Vodacom Congo’s future uncertain as it heads for arbitration
www.WirelessFederation.com/news: The future of Vodacom Congo seems to be looming in dark as the shareholders of the company are moving towards an arbitration process which means that the capital flow into the company’s operations in Congo will become very limited.
According to Bob Collymore, Vodacom Group’s chief officer for corporate affairs, at least now management knows that there is a process under way that will lead to a conclusion and the operational expenses will be met from cash flow with limited new capital to keep the business ticking, but not at the same level as before.
While the company hopes that the process would take less than a year to be finalized, experts feel that the process might take a longer time and the wait does not seem to be a short one.
Vodacom Group’s plans to expand in Africa might be hindered by the ongoing shareholders problems in Vodacom Congo. However, the company has expressed its commitment towards the continent every time and the Group recently acquired Gateway Communications providing telecommunications services such as satellite connectivity.