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Sitho Mdlalose is a man on a mission to create something special out of his appointment as the MD of Vodacom South Africa, writes Ralph Staniforth.

While still new to his role of Managing Director of Vodacom South Africa, Sitho Mdlalose is already starting to make a big impact. As an established business leader with strong personal presence, experience in leading global organisations, and interests in emerging markets, Mdlalose has always been destined for success.

Born into a family of seven children in Bulawayo, Zimbabwe, the loss of his father to cancer meant that from 11 years of age, Mdlalose had to learn the principles of hard work and diligence in order to help where he could with family matters. However, it was the strength of his mother which really had the biggest impact on the man he would become.

“I think watching my mother get us all through school was something that had a huge footprint on who I was going to become as a person,” Mdlalose says.

After completing his BCompt, Accounting/Auditing degree through the University of South Africa in 2002, Mdlalose underwent his CA training with Deloitte Zimbabwe, where his core clients were within the manufacturing sector. A stint with a non-profit organisation–Family Impact Zimbabwe, addressing the HIV/Aids pandemic followed. As a way to broaden his horizons and garner more experience, the United Kingdom was his next destination in 2005, where he took up a position within Ernst and Young’s consulting services.

“That was interesting, experiencing the European market. I shifted from what I was strong at with manufacturing and transitioned into the software business. I ended up in Reading, which is kind of the IT hub for the United Kingdom,” he continues.

“I really started to transition within the professional services environment into the technology world. I was used to manufacturing, seeing goods such as tyres that are produced from a process, and now you talk of things you cannot see, such as software. I think that really just caught my imagination in terms of the technology world and really started my journey to where I am now.”

His natural progression led him to Vodafone UK. His work would take him to India and Ghana as he continued to grow within his new-found passion.

“I had an amazing career with Vodafone. I spent time at Vodafone in Ghana, which was an interesting experience of mixing the sort of developed markets with emerging markets. The difference between those types of environments, the difference between a market leader, a challenger, an established business, a business migrating from what was a parastatal at the time that we had acquired it, was fascinating,” the cricket enthusiast recalls.

Then Vodacom came calling in 2013.

Mdlalose spent the first half of his time to date with Vodacom involved in international business. This took him to the DRC, Mozambique, Tanzania, and Lesotho. Being on the boards and as the CFO of those international businesses, driving strategy and performance as well as managing often complex stakeholder relationships, gave him the necessary experience to really make his mark on the organisation.

In 2017, Mdlalose joined Vodacom South Africa. Taking on the role of Finance Director for Vodacom South Africa was a major pivot for his career, while a stint as the Acting Group CFO for the Vodacom Group was a ‘humbling yet defining’ moment. In July 2022, Mdlalose took up the role of MD of Vodacom South Africa and that is where we find this dedicated individual today–ready to stamp his authority on the position and really take the organisation forward.

Making the MD role his own

Despite having worked within the Vodacom ecosystem for a long time, transitioning into this new role was always going to take time for Mdlalose. However, what has made this process much easier is the fact that the Vodacom ethos requires teams which are not only hard working and good at their job, but also welcoming and accommodating, which is exactly what Mdlalose has experienced in his fledgling career as MD to date.

“I have obviously had experience with Vodacom South Africa, but I think coming into this role, what has stood out is the incredibly talented and committed team that we have right across the business. Again, you get a sense of the energy, of the skills that are within the teams that have been built across the Vodacom business, and I think that’s really one of the things that I have appreciated over the past few months,” the qualified Rugby Football Union referee says.

“I am starting to understand the strong foundation of relationships that our business has built over time across the spectrum with our suppliers, with our partners, with our commercial partners, with our government stakeholders, our regulators, and understanding our entire ecosystem has been really fulfilling for me.”

One thing which has required a bit of getting used to is the pace of the industry from an MD’s perspective.

With the constant changes in the technology sector, there is no time to sit and wait for things to happen–you have to grab the opportunities with both hands.

Mdlalose, whose strength is inspiring the teams he leads says, “I think the pace of the industry is not slowing down anytime soon. It is befitting, as we’re a technology industry and so one would expect it to be fast paced, but I think just the market structure, the market construct, the technological developments that are constantly happening, and, of course, the challenges that the business faces speak to that sheer pace.”

With his vast experience within Vodacom, Mdlalose is well placed to make a real impact in his role. He knows the business inside out.

