Major African network operators Orange and Vodacom are reportedly negotiating an infrastructure-sharing agreement, as disclosed by Bloomberg. Sources close to the matter suggest the companies aim to collaborate in overlapping markets, such as Egypt and the Democratic Republic of Congo. This partnership would enhance their coverage and mitigate the need for extensive new infrastructure.
In addition to this potential deal, the companies are also exploring other collaborative opportunities. A Vodacom spokesperson indicated the objective is to reduce rollout costs and improve rural connectivity, ultimately lowering communication costs and bridging the digital divide.
While the agreement is still under discussion and not yet finalized, Vodacom has pledged to provide detailed information once the deal is confirmed. The discussions also hint at Vodacom negotiating similar agreements with other African operators.
As Vodacom marked its 30th anniversary, the company celebrated surpassing 200 million customers across eight countries. This milestone was highlighted in its annual results for the year ending March 31, 2024. The group reported a 26.4% revenue increase to R151 billion ($8.2 billion), driven by data revenue and new services, including financial services. However, challenges such as start-up losses in Ethiopia, higher interest rates, and foreign exchange losses impacted their performance.
Vodacom’s expansion into financial services has been significant, with 78.9 million customers conducting transactions worth $1.1 billion daily. CEO Shameel Joosub noted that despite facing economic headwinds, including a 20% higher effective interest rate and foreign exchange pressures, the company experienced strong commercial momentum.