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Vodacom refocuses enterprise strategy as it sheds noncore assets

5th July 2019

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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Telecommunications giant Vodacom has embarked on transactions that support its enterprise strategy in Africa, which has been refocused to grow and strengthen its core business.

Vodacom Business Africa is undertaking a strategic repositioning of its operations, which will ultimately result in three separate service provider agreements involving its enterprise businesses in Nigeria, Zambia, Angola, Ghana and Cöte d’Ivoire.

The group is selling Vodacom Business Africa’s Angolan operations and assets to independent enterprise telecommunications provider Internet Technologies Angola (ITA) for an undisclosed amount.

Vodacom also entered into an agreement with Synergy Communications, which will acquire 100% of Vodacom Business Africa’s operations in Nigeria, Zambia and Cöte d’Ivoire.

Vodacom will no longer directly service global enterprise customers in these markets but will instead continue to operate as a pan-African telecommunications networks provider through local service provider agreements and relationships.

“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,” says Vodacom CEO Shameel Joosub.

The agreement will empower ITA to strengthen its core business provisioning and unlock reliable, sustainable and flexible service offerings for its local and multinational clients.

“ITA has a proven track record, with partner relationships both locally and abroad, and a specific focus on the African continent,” adds ITA CEO Rolf Mendelsohn.

The new partnership model is expected to be better suited to the digital economy, encouraging greater local collaboration and positioning Vodacom as a driver of economic growth on the continent.

The agreements will also provide pan- African customers with the opportunity to access Vodacom’s various specialist business divisions.

The acquisition of Synergy Communications also represents a significant milestone towards its vision of becoming a leading provider of cloud and digitally based services in key markets across sub-Saharan Africa, as well as providing key additional assets in its build-out of a regional footprint.

Synergy currently has operations in Botswana, Malawi and Mozambique.

“This is an exciting landmark transaction for Synergy Communications, providing us with additional momentum in the delivery of our strategy as a pan-African enterprise digital services provider. Synergy Communications will partner with major global cloud providers and deliver platform-based services to both multinationals and local enterprises,” explains Synergy chairperson Andile Ngcaba.

Vodacom assures that it is not exiting any of the territories related to the deals, and will deliver services to global and multinational clients in these markets through long-term commercial agreements.

“To support the sustainable growth of pan-African digital economies and build connected societies, Vodacom will, through local service providers, continue to service clients in each market,” Joosub says.

“We seek to leverage our collective strengths to meet the changing requirements of clients across each of these markets,” he concludes.

Edited by Martin Zhuwakinyu
Creamer Media Magazine Managing Editor

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