Vodacom Group Ltd and French telecom giant Orange SA are in discussions about forming a strategic partnership in Africa. The aim is to explore infrastructure deals that will reduce costs and improve connectivity in rural areas across the continent. This collaboration could significantly enhance their operational efficiencies and expand their market reach.
According to Bloomberg, the two companies are considering agreements in markets where they both have a presence, such as Egypt and the Democratic Republic of Congo. They are also exploring other collaborative opportunities, including potential infrastructure sharing and joint efforts to improve rural connectivity. These discussions underscore a commitment to overcoming the digital divide in Africa.
With Africa’s internet user base projected to grow by 377.3 million (+51.79%) between 2024 and 2029, Vodacom and Orange are strategically positioning themselves to capture this emerging market. By 2029, the number of internet users on the continent is expected to reach 1.1 billion, marking a significant milestone. However, rural areas still lag with an internet usage reach of only 23% as of 2023, according to Statista.
“We are looking at partnerships with other mobile operators and financial investors in countries where we operate. Our aim is to potentially alleviate the costs of rollout and rural connectivity, helping to address the cost to communicate and narrow the digital divide,” a Vodacom representative stated. This approach is designed to make communication more affordable and accessible in underserved areas.
Vodacom operates in seven African countries, including Egypt, the Democratic Republic of Congo, Ethiopia, Kenya, Mozambique, Tanzania, and South Africa, serving 186 million customers (including Safaricom). Orange SA, with a presence in over ten African countries such as Cameroon, Burkina Faso, Madagascar, Botswana, Mali, Morocco, Senegal, and Ivory Coast, serves 298 million customers worldwide.
In a notable achievement in 2023, Orange DRC and Airtel Congo RDC SA collaborated to form Mawezi RDC SA, which landed the 2Africa submarine cables in the Democratic Republic of Congo. This initiative aims to enhance broadband internet access and accelerate digital inclusion, showcasing the potential benefits of strategic partnerships in the telecom sector.
On May 13, 2024, Vodacom reported an increase in service revenue for the fiscal year ending March 31, 2024. Its South Africa branch generated R61.6 billion ($3.36 billion), marking a 2.6% increase from the previous year. The company’s total customer base now exceeds 200 million. Notably, Vodacom’s acquisition in Egypt, coupled with strong performance in South Africa, led to a 29.1% increase in the group’s service revenue, with Egypt now serving 48.3 million customers, up 6.2%.