Home Finance Vodacom wins a tender worth R5bn

Vodacom wins a tender worth R5bn

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Africa’s largest cellphone and South Africa’s leading cellphone and network services provider, Vodacom wins a government contract worth an estimated R5 billion as Treasury looks into cutting costs of wasteful expenditures.

The tender is to supply as many as 1.3-million government employees for four years, starting on September 15, said the people, who asked not to be identified as details of the deal had not yet been made public.

“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,” CEO Shameel Joosub said in e-mailed comments on Wednesday, without providing detail of the contract.
“Our substantial investment in infrastructure and innovative capability will now be at the disposal of the state.”

Finance Minister Pravin Gordhan said in his budget speech in February that the reduction of government costs was a priority. The state could save R25bn a year through “belt tightening”, he said, including R500m from changing cellphone policies.

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