Vodafone In Trouble

Vodafone Ghana is presently going through turbulent times as some major distributors and dealers in its products are withdrawing from working with the company, investigations by The Enquirer have revealed.

The Enquirer can confirm that six out of the 10 distribution companies do not have anything to do with Vodafone Ghana presently, because of unfriendly business policies being implemented by Mr. Amon Jere, a Zambian, who is the head of Sales and Distribution.

In April 2009, Vodafone re-engaged 10 old Ghana Telecom national dealers to operate as exclusive regional dealers in all parts of the country.

When The Enquirer contacted some of the directors of the accredited dealers, they confirmed that they are no longer operational due to the policies of Amon Jere, the Zambian, and have taken Vodafone to court.

The dealers claimed they were made to provide GH¢1 million guarantee, provide a working capital of GH¢500,000, each of them was forced to buy two vans for road shows, employ a minimum of 150 freelancers, and open not less than seven shops with staff in their respective regions.

The accredited dealers accused Amon Jere of deceiving them and being the cause of their indebtedness. The directors of these distribution houses complained bitterly that after incurring so much cost to set up their structures, Vodafone itself is also selling directly to retailers at a lower price (10% discount) and thereby preventing the retailers to deal with them (the dealers).

The dealers purchase the recharge products at 8 per cent, while the retailers get at lower rate with 10 per cent discount. Amon Jere, 34, is the very person, who sometime last year, was alleged to have insulted Ghanaians, saying their lazy and questioned the standard of Ghanaian education during a training session of the Vodafone sales team at La Palm Hotel in Accra.

Vodafone is alleged to be paying Amon Jere US$30,000 plus 1% of the total sales of Vodafone recharge cards every month!

Source: The Enquirer/Ghana