The Makate vs Vodacom saga: A deep dive into the 'Please Call Me' court battle
In a historic judgment delivered on Thursday, the Constitutional Court ruled that the Supreme Court of Appeal (SCA) had committed several errors in assessing Vodacom’s appeal against a High Court decision.
Outgoing Deputy Chief Justice Raymond Madlanga delivered his last ruling involving the long-running dispute between Nkosana Makate and Vodacom over the Please Call Me invention.
The ruling has significant implications for the case and the legal battle for compensation. We take a deep dive into the key events in the Makate vs Vodacom ‘Please Call Me’ battle.
- November 2000: In 2000, Nkosana Makate was a 24-year-old trainee accountant at Vodacom who came up with the ‘Please Call Me’ idea. He was promised compensation by a former Vodacom chief executive for his invention, which the company initially described as “a world first” and a “genius invention”.
- March 2001 – March 2021: This period is crucial as the Supreme Court of Appeal (SCA) later ordered Vodacom to calculate Makate’s compensation based on the total revenue generated from the ‘Please Call Me’ service during these years, including interest.
- 2008: Makate initiated legal proceedings against Vodacom in the high court after the company refused to negotiate compensation. YeboYethu, a Black Economic Empowerment (BEE) investment vehicle, was established by Vodacom, capitalised by ring-fencing 3.44% of Vodacom shares worth R7.5 billion.
- 2015: Vodacom’s stakeholders were reportedly aware of the financial implications of the potential liability. Makate’s funding agreement with Raining Men Trade was cancelled due to a breach.
- April 2016: The Constitutional Court ruled in Makate’s favour, affirming he was the inventor and contractually entitled to compensation. The court subsequently ordered Vodacom CEO Shameel Joosub to determine a “reasonable compensation”.
- December 2017: Despite this, the negotiations between Makate and Vodacom regarding compensation reached a deadlock.
- 2019: Joosub made a determination of R47 million as compensation for Makate, based on a five-year contract duration. However, Makate and his legal team summarily rejected this offer, valuing fair compensation significantly higher, between R28 billion and R110 billion.
- February 2022: The High Court, presided over by Judge Wendy Hughes, initially ordered Vodacom to pay Makate between 5% and 7.5% of the revenue generated from ‘Please Call Me’ over 18 years. Judge Hughes ordered Joosub to make a fresh determination, providing guidelines and stating that the R47 million offer was “by far too conservative”.
- February 2024: The year 2024 saw several key events in the battle. In February, the Supreme Court of Appeal (SCA) dismissed Vodacom’s appeal against the High Court decision and ruled in favour of Makate. The SCA ordered Vodacom to calculate compensation using models submitted by Makate’s team, specifically between 5% and 7.5% of the total revenue generated from the service between March 2001 and March 2021 (18 years), including interest. Makate’s legal team calculated this to be approximately R20 billion based on a 5% share of an estimated R205 billion revenue over 18 years, while Vodacom warned shareholders that the majority judgment could entitle Makate to a minimum of R29 billion and potentially up to R63 billion.
- The SCA also set aside Joosub’s R47 million determination and ordered him to make a new offer within 30 days, based on Makate having had an 18-year contract with Vodacom, and accounting for the time value of money calculated at an average inflation rate of 5% from March 1, 2001, to February 28, 2019. Vodacom expressed surprise and disappointment, stating its intention to appeal to the Constitutional Court. YeboYethu also indicated its intention to join the matter as an independent amicus curiae, arguing that a high payment would have “disastrous consequences” for its 80,000 black indirect shareholders by suspending dividends.
- March (after the February 2024 SCA ruling): Makate agreed to meet Vodacom for potential out-of-court settlement negotiations, marking the first time Vodacom showed willingness to settle since 2017. However, these negotiations ultimately failed.
- October 2024: The deadline for written arguments to be lodged for the Constitutional Court appeal. Makate filed heads of arguments, stating his claimed quantum was R9.4 billion and arguing that Vodacom would not suffer severe effects from a payout under R40 billion.
- November 2024: The matter was scheduled to be heard at the Constitutional Court.
- July 2025: The Constitutional Court overturned the 2024 SCA ruling that favored Makate. The court found that the SCA had made several errors in assessing Vodacom’s appeal and remitted the matter back to the SCA for further consideration, explicitly stating it would not rule on the finality of the dispute.
- Ongoing: The case is not yet resolved. The legal battle continues at the Supreme Court of Appeal to reassess the matter. Nkosana Makate remains optimistic despite the setback, believing he can convince the SCA to recognise his entitlement to billions of rand.
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