Author: Gugu Lourie
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…
Workers at Cell C 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. A group of workers calling themselves “The Concerned & Frustrated Employees of Cell C” have raised the matter with chairman Kuben Pillay. Workers have been informed that they will not be paid any bonuses this year because the mobile phone operator had not met its EBITDA 2017 targets. The workers have since found out that the company has paid three executives – led by Cell C CEO Jose Dos Santos – a…
Nigeria’s government risks damaging its investment climate with it’s Central Bank demanding $8,1 billion (R115 billion) allegedly paid as a dividend to MTN to be refunded to it. The move seems like an uninspiring way of encouraging any would be investors to see Nigeria as a destination for investment. In the short-term, the $8,1 billion (R115 billion) which is being demanded by the Nigerians, over claims the money was taken out of the country unlawfully, could be the quickest way to get funds for the central bank. The Nigerian economy is struggling to recover from its first contraction in a…
Staff at Cell C are very unhappy after they were told by their boss that they would not get any bonuses this year because the mobile phone operator had not met its EBITDA (earnings before interest, tax, depreciation and amortisation) 2017 targets. A letter to the staff written by Cell C CEO Jose Dos Santos – himself a recipient of part of the R219m windfall paid to executives – states that workers will not be paid any bonuses or short-term incentive programme (STIP) this year. Dos Santos wrote: “As you will be aware, April is usually the time of the…
Notwithstanding that this recapitalisation enabled Cell C to “finance” the acquisition of shares by Blue Label through selling its own shares. With such earnings, Cell C’s top three executives have to be among the highest paid prescribed directors in the country’s lucrative mobile phone industry. Their pay might have even eclipsed that of MTN, Africa and the Middle East largest mobile phone company, which is known to handsomely reward its executives. The Cell C trio earned more than executives of Vodacom, the country’s largest cellphone operator – owned by British mobile phone giant Vodafone. In the 2017 financial year, Cell C’s…
Deon Fredericks has been appointed as struggling SAA’s interim chief financial officer (CFO) effective from 15 October. Fredericks is on secondment from Telkom – Africa’s largest integrated communications firm – to the national carrier for a 12-month period. He takes over from Robert (Bob) Head, whose contract as SAA Interim CFO ended on 30 September. So who is Deon Fredericks? He is Telkom’s chief investment officer and prior to that, he was the chief financial officer at the integrated communications firm for four years. Fredericks joined the then state-owned Telkom in 1993 as a senior manager in the internal audit…
The South African-based health, life and short-term insurance provider has been named in a new report by The Boston Consulting Group (BCG) as one of the global challengers posing threat to the established industry leaders. The report – titled “The 2018 BCG Global Challengers: Digital Leapfrogs” – is published today. The BCG Global Challengers list comprises 100 companies that are growing fast, globalising aggressively, and reshaping global industries. The global challengers must have an annual revenue of at least $1 billion (R12.6 billion), 1 000 or more employees, and growth rates that outpace their home market GDP or industry average.…