Competition Tribunal Blocks Vodacom’s R14 Billion Investment into Fibre Expansion Project with Maziv

The Competition Tribunal has blocked Vodacom’s planned R14 billion investment into Maziv, the newly formed fibre holding company created by Vumatel and Dark Fibre Africa (DFA). The proposed merger aimed to extend fibre networks into low-income areas, which Vodacom argued would bring significant benefits to South Africa.

The Tribunal, following the recommendation of the Competition Commission, prohibited the merger, citing Section 16(2) of the Competition Act. While the detailed reasoning behind the ruling is pending, the decision follows the conclusion of tribunal proceedings last month, where Vodacom presented its vision to uplift underserved communities.

Vodacom’s proposal included investing over R10 billion within five years, primarily targeting lower-income areas, expanding fibre access to more than 1 million homes, creating up to 10,000 new jobs, and establishing a R300 million enterprise and supplier development fund for SMMEs. Additional commitments included providing free high-speed internet to over 600 schools and police stations and securing R14 billion of Vodacom’s investment for South Africa.

Despite these commitments, the Competition Commission raised concerns that Vodacom’s acquisition of Vumatel could harm competition by giving Vodacom excessive control in the fibre market, potentially impacting broadband pricing and limiting consumer choice.

Vodacom Group CEO Shameel Joosub expressed disappointment with the ruling, stating, “Our investment of up to R14 billion would have transformed millions of lives and created thousands of jobs.” He emphasized that the company had made comprehensive commitments to address concerns raised by competitors and regulatory bodies.

Vodacom awaits the Tribunal’s full explanation of its ruling before deciding on a potential appeal to the Competition Appeal Court.