Vodacom: A pan-African telecoms titan reaches a new milestone

Vodacom: A pan-African telecoms titan reaches a new milestone
Vodacom: A pan-African telecoms titan reaches a new milestone

In a thunderclap announced today, Vodacom, the pan-African telecommunications juggernaut, reached a new peak by surpassing 200 million customers in Africa. As the company marks its 30th anniversary, this achievement marks a significant milestone in its dynamic journey and unprecedented dominance in the African telecommunications market. Shameel Joosub, the charismatic CEO of Vodacom Group, expressed his pride at this transcendent achievement. “These two milestones are particularly gratifying in the history of Vodacom,” Joosub said at an impromptu press conference.

Strong annual results for the financial year ending March 31, 2024 were revealed today, with the company also announcing the payment of a cash dividend to its loyal shareholders. Joosub highlighted the equitable distribution of Vodacom’s customer base across its various divisions, underscoring the extent of the company’s presence on the continent. This diverse presence includes South Africa, Egypt, international operations and Safaricom, demonstrating the scope and depth of Vodacom’s footprint on the African telecommunications landscape.

Vodacom’s exceptional performance during the period was driven by a range of new services, including digital, financial services, fixed services and Internet of Things (IoT), which contributed 20.0% of the overall turnover of the group. Joosub highlighted the company’s product diversification as a key driver of this growth. Vodacom’s expansion into the financial services sector has been particularly successful, with a notable 11.8% increase in the number of financial services customers, reaching an impressive total of 78.9 million. This division also recorded a colossal annual transaction value of $381.2 billion, demonstrating its relevance and vitality in the African market.

However, despite these resounding successes, Joosub highlighted the challenges the company faces, including initial losses in Ethiopia, higher financial and energy costs, as well as inflationary pressures and unfavorable exchange rates in some key markets. These factors contributed to a slight decline in the company’s adjusted earnings, which fell 10.8% to 846 cents per share. Despite these challenges, Vodacom remains steadfastly committed to delivering an exceptional customer experience through sustained investment in technology and network infrastructure. Joosub said the company will continue to allocate between 13% and 14.5% of its overall revenue to capital expenditure, thereby strengthening the resilience of its network and accelerating the deployment of 5G technology.

As Vodacom celebrates these monumental successes, the company remains firmly committed to shaping the future of telecommunications in Africa, bridging digital divides, keeping customers connected and continuing its mission to connect people, communities and nations across the continent.

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