Presently, Vodacom's operations in Africa, excluding South Africa, account for only 17% of the company's revenue. The group hopes to increase this to between 25% and 30% in the next three years, CEO Shameel Joosub told Dow Jones Newswires.
Vodacom, majority owned by Vodafone Group PLC (VOD), is also actively looking for acquisitions on the continent, but Mr. Joosub declined to provide specifics on a timeline and which countries it is looking to enter.
Vodacom isn't the only mobile phone operator with its eyes on a piece of the continent's merger and acquisition activity in a fast-growing telecoms market.
Last month, MTN Group Ltd. (MTN.JO) said the next big growth phase in sub-Saharan Africa will come from market consolidation in places like Ghana and Uganda. MTN said it plans to take part in the continent's mobile phone network consolidation.
Mr. Joosub said one of the big drivers on the continent for mobile phone companies is the introduction of smartphones. He added the company is focused on putting more smartphones in user hands. Vodafone has developed a low-cost smartphone that Vodacom plans to roll out in Africa in the next month which will sell for around $70.
The CEO said the mobile phone operator teamed up with a manufacturer to produce the lower cost phone, which will initially be marketed under the Vodafone brand. Mr. Joosub said smartphone users in its markets increased from 1.2 million to 1.6 million in the year ended March 31.
For many people across Africa smartphones are a key way to access the Internet and companies have been pushing to produce lower cost smartphones.
Total Vodacom subscribers in the past year increased to 51.7 million from 47.8 million the year before, said Mr. Joosub
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