Interview by Dounia Ben Mohamed
Can you give us an overview of the evolution of the telecommunications sector in the DRC?
The Democratic Republic of Congo (DRC) presents an interesting market potential, especially in telecommunications and digital services. With a population of over 105 million and GSM service penetration close to 60%, there is still a significant opportunity to increase the number of subscribers, especially considering the phenomenon of multi-simming, which reduces the actual usage rate to around 50%.
Regarding internet access and financial services, the potential is also limited, with only 30% of the population having internet access and less than 20% using financial services. This highlights an opportunity for innovations and tailored services that could easily reach a broader audience. Vodacom Congo, with its 21 million subscribers in the DRC and more than two decades of operations in the country, plays a key role in this market. The significant investment of nearly $1.8 billion over
the past 22 years, particularly in expanding the 4G network, demonstrates the group’s commitment to meeting the rapidly growing demand. With a continuous increase in traffic, Vodacom is well-positioned to capitalize on the market’s growth potential, notably by offering innovative services that cater to the needs of an expanding population.
It will be interesting to monitor the evolution of the competitive landscape and government initiatives in digital infrastructure and financial inclusion, as they could also influence the development of telecommunications and digital services in the DRC.
What role does Vodacom play in this ecosystem, and how do you address the connectivity challenge in such a vast territory as the DRC?
At Vodacom, our commitment to network coverage expansion has been realized over the years through the installation of solar sites that serve remote rural areas. With nearly 900 fully solar-powered sites in operation since 2013, we are not only improving access to communication but also pro
tecting the environment by reducing our carbon footprint. The use of satellite antennas at these sites allows us to provide network coverage where traditional infrastructures do not exist. By integrating 2G, 3G, and 4G technologies and potentially, in the future, 5G, we are moving beyond voice and SMS services, enabling more and more people to access the internet. Although these advances come with high costs, particularly for acquiring satellite bands, we are determined to optimize their use to maintain our commitment to these communities. Our offers are adapted to the varied needs of our customers, ranging from simple communication solutions to more complex services like MPLS and tracking, specifically designed for public and private sectors. We will continue to invest in these technologies to meet the growing connectivity needs in the most remote regions.
Is solar an alternative to improve internet access?
We are working on various methods to increase our capacity, both through microwave networks and by s
atellite, while deploying optical fibers. These deployments are done either directly, in partnership with local actors, or as part of co-construction projects and IRU (Interconnection Resource Usage) agreements. Our approach is not uniform, as there is no one-size-fits-all solution. For example, if we relied solely on fiber, some regions of the country would remain inaccessible. That is why we use a combination of satellites, microwave networks, and optical fiber. Furthermore, we have access to submarine cables that allow us to connect to neighboring countries, east, west, and south, particularly through Zambia.
The main challenge remains to connect different regions of the Democratic Republic of Congo (DRC) and ensure the transit of internet traffic, which constitutes the majority of our exchanges, by routing this traffic outside the country. In the longer term, our ambition is to develop network infrastructures linking the east, west, north, and south of the country to reduce our dependence on satellite li
nks, which are costly and have high latency. We are also testing low-orbit satellites and increasing microwave backbone capacities, although we remain limited by available frequencies. The real solution lies in a redundant fiber deployment because when a fiber is damaged, all connectivity can be lost. It is therefore crucial to plan for looped networks. The main obstacle remains the vast distances to be covered, sometimes spanning thousands of kilometers.
How is the financial services sector and mobile money developing in the DRC?
We have developed a range of financial services, such as mobile money, aimed at individuals, businesses, and even public administrations. For example, in some regions, tax collection is done via M-Pesa, as well as water bill payments. We are currently working on integrating electricity payments. In terms of money transfers, our M-Pesa services include loan solutions and a foreign exchange system (FOREX), as the DRC operates with dual currency. We have also implemented a phone purc
hase program on credit, aiming to facilitate smartphone acquisition and thus promote access to new digital services. Additionally, we offer open APIs, allowing a broad ecosystem to connect to the M-Pesa platform for payments. This includes e-commerce and FinTech players, contributing to the development of a digital infrastructure around this solution.
Why choose M-Pesa, and how does it integrate into the Congolese financial ecosystem?
M-Pesa is the most advanced and comprehensive mobile money platform in the ecosystem. For those who have visited Kenya, it represents the flagship example of a FinTech success in Africa. It is precisely this success story that inspired us to replicate this model in the Democratic Republic of Congo (DRC). Our goal is to increase M-Pesa penetration rates and, from this base, develop various ecosystems. The platform facilitates not only transactions for individuals but also for businesses and administrations.
To date, we have more than 35,000 merchants within what we call the Me
rchant Ecosystem, who use M-Pesa for their purchases and payments. Our ambition is to dematerialize the use of money, bringing numerous benefits, including reducing the risks associated with cash handling and better transaction traceability. We plan to continue diversifying our FinTech offerings to meet users’ varied needs, whether they are farmers or entrepreneurs. By collaborating with the government in e-government initiatives and integrating tailored financial products, we aim to actively participate in the digitalization of the country while improving the efficiency of public services.
Pioneers of digital financial services, we have also paved the way for the integration of FinTech. Today, we are market leaders in terms of both subscriber numbers and revenue generated, as well as the diversity of products offered. Thanks to our API (Application Programming Interface) integration, we intend to continue diversifying our FinTech offerings based on market segments. The needs of a young farmer are not the sa
me as those of a young tech entrepreneur, and we will develop customized solutions for individuals, businesses, and public actors. This will improve efficiency and traceability, perfectly aligned with our vision of the country’s digitalization.
How are traditional banks evolving in this landscape? Do they see you as an ally or a competitor?
Regarding local banks, we collaborate on several fronts. While we compete in some aspects, we are primarily complementary, as we do not target the same segments with the same services. We have integrated our systems with almost all the banks in the country, which are both our partners and clients. I believe we are moving towards a model of enhanced partnerships and collaborations, as observed in Kenya. Banks will never be able to bank the entire Congolese population in the short term; it will take decades to achieve this. Our goal is to integrate as many Congolese as possible into the financial system, especially those who still do not have access to traditional banking
services.
As these individuals progress financially, they will naturally migrate to the banking sector, but they will need different products from those we currently offer.
M-Pesa is the most advanced and comprehensive mobile money platform in the ecosystem. For those who have visited Kenya, it represents the flagship example of a FinTech success in Africa. It is precisely this success story that inspired us to replicate this model in the Democratic Republic of Congo (DRC). Our goal is to increase M-Pesa penetration rates and, from this base, develop various ecosystems. The platform facilitates not only transactions for individuals but also for businesses and administrations.
To date, we have more than 35,000 merchants within what we call the Merchant Ecosystem, who use M-Pesa for their purchases and payments. Our ambition is to dematerialize the use of money, bringing numerous benefits, including reducing the risks associated with cash handling and better transaction traceability. We plan to continue dive
rsifying our FinTech offerings to meet users’ varied needs, whether they are farmers or entrepreneurs. By collaborating with the government in e-government initiatives and integrating tailored financial products, we aim to actively participate in the digitalization of the country while improving the efficiency of public services.
Pioneers of digital financial services, we have also paved the way for the integration of FinTech. Today, we are market leaders in terms of both subscriber numbers and revenue generated, as well as the diversity of products offered. Thanks to our API (Application Programming Interface) integration, we intend to continue diversifying our FinTech offerings based on market segments. The needs of a young farmer are not the same as those of a young tech entrepreneur, and we will develop customized solutions for individuals, businesses, and public actors. This will improve efficiency and traceability, perfectly aligned with our vision of the country’s digitalization.
How are traditional
banks evolving in this landscape? Do they see you as an ally or a competitor?
Regarding local banks, we collaborate on several fronts. While we compete in some aspects, we are primarily complementary, as we do not target the same segments with the same services. We have integrated our systems with almost all the banks in the country, which are both our partners and clients. I believe we are moving towards a model of enhanced partnerships and collaborations, as observed in Kenya. Banks will never be able to bank the entire Congolese population in the short term; it will take decades to achieve this. Our goal is to integrate as many Congolese as possible into the financial system, especially those who still do not have access to traditional banking services.
As these individuals progress financially, they will naturally migrate to the banking sector, but they will need different products from those we currently offer.
We offer internal training to strengthen the skills of our employees, as well as scholarshi
ps and support for universities. We have launched digital classes and collaborate with Kadea Academy to train youth in digital professions. To date, around 250 graduates have joined our latest promotion, and we are actively working for gender parity by integrating more women into the tech sector. In Lubumbashi, we have reached a 50-50 ratio, while in Goma, this figure is 20%, and in Kinshasa, between 25 and 30%.
Since 2017, Vodacom has also launched VodaEduc, a platform that offers educational content and provides free connectivity to young people, regardless of their purchasing power. Additionally, in disaster-affected areas, we have deployed the Instant School program, which enables students to continue their education through a satellite network.
Digital skills development is fundamental, not only for our own operations but also to support the ecosystem in which we operate. This helps to improve the performance of entrepreneurs and youth, while ensuring a better understanding of our products. This is a m
ission we have been pursuing from the start.
What are the upcoming challenges to face competition and consolidate your positioning?
The DRC has four main operators, as well as a large number of fiber optic suppliers and ISPs (Internet Service Providers), creating a highly competitive market. However, this dynamic presents long-term challenges, particularly concerning market fragmentation. This situation echoes the difficulties faced in Europe, where operator consolidation becomes necessary to ensure sustainable investments. Regulators must therefore consider ways to ensure healthy competition while allowing operators to meet a growing demand for data and services.
The issue of cybersecurity is also one of the major challenges for the coming years…
Cybersecurity has become a priority for operators, integrated into their DNA to protect both their networks and the data of their subscribers. With the rise of artificial intelligence, anticipating new trends in cybersecurity is essential. Vodacom and Vodafone s
tand out for their proactive approach, deploying audit systems, attack simulations, and crisis scenarios to ensure a quick response in case of an incident. This vigilance goes hand in hand with a strong focus on privacy protection, an inseparable aspect of cybersecurity.
Finally, how do you plan to address the challenge of inclusion?
To meet the growing infrastructure needs, Vodacom is investing in data centers and collaborating with other suppliers to diversify its resources. The company is also focusing on infrastructure sharing to reduce investment costs, particularly through joint projects with competitors. This approach aims to promote digital inclusion on the continent, a crucial element for economic development. With the advent of artificial intelligence, it is imperative to accelerate the deployment of basic infrastructures, such as GSM and Internet coverage, to meet the needs of a population exceeding 100 million inhabitants. Financial inclusion remains a fundamental lever to support the digital de
velopment of the DRC.
Source: Africa News Agency
