Vodafone-Afrimax partnership to boost high-speed mobile data services in Zambia

Vodafone said the two companies will work under a non-equity agreement to jointly offer high-speed 4G data services under the brand ‘Vodafone Zambia’, which will be headquartered in Lusaka.

The move will “tap growing demand for data-heavy services on the continent”, Vodafone said. “The roll out of Vodafone Zambia for consumers and businesses will include the opening of Vodafone branded retail stores and kiosks in key locations, bolstered by a network of distributors and resellers and offering a full range of 4G handsets and devices.”

Chief executive officer of Vodafone partner markets Stefano Gastaut said: “We are delighted that Zambia will be joining the Vodafone partner market community as the next stage in our agreement with Afrimax for sub-Saharan Africa. We look forward to bringing the best high-speed 4G data services to consumers and businesses in Zambia.”

Telecoms regulation specialist Diane Mullenex of Pinsent Masons, the law firm behind Out-Law.com, said: “High-speed 4G data services and Wi-Fi mobile data services will transform the environment in which small and large businesses operate in Zambia.”

Mullenex said: “Providing people with better internet on the go, rather than relying on slow connections or internet cafes, will expand the market and enable a faster flow of information. A much needed quicker and reliable connection will inevitably create a wealth of opportunities for businesses in the country.”

The Vodafone-Afrimax initiative is based on a framework agreement that was announced between the two operators in November 2014. That agreement outlined a strategy to “cooperate and explore potential partner market opportunities in a variety of territories in sub-Saharan Africa”. Under the agreement, Vodafone and Afrimax have already partnered to launch 4G services in Uganda.

The World Bank’s International Finance Corporation (IFC) is among multilateral institutions supporting the growth of the information and communications technology sector in Zambia – in particular to boost access to financial services.

In 2014, the IFC announced an advisory services agreement, valued at $1 million, with Airtel Zambia to increase access to mobile financial services in the Zambian market in order to strengthen financial inclusion.

Under the three-year project, the IFC  will support the creation of a mobile money infrastructure network by providing market research and advisory services on agent network management and business strategy development. The project is part of the Partnership for Financial Inclusion, a $37.4m joint initiative of the IFC and The MasterCard Foundation to expand microfinance and advance mobile financial services in Sub-Saharan Africa.

A report published last year by The Boston Consulting Group said that sub-Saharan Africa is adopting mobile financial services “at a pace seen in few other places, presenting banks and mobile-network operators with a set of strategic choices that will go a long way toward determining their success in the region”.

According to the report, the value of the region’s mobile money market could grow to $1.5 billion over the next four years as Africa’s ‘unbanked’ use their phones for a variety of financial transactions.