Vodacom Lesotho has invested more than $40 million (M700m) into a phased network upgrade that has enabled it to expand coverage and improve service quality.
The company is also deploying Artificial Intelligence (AI) to enhance data analysis and internal processes such as human resources, says Mohale Ralebitso, managing director of Vodacom Lesotho.
Despite enormous investments, Ralebitso believes that operating in a regulated area has inherent complications.
The company has faced regulatory scrutiny over the past few years; in 2025, the Lesotho Communications Authority ruled it violated consumer-protection laws regarding airtime restrictions on Top-Up Flexi packages.
The operator has also faced licence revocation threats over Universal Access Fund fee compliance issues.
Despite these challenges, the company has continued to invest in its infrastructure while repositioning its mobile money offering, Ralebitso told ITWeb Africa this week.
Lesotho has been a key African market for the Vodacom Group.
The telco launched its first regional 5G commercial service in the country in 2018 and, in March, reported that revenues from the operation grew by 10.8% to $23 million (R410m) over the quarter to December.
The investment of over $40 million (M700m) has enhanced network performance and expanded coverage to underserved areas, says Ralebitso.
It has also improved service quality through data-driven insights, supporting the company’s growth in the country.
The company is also integrating AI in areas such as network management, customer engagement, and internal human resources processes.
On mobile money, M-PESA has evolved into a wholly owned entity called VCL Financial Services, says Ralebitso.
The establishment of this independent company was motivated by the need for clearer regulatory alignment and greater operational focus across the financial ecosystem.
This creates an environment that supports the expansion of digital financial services while maintaining the strategic relationship with the connectivity business, says Ralebitso.
VCL Financial Services has since introduced savings and investment products, moving beyond traditional mobile money services.
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