Vodacom gets government contract

A Bloomberg report revealed that cellular network Vodacom has been awarded a four year contract to supply government. The details of the deal are not yet clear, however, the value of the contract is approximately R5 billion ($350 million).

Vodacom chief executive officer Shameel Joosub, said: “Vodacom is honoured by the National Treasury’s decision to appoint us as a partner to government to deliver on the all-important task of enabling government to connect and communicate efficiently. We are equally confident in our ability to deliver on government’s high expectations and applaud their efforts in adopting a strategic sourcing approach so that combining innovation with economies of scale unlocks value for the state. Our substantial investment in infrastructure and innovative capability will now be at the disposal of the state to achieve this.”

When asked for commentary, National Treasury provided the following statement: “No, there is no cancellation of contracts. Some contracts had already ended and we're on a month to month basis and others are coming to an end.”

While the contract will reportedly cut costs for government, a goal of the National Treasury, details surrounding the deal, including the implementation and the exact services to be provided to government, are not yet clear.