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Vodacom to spend R500m to expand Limpopo network

Vodacom has set aside R500m for the expansion of its mobile network in Limpopo, as it seeks to grow its base of mobile data users.

It invested R414m in the province’s infrastructure in the previous year.

With close to R1bn committed over the two year period, the group said “this substantial investment reaffirms Vodacom’s commitment to empowering communities and driving economic growth throughout the province, using broadband connectivity.”

The company invests billions of rand in capital expenditure locally each year, usually to build, update and maintain its network infrastructure across SA. 

For the year to end-March, the group spent R11.6bn on its network in SA, and expects to reach R12bn in the 2026 financial year. Rival MTN expects to spend up to R6.8bn in SA for its financial year to end-December. 

This year’s capital expenditure brings the total investment in radio and transmission infrastructure to R3.1bn over a seven-year period in Limpopo alone.

Of the total investment set for the year to March 2026, more than R312m is allocated to radio network rollout, with a further R346m planned for next year. Transmission infrastructure receives R194.2m this year, “supporting the expansion of coverage and enhancement of network capacity”.

“Our vision is to connect every individual and community, ensuring that everyone has the opportunity to participate in the digital economy and reaping the associated socioeconomic benefits,” said Lynn Benjamin, managing executive for Vodacom’s Limpopo region.

“By investing in advanced network infrastructure and affordable digital solutions, we are laying the foundation for a brighter, more inclusive future for all”.

Last month, Vodacom said it had set aside more than R435m for investment in the northern Gauteng area. 

In August, Vodacom said it had earmarked more than R400m to build and maintain its network in its central region, which includes the Free State and Northern Cape, during this financial year. 

Earlier in the same month, it announced a R500m network investment earmarked for the Eastern Cape. 

Vodacom said recently it would invest R620m to improve connectivity in deep rural areas and townships in Mpumalanga in the financial year. In 2024/25, the company invested more than R400m in the region. 

Elsewhere, Vodacom has earmarked about R100m to build 106 new base station sites in deep rural areas of KwaZulu-Natal.

The company said it was working on ways to increase data usage in the region by pushing down its cost and providing options for cheap smartphones. 

Amid declining voice and SMS revenue, operators are battling to increase network usage because smartphones are out of reach of many South Africans. Making devices more accessible is good for consumers and can increase the number of customers mobile providers have as well as the volume of data services that flow through their networks, ultimately adding to their profit.

In the current environment, this increased network usage helps to claw back and justify spending on network upgrades. 

Vodacom aims to roll out more than 250 5G sites in Polokwane, Makhado, Thohoyandou, Makhuduthamaga Rural, Greater Tubatse, Thulamela Rural, Ba-Phalaborwa Rural and Greater Tzaneen Rural.

The company said it would deploy new sites to connect unconnected communities such as Giyani, Malamulele, Musina “and many more located in the far northern rural areas of the province”.

The cellphone provider has also allocated R40.3m to support small, medium and micro enterprises between its 2024 and 2026 fiscal years. 

gavazam@businesslive.co.za

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