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a hybrid approach, establishing a competitive wholesale open-
access network (WOAN) alongside the opportunity for spectrum
access for current operators, would address the government’s
transformation mandate and have a greater positive impact in
driving down the cost to communicate. We have been encouraged
by the new administration’s commitment to an evidence-based
approach to rule making, and look forward to continuing our
engagement with them in the hope of finding the best way
forward on this issue.
A core part of our vision of empowering a connected society is our
commitment to playing a leadership role in driving Broad-Based
Black Economic Empowerment in the country. A significant
development this year will be the conclusion of our BEE deal. This
significant transaction builds on a strong tradition of promoting
employment equity, supplier development, retail transformation,
skills development and social investment. Our acknowledged
performance in these areas is evidenced by Vodacom consistently
outperforming all other network operators, and being rated this
year as the ‘Most Empowered Black-Managed Company’ on the
JSE. Ten years ago, Vodacom executed a R7.5 billion BEE deal,
one of the largest deals at the time. This deal is maturing in
October 2018, and to replace this we will be concluding a new
deal, mainly with existing holders, which has over 82 000 investors.
The underlying shares to this deal will now be at the Vodacom
Group level, allowing exposure to the Group’s International
operations, greater transparency and improved price discovery.
Governance and strategy
Following Peter Moyo’s retirement in July 2017, we have been
joined on the Board by Saki Macozoma, who brings fresh insight
and valuable experience, having served previously as chairman of
Liberty Life Holdings and Standard Bank, as well as past president
of Business Leadership South Africa. We are privileged to have a
very talented Board of 12 directors that have the necessary depth
and diversity in skills, experience and perspective to hold the
executive team to account on the development and execution of
its strategy.
The Board had a valuable opportunity this year to undertake a
comprehensive review of Vodacom’s Vision 2020 strategy. During
a dedicated two-day Board discussion in December 2017, we
engaged not only with the responsible Vodacom executives, but
also directly with individual employees involved in developing and
implementing various elements of the strategy. This more
‘experiential’ approach greatly assisted us in our role of overseeing
the strategy process, enabling us to engage in some productive
and robust conversations with the executive team, and helping to
further refine the ambitions and activities.
As outlined in more detail in this report, Vodacom has a bold
ambition of transforming the business into a ‘leading digital
company’, protecting and growing its existing activities in the
more traditional telecoms area, while diversifying into adjacent
new business in the digital space. Realising this ambition will
require developing critical skills and competencies in such areas
as Big Data analytics and Artificial Intelligence. It will require
having the right networks and technologies in place, as well as the
right organisational culture to deliver significant digital innovation
and yet maintain a strong, people-centred customer focus. In our
Board discussions, we have highlighted the importance of finding
the right balance in managing time and resources, between
retaining market leadership in our current core business and
investing in potentially radical new opportunities.
Acknowledgements
On behalf of the Board I would like to express our appreciation to
the executive team and all of the Vodacom employees for their
invaluable contribution to the Company’s success. I would also
like to thank our business partners, shareholders and other
stakeholders for their ongoing engagement and support.
As a leading African mobile network operator, Vodacom is
operating in an incredibly dynamic and exciting time. I am
confident that we have the right strategy and leadership team
in place to deliver on our vision of becoming a leading digital
company, empowering a connected society. I look forward to
working with my colleagues on the Board to ensuring that the
Company delivers on this vision.
Phillip Jabulani Moleketi
Chairman
1 June 2018
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