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Vodacom South Africa: Seeking a CSR-framed Response to COVID-19
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In March 2020, South Africa faced an unprecedented crisis as its first in-country COVID-19 case was identified, leading President Cyril Ramaphosa to announce a strict 21-day nationwide hard lockdown. With schools, universities, and businesses abruptly forced to transition to remote models, reliable and affordable access to mobile telecommunications quickly became a vital necessity for citizens trying to work, study, and stay connected from home. Taki Netshitenzhe, the external affairs director of Vodacom South Africa, recognized this sudden shift as a pivotal opportunity to demonstrate the mobile network operator’s deep commitment to Corporate Social Responsibility (CSR). However, she was tasked with solving a complex dilemma: the foundation’s response had to effectively support and benefit society without imposing a crippling financial burden on the company itself.

At the time of the outbreak, Vodacom stood as the largest mobile network operator in South Africa, commanding a dominant 44% market share ahead of its primary competitor, MTN, which held 32%. Beyond its extensive domestic operations, Vodacom had established operating companies in several other African nations—including Lesotho, Tanzania, Mozambique, and the Democratic Republic of the Congo—alongside a significant 35% stake in Kenya’s top network provider, Safaricom. By the end of its financial year in March 2020, Vodacom had grown into a massive enterprise yielding a group revenue of R90 billion, with its South African division generating R52 billion in services revenue, nearly half of which was driven by prepaid services.

The company’s journey began in July 1994 as a joint venture between Vodafone, Telkom, and Venfin, eventually listing on the Johannesburg Stock Exchange (JSE) in May 2009 with Vodafone as the majority shareholder. By 2020, Vodacom boasted an expansive network footprint that covered 99.9% of South Africa, making it the 11th largest company on the JSE by market capitalization. This expansive reach highlighted the immense social impact potential of Vodacom’s CSR strategy. This structured commitment to corporate citizenship reflected a broader global evolution in business philosophy, moving decisively away from historical economic doctrines that argued corporation goals should strictly and solely focus on maximizing investor profits.

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  • Author(s):
    Dr Bhekinkosi Moyo and Claire Beswick
  • Year:
    2021
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