Tech

South African Competition Tribunal denies Vodacom’s merger with Maziv

Published

3 weeks 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 startup BuuPass partners with GiftPesa to launch digital travel vouchers

Published

11 hours ago

November 23, 2024

Isaac Dachen

Kenyan digital ticketing and transportation management solutions startup, BuuPass, has entered into a partnership with fintech company, GiftPesa, to introduce digital travel vouchers ahead of the holiday season.

In a statement by BuuPass cofounder and CEO, Sonia Kabra, the move will offer a more flexible and convenient way for Kenyans to manage and gift travel arrangements during the bustling holiday period.

“We’ve noticed a growing demand for digital solutions in the travel industry, especially during peak periods like the holiday season,” said Kabra.

“This partnership with GiftPesa enhances the travel experience for our customers, offering them a convenient way to send travel tickets as gifts and have a safety net for unconfirmed travel dates.

“Unlike traditional paper vouchers that can expire or get lost, GiftPesa vouchers are valid for 12 months and can be redeemed in parts at over 3,000 outlets across the country.

“This flexibility allows recipients to use the vouchers for multiple trips or select their preferred destination, making travel more accessible,” she added.

Founded in 2016 by Kabra and Wyclife Omondi, BuuPass is a leading 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.

GiftPesa, on the other hand, is a fintech startup that provides businesses and individuals with a platform for creating digital vouchers.

The partnership between the two companies will introduce digital travel vouchers, helping users manage and gift travel arrangements during the bustling holiday period.

Tech

Ghana partners with The Gambia to provide free roaming services

Published

2 days ago

November 21, 2024

Isaac Dachen

Ghana and The Gambia are in the process of launching free roaming services that will enhance a West African connectivity.

The plan which is a joint initiative of the Ghana Ministry of Communications and Digitalisation and The Gambian National Communications Authority (NCA) will see mobile users in both countries avoiding extra charges for calls, texts, and data, which in turn, is expected to boost trade, tourism, and economic integration across borders.

The collaboration, according to a joint statement by the two bodies, aligns with the Economic Community of West African States’ (ECOWAS) broader push for seamless regional communication.

“Ghana and The Gambia are forging new paths in West Africa’s digital landscape, implementing a free-roaming initiative,” the statement said.

“This move strengthens regional connectivity while highlighting the role of technological collaboration in fostering economic integration. The initiative enables mobile users travelling between the two nations to make calls, send messages, and use data services without additional roaming fees.”

It further noted that by reducing these costs, the program aligns with the ECOWAS Free Roaming Initiative, which seeks to eliminate barriers to communication across member states.

“It is a boost for trade and travel as the free roaming plan is expected to spur economic activities by streamlining cross-border communication.

“Businesses and individuals travelling between Ghana and The Gambia can now stay connected without worrying about exorbitant charges, facilitating smoother transactions and personal interactions. The initiative is also expected to attract more tourists by ensuring seamless digital access for visitors.

“This collaboration marks another milestone in Ghana’s commitment to expanding digital connectivity, following Ghana’s successful implementation of similar agreements with Côte d’Ivoire, Togo, and Benin, with talks of possible roaming partnerships with Liberia.

“By focusing on digital integration, Ghana and The Gambia demonstrate the power of technology to bridge gaps between countries. This step also serves as a model for other West African nations to join the free-roaming framework, contributing to the larger goal of a connected and economically integrated region,” it added.