Vodacom Group has moved to cement its position in East Africa with a R36-billion transaction that will see it take majority control of Safaricom, one of the continent’s most valuable telecommunications operators and fintech players.
The Johannesburg-headquartered group said on Thursday it has reached an agreement with the government of Kenya to acquire a 15% stake in Safaricom, and a further 5% from parent company Vodafone, at KSh34/share.
The deal, worth US$2.1-billion (about R36-billion), will lift Vodacom’s shareholding in Safaricom from 35% to 55% — giving it a controlling interest for the first time.
The transaction is still subject to regulatory and governmental approvals in Kenya, Ethiopia and South Africa. Safaricom will remain listed on the Nairobi Securities Exchange.
Once completed, Vodacom will consolidate Safaricom’s financial results. That will boost Vodacom’s reported revenue to roughly R220-billion, further entrenching the group as one of Africa’s largest telecoms operators.
Vodacom Group CEO Shameel Joosub said the move represents a “pivotal step” in the group’s Vision2030 strategy, which aims to deepen its presence in fast-growth African markets while scaling digital and financial services.
“Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” Joosub said. “Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision2030 ambitions.”
M-Pesa success
Safaricom CEO Peter Ndegwa welcomed the increased investment from Vodacom, noting the longstanding relationship between the parties.
“Their confidence in Safaricom is a testament to the strength of our people, our strategy and the opportunities ahead,” he said in a statement. “We look forward to deepening our collaboration as we scale innovation, expand regionally and deliver transformative digital and financial services.”
Safaricom is regarded as one of Africa’s premier telecoms and fintech assets, built on the success of its M-Pesa mobile money platform. The company continues to post industry-leading margins and strong cash generation, while its expansion into Ethiopia – a market of more than 120 million people – is expected to drive long-term growth.
Read: Four years later, Vodacom and Maziv have sealed their deal
Kenya’s national treasury said the deal aligns with Nairobi’s plan to unlock capital without adding to the country’s debt burden. The government will retain a 20% stake and board representation. – © 2025 NewsCentral Media
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