Africa-Press – Gambia. In a watershed moment for South Africa’s telecommunications landscape, Vodacom Group has received decisive approval from the Competition Appeal Court to proceed with its R13.2 billion ($752 million) acquisition of a 30% stake in Maziv, the fibre infrastructure conglomerate that controls market leaders Vumatel and Dark Fibre Africa.
This landmark decision, announced on Thursday, August 15, 2025, concludes a protracted three-and-a-half-year regulatory odyssey that has captivated industry observers and positioned Vodacom to significantly expand its fibre infrastructure footprint across South Africa’s rapidly growing digital economy.
The approval comes at a pivotal time for South Africa’s information and communications technology sector, which is expected to reach USD 39.72 billion in 2025 and grow at a CAGR of 7.90% to reach USD 58.09 billion by 2030. The acquisition positions Vodacom strategically within this expanding market, particularly in the high-growth fibre segment where subscriptions have experienced an annual growth rate of over 30% in recent years.
Maziv, which operates as the umbrella entity for all fibre assets owned by Community Investments Ventures Holding (CIVH), represents one of South Africa’s most valuable telecommunications infrastructure portfolios. The company’s subsidiaries, Vumatel and Dark Fibre Africa, have established themselves as dominant players in the country’s fibre-to-the-home and enterprise connectivity markets respectively.
The capital infusion from this deal will significantly accelerate Maziv’s fibre rollout initiatives, particularly targeting previously underserved township areas that have remained a strategic priority for bridging South Africa’s digital divide.
The path to approval proved far from straightforward, involving multiple regulatory bodies and unprecedented legal maneuvering. Initially, the Competition Commission recommended blocking the transaction, citing substantial concerns about potential anti-competitive effects in South Africa’s fibre infrastructure market.
However, following extensive negotiations and a set of revised conditions proposed by the merger parties and the Competition Commission ahead of the Competition Appeal Court hearing on 22 July 2025, the regulatory landscape shifted dramatically. The Commission ultimately reversed its position, endorsing the acquisition after Vodacom and Maziv presented enhanced commitments to preserve market competition.
The Competition Tribunal initially maintained opposition to the deal, issuing an order prohibiting the proposed transaction in October 2024. This decision prompted the merging parties to file an appeal with the Competition Appeal Court, creating an unusual procedural scenario.
Appeal Court Judge Norman Manoim characterized the situation as unprecedented, noting that while the court received comprehensive arguments detailing alleged flaws in the tribunal’s decision, it received no counter-arguments from the Competition Commission, which had by then changed its stance to support the merger.
Jerome Wilson, representing Maziv’s legal team, emphasized that the revised agreement negotiated with the Commission should be viewed as supplementary enhancements to the original proposal, arguing that the tribunal had fundamentally misassessed the transaction’s competitive implications.
South Africa’s fibre infrastructure market has experienced remarkable transformation in recent years, driven by increasing demand for high-speed internet connectivity and digital services. The fibre internet market in 2025 is more competitive than ever, with new players entering the market and established providers such as Openserve, Vumatel, and MetroFibre striving to differentiate themselves through better pricing and service quality.
The country’s dark fibre network market specifically shows strong growth potential, with projections indicating growth from USD 16.15 million in 2023 to an estimated USD 41.36 million by 2032, representing a compound annual growth rate of 10.86%.
This acquisition occurs against the backdrop of substantial telecommunications sector investment, with yearly investment in mobile communication services increasing by 22.98% to R17.74 billion, while expansion investment grew from R1.65 billion to R3.32 billion, though infrastructure investment experienced some contraction.
Despite the Competition Appeal Court approval, Vodacom must still secure unconditional approval from the Independent Communications Authority of South Africa (ICASA) before completing the transaction. ICASA had already provided initial approval in 2022, suggesting this final step may proceed more smoothly than the competition law review process.
The revised conditions accompanying the court’s approval are designed to address earlier regulatory concerns while enabling the parties to realize the transaction’s strategic benefits. These conditions likely include commitments regarding network access, pricing transparency, and market competition preservation, though specific details remain confidential pending final regulatory clearance.
This acquisition represents a fundamental strategic shift for Vodacom, South Africa’s largest mobile network operator by subscriber base. By securing co-controlling interest in Maziv, Vodacom gains direct influence over critical fibre infrastructure assets that complement its existing mobile network investments.
The deal aligns with broader industry trends toward convergence between mobile and fixed-line services, as telecommunications operators seek to offer comprehensive connectivity solutions spanning residential, business, and enterprise segments. Access to Maziv’s extensive fibre network will enable Vodacom to enhance its mobile network backhaul capabilities while expanding into high-growth fixed-line broadband markets.
For Maziv, the partnership provides substantial capital resources to accelerate network expansion, particularly in township areas where fibre infrastructure development has historically lagged due to economic and technical challenges. This focus on previously underserved communities aligns with South African government priorities for digital inclusion and economic development.
The successful completion of this acquisition will likely accelerate consolidation within South Africa’s telecommunications sector, as major operators seek scale advantages and infrastructure synergies. The deal may prompt competing operators to pursue similar strategic partnerships or acquisitions to maintain competitive positioning.
From an economic development perspective, the expanded fibre infrastructure investment promises to support South Africa’s digital transformation objectives, enabling improved connectivity for businesses, educational institutions, and residential users. Enhanced fibre access can facilitate growth in digital services, e-commerce, and technology-enabled sectors that require reliable, high-speed internet connectivity.
The transaction also demonstrates continued confidence in South Africa’s telecommunications market from major investors, despite broader economic challenges affecting the region. Vodacom’s substantial financial commitment signals optimism about long-term demand growth for advanced connectivity services.
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