Author: Gugu Lourie
The case of Cell C versus its empowerment partner CellSaf has become a David and Goliath battle. CellSaf, a small lightweight empowerment partner, is battling against a heavyweight opponent backed by three conglomerates – Cell C, JSE-listed tech firm Blue Label Telecoms, and JSE and Nasdaq-listed Net 1 UEPS Technologies (Net 1). The background to this battle is rooted in 2001 when Cell C launched, and CellSaf was celebrated as a victory for empowerment owning a 40% of the mobile phone operator (which has since shrunk to 7.5% with no benefits to the shareholders). For CellSaf, however, since then, it…
Broadband Infraco announced on Friday that the South African Government is looking to assign it as the entity that assists in the development of the ‘fibre super highway’ in Southern Africa. The state-owned entity said the SADC super highway, which is a fibre super highway, is created through the joint investment of SADC countries. “The ultimate outcome of this initiative is that at least at an infrastructure level, we can ensure that the reach of optical fibre, which is what you need for backhauling high volumes of data, reaches South Africa, but also large parts of our neighbouring countries,” said…
The country’s competition watchdog still needs more time to investigate further before it decides whether to declare the recapitalisation of Cell C as a large merger conducted by both Blue Label Telecoms and Net 1 UEPS Technologies (Net 1). In 2017, JSE-listed Blue Label Telecoms and Nasdaq-listed Net 1 completed its recapitalisation of Cell C. After that in December 2017, Cell C’s empowerment partner CellSaf submitted a complaint to the Competition Commission accusing Blue Label Telecoms and Net1 of trying to hijack and secure dominant (75%+) control of Cell C. The deal amounts to a blatant attempt at corporate capture,…
South Africa’s Vodacom, MTN and BCX – a unit of JSE-listed Telkom – have expressed interest to buy the City of Jo’burg (CoJ) failed broadband network assets, according to sources. The network – which consists of a total of 900km of fibre, covering large parts of Johannesburg, including Orange Farm, Diepsloot, Alexandra and Soweto – is currently housed in the Metropolitan Trading Company (MTC). The City wants to sell the broadband network assets to a winning bidder for between R853 million and R1 billion. The service provider will sign a 12-year contract to own the asset, maintain and upgrade it and commercialise the…
The City of Jo’burg (CoJ) is to sell its failed broadband network assets to a winning bidder for between R853 million and R1 billion. The network – which consists of a total of 900km of fibre, covering large parts of Johannesburg, including Orange Farm, Diepsloot, Alexandra and Soweto – is currently housed in the Metropolitan Trading Company (MTC). MTC is CoJ owned entity established in 1999 with no expertise of running the broadband network. Recently, MTC issued a request for bids for a single buyer who will also serve as a service provider to sell the network assets to the…
Aerobotics, South Africa-based agritech startup, is eyeing growth opportunities in Europe as the company seeks to deploy its innovative artificial intelligence solutions to help farmers look at their farms in a smart way using drones and data analytics. While our operations headquarters is based in Cape Town, South Africa, a few months ago, we set up our commercial headquarters in Los Angeles, USA,” Tim Willis is Aerobotics’ COO, told TechFinancials. To date, Aerobotics have 10 000 hectares of paying clients in the USA, said Willis. When asked whether the startup was planning to expand into Europe, Willis said: “In terms…
American Tower has acquired African masts business Eaton Towers for an enterprise value of $1.85bn (R27 billion) to give the New York-listed firm a bigger footprint in the fast-growing African market. The deal includes the assumption of existing Eaton Towers debt. Eaton Towers owns and operates about 5,500 communications sites across five African markets [Ghana, Uganda, Kenya, Burkina Faso and Niger]. Eaton Towers was co-founded in 2009 by current CEO, Terry Rhodes. Alongside the majority shareholder, Capital International, investors include Development Partners International, Ethos and Standard Chartered. The assets are expected to generate approximately $260 million in property revenue and approximately $165 million in…
By now everyone who cares knows that Vodacom is not keen on Yolanda Cuba as a successor to the present boss Shameel Joosub, even though having a woman at the helm would be good for the company’s inclusive culture. The South African telecoms sector, especially the mobile phone industry, exhibits a toxic masculine “bro-culture”. Having Cuba at the helm of Vodacom would most likely change the unsavoury culture of the company. Also read: Is Vodacom’s Yolanda Cuba On The Move Again? If Joosub were to step down, who should step in to run Vodacom? Techfinancials wonders, along with many others, if Vodacom has…
Over the last few months Avon, the largest direct-selling company in South Africa, has made remarkable progress in the implementation of its digital strategy, delivering value to its independent Representative by introducing digital stores that provide customers with a complete digital shopping experience and enabling them to fully enjoy the benefits of being in the digital era. As part of its drive to deliver a unified and distinct customer experience, Avon has focussed on perfecting its digital experience without losing the personal touch that direct-selling’s success is built on. To this end, Avon has launched a Direct Deliveries store feature…
Avon South Africa, a leading direct-selling company, has introduced a new mobile app known as Avon ON. Avon ON is an interactive app that gives Representatives the ability to share digital brochures with their customer and create engaging content to connect with their customers. Avon ON will enable Representatives the opportunity to extend their reach, and by extension improve their earning opportunity by harness the power of technology, in line with Avon’s strategy of empowering women by providing them with innovative earning opportunities. “The new app gives expression to our brand values of empowering women by providing them with the opportunity to empower…
Iconic beauty company, Avon Justine, has reaffirmed its commitment to championing the empowerment of women by aligning its digital platforms to bolster the earning opportunity of its beauty entrepreneurs and celebrate the milestones achieved by so many of its independent Representatives across its operations in Southern Africa. Avon Justine is a 130-year old company that pioneered the direct-selling model in the beauty industry. “The direct selling model gives expression to our drive to foster women empowerment and financial independence. Women are the primary drivers of our industry and we believe that they should be given an opportunity to reap the…
The Black Elite, a minibus taxi rewards programme is slowly gaining popularity among taxi drivers. Black Elite, a card-based consumer programme that offers fuel rewards to minibus taxi operators, could become a considerable banking operation if its backers follow through their stated vision. The fuel rewards programme was launched in April 2018 by SA Taxi, an independent minibus taxi financier, in collaboration with Taxi Choice, the commercial arm of the South African National Taxi Council (SANTACO). “Through engagement with the industry, SA Taxi aims to leverage off of its telematics systems and Black Elite fuel rewards programme to develop its…
The Roman poet Quintus Horatius Flaccus, known in the English-speaking world as Horace, might have been summing up today’s Cell C when he wrote that “the mountains will be in labour, and will give birth to a ridiculous mouse”. By selecting an insider associated with what is termed a ‘Vodacom Cabal’ in the corridors of the company, as the acting CEO, Cell C board led by Kuben Pillay made their company look ridiculous. To make matters worse even workers at Cell C mock their executives as “Vodacom Cabal’ on social media. They claim the cabal is derailing the growth of…
Yolanda Cuba, Chief Officer of Strategy and M&A of Vodacom Group, seems to be on the move again. The former chief executive officer at Vodafone Ghana might have let the cat out of the bag through her post on the Facebook page, stating: “Where God guides, He provides”. The experienced executive, who was once tipped to take over from Shameel Joosub at Vodacom as CEO by TechFinancials, further states on her Facebook page: “So these new dreams and aspirations He has planted in my head, He says He will provide for… Here goes nothing…#nextchapter.” Clearly, Cuba has already left the offices…
Cell C yesterday threatened to sue the Information Communication and Technology Union (ICTU), which represents close to 1 300 striking workers in the mobile phone company. The mobile phone operator, which as loggerheads with the union, also threatened to dismiss employees engaged in an ‘unprotected strike’. The strike action by ICTU which commenced yesterday is over a dispute between Cell C and the union regarding the non-payment of 2017/18 outstanding performance bonuses. The ICTU – an affiliate of the South African Federation of Trade Unions (SAFTU) led by Zwelinzima Vavi – has been served by Cell C with a notice of intention to impose final written…
A Cell C executive who oversaw compensation and benefits at the mobile phone company has, according to insiders, been ‘fired’. TechFinancials has reliably learned that Wayne Heard, Cell C’s executive for compensation and benefits, who started working for the company in February 2013, left last month. Cell C did not respond to queries on the matter since yesterday. However, Cell C has previously stated that they do not comment on reasons why executives leave the company, except for the CEO. On Saturday impeccable sources at Cell C told TechFinancials that Heard was initially suspended just after compiling a “correct head count” of…
Cell C workers affiliated to the Information Communication and Technology Union (ICTU) will embark on a full-blown strike from tomorrow in all nine provinces, the union said on Sunday. “For us, this is a fight we are not prepared to lose because we are waging it against stubborn management that has no interest to the worker’s needs,” Origenous Mogoatlhe, ICTU Deputy President, told TechFinancials. ICTU is an affiliate of the South African Federation of Trade Unions (SAFTU), which is led by Zwelinzima Vavi. The union represents close to 1,300 members at Cell C. In February, Cell C workers led by ICTU engaged in a…
Mobile phone operator Cell C says it will seek an interdict in the labour court to ground the planned strike by the workers affiliated to the Information Communication and Technology Union (ICTU). The strike action by ICTU which is expected to start on Monday is over a dispute between Cell C and the union regarding the non-payment of 2017/18 outstanding performance bonuses. For more read: Cell C Workers To Embark On A Full-Blown Strike According to the notice of motion and founding affidavit sent to ICTU, Cell C is planning to seek an urgent interdict at the labour court tomorrow at 10 am. The…
The Information Communication and Technology Union (ICTU) says it wants to see a “stable, thriving and corruption free Cell C” company. “We are for cleaning Cell C for it to be a profitable company, and for workers to enjoy their 8 hours at work,” Origenous Mogoatlhe, ICTU Deputy President, told TechFinancials. ICTU is an affiliate of the South African Federation of Trade Unions (SAFTU), which is led by Zwelinzima Vavi. The union is currently engaged with Cell C to finalise the signing of a collective agreement. Last week, ICTU members at Cell C delivered a memorandum requesting Cell C to…
Top Cell C executive – regarded as the company’s key manager in retaining and attracting customers – is leaving the company as problems mount for the struggling cellphone company. The mobile phone operator is currently facing a strike action, which has resulted in a lockdown of its head office in Waterfall, Johannesburg since Wednesday. The company has since suspended workers and they will attend a mass hearing on Monday at the head office, resulting in the closure of Cell C stores. The departure of Michelle Beetar, Cell C’s chief customer officer, is a blow to the company. She was hired…
It doesn’t make sense for SANTACO to buy shareholding or invest in SA Taxi, which is owned by JSE-listed Transaction Capital. In my opinion, it is a bad move to partner with this independent minibus taxi financier. For more read: SANTACO Buys 25% Stake in SA Taxi for R1.7 Billion This is not an emotive argument that simply says that SANTACO is not at liberty to make money or invest. Who am I to make such a judgement? I have argued before in 2007, in my blog titled Gugled published by Fin24, that the minibus taxi industry should be floated…
Cell C is terminating its franchisees and taking over some of them without compensating the owners, insiders have claimed. This year, Cell C is scheduled to take-over about 12 stores from their owners, internal documents seen by TechFinancials reveal. The internal document details Cell C’s “Franchise Take Backs and New Store Rollout 2018”. Cell C’s plan for the take-over of more franchisees stores: The list of franchisees kicked out of their own stores by Cell C include; Amproz, Abomanzi, A-Tech, Bertolox, Prytanya, Shalom Creative Projects, and Verbiplex. Asked to comment on the development, which started way back in 2015, owners…
Cell C Executives – who have already received a massive windfall in success bonuses – are going ahead with the initial public offering (IPO) plans billed for either next year or 2020. This is despite the fact that Cell C’s floating on the JSE is dependent on market conditions improving. The move has raised suspicions it may be a ploy by the company’s bosses to earn millions more. When asked, Cell C told TechFinancials – two months ago – that the mobile phone operator is still considering listing, subject to market conditions. Since then there was no evidence that Cell…
The Cell C board did not approve hefty bonuses to the company’s executives and senior staff, insiders have revealed. Earlier this month, TechFinancials reported that Cell C staff have asked the company’s chairman and board to investigate why executives and senior staff were paid hefty bonuses in light of the firm’s poor performance. This after the staff was informed they would not be paid any bonuses this year because the mobile phone operator had not met its EBITDA 2017 targets. It has since emerged that the company has paid three executives – led by Cell C CEO Jose Dos Santos…
It’s a pretty momentous occasion for us here. We are turning five, and it’s nice to look back at the first five years we had, but even more exciting to think about what the next five might have in store. The first article was published on the 10th of September 2013. To venture into the unknown, I was influenced by Sumner Redstone’s quote: “Success is not built on success. It’s built on failure. It’s built on frustration. Sometimes it’s built on catastrophe.” As things get tougher (as they always do – publishing is not for the faint-hearted) I always get…