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Orange and Vodacom Partnership: Vodacom Group and France’s Orange have created a strategic partnership to explore infrastructure deals in Africa. The partnership will ensure subsidized costs on the continent.
According to Bloomberg, both telecom companies are exploring agreements in markets such as Egypt and Congo. Their exploration is aimed at finding opportunities to work with interested organizations in these countries.
The discussion is still underway, and there are no final decisions yet. However, it is possible that the companies would not ultimately reach an agreement.
Vodacom, the largest mobile operator in Africa, is also seeking similar partnerships with other service providers in various countries where it operates.
The report stated that a representative for Vodacom confirmed via email that the company is exploring partnerships with other mobile operators and financial investors to reduce rollout costs and enhance rural connectivity.
The representative said, “We are looking at partnerships with other mobile operators. This will also include financial investors in countries where we operate. Our aim is to potentially alleviate the costs of rollout and rural connectivity, to address costs of communication, and narrow the digital divide.”
Orange SA has a presence in over ten African countries, including Egypt, the Democratic Republic of the Congo, and Cameroon. Also present in Burkina Faso, Madagascar, Botswana, Mali, Morocco, Senegal, and Ivory Coast.
The company serves 298 million customers worldwide. Additionally, it has brought together more than 2,000 young people aged 10 to 14 in France and Luxembourg to raise awareness of good digital practices through sport and the values of Paris 2024.
Vodacom and Orange are each working to expand to capture the market’s exploding growth. Especially in countries where young, tech-savvy users utilise mobile services to access everything from entertainment to financial services.
Both businesses are proving to be growth drivers for each group’s European parent companies. However, it’s an expensive exercise, especially when it comes to developing in rural areas where returns are low. The partnership will however ease the financial limitations that might be experienced.
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