How much Vodacom paid Nkosana Makate is the question everyone wants answered. While the official figure is confidential, Vodacom’s own earnings guidance lets us work out a realistic range. Using the company’s issued shares and the change in its earnings-per-share (EPS) after the settlement, the best estimate is a payout between about R353 million and R748 million. Below is the plain-English breakdown of how that number comes together, what it likely means after tax, and why the final amount isn’t in the tens of billions.
What changed (and why it matters)
Vodacom first told investors its six-month EPS would be 496c–513c.
After the settlement with Makate, it updated that to 460c–496c for the same period, explicitly noting a one-off cost (the settlement).
EPS is simply profit per share. When EPS drops and nothing else changes, it means profit went down by the size of the drop. Multiply that drop per share by the number of shares and you get a ballpark rand value of the “one-off cost”—in this case, the settlement.
Quick answer box
- Shares in issue: ~2.078 billion
- EPS drop (low end): 36c per share (496c → 460c)
- EPS drop (high end): 17c per share (513c → 496c)
- Estimated settlement range: R353 million to R748 million
That’s the core math behind how much Vodacom paid Nkosana Makate.
Step-by-step: From EPS to rands
Step 1 — Identify the EPS change
- Old low EPS: 496c
- New low EPS: 460c
- Low-end drop: 496c − 460c = 36c (i.e., R0.36)
- Old high EPS: 513c
- New high EPS: 496c
- High-end drop: 513c − 496c = 17c (i.e., R0.17)
Step 2 — Multiply by shares in issue
Vodacom has roughly 2,077,841,204 shares in issue.
- Upper bound (bigger EPS drop):
R0.36 × 2,077,841,204 ≈ R748, million - Lower bound (smaller EPS drop):
R0.17 × 2,077,841,204 ≈ R353, million
Step 3 — Interpret the range
That gives a reasonable settlement window of ~R353m–R748m. It’s not exact (because EPS includes accounting nuances), but it’s a credible guide to how much Vodacom paid Nkosana Makate.
Why it’s not R29–R63 billion
At one point, a court ordered Vodacom to pay 5%–7.5% of “relevant revenue,” which, depending on the model, pointed to R29bn–R63bn before interest. That order didn’t survive. South Africa’s apex court later wiped it away and sent the matter back—calling the earlier outcome a failure of justice. Practically, that nuked the multi-tens-of-billions scenarios.
The settlement came after that reset, and Vodacom then recorded a single accounting hit for the six-month period—consistent with hundreds of millions, not many billions. That’s why How much Vodacom paid Nkosana Makate is best understood in millions, not billions.
How this compares to the R47 million offer
Years ago, Vodacom’s internal “deadlock breaker” process produced an offer of R47 million (Makate rejected it). The estimated R353m–R748m settlement range is far higher than R47m, showing how Makate’s persistence translated into a meaningfully larger outcome—even if it’s still much smaller than the headline figures sometimes thrown around online.
Gross vs. net: What does Makate actually receive?
The settlement number is gross. Makate’s take-home depends on:
- Legal fees and prior cost orders
- Over the years, courts have issued various cost orders. Some benefited Vodacom. Others may have shifted in later proceedings.
- Part of any settlement can address who pays what regarding past legal bills.
- Tax
- South African tax treatment depends on the nature of the payment (e.g., compensation for use of an idea versus damages versus interest).
- If treated as income (akin to royalties/compensation for an idea used), the tax could be at personal marginal rates.
- If any portion is treated as interest, that part can be taxed at specific interest rules.
- If a part qualifies as capital, capital gains tax rules could apply instead.
- The actual split is fact-specific and confidential; advisors typically structure this carefully.
- Timing of payments
- Settlements can be paid in a lump sum or staged (e.g., part now, part at a later date).
- Staged payments influence when tax becomes due and can affect the present value of the overall deal.
Bottom line: the headline settlement is not the take-home. After professional fees and tax, the net amount will be smaller. Even so, using the mid-range (say ~R550m as a rough midpoint) still implies a life-changing outcome before deductions.
Explaining the jargon in plain language
- EPS (Earnings per share): Profit divided by the number of shares. If EPS drops after a single big expense, that expense likely caused it.
- One-off cost: An expense that won’t repeat every period—like a settlement.
- Issued shares: How many pieces the company is cut into. Multiply EPS change by the number of pieces to estimate the total rand impact.
- 5%–7.5% revenue share: A once-proposed court formula (later set aside) that would have paid Makate a slice of certain revenues.
- Settlement: A private deal to end the case without continuing court fights. Often includes confidentiality, payment terms, and who pays costs.
What about interest?
Some earlier orders mentioned interest calculations. Because this ended in a settlement, interest can be baked into the agreed number or waived/adjusted as part of the bargaining. That means the R353m–R748m range likely reflects everything agreed for that period’s accounts—not a base amount plus interest still to come.
Will this change Vodacom’s prices or services?
Highly unlikely in any direct way. A once-off settlement is immaterial relative to a telecom giant’s multi-year capital spend and revenue base. Vodacom framed it as a single accounting hit in one interim period. Investors watch it, but consumers probably won’t notice anything on tariffs or network roll-out because of this alone.
What it means for innovators and employees
Three practical lessons for founders, employees and side-hustlers:
- Document ideas and discussions.
Keep emails, memos and prototypes. Paper trails matter. - Agree on value-sharing early.
If an idea is pitched at work, clarify ownership and compensation before launch. - Be realistic about outcomes.
Litigation can lift offers (here, from R47m to an estimated R353m–R748m), but multi-billion headlines often collapse once detailed models get tested.
All of that sits beneath the headline question—How much Vodacom paid Nkosana Makate—and why the final figure landed where it did.
FAQs
Is the final amount public?
No. The figure is confidential. We infer a range from Vodacom’s EPS update.
So what is the best estimate?
Between ~R353m and ~R748m for the settlement period.
Could the number be outside that range?
Slightly, yes—EPS ranges are guidance, and accounting can group items. But the math strongly supports a hundreds-of-millions outcome.
Does Makate get the money immediately?
Settlements usually specify a payment timetable—lump sum or staggered. The company booked it in the period, so cash flow is likely aligned.
Why did the “billions” headlines disappear?
Because the apex court reset the previous outcome and the matter ended in a private settlement, which Vodacom recorded as a one-off charge—consistent with millions, not tens of billions.
Final word
How much Vodacom paid Nkosana Makate looks, on the numbers, like R353 million to R748 million, derived directly from the EPS drop multiplied by shares in issue. The exact cheque is confidential; the range is robust. After legal costs and tax, the net will be lower—but still transformative. For the rest of us, the case is a masterclass: document your ideas, clarify ownership and rewards early, and understand that in high-stakes disputes, patient, evidence-driven bargaining—not headlines—decides the final number.