Vodacom gets nod to take 100% stake in Africonnect Zambia
The Zambia Competition Commission (ZCC) has approved the 100% takeover of Africonnect Zambia by Vodacom Gateway Mauritius, itself owned by the UK’s Vodafone Group, The Zambia Post reports. The regulator said that it would allow the acquisition as it believed that such a transaction would not lead to a negative impact on competition in the provision of internet services in the country, with ZCC public relations director Brian Lingela noting: ‘The board granted final authorisation to the transaction on the premise that the proposed acquisition did not raise any competition concerns as Vodacom Gateway Mauritius had no known presence in Zambia either directly or indirectly.
The board was of the view that the transaction was not therefore likely to lead to a situation that could have any substantive adverse effect on competition in the provision of internet or other information and communication technology services.’ The regulator also said that it expected the deal to both increase investment in the country’s ICT sector as well as bolster competition. No financial details of the deal have been released.
According to the ZCC, Africonnect is the country’s third largest internet service provider, with a 9.3% market share, behind market leader Zamtel (35.78%) and second-placed Zamnet (35.23%).