Vodacom, South Africa’s largest mobile operator, has reached a deal to acquire a controlling stake in Safaricom, East Africa’s biggest telecoms firm, for $2.1 billion. The agreement, subject to regulatory approval, will expand Vodacom’s presence across the continent. Kenya’s government, seeking to generate revenue by selling state assets, has agreed to sell a 15% stake in Safaricom, while British Vodafone will offload an additional 5%. This will increase Vodacom’s stake in the Nairobi Stock Exchange-listed company from 35% to 55%.
The acquisition is a strategic move by Vodacom to accelerate growth and deepen its impact in Africa. According to Shameel Joosub, Vodacom Group’s chief executive, the deal will strengthen the company’s position as a market leader and unlock new opportunities for digital and financial inclusion in Kenya and Ethiopia. Safaricom, which launched its mobile money service M-Pesa in Kenya in 2007, has become a leading player in the region, with M-Pesa generating over 40% of its profit.
Safaricom’s expansion into Ethiopia, where it was awarded a license in 2021, has further solidified its position in the region. As the first private telecommunications provider in the country, Safaricom has brought mobile services to a population of over 110 million people. The company’s M-Pesa service, now used by millions in seven African countries, has become an essential tool for paying bills and transferring money.
The deal is significant for Vodacom, as it will extend its footprint across the continent and provide opportunities for growth in new markets. The acquisition is also a testament to the growing importance of digital and financial inclusion in Africa, where mobile services are playing an increasingly vital role in driving economic development. As the deal awaits regulatory approval, Vodacom is poised to become an even more dominant player in the African telecoms industry, with a strengthened presence in key markets and a growing range of services to offer its customers.
