FINALLY, VODAFONE appears to have gained its objective of taking control of South Africa's leading mobile phone operator, Vodacom. It looks set to raise its stake to 65 per cent – thereby gaining a controlling interest.

The R22.5 billion (£1.4 billion) deal is subject to Vodacom's debt being subtracted – thought to be around R5 billion. The remaining 35 per cent of Vodacom's shares will go to the seller's (Telkom's) shareholders, Vodafone said in a statement.

As Vodafone notes, this deal will give it interests in the Democratic Republic of Congo, Lesotho, Mozambique and Tanzania in addition to South Africa.

Africa is one of the most attractive emerging markets given that fixed-line networks are miniscule and cellular networks often provide the only access to the Internet.

Vodafone will have its work cut out in South Africa, however. While Vodacom presently has around 55 per cent of the market, it faces a near 100 per cent market penetration situation. Plus a strong competitor in MTN.

Conversely, Vodafone has other holdings in Ghana, Kenya and Egypt. It will be interesting to see what Vodafone intends to do about Nigeria – one of Africa 's most attractive markets. µ