Vodacom, South Africa’s largest mobile operator, has announced a deal to acquire a controlling stake in Safaricom, East Africa’s biggest telecom firm, for $2.1 billion. The transaction, which still requires regulatory approval, would expand Vodacom’s footprint across the continent. Kenya’s government will sell a 15 % stake in Safaricom, while British Vodafone will divest an additional 5 %, raising Vodacom’s ownership from 35 % to 55 % in the Nairobi Stock Exchange‑listed company.
The sale aligns with Kenya’s effort to generate revenue by disposing of state assets. Vodacom Group chief executive Shameel Joosub described the acquisition as a pivotal step in the company’s growth strategy, saying, “This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa.” The deal is expected to strengthen Vodacom’s market‑leader position and unlock new opportunities for digital and financial inclusion in Kenya and Ethiopia.
Safaricom, one of East Africa’s largest companies, received a license to operate in Ethiopia in 2021, becoming the first private telecommunications provider in that market. Its mobile‑money service, M‑Pay, launched in Kenya in 2007 and has become a vital tool for bill payments and money transfers. Today, M‑Pay is used by millions of people in seven African countries and accounts for more than 40 % of Safaricom’s profit.
The acquisition is likely to have significant implications for the African telecommunications industry. With an increased stake in Safaricom, Vodacom will be well positioned to drive growth and expansion throughout the region. The deal’s outcome, pending regulatory approval, will be closely watched by industry stakeholders and investors as the continent’s telecom landscape continues to evolve.
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