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Vodacom has reached an out-of-court settlement with former employee Nkosana Makate, ending a 17-year legal dispute over the creation of the “Please Call Me” service—a case that has tested South Africa’s corporate accountability and innovation credit-sharing culture.
The settlement, disclosed in a filing to the Johannesburg Stock Exchange, comes nearly two years after Vodacom appealed a Supreme Court of Appeal (SCA) ruling that could have forced it to pay up to $1.5 billion. Vodacom confirmed that its board approved the agreement on Nov. 4 and said the financial impact will be reflected in its half-year results due November 10.
Nkosana Makate wins after long legal battle
Makate, who developed “Please Call Me” in the early 2000s while working at Vodacom, argued that the service—which lets users send free text requests asking others to call them back—was his idea and brought in billions of rand for the company.
His legal battle began in 2008 after talks with Vodacom broke down. He sought compensation of 15 percent of the estimated R70 billion ($4.7 billion) he said the service generated. The case became one of the most closely watched corporate disputes in South Africa.
In 2024 the SCA ruled that Makate was entitled to between 5 and 10 percent of the total revenue from the service over an 18-year period. This potentially amounts to a staggering sum ranging from R29 billion ($1.5 billion) to R55 billion ($2.85 billion).
Vodacom criticized the ruling, calling sections of it “vague” and “incomprehensible,” and warned that such a payout could affect its employee welfare programs and investment in network infrastructure.
Vodacom settlement eases shareholder concerns
The dispute also caused tension among Vodacom’s Black shareholders, who own a minority stake through the YeboYethu initiative. They had voiced concern that a massive payout could reduce dividends and threaten long-term returns.
While the terms of the final settlement were not disclosed, Vodacom’s decision to withdraw its appeal at the SCA brings an end to one of the country’s longest-running intellectual property battles. For Makate, it marks the close of a two-decade fight for recognition and compensation.
