The Competition Commission has stated that Webafrica can acquire rival, Mweb, but must first address public interest concerns by implementing an employee share ownership program and a transaction involving historically disadvantaged individuals.
Specific details on how these schemes will be implemented have, however, not been provided. Dimension Data, which owns Mweb, has been attempting to sell the Mweb business since 2021. The commission has determined that the acquisition is unlikely to result in a significant reduction in competition in relevant markets.
Webafrica’s Managing Director, Sean Nourse, has confirmed the deal and stated that it will double the company’s workforce without any anticipated layoffs.
Both Webafrica and Mweb will continue to operate independently, with Mweb being led by Manelisa Mavuso.
Nourse did not disclose the exact number of customers Mweb has, but it is in the hundreds of thousands. The majority of these customers are on fibre, but there is still a significant number on copper DSL and fixed-LTE services.
Previously, Dimension Data, CEO Alan Turnley-Jones, stated that the sale of Mweb aligns with the company’s strategy of prioritizing core markets and serving enterprise clients. Dimension Data has been attempting to sell the Mweb business since at least 2021. The value of the Webafrica transaction was not made public.