS, evolving to incorporate GPRS and EDGE for packet data enhancements by the early 2000s. Subsequent upgrades introduced 3G UMTS (Universal Mobile Telecommunications System) core elements for higher-speed data, with launches in operations like Tanzania in 2007, followed by 4G LTE deployment utilizing Evolved Packet Core (EPC) architecture starting in 2012 in South Africa—the first such nationwide rollout by the operator.[55][56] The EPC enabled all-IP packet-switched handling for voice (via VoLTE) and data, with Vodacom processing 2.5 million daily VoLTE calls as of recent reports.[57] In October 2020, Vodacom South Africa partnered with Nokia to implement 5G Core (5GC) network elements alongside radio access, supporting initial non-standalone 5G services and fixed wireless access for ultra-fast connectivity.[58] Core network vendors include Nokia and Huawei, which provide hardware for both core and radio infrastructure across Vodacom's operations.[59][60] By 2025, Vodacom's mobile core had achieved full 5G readiness, facilitating standalone deployments and advanced features like Voice over New Radio (VoNR). This culminated in South Africa's first native 5G VoNR call on August 11, 2025, leveraging a single packet core for faster setup, high-definition audio, and noise reduction.[61][57] Virtualization of voice cores has been adopted in subsidiaries including Lesotho, Mozambique, and Tanzania to improve scalability and reduce costs, while broader modernization incorporates dynamic spectrum sharing, AI-driven planning, and Big Data analytics for optimization.[57] Transmission self-provisioning reaches 96% of base stations, with 47% fiber-based and 49% microwave backhaul supporting core connectivity.[57]Service Offerings and Digital Advancements
Vodacom provides core mobile services including voice calls, SMS messaging, and data connectivity, available through prepaid and contract plans tailored for consumers.[62] These offerings extend to broadband internet via LTE, fixed-line fibre, and 5G-enabled home connections, with fibre installations typically scheduled within 7-14 days of signup.[63] For enterprise clients, Vodacom delivers connectivity solutions such as IPVPN, Ethernet over MPLS, dedicated internet access, cloud hosting, and Internet of Things (IoT) platforms, alongside collaboration tools for productivity.[64][1] In financial services, Vodacom operates M-Pesa, a mobile money platform enabling instant fund transfers, bill payments, in-store transactions, international remittances, and micro-lending across seven African markets, with ambitions to expand from 88 million to 120 million users by 2030.[65][66] Complementing this, VodaPay functions as a super-app integrating payments, insurance, and lending, building on M-Pesa's infrastructure to broaden digital financial inclusion in regions like South Africa and Lesotho.[67][68] Digital advancements emphasize network upgrades and emerging technologies. Vodacom launched commercial 5G services in South Africa on May 4, 2020, initially in Johannesburg, Pretoria, and Cape Town, with ongoing expansions including 445 new 5G sites and 409 4G upgrades using 700-MHz spectrum in Gauteng as of October 2025.[69][70] By June 2025, its 5G network achieved average download speeds exceeding 260 Mbps, positioning it as South Africa's fastest.[71] In IoT, the September 2025 introduction of Local Breakout in South Africa enhanced managed connectivity by reducing latency up to eightfold and boosting speeds, supporting applications in agriculture, energy, and industry via partnerships like the 2019 acquisition of a majority stake in IoT.nxt.[72][73] Investments, such as R620 million in July 2025 for rural 4G/5G coverage in Mpumalanga townships, underscore efforts to drive digital inclusion and economic productivity.[74]Business Performance and Economic Impact
Financial Achievements and Metrics
Vodacom Group achieved group revenue of ZAR 150.6 billion for the fiscal year ended 31 March 2024, marking a 26.3% year-over-year increase from ZAR 119.2 billion in FY2023, largely attributable to the acquisition of Vodafone Egypt in October 2023 and organic growth in core markets.[75] [76] Service revenue, a key performance indicator excluding handset sales, rose 29.1% on a reported basis to contribute the majority of topline expansion, though excluding the Egypt acquisition, service revenue growth moderated to 5.9%.[77] This performance was supported by robust expansion in financial services, with M-Pesa transactions driving revenue growth exceeding 20% in international operations.[78] EBITDA for FY2024 reached ZAR 46.5 billion, reflecting operational efficiency amid rising capital investments in network expansion and 5G rollout, while headline earnings per share (HEPS) stood at levels consistent with prior years' profitability trends.[79] Net profit attributable to shareholders was ZAR 16.6 billion, underscoring sustained earnings generation despite inflationary pressures and currency volatility in African markets.[79] Capital expenditure totaled approximately 13-14% of revenue, focused on data capacity and fiber infrastructure, enabling Vodacom to maintain a return on invested capital above industry peers in South Africa.[80] The company has demonstrated a commitment to shareholder returns through progressive dividends, declaring a final dividend for FY2024 that contributed to a full-year payout yield competitive within the telecommunications sector.[81] In the subsequent fiscal year ended 31 March 2025, revenue edged up 1.1% to ZAR 152.2 billion, with service revenue flat at ZAR 120.7 billion, highlighting resilience amid economic headwinds but tempered growth excluding acquisition effects.[41] Key metrics include an enterprise value to EBITDA multiple of around 6.1x as of 2024, reflecting market valuation of its cash-generative assets.[82]| Metric | FY2023 (ZAR billion) | FY2024 (ZAR billion) | Growth (%) |
|---|---|---|---|
| Group Revenue | 119.2 | 150.6 | 26.3 |
| Service Revenue | ~104 (est.) | ~120 (excl. Egypt adj.) | 5.9 (organic) |
| EBITDA | ~42 (est.) | 46.5 | ~10.7 |
| Net Profit | ~15 (est.) | 16.6 | ~10.7 |