At long last, Vodacom’s persistent four-year pursuit of a strategic stake in fibre infrastructure through Maziv is bearing fruit. In a landmark ruling on 15th August 2025, South Africa’s Competition Appeal Court gave the green light to Vodacom’s plan to acquire a 30% stake in Maziv, the parent company of prominent fibre operators Vumatel and Dark Fibre Africa.
This marks the culmination of a taxing regulatory saga. Initially, in October 2024, the Competition Tribunal had blocked the deal, citing fears of reduced competition in fibre-to-the-home and fixed wireless access markets – a move that stalled Vodacom’s vision of expanding broadband across underserved areas, according to Reuters.
But determination and negotiation paid off. By July 2025, Vodacom and Maziv had struck revised terms with the Competition Commission, addressing concerns around market dominance, pricing, and access for third parties. These commitments included:
- Ensuring competitive pricing and maintenance of low-cost broadband packages
- A five-year capital expenditure commitment to sustain infrastructure expansion and support third-party network operators
- Free one-gigabit fibre access for public institutions like clinics, libraries, and police stations passed by fibre.
With these safeguards in place, the Commission dropped its opposition and refrained from contesting the revised terms at the Appeal Court, paving the way for approval.
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What Vodacom Is Bringing to the Table
Critically, the nature of the deal evolved significantly. Per the revised agreement in July 2025, Vodacom will contribute around R4.9 billion in existing fibre network infrastructure in exchange for new Maziv shares. It will top that up with R6.1 billion in cash for additional equity—and also invest roughly R2.5 billion to buy out shares from the parent, Community Investment Ventures Holdings (CIVH) Reuters.
Importantly, the package may change based on whether Maziv declares a dividend of up to R4.2 billion before closing. If declared, Vodacom’s cash commitment could be reduced by up to R1.3 billion. Depending on that, the company’s valuation sways between R29.8 billion and R36 billion.
There’s also a twist where Vodacom’s option to scale up its stake is capped at 4.95%, meaning it could hold up to 34.95% maximum—down from an earlier 40% proposal.
Beyond the numbers, this deal is a strategic move for Vodacom. It brings them into a commanding position within fibre infrastructure, potentially unlocking faster broadband rollout to households and businesses—especially in underserved townships. It further lays the groundwork for closing the digital divide and boosting South Africa’s digital economy.
Why This Matters: From Connectivity to Inclusion
This development isn’t just a corporate win—it holds deep significance for South Africa’s digital future.
First, consolidating access to Maziv’s fibre footprint means Vodacom can expand high-speed broadband more swiftly and comprehensively. Vumatel already leads fibre-to-the-home penetration, while Dark Fibre Africa dominates wholesale network access.
Second, the deal comes with strong competition safeguards. The terms ensure that smaller operators don’t get squeezed out, broadband stays affordable, and key community institutions benefit. That’s especially meaningful in a socio-economic environment where reliable connectivity can drive education, healthcare, and job creation.
Third, the R 13 billion-plus deal (approximate) positions Vodacom to take on rivals like MTN, deliver richer value for money, and catalyse infrastructure-led growth in South Africa’s digital economy.
And finally, by persevering through a protracted regulatory process—and ultimately securing approval—Vodacom has demonstrated commitment to inclusive growth in a way that could serve as a model for future mergers in the sector.
Looking Ahead
So what happens now?
The Competition Appeal Court has granted approval, but Vodacom’s acquisition still hinges on unconditional approval from ICASA—the Independent Communications Authority of South Africa—which had previously offered conditional approval back in November 2022.
With the regulatory hurdles cleared on the competition front, Vodacom and Maziv now must secure ICASA’s final nod before implementation proceeds. If granted, expect swift action in rolling out enhanced fibre infrastructure, especially in areas long overlooked.
Vodacom’s Group CEO, Shameel Joosub, captured the mood best:
“We are delighted with the Appeal Court’s decision, which paves the way for us to bring the benefits of enhanced fibre infrastructure to more South Africans. This acquisition is a cornerstone of our strategy to improve connectivity, drive digital inclusion, and support South Africa’s digital economy.”
Meanwhile, Pieter Uys, Maziv’s chairman, confirmed the deal’s approval on 14 August 2025, according to Techpoint Africa—underscoring the near-certain momentum to follow.
Conclusion: A Digital Shift in the Making
In wrapping up, this landmark decision isn’t just business as usual—it’s a turning point in South Africa’s quest for empowered, inclusive digital growth.
After four years of negotiation, pushback, and fine-tuning, Vodacom has finally secured its place in the fibre infrastructure landscape. The result is a balanced and forward-looking agreement—one that promises affordable, high-speed connectivity across the country, with safeguards to preserve market fairness and social impact.
A new chapter beckons. If ICASA gives the final green light, South Africans in townships, suburbs, clinics, and libraries may soon enjoy the benefits of accelerated broadband access—owing to a bold, carefully tailored play by Vodacom to secure fibre’s future.
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