In one of the largest telecommunications deals of 2025, Vodacom Group, South Africa’s largest mobile operator, has announced its acquisition of a controlling stake in Safaricom, East Africa’s largest telecom operator. The $2.4 billion deal is set to reshape the telecommunications landscape in Africa, giving Vodacom a 55% ownership stake in Safaricom, which is valued at between $8.8 billion and $9 billion. The deal, which is expected to close in the first quarter of 2026, still requires regulatory approval from authorