Vodacom Group Ltd and French telco Orange SA are in discussions to form a strategic partnership aimed at enhancing infrastructure and connectivity across Africa. This collaboration seeks to reduce costs and improve rural connectivity in markets where both companies operate, such as Egypt and the Democratic Republic of Congo. This partnership underscores a shared commitment to expanding digital reach and addressing the digital divide in underserved areas.
With Africa’s internet user base projected to grow by 377.3 million (+51.79%) between 2024 and 2029, reaching 1.1 billion users by 2029, the two telcos are strategically positioning themselves to capture and serve these emerging markets. Notably, Africa currently has the lowest internet usage reach in rural areas at 23% as of 2023, highlighting the critical need for improved connectivity.
A representative from Vodacom emphasized the importance of partnerships with other mobile operators and financial investors to alleviate rollout costs and enhance rural connectivity. This strategic move aims to lower communication costs and bridge the digital divide, making digital services more accessible to all.
Vodacom operates in seven African countries, including Egypt, the Democratic Republic of the Congo, Ethiopia, Kenya, Mozambique, and Tanzania, and serves 186 million customers, including those of Safaricom. Orange SA, with a presence in over ten African countries, such as Cameroon, Burkina Faso, and Morocco, serves 298 million customers worldwide.
In a similar vein, Orange DRC and Airtel Congo RDC SA collaborated to land 2Africa submarine cables in the Democratic Republic of Congo in 2023, improving broadband internet access and accelerating digital inclusion. This partnership exemplifies the potential of collaborative efforts in enhancing connectivity and digital services.
On May 13, 2024, Vodacom reported an increase in service revenue for the fiscal year ending March 31, 2024, with its South Africa branch generating R61.6 billion ($3.36 billion), a 2.6% increase from the previous year. This growth, along with the successful acquisition in Egypt, resulted in a 29.1% increase in the group’s service revenue, demonstrating the impact of strategic partnerships and market expansion.
