Who we are
Vodacom is a leading African communications company providing a wide range of services, including data, mobile and fixed voice, messaging, financial services, Enterprise IT and converged services to 110 million1 customers.
From our roots in South Africa, we have grown our mobile network business to include operations in Tanzania, the DRC, Mozambique, Lesotho and Kenya. Our mobile networks cover a total population of over 291 million1 people. Through Vodacom Business Africa (VBA), we offer business-managed services to enterprises in 50 countries. Vodacom is majority owned by Vodafone (60.5% holding), one of the world’s largest communications companies by revenue.
Presenting our strategy for
long-term value creation
To our investors and other interested stakeholders
This year Vodacom celebrates 25 years of keeping people connected. We’ve come a long way since launching in South Africa in March 1994, growing the business to provide a wide range of communication services to 110 million customers, including Safaricom.
About this report
This report reviews Vodacom’s strategy and business model, risks and opportunities, and operational and governance performance, for the financial year 1 April 2018 to 31 March 2019. The report covers the activities of the Vodacom Group and all our operating subsidiaries. Financial and non-financial data from our subsidiaries are fully consolidated. In assessing the issues that materially impact value creation we have looked beyond the financial reporting boundary to provide for the material interests of relevant stakeholders, and to address the significant risks, opportunities and impacts associated with our activities over the short-term (less than 12 months), medium-term (one to three years) and long-term (beyond three years).Reporting frameworks
Our reporting process has been guided by the principles and requirements contained in the International Financial Reporting Standards (IFRS), the IIRC’s International <IR> Framework, the King Code on Corporate Governance 2016 (King IV), the JSE Listing Requirements, the South African Companies Act, No. 71 of 2008, and the GRI’s Sustainability Reporting Standards. We have provided extracts from the consolidated annual financial statements (AFS) in this report. The full set of AFS, as well as a suite of additional reports, are available online or can be requested from our Company Secretary.Materiality
This report provides information on all those matters that we believe could substantively affect value creation at Vodacom. The process of identifying and prioritising the material matters for inclusion in this report involved reviewing: Vodacom’s business model; our interaction with the six capitals; our operating environment; and the interests of our key stakeholders as expressed during our normal business engagements with them. This report presents the identified material information through a clearly structured narrative that: reviews who we are and how we create value; identifies those issues that have a significant impact on value; and outlines our strategy, performance and governance practices in ensuring long-term value creation. Additional information not material to this report, but of interest for other purposes, is provided in our other reports on our website.Integrated thinking
Integrated thinking is intrinsic to how we manage our business and to our internal strategy development and reporting practices. Our strategy and six strategic pillars have been developed to ensure that we manage the resources and relationships needed to create value over time. A considered assessment of the six capitals (as referred to in the IIRC’s <IR> Framework) informed both our strategy and the internal materiality process used to determine the content and structure of this report.Combined assurance
We use a combined assurance model to provide us with assurance obtained from management and from internal and external assurance providers. PricewaterhouseCoopers Inc. audited our consolidated annual financial statements 2019 and provided an unmodified opinion thereon. The extracts from the AFS in this Integrated report are from audited information but are not themselves audited. PricewaterhouseCoopers Inc. have undertaken a limited assurance engagement on selected elements of our Scope 1, 2 and 3 greenhouse gas emissions that are reported in our Sustainability report 2019. Our Audit, Risk and Compliance Committee provides internal assurance to the Board on an annual basis on the execution of the combined assurance plan. The Group’s financial, operating, compliance and risk management controls are assessed by the Group’s internal audit function, which is overseen by the Audit, Risk and Compliance Committee.
The value we impacted
Connecting people and enabling businesses are the main outcomes of the mobile and fixed network services we offer. Communication improves quality of life, enables efficiency, connects supply and demand, and supports the sharing of information and data between individuals and businesses.
The mobile ecosystem continues to grow its contribution to economic growth and address social challenges through wider mobile reach and better networks.
Delivering societal value through our core purpose
Vodacom’s core purpose is ‘connecting for a better future’. The United Nations Sustainable Development Goals (UN SDGs) provide the best articulation of what that ‘better future’ looks like, setting a clear long-term agenda to end poverty, protect the planet and ensure prosperity for all by 2030. Vodacom is committed to playing its role, as a private sector company, in the attainment of these goals, supporting governments, communities, businesses and individuals to build a better future. Through our core business of providing increased access to reliable and accessible voice and data services, we are making an enormous contribution to national and global developmental objectives.
Vodacom has identified and prioritised the following eight Sustainable Development Goals, where we believe we can have the most meaningful impact. Our approach to delivering on these goals is reviewed in our suite of integrated reports, with the most detail provided in our Sustainability report 2019.