Vodacom spends billions to counter load shedding

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Shameel Joosub

by TINTSWALO BALOYI
JOHANNESBURG, (CAJ News) – VODACOM has since 2020 spent over R4 billion (US$209 million) in back-up power solutions amid South Africa’s power crisis.

A further R300 million has been invested in the past financial year on additional running costs in the form of diesel, security and maintenance.

“The sustained levels of load shedding has been disastrous for the South African economy and the industry as a collective,” said Shameel Joosub, Vodacom Group Chief Executive Officer.

He was speaking at the company’s presentation of its preliminary results for the year ended March 31, 2023.

Group revenue of R119,2 billion was up 16 percent, positively impacted by the acquisition of Vodafone Egypt and rand depreciation against a basket of international currencies.

“In a year defined by the global economic slowdown and financial market uncertainty, Vodacom Group has delivered a satisfactory set of results, showcasing the resilience of our strategy and our track-record in adapting quickly to changes across operating environments,” Joosub said.

The Group has pledged a commitment of spending 13 percent to 14,5 percent of its overall revenue on capital expenditure that ultimately results in an enhanced customer experience through sustained investments in technology and network infrastructure.

At the recent South Africa Investment Conference, Vodacom recently assured R60 billion of capital investment over the next five years in South Africa alone having delivered on a R50 billion pledge made in 2018 over the previous five years.

These substantial investments are for enhancing network resilience through elevated levels of load shedding, the acceleration of 5G coverage, as well as the rural coverage programme.

– CAJ News

 

 

 

 

 

 

 

 

 

 

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