Business Hilights
Tracking Nigeria's Headline Business News Online

Stakeholders worried on Vodacom’s sudden sale of assets in Nigeria, others

..As CEO claims firm not exiting continent

Last week’s announcement by the leading South African mobile phone operator, Vodacom Group Limited announcement that it was closing its business-managed services in Nigeria after doing same in Angola, Ghana, Zambia and Ivory Coast, has elicited reactions from industry experts.
Though in a statement, the group averred that “In each of the five Vodacom Business Africa markets, the respective partners will acquire all of the operations and assets held by Vodacom,” analysts are divided on whether the decision is the best option to the group for now.
Vodacom Business, which recently won awards in Lagos, said it has sold its businesses in Nigeria, Zambia and Ivory Coast to Synergy Communications and its Ghana business sold to Vodafone Ghana.
Also, its Angolan assets have been sold to Internet Technologies Angola.
The company, however, noted that “The transactions support Vodacom Group’s enterprise strategy in Africa, which has been refocused to grow and strengthen its core business.”
However, in line with the latest development in the group, Vodacom made it clear that it will no longer directly service global enterprise customers in these five markets, rather “It will instead continue to operate as a pan African telecommunications network provider through local service provider agreements”.

Vodacom Beacon Award
L-R: Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo; Managing Director, Vodacom Business Nigeria, Wale Odeyemi; Chief Executive Officer, Communication Week Media, Ken Nwogbo; Commercial Director, Vodacom Business Nigeria, Solomon Ogufere; and Chairman, Association of Telecommunications Companies of Nigeria (ATCON), Olusola Teniola during the 2019 Beacon of ICT Awards held in Lagos recently. Photo: Business Hilights

Quotes credited to the CEO of Vodacom Group, Shameel Joosub, said “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.
According to Joosub, “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,” he said.
Business Hilights recalls that Vodacom had went through a robust and lengthy process with numerous interested applicants to find the right partners to reposition its business on the continent.
At the end, Synergy Communications and ITA were selected as the successful bidders, amongst other reasons, for their wealth of pan African experience and digital services in the continent.