Share
Vodacom CEO Shameel Joosub on decision on enter Ethiopian market
In a time where many local JSE listed businesses are exiting their Africa operations, Vodacom and it's international cohort of partners are funding a new cellular service company in Ethiopia. The statement to shareholders said that the investment would be beneficial for the group. Vodacom CEO, Shameel Joosub joins CNBC Africa for more.
Fri, 17 Sep 2021 19:02:46 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Vodacom secures a license in Ethiopia, marking a significant milestone in its expansion strategy
- The company faces the task of building infrastructure from scratch and aims to partner with existing players for optimal growth
- Regulatory hurdles, including spectrum allocation issues, pose challenges for Vodacom's operations both in Ethiopia and domestically
Vodacom, a prominent South African telecommunications provider, is charting a bold path into Ethiopia, a market long-awaited by industry players. The country, with a staggering population of 112 million, presents a tantalizing prospect for connectivity and financial services expansion. Despite the challenges faced by South African companies exiting the continent, Vodacom's CEO, Shameel Joosub, is seizing the opportunity to forge ahead into this new territory.
The company recently secured a license in Ethiopia, marking a significant milestone in its expansion strategy. Joosub emphasized the vast potential in the Ethiopian market, citing its underdeveloped state with only one operator and low coverage levels. This venture aligns strategically with Vodacom's vision to bring its services to new frontiers and connect more people across Africa.
As Vodacom gears up to launch operations next year, strict timelines and a rigorous timetable are in place to ensure a smooth transition. The company is making progress in appointing key personnel, engaging vendors, and undertaking recruitment drives in the Ethiopian market. The pressure is on, but Vodacom is committed to meeting the deadlines and delivering on its promises.
In terms of infrastructure development, Vodacom faces the task of building from scratch in some areas while exploring opportunities for collaboration with existing players. The company's investment in Ethiopia amounts to a substantial $850 million, a testament to its commitment to the project. Partnering with a diverse group of investors, including Sumitomo Corporation and CDC Group, Vodacom aims to leverage its resources for sustainable growth in the region.
Despite the looming challenges, such as the unrest in Ethiopia, Joosub stressed the importance of long-term investment and connectivity for the country's development. Ensuring the safety of staff and operations remains a top priority as Vodacom embarks on this ambitious journey. With plans to expand coverage across various regions, the company is poised to make a significant impact on Ethiopia's telecommunications landscape.
Amidst these ambitious plans, Vodacom continues to grapple with regulatory issues back home, particularly regarding spectrum allocation. The ongoing legal battles and delays in the process have raised concerns within the industry. Joosub acknowledged the need for swift resolution and collaboration with government agencies to address these pressing matters.
The call for a quick solution to the spectrum allocation challenges reflects the urgency to progress towards 5G technology and meet the evolving needs of consumers. Vodacom, along with other industry players, is actively engaging with the government and regulatory bodies to expedite the process and avoid disruptions in service provision.
While the road ahead may be fraught with obstacles, Vodacom remains steadfast in its mission to expand its footprint and enhance connectivity in Africa. Joosub's optimism and determination underscore the company's commitment to driving innovation and progress in the telecommunications sector. As Vodacom navigates the complexities of entering new markets and overcoming regulatory hurdles, its strategic vision and resilience set it apart as a key player in shaping the future of telecommunications in Africa.
SIGN UP FOR OUR NEWSLETTER
DAILY UPDATE
Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.