Vodacom free to expand

24 Oct 2006

The parents of South Africa-based cellular operator Vodacom – national PTO Telkom South Africa and UK-based Vodafone Group – have agreed ‘in principle’ to alter the terms of their shareholder agreement to allow Vodacom to expand its operations across Africa. The current agreement limits Vodacom to operating only in southern Africa, since Vodafone was itself considering launching in other parts of the continent. But Telkom has now drawn up a draft document which will open the way for Vodacom to expand beyond southern Africa. Johannesburg newspaper Business Day says Vodafone has agreed in principle to the terms of the deal. Telkom’s chairwoman Nomazizi Mtshotshisa told the paper that it had ‘been agreed with Vodafone that we will amend the shareholders’ contract so as to not impede Vodacom’s growth’. Another South African cellco, MTN, has been successful expanding beyond its domestic market, with operations across much of sub-Saharan Africa.

South Africa, Vodacom Group