However, he is of the belief that not a lot has to change to keep the business on its current trajectory. What is required is keeping the strengths of the team flourishing and building upon what is already a very talented group of people.

“People tend to think that when a leader comes in, they will bring a certain X factor with them. I think the first thing that must be acknowledged about Vodacom South Africa is the fact that we have an incredibly strong and talented team.

“When I look at the uniqueness of what I bring, it comes from having a deep understanding of the business, of the South African market, of the various commercial and other constructs right across the business. I think that deep understanding of the business will be hugely critical in leading this business, having been a part of the leadership team for the better part of the past five years.

“Then it is about balancing that with the external perspective–and that’s where my experience on the continent is valuable.”

A different kind of experience

Mdlalose enters this role with an abundance of experience in the financial side of the business. As an MD, the operational side of the business is your main focus, so some might say that Mdlalose wasn’t quite the right fit.

For Mdlalose, however, that couldn’t be further from the truth.

“I think CFOs generally have a unique vantage point into the business and that allows them to essentially develop a really detailed appreciation for the end-to-end mechanics of the business–and I think that’s a huge strength of mine,” he insists.

While it is going to take some getting used to, Mdlalose is very much up for the challenge.

He views this as an opportunity to test himself, while also bringing a different outlook to the role–which can only be beneficial in the long run.

“When one is wearing an MD hat, there is an element of being able to dream, envision, and pursue different elements of what would bring about growth, not just this year, but over the next three to five years. I think that’s the challenge of what someone like myself would have to really harness into ensuring that one is successful in this role.”

The next year is undoubtedly going to be a test of Mdlalose’s capabilities in the role. With the world finally starting to return to a sense of normality, growth is there for the taking.

That is why Mdlalose is so keen on ensuring that he gives his team the footing to continue to shine, as his leadership is going to be vital in ensuring that they are pushed to the next level.

That next level is all about providing an excellent network which puts the customer first–a cornerstone of what Vodacom is all about.

“Over the next year, my ambition is to really play my part in contributing a leadership that unlocks the potential of the market in South Africa and that will encompass a few areas. You know we had the Spectrum auction recently? One of the questions is really around how we leverage that to continue to build on the reliability and quality of our network, and how we ensure that it is really positioned to service our customers well,” Mdlalose says.

“I think the strategic lever of the investment that has been made in Spectrum is going to be a big part of what we need to start to look to unlock over the next year. I think our ambition into continuing our roll out of 5G is another big, big element of what I would like to achieve, as we as a team roll that out across the country and really just continue to prioritise the customer in all that we are doing. I think that those two elements of a reliable network and focusing on our customers are two of the things that I would say I would focus on this year.”

Beyond the next year, the goal is to ramp up the technology available to customers and to really lend a helping hand to SMMEs in South Africa–which is and always has been a key pillar of the Vodacom South Africa business model.

“I think we have a lot of exciting capability in technology in the enterprise space which we want to continue to harness and grow, whether it is in cloud and hosting or security, and really how we serve our small to medium enterprises. I think those will be some of the things that over the next two years or so we will look to continue to accelerate,” he adds.

Transformation and women empowerment

The topic of transformation is sadly represented by lip service for the most part in South Africa. We talk until we are blue in the face, with very little in the way of action taking place.

That is simply not the case with Vodacom, one of South African’s most transformed companies. The organisation understands its responsibility as a market leader to support the transformation agenda, and with Mdlalose as the new MD, that is only going to go from strength to strength.

Mdlalose has a deep passion for uplifting those who need it, so it is going to be interesting to see what this journey leads to.

“The key area is our intentionality around how we grow and develop small to medium enterprises. That’s a really big focus for us. When we look at the amount of procurement, we spend close to R6 billion a year on EME and QSE suppliers. We spend something like R18 billion a year on 30% black woman owned businesses,” he reveals.

While it is all good and well supporting SMMEs, the key is also understanding their plight and listening to what they have to say. This creates lasting relationships which will prove beneficial to all involved.

Mdlalose is of the belief that the relationship also requires a deep nurturing to ensure that all the targets and goals are met from both sides of the relationship.

He explains: “I think listening to some of the challenges that small to medium enterprises have with integrating and working with a corporate such as ourselves is so important. For example, we have incredibly high health and safety standards, and what we say is that we are not going to change our health and safety standards, but what we can do is invest in some of the smaller players who aren’t able to bring themselves up to our health and safety standards, and invest in making them able to meet not just our standards, but also providing a platform to serve other businesses they weren’t able to serve before. We spend something close to R200 million just on our supplier development of the different small to medium enterprises that we work with.”

A major issue for many SMMEs is the late payment of their invoices by those they service. For a small business, not being paid on time can have a major impact on their workflow, with some even edging toward closure. Mdlalose is proud of the fact that Vodacom settles all invoices early, therefore giving SMMEs breathing room to continue their growth trajectory. Vodacom really are setting an example for others to follow–and they should be applauded for that fact.

“When it comes to dealing with smaller businesses and black-owned businesses, cashflow is so important. We know that cash is king and our policy–which I am particularly proud of, sees SMMEs paid within three days. We pay something close to R2 billion in early payments, which really helps the working capital and the cashflow part of the businesses. That helps drive and build the transformation and the economic growth within the economy. I am particularly passionate about this,” Mdlalose beams.

With another Women’s Month having come and gone, the debate now is around how we can keep the awareness and intent going when it comes to gender equality throughout the year.

Like transformation, there is always a lot of talk when it comes to women empowerment, with not enough action. It cannot simply be confined to a single month of the year if we want to make a true difference.

Again, and proudly for Mdlalose, this is certainly not the case with Vodacom.

Mdlalose, who has completed Harvard Business School’s Senior Executive Programme Africa, explains: “We are incredibly proud of the journey that we have walked and where we are at the moment. Today, the Vodacom South Africa board is made up of more than 50% black women. My own executive team, the South African exco, is made up of more than 50% black women. That just doesn’t happen overnight, that requires investment, it requires intentionality, it requires succession planning.

“So if you look at the transformation we have managed to achieve as a business, I think that for us it is a very deliberate journey that we will continue to pursue.”

While Mdlalose is determined to continue the fine track record of Vodacom South Africa when it comes to transformation and women empowerment, some interesting information came up about his reasoning for returning to Africa from his stint in Europe. He felt it was part of his calling to return to help the transformation journey on a continental scale, which highlights again his need to help those who need it most.

“I think one of the biggest challenges that Africa faces across the spectrum, whether it is the public or private sector, is that of good credible leadership. I have always felt that I needed to be part of the African narrative of transforming Africa, of seeing Africa become all that she can be. I think that was the first thing that really drew me back,” he reveals.

An inspired leader with big ambitions

Great leaders hold themselves accountable. As much as it is also the team’s responsibility to ensure that targets are met, the leader needs to shoulder any blame which is necessary–especially if they are willingly open to accepting the praise for success.

Mdlalose is very much a leader who believes in accountability, for both his team and himself. This builds trust and only goes to strengthen the working relationships of all involved.

“I work on the principle of high empowerment, but equally high, if not higher, accountability. We have incredibly talented people who are able to achieve more than they could imagine, but they can only do that if they have been empowered. That being said, in any organisation, a requirement for a leader is to drive performance and that means a high level of accountability on their behalf,” the married father of two states.

“I think my leadership style really is built around that and that’s probably why I enjoy operating with the degree of ability to sort of run and make decisions, but equally being accountable for the decisions that are made. I think that expectation that I have of myself is ultimately what tends to shape the relationship between myself and the teams I work with.”

All great leaders have to start somewhere and the people around you from the very beginning are usually the ones which you draw inspiration from when it comes to making a success out of your career.

For Mdlalose, there are two particular individuals who have helped to shape the leader he has become. It is always inspiring to hear about these tales of mentorship, as it shows that there are people out there who are willing to build you up as you rise.

“If I look at my growth in Vodacom, part of that started with a partnership alongside Romeo Khumalo, who was a previous COO of our international businesses. I think working alongside him really brought me closer to a desire to continue and move from my core finance space into the broader part of the business. He enabled me by giving me the room to be able to deliver on things that were wider than my core strengths and I think that was really transformational,” the former Senior Finance Manager: Africa, Middle East & Asia Pacific Region for Vodafone says. “With sadness in my heart, one of our non-executive directors, the late David Brown, is certainly a key figure in my journey at Vodacom. He was a true inspiration to me personally. He mentored me and he coached me, often in very natural, informal ways. David had an incredible impact on my own life and career, and how that has developed.”

Ambition in any role is important. When it comes to a leadership position, it is even more vital. While Mdlalose still has a long way to go in his role as MD, the reality is that he will have some key targets in the back of his mind which he will want to conquer before he moves on to his next adventure. So what exactly are those ambitions and what kind of legacy is he looking to leave?

