Telecom firm injects $100m for facelift

Mergers, Acquisitions and Financial Results

Dar es Salaam. Vodacom Tanzania managing director Rene Meza has said his firm plans to invest more in building mobile data business, network operations, and financial distributions to boost and strengthen its mobile money transfer (M-pesa) services.

“The company’s growth is based on the fast expanding subscriber list, mobile financial services arena and voice services, and these are appropriate for an emerging economy like Tanzania,” he said in an interview. 

He revealed that a total of $100 million investment would cover the growth in network coverage capacity, recruitment of agencies, boosting the M-pesa services, new technologies and offer new corporate solutions. The investment will be spent in the next 12 to 18 months, he added.For the last 15 months Vodacom registered over eight (8) million customers, experiencing an exponential growth at the rate of 20,000 new subscribers a day, according to him.

Vodacom’s expansion plan comes in the backdrop of a severe competition, high prices of third generation (3G) spectrum and the airwaves allocation scam exposure a few years back, which brought the Tanzania telecom sector to a standstill.

Meza noted that the main growth going forward is on the area of Internet with the continuing expansion of 3G network and the sector of mobile commerce, which he said is a prominent area in the country.
This move aims to strengthen the company’s position in the market.