South African mobile communications company Vodacom is in discussions with Tanzanian government and other mobile service providers to fuel its expansion plans in the East African country.
The leading pan-African corporate connectivity and telecommunications provider is seeking possible deals that will aid the company’s expansion in one of its biggest market.
Chief Executive Officer Shameel Joosub in an interview with Bloomberg said that “Should opportunities present themselves for in-market consolidation in Tanzania, we will have a look if the regulatory environment is favorable. We’re having discussions with parties to see if there are opportunities.”
Vodacom is the first and only telecommunications company to have listed on the Dar es Salaam Stock Exchange, which was done last year. Following this, there is a chance that Vodacom would want to use the $225 million proceeds it raised from the Tanzanian IPO.
The telecom provider could use the proceeds for future deals including a deal with one of the other seven telecommunication operators in the country, including Millicom International Cellular SA and Bharti Airtel Ltd., Bloomberg reported.
Both Millicom and Airtel seem to be potential buy-out targets considering Millicom’s previous indication to pursue an exit strategy in Africa and Airtel’s search for additional consolidation on the continent.
Vodacom is the leading cellular network in South Africa with an estimated market share of 58% and more than 23 million customers. However, interim results for the six months ended 30 September 2017 revealed 2.9 million South Africans and 1.4 million international customers joined its network in the first half of this year, which brings the total customers number to 71 million.