Vodacom Group has moved to cement its dominance in East Africa with a massive R36-billion ($2.1 billion) transaction that will give it a controlling interest in Safaricom, one of the continent’s most valuable telecommunications and fintech players.
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The Johannesburg-headquartered group announced on Thursday that it has reached an agreement to increase its stake in Safaricom from 35% to 55%.
Vodacom will acquire the additional shares at a price of KSh34 per share through two separate agreements:
- 15% Stake: Acquired from the Government of Kenya (National Treasury).
- 5% Stake: Acquired from parent company Vodafone.
This deal, once finalized, will lift Vodacom’s shareholding to a majority 55% stake, granting it control for the first time. Safaricom will remain listed on the Nairobi Securities Exchange.
Vodacom Group CEO Shameel Joosub hailed the acquisition as a “pivotal step” in the group’s Vision2030 strategy, which focuses on deepening its presence in fast-growth African markets and scaling digital and financial services.
Upon completion, Vodacom will begin to consolidate Safaricom’s financial results, a move expected to significantly boost Vodacom’s reported annual revenue to approximately R220 billion, further solidifying its status as one of Africa’s largest telecom operators.
“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 stated.
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Safaricom CEO Peter Ndegwa welcomed the increased investment, noting that Vodacom’s confidence is a testament to the strength of Safaricom’s strategy and its growth potential.
Safaricom is widely regarded as a premier African asset, largely due to the success of its M-Pesa mobile money platform. The company maintains industry-leading margins and strong cash generation. Furthermore, its ongoing expansion into the burgeoning Ethiopian market—a country with over 120 million people—is expected to be a major driver of long-term growth.
The Kenyan government affirmed that the deal aligns with its plan to unlock capital without increasing the country’s debt burden. The government will retain a 20% stake and board representation in Safaricom.
The entire transaction remains subject to necessary regulatory and governmental approvals in Kenya, Ethiopia, and South Africa.
