Vodacom, South Africa’s largest mobile operator, has reached an agreement to acquire a controlling stake in Safaricom, East Africa’s biggest telecoms firm, for $2.1 billion. The deal, which still requires regulatory approval, will expand Vodacom’s presence across the continent. Kenya’s government, looking to generate revenue by selling state assets, will sell a 15 % stake in Safaricom, while British Vodafone will divest an additional 5 %. This will raise Vodacom’s ownership in the Nairobi Stock Exchange‑listed company from 35 % to 55 %.
The acquisition is a strategic move for Vodacom, aimed at accelerating growth and deepening its impact in Africa. According to Shameel Joosub, Vodacom Group’s chief executive, the transaction 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 regional leader, with M‑Pesa contributing over 40 % of its profit. The firm’s expansion into Ethiopia—where it was awarded a licence in 2021—has further solidified its regional standing. As the first private telecommunications provider in Ethiopia, Safaricom has brought mobile services to a population of more than 110 million people. Its M‑Pesa service, now used by millions in seven African countries, is an essential tool for paying bills and transferring money.
For Vodacom, the deal will extend its footprint across Africa and create growth opportunities in new markets. It also underscores the rising importance of digital and financial inclusion on the continent, where mobile services are increasingly vital to economic development. While the transaction awaits regulatory clearance, Vodacom is poised to become an even more dominant player in the African telecoms industry, with a stronger presence in key markets and a broader range of services for its customers.
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