South African largest mobile communications group, Vodacom, on Monday said it has not written-off the possibility of investing in Africa’s most populous country, Nigeria.
Speaking after the release of the company’s annual results, Vodacom CEO Alan Knott-Craig alluded to the fact that Nigeria — home to more than 130-million people — provides excellent growth opportunities, but said the company will not venture into any market with its eyes closed.
Vodacom last week announced it had pulled out of that country due to corporate governance and trust reasons. The company had a five-year contract to run the cellular network owned by VEE Networks (formerly Econet Wireless Nigeria).
“It is difficult to not be in Nigeria and be a market leader in Africa. But it doesn’t mean that we’ll go there at all costs,” Knott-Craig said, adding the company is not prepared to take inappropriate risks.
Knott-Craig added that Vodacom will go to various markets on the continent, including Nigeria, when the time is right as the company does not want to leave “new markets untapped”.
Commenting about the resignation of Nigerian-based Vodacom boss Willem Swart — whose resignation was announced last Monday — Knott-Craig reiterated that Swart was not pushed but resigned out of his own accord.
“He resigned because he wanted to stay in Nigeria,” he said.
Knott-Craig said Vodacom will continue to provide technical support to the Nigerian operator for up to six months.
However, the South African group said it has decided not to pursue an equity stake in VEE. — I-Net Bridge