Tech

South African Competition Tribunal denies Vodacom’s merger with Maziv

Published

2 months ago

October 30, 2024

The South African Competition Tribunal has blocked attempts by Vodacom to acquire a significant stake in Maziv, a subsidiary of Community Investment Ventures Holdings (CIVH).

If the proposed deal had sailed through, Vodacom would have held a 30% to 40% share in Maziv, combining its assets with those of Dark Fibre Africa (DFA) and Vumatel, two of the country’s largest fibre network operators owned by CIVH.

Media reports reveal that the deal was rejected after nearly two years of regulatory review, with the decision culminating in an extensive 26-day hearing that concluded in September 2024.

A statement by Vodacom which describes the decision as deeply surprising and a disappointment, said both the telecom company and Maziv are awaiting the Tribunal’s detailed rationale for the ruling and may consider an appeal through the Competition Appeal Court to explore other potential options for moving forward.

The Tribunal’s ruling came after the Competition Commission recommended the deal be prohibited due to potential risks to competition in the telecom sector and, consequently referred the matter to the Competition Tribunal.

This was after the Independent Communications Authority of South Africa (ICASA) approved the merger in November 2022, with Vodacom arguing that the merger would help bridge South Africa’s digital divide by expanding fibre connectivity in underserved communities.

As part of the deal, Vodacom would have committed to investing over R10 billion ($565.5 million) in fibre infrastructure, primarily in low-income areas, over five years.

“This investment aimed to pass over one million new homes with fibre connections, especially in under-resourced areas. The telecom giant planned to create up to 10,000 jobs, allocate R300 million ($17 million) to small business development, and extend free high-speed internet access to over 600 nearby schools and police stations,” the company had said in an earlier statement.

However, the Tribunal said 6vthe transaction would consolidate Vodacom’s standing as South Africa’s largest mobile operator with a dominant position in the fibre infrastructure market, potentially harming competition.

The ruling followed detailed testimony from several competitors, including MTN, Telkom, and Rain, as well as the Department of Trade, Industry and Competition (DTIC) with competitors expressing concerns that the merger would disadvantage smaller internet service providers, making it harder for them to compete fairly in the market.

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Tech

Kenya’s ticketing startup BuuPass partners Flexpay for flexible travel payments

Published

2 days ago

December 19, 2024

Isaac Dachen

Kenyan digital ticketing startup, BuuPass, has entered into a partnership with goal-based savings platform, Flexpay, to offer customers flexible payment plans ahead of holiday travels as well as simplify travel planning and ease the financial burden of holiday travel for Kenyans.

Co-founder and CEO at Buupass, Sonia Kabra, who unveiled the package at a press conference, said the collaboration between the two platforms will allow travellers to save for their journeys in manageable, interest-free installments over four to 12 weeks.

“Travelers can select their travel dates, book tickets, and pay a small deposit upfront, with the remaining balance spread across weekly or monthly payments,” she said.

“This approach offers a stress-free way for families and large groups to secure their tickets early, helping them avoid last-minute price hikes as fares are locked in.

“By partnering with Flexpay, we’re giving travelers the flexibility to budget for their trips in advance. This initiative aligns with our mission to make travel accessible to everyone, providing a solution that meets customers where they are financially,” said Kabra.

Also speaking at the event, Richard Machomba, CEO and founder of Flexpay, said:

“Flexpay’s mission is to empower individuals by providing accessible financial solutions that make it easier for them to achieve their financial goals.

“By partnering with BuuPass, we’re making travel more accessible and stress-free for Kenyans, especially during the holiday season when expenses can be overwhelming,” Machomba added.

Founded in 2016 by Kabra and Wyclife Omondi, BuuPass is a B2B2C mobility marketplace that enables users to search, compare, and book travel tickets via web, app, or USSD, while its SaaS platform helps bus operators manage their operations, inventory, and sales.

FlexPay, on the other hand, is an online and offline payment gateway that allows merchants to offer interest-free targeted savings to their customers in Africa.

Tech

DR Congo sues tech giant Apple over illegal mineral exploitation

Published

3 days ago

December 18, 2024

Isaac Dachen

The Democratic Republic of Congo (DRC), has filed a criminal case against the European subsidiaries of tech giant, Apple, accusing them of illegal mineral exploitation and allegedly using “blood minerals” in its supply chain.

In the suit filed on Tuesday, the DRC alleges that Apple has bought contraband supplies from the country’s conflict-ladden east and Rwanda, zones in which it allege the materials are mined illegally and then integrated into global supply chains before ending up in tech devices.

The DRC suit specifically mentioned Apple subsidiaries in France and Belgium, accusing the tech giant of using conflict minerals in its supply chain.

The DRC is a major source of tin, tantalum, and tungsten which are used in electronic devices, with some mines controlled by armed groups responsible for human rights violations.

International lawyers representing the African country’s government have accused Apple’s local subsidiaries of taking these minerals from conflict areas and laundering them through international supply chains, with one lawyer telling journalists that Belgium had a moral duty to act given its history of exploiting the country’s resources under colonial rule.

However, in its response, Apple claims it conducts supplier audits and does not directly source primary minerals.

https://www.thenews.com.pk/print/1262670-dr-congo-sues-apple-over-alleged-illegal-mineral-exploitation