Vodacom SA has started the process of searching for a new MD, a task it must complete within the next three months, as Shameel Joosub will take over the reins at Vodafone Spain at the beginning of April.
Vodacom SA is the largest subsidiary in the Vodacom group and is also SA's biggest cellular network, with 23.8 million subscribers at the end of September last year, giving it a market share of 49%.
However, analysts expect the company to have an easier time replacing Joosub than counterparts MTN and Telkom, both of which seem to have battled to fill the top seat after their CEOs stated they would be moving on.
Joosub, an executive director of the Vodacom group and MD of Vodacom SA, will move to Vodafone, Vodacom's single largest shareholder, to take up the post as CEO of Vodafone Spain, one of Vodafone's largest operating companies.
The move, which Vodacom describes as a “promotion”, will see Joosub leave the board and relinquish his post as Vodacom SA MD at the end of March. Richard Boorman, executive head of corporate communications, says a process to replace Joosub has been initiated, but he cannot provide any additional details yet.
Key player
Joosub has been with Vodacom since its inception in 1994 and has been described by the company as a key architect in growing the business. He joined the company as an accounting clerk and was promoted to head up the commercial arm of Vodacom SA in 2000, after holding several positions within the telco.
From 2000 to 2005, Joosub was responsible for increasing Vodacom's South African subscriber base from 2.5 million to almost nine million. After being promoted to MD of Vodacom SA in 2005, Joosub oversaw the growth of the business to 24 million subscribers.
Joosub was the third head of a telecoms company to announce his resignation in 2010, as both Telkom CEO, Reuben September, and MTN CEO and president, Phuthuma Nhleko, announced their resignations.
Lack of talent
However, MTN and Telkom seem to have battled to find replacements to take over the running of the telcos. In December, MTN finally announced that Sifiso Dabengwa, currently group COO, would take over from Nhleko in March.
Telkom has yet to fill its CEO position, after announcing in August that Reuben September would move on immediately, an abrupt move that contradicted a June statement from the board saying September would stay on until November. Jeffrey Hedberg has been acting CEO since September's departure.
Arthur Goldstuck, MD of World Wide Worx, says the telecoms sector is experiencing a shortage of top leadership, which can partially be attributed to the fact that the sector is constantly changing and evolving.
However, while MTN and Telkom have battled to fill their top spots, he does not anticipate that Vodacom will face the same challenges. Goldstuck explains that Vodacom has a “tremendous depth of leadership” and can also draw on Vodafone's pool of talent.
Sasha Naryshkine, an analyst with private client asset management firm Vestact, points out that Vodacom only has three months to fill the post, but should not have any trouble attracting talent as the sector is in an “exciting space”.
Naryshkine adds that Joosub's move appears to be an inter-group shuffle and he would not be surprised if an appointment was made from within Vodafone's ranks. “All in all, I think quality attracts quality.”
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