Vodacom and Orange have joined hands to form, a first of its kind, rural towerco partnership in Africa. Through this partnership, the companies will collaborate to build, own, and operate solar-powered mobile base stations in underserved areas of the Democratic Republic of Congo (DRC). The initiative will extend network coverage and enable access to telecommunications and mobile financial services to up to 19 million people in less densely populated rural communities, reinforcing their commitment to bridging the digital divide and driving inclusive growth.
“With a footprint serving over 210 million customers across Africa, we have the opportunity to significantly contribute to the continent’s socio-economic development by building a digital society and fostering inclusivity for all. This aligns with our purpose to connect for a better future, and our partnership with Orange is a crucial step towards providing mobile coverage to people in previously underserved areas in the DRC,” says Shameel Joosub, CEO of Vodacom Group.
Deploying and operating networks, particularly in deep rural areas, continues to be a significant challenge in the DRC.
To bridge the digital divide and expand network coverage in underserved communities, the companies have pledged to jointly construct up to 2,000 new solar-powered base stations over six years, using 2G and 4G technologies. This agreement commences with an initial commitment of 1,000 sites after which Orange and Vodacom may scale the project by a further 1,000 towers. The completion of this joint venture remains subject to the approval of administrative, regulatory, and competition authorities.
Beyond enhanced population coverage, this combined investment will enable consumers to access voice, data, and mobile money services. With the first base station expected to start operating in 2025, Orange and Vodacom will be sharing active and passive equipment owned by the joint venture as anchor tenants for an initial term of 20 years. The joint venture will offer its passive infrastructure to any MNO interested wherever technically feasible to increase usage and promote a wider range of options for the population.
“Our longstanding presence in Africa, including over 10 years in the DRC, has equipped us with a deep understanding of the market and customer needs. Collaborating with Vodacom by sharing both passive and active infrastructure is the most effective approach to fulfilling our commitment to accelerating connectivity access for everyone, including rural areas, while minimizing our environmental footprint,” says Orange Middle East and Africa CEO, Jérôme Hénique.
Mobile Internet penetration in the DRC is at 32.3% and Orange and Vodacom’s announcement to construct new base stations in the country aligns with the country’s new vision for the digital economy as included in the National Digital Plan Horizon 2025 adopted in 2019.
The plan aims to foster digital transformation across various sectors, leading to improved public services, enhanced economic growth, and equitable access to digital services for all citizens. This initiative emphasizes e-citizenship, e-government, and e-commerce and is expected to contribute to job creation, bridge the digital divide, and boost the country’s GDP.
Vodacom Group announced on Monday that on 7 October 2024, Egypt’s Ministry of Communications and Information Technology (MCIT), represented by the National Telecommunications Regulatory Authority (NTRA), awarded Vodafone Egypt a 5G licence at a cost of $150 million, or approximately R2.6 billion. Additionally, Vodafone Egypt extended its existing licences for five more years, now valid until 2039, for an additional $17 million or R264 million.
The total amount of $167 million, or about R2.9 billion, is due for payment by 31 January 2025.
This development follows Egypt’s recent economic challenges; as of May 2024, the country has been placed on the watchlist for hyperinflation due to rising inflation, currency devaluation, and increasing public debt.
“From a financial performance perspective, I am particularly pleased with the manner in which our Egyptian business navigated its way through a material currency devaluation to produce R13 billion in service revenue, underpinned by a stellar 44.1% growth in local currency,” said Vodacom Group CEO Shameel Joosub.
