Table of Contents
Key Point
- Vodacom is investing $27 million to modernize network infrastructure and expand broadband in Cape Town, enhancing digital inclusion.
- Investment targets network upgrades, new sites, and 5G rollout, particularly in rural areas to bridge the digital divide.
- Vodacom Group, led by Shameel Joosub, serves over 200 million African subscribers, with operations across multiple countries on the continent.
Vodacom, a Johannesburg-based telecommunications giant, led by South African executive Shameel Joosub, has announced a R500 million ($27 million) investment to revamp network infrastructure, energy initiatives, and broadband expansion in Cape Town. This commitment underscores Vodacom’s dedication to enhancing digital inclusion across its service areas.
For the 2023-2024 fiscal year, Vodacom has already invested over R500 million ($27 million) in the region. The company plans to invest an additional R500 million ($27 million) in 2024-2025, bringing the total investment to over R1 billion ($54.4 million) over two years. The aim is to establish the most extensive and reliable network, ensuring accessibility for all South Africans.
Focus on rural connectivity and 5G rollout
The investment will primarily focus on upgrading network infrastructure, deploying new sites, rolling out 5G, and expanding LTE coverage utilizing ICASA’s spectrum allocation. Key areas within the Eastern Cape—Lower Bay (Gqeberha to Makhanda and Port Alfred), Central Bay (N10 and surrounding areas), and Upper Bay (Qonce, Monti, and Kei Mouth)—will see significant improvements, addressing the digital divide between urban and rural locales.
“Our strategy is to enhance our infrastructure to leverage the latest technology, such as 5G, and deliver a quality network experience for all our customers. In some areas, this investment will introduce connectivity to communities for the first time, driving our goal of fostering an inclusive digital society,” said Zakhele Jiyane, Managing Executive for Vodacom Eastern Cape Region.
Strategic partnerships and continental expansion
Vodacom Group, led by South African executive Shameel Joosub, boasts over 200 million subscribers across Africa, with operations in Tanzania, the Democratic Republic of Congo, Mozambique, and Lesotho. Joosub, who holds a 0.09 percent stake in Vodacom valued at approximately $9.56 million (R175.1 million), has been pivotal in steering the company towards significant financial success.
In recent developments, Vodacom terminated 631 employees and announced the arrest of 15 suspects following a thorough investigation into fraud and irregularities. Additionally, Vodacom has been in discussions with French telecom competitor Orange to explore potential infrastructure partnerships across Africa, aiming to cut network rollout costs.