“I would hope that in every possible aspect I have left this business in a far stronger place than it was when I arrived. I think the importance of South Africa as a country within Africa is huge and therefore that’s no different for us as a group, the importance of Vodacom South Africa within the Vodacom Group strategy, the broader strategy of connecting the unconnected across the continent is undeniable and so that’s one of the things that I want to achieve.

“One of the reasons I was incredibly willing to accept the role and come into the role as MD of South Africa is really to play my part in making the Vodacom Group a far stronger business and to continue to make an impact. I believe South Africa is such a key country and base when it comes to the African economy and I believe that the African economy will thrive as the South African economy thrives as a hub. When I leave I want to do so with the organisation as a stronger beacon of light within the Vodacom Group which can continue to impact the whole continent.”

And we don’t doubt for a second that you will be able to achieve all that you set out to do in this role. 

Ralph Staniforth is the Communications Specialist at The Write Way (PTY) Ltd

A brief yet eye-opening stint in Tanzania

Shortly before taking up the role of MD for Vodacom South Africa, Mdlalose was the Managing Director of Vodacom Tanzania for nine months. While he loved the people, the country, and the experience, possibly his greatest take away from his time in East Africa was the fact that there are new avenues of discovery awaiting Vodacom in Africa, which he labels ‘beyond mobile’.

He explains: “We talk within our business of ‘beyond mobile’. I think mobile has had its time in the sun, but, ultimately, while it remains a core part of our businesses across all of our markets, the reality is the growth drivers and the growth engines that we see come from financial services. Mpesa, for us in Tanzania, had 50% penetration within our base of customers–over 7.5 million customers within the total customer base of about 15 million odd in Tanzania. The transformation that financial inclusion brought was just exciting to be a part of and I really enjoyed that, but also sort of understood the different elements of what ‘beyond mobile’ looks like in each country, because it will look different from country to country.”

Sitho Mdlalose’s relationship with Vodacom Group CEO Shameel Joosub

“My relationship with Shameel is fantastic. I think we make a great batting partnership, if I can use that cricket terminology. The reason for that is with all the achievements of Shameel, there is a lot that someone like myself has and can learn from him. We have worked closely together on multiple transactions and business engagements, so there is an element of being able to understand what has gone into building Vodacom to what it is today. I think one of the things that pulls Shameel and I together is really our interest in substance over form. What I mean by that is we both have very high operational intensity expectations of what the business should be able to achieve in our strategy. I think that element is super critical. When I look at how we work together, the ability to drive that operational intensity across the Vodacom Group is something we coordinate well together on.”

Sitho Mdlalose’s views on diversity, equity and inclusion

“I think for us at Vodacom it is about diversity, equity and inclusion right across the spectrum. One of those is people with disabilities and there are a lot of things that organisations can do better in this regard. One thing that has helped us move the agenda forward has been a forum where we engage with disability and LGBTIQ+ issues, where we see what more we can do as a business. I think that has been really transformational for us. We will never consider ourselves to have arrived as an organisation, we will always push ourselves further.”

Sitho Mdlalose’s Vodacom journey

Managing Executive: Internal Audit

August 2013–October 2014

Responsible for the internal audit function within all Vodacom Group operating companies reporting to the Vodacom Group Audit, Risk & Compliance Committee (ARCC) Chairman. Prepare and deliver comprehensive plan (60 + audits) covering all seven group operating companies (Vodacom SA, Vodacom Business Africa, Vodacom Insurance and Op Co’s in Democratic Republic of the Congo, Tanzania, Mozambique, and Lesotho).

Acting Chief Operating Officer, International Business

July 2015 to December 2015

Responsible for strategy definition, execution of strategic vision into commercial plans, and delivery against goals in all Vodacom Operating Companies in Africa.

Chief Financial Officer: International Business

July 2014 to July 2017

Responsible for the financial function of the Vodacom Group International Business (Operating Companies in Africa) and played a key role in setting strategy, driving value, and providing insights.

Interim Group Chief Financial Officer, Vodacom Group Limited

June 2020 to November 2020

Interim Group CFO role reporting to Vodacom Group CEO; Member of the Vodacom Group Limited Board as Executive Director.

Finance Director, Vodacom South Africa Pty Ltd

July 2017 to July 2022

Responsible for the finance function of Vodacom South Africa.

Managing Director

July 2022 to Present