Vodacom, South Africa’s largest mobile network operator, has flagged “unstable economic and market conditions” and “cyber threats” as its two most critical risks in its annual report for the 2025 fiscal year.
These top concerns are part of a broader risk matrix that also includes growing tax, regulatory and compliance pressures, as well as the threat of technology failure, it said in its report.
In its risk “heat map”, both economic and cyber threats are rated as high-impact and fast-acting, with the potential to affect revenue and earnings rapidly.
For the year ending March, Vodacom reported a 10.9% increase in revenue to R152 billion, excluding currency fluctuations. Group earnings before interest, tax, depreciation and amortisation rose 7.8% on the same basis.
Vodacom’s warnings echo those made by the South African Reserve Bank (SARB) in the first edition of its 2025 Financial Stability Review. The SARB noted that a single cyber incident could undermine the financial stability of the entire country.
It also warned that South Africa’s already weak economic growth faces further headwinds from global conflicts, including the trade war, the Middle East conflict, and the war between Russia and Ukraine.
According to Vodacom, economic turbulence would be the fastest-acting risk, with a potential impact within six months. The company noted that “geopolitics and evolving trade policies present risk to foreign exchange, interest and inflation rate projections, dampening consumer and enterprise confidence”.
The US is South Africa’s second-largest trade partner, and the Office of the United States Trade Representative has emphasised that “trade is key to Africa’s economic growth”.
However, economist Dr Blessing Chipanda warned in an ISS African Futures publication that African exporters could be severely affected by shifting trade dynamics and would need to seek alternative markets.
The World Bank has cautioned that South Africa’s economic growth could decline by 1.1 percentage points due to the trade war. Sub-Saharan Africa may see a drop of 0.4 percentage points. While South Africa’s economy grew by 0.1%, exceeding expectations, the International Monetary Fund forecast Sub-Saharan Africa’s GDP growth at 3.6% in 2024.
Cyber threats are Vodacom’s second most pressing concern. The company said in its report that a cyber attack “could disrupt services or compromise confidential data. These incidents could adversely affect Vodacom’s customers, revenue potential and reputation, and result in escalated costs associated with fraud management or extortion.”
To mitigate economic dangers, Vodacom said it is constantly refining its offerings, closely managing capital expenditure and maintaining contingency plans.
On the cyber front, the company said it is implementing and enhancing a comprehensive security framework. It also highlighted efforts to “drive a sustainable cyber skills programme aimed at attracting and retaining scarce cyber skills, while also enhancing the skills of our existing workforce.”
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