Maziv has welcomed the greenlight for its merger with Vodacom, saying the development paves the way for “major capital investment and accelerated” fibre rollout across the country.
This follows last week’s decision by the Competition Appeal Court that approved the long-delayed R14 billion merger of Vodacom, SA’s largest mobile operator, and the fibre infrastructure giant.
The decision ended a three-year impasse, clearing the way for Vodacom’s acquisition of a 30% stake in Maziv.
In a statement, Maziv explains that the approval follows extensive negotiations between the merging parties and the Competition Commission, resulting in revised conditions intended to strike a balance between encouraging investment and safeguarding fair competition.
As part of the merger conditions, Maziv has committed to spending at least R12 billion over the next five years, earmarked for broadband infrastructure expansion and maintenance, particularly in underserved areas, it states.
Dietlof Mare, Maziv Group CEO, comments: “This approval marks a pivotal milestone in South Africa’s telecoms evolution. It frees us to harness substantial capital and accelerate fibre rollout while embedding the customer-centric conditions we have championed from the start.”
While the merger remains subject to final regulatory sign-off from the Independent Communications Authority of South Africa, Maziv says it is actively engaging with the regulator to ensure a “swift” final approval.
“We are confident of a positive outcome,” says Mare. “Our regulatory engagement has been transparent and constructive, and we will engage constructively to secure the final approval and begin delivery on the promises to South Africans.”
Maziv was created in 2022 by Remgro-owned Community Investment Ventures Holdings after it folded Vumatel and DFA into one giant fibre infrastructure company.
As fibre deployments slow down across SA, the company’s CEO previously said his firm is looking to unlock the potential of internet connectivity for lower income homes, to ensure more South Africans in remote areas participate in the digital economy.
According to Maziv, the broadband infrastructure initiative will include fibre expansion into underserved low-income areas, clinics, libraries and schools, building on its existing school connectivity programme that currently connects over 950 schools with free 1Gbps uncapped fibre.
The commitments are coupled with open access requirements, affordable broadband options for low-income households, and transformation measures that support SMME growth, employee benefit and community upliftment, notes the company.
Having passed the Competition Appeal Court approval stage, Maziv highlights the conditions attached to the merger transaction ensure smaller internet service providers retain access to fibre infrastructure, ensuring consumers continue to have choice and that competition remains healthy and fair.
Commitments to enterprise development, employee empowerment and SMME growth are central to the agreement, reflecting the importance of growing the sector, but also making it a more equitable one. These initiatives are expected to generate new jobs opportunities, unlock entrepreneurial opportunities, and build long-term economic resilience and inclusivity in local communities, it states.
“This merger is not just about growth, it’s about building an equitable digital future for all South Africans, whether it’s the maths teacher in Mitchell’s Plain tutoring children online, or the gogo in Alexandra helping her grandchildren with homework,” adds Mare.
“With this approval, regulatory work in progress and capital that will become available, we are ready to scale our fibre network, extend affordable uncapped fibre access and create lasting economic value.”
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