Vodacom's Maziv Stake Granted Approval After Regulatory Objections Lifted
In a significant development for the South African telecommunications sector, Vodacom's proposed acquisition of a 30% interest in Maziv, a company that owns fibre assets, has gained the Competition Commission's approval, following the agreement of additional concessions.
The Competition Commission initially opposed the deal due to concerns about competition and public interest, particularly regarding the potential to stifle market competition and hinder the development of digital infrastructure in South Africa. However, the revised conditions, while not publicly disclosed in their entirety, have been deemed sufficient to address these concerns, leading to the Commission's decision to drop its opposition.
The Competition Appeal Court will now consider the matter on 22 July 2025, as the Commission presents these conditions to demonstrate how they alleviate earlier concerns. If approved, Vodacom expects to accelerate network expansion, a move that is seen as crucial for enhancing digital infrastructure, bridging the digital divide, and contributing to economic development through job creation and improved connectivity.
Shameel Joosub, the CEO of Vodacom Group, expressed his satisfaction with the Competition Commission's decision, stating, "Our vision is to bridge the digital divide through world-class connectivity, and this acquisition will help us achieve that vision."
Maziv's fibre assets, currently owned by Community Investment Ventures Holdings (CIVH), will include Vumatel and Dark Fibre Africa. Vodacom believes the transaction will help address the cost to communicate, allowing it to reach more homes and businesses, including underserved communities.
Vodacom's purpose is to connect people to a better future, and this acquisition is no exception. The company anticipates that the transaction will contribute meaningfully to job creation, furthering its commitment to economic development in South Africa.
This development marks a significant milestone in Vodacom's ongoing efforts to enhance digital infrastructure and connectivity in South Africa, a move that is expected to have far-reaching implications for the country's digital landscape.
The Competition Commission's decision to approve Vodacom's acquisition of a 30% interest in Maziv, a company owning fibre assets, despite initial opposition, may have significant implications for the financing of telecommunications infrastructure expansion. With the added fibre assets, Vodacom expects to lower the cost of communication, reaching more homes and businesses, especially underserved communities, which could potentially boost the business growth in South Africa through job creation and improved connectivity.
