South Africa Clears Vodacom’s $752 Million Fiber Deal

As part of the transaction, Vodacom will acquire a 30% stake in Maziv, a subsidiary of Remgro’s Community Investment Ventures Holdings Ltd., with the option to increase its shareholding to 40%. Maziv operates key fiber companies Dark Fibre Africa and Vumatel, which own and expand fiber-optic infrastructure across South Africa.

The deal is seen as central to Vodacom’s strategy to strengthen its broadband capabilities and compete with MTN Group Ltd., Bloomberg reported. With rising demand for video, audio, and data services across Africa — the world’s youngest continent — telecom operators are racing to expand high-speed internet access.

Related: South African Minister Appeals Block on Vodacom’s Fiber Acquisition

Vodacom Chief Executive Officer Shameel Joosub described the acquisition as “a cornerstone of our strategy to improve connectivity, drive digital inclusion, and support South Africa’s digital economy.”

The ruling follows years of scrutiny by regulators. The country’s competition authority initially advised against the transaction two years ago. However, in July the watchdog dropped its opposition after the companies pledged further investment and Minister of Trade, Industry and Competition Parks Tau expressed support for the deal, per Bloomberg.

With the court’s decision secured, Vodacom and Maziv now await a final green light from the Independent Communications Authority of South Africa (Icasa). Icasa had conditionally backed the deal in November 2022, and the companies say they will now focus on obtaining unconditional approval.

Source: Bloomberg