Vodacom Desktop Wallpaper

This is one boycott that may not be successful, even if it is targeted against only one of a number of operators. South Africans are too attached to their cellphones to put their chat-time, socialising and contracts at risk. And nevermind the considerable hassle of dealing with a mobile company’s call-centre. Presumably then, Mr Vavi and his fellow unionists are not on one of the other networks and will be going through the same pain of changing network providers as all of the consumers they are calling on to boycott Vodacom.

That all said, in some ways it is easy to sympathise with the COSATU point of view:

“… COSATU … has long opposed the deal on the grounds that it threatens jobs and cedes control of a major South African company to a foreign firm. …”

The last fifteen years have seen nearly every major South African company renouncing its roots either by listing on a foreign stock exchange, or by being taken over by a larger foreign competitor. This means that profits are repatriated to the foreign owners. But worse is that this has been accompanied by a brain drain of some of the best business people from South Africa; especially that caused by the listed companies who move their Head Office operations offshore.

“South Africans are too attached to their cellphones to put their chat-time, socialising and contracts at risk”

Economists will say that it is good for the country and that it is an investment. These inflows are, as far as I know, listed in the FDI (Foreign Direct Investment) number of the national accounts. But where are the factories? Where are the extra jobs? Where are the greenfield projects? And where is the added capacity that investment is meant to create? Buying a successful organisation does not say investment, unless the recipient of the cash decides to invest the windfall.

Vodacom, freed from Telkom, should be able to continue growing and innovating. Hopefully, the reality of a Head Office at Vodafone Headquarters, will not put a damper on the South African entrepreneurship that created company with an estimated worth of R100 bn once listed.

And COSATU’s boycott. Probably won’t happen. If it does, it is unlikely to be heavily supported. They have threatened a lot recently. They need to get back to their customers and improve the conditions of the worker on the factory floor. Leave the worrying about Vodacom and the Western Cape to the ANC. COSATU also need to see how they can help with directing investment into greenfield projects and sustainable job creation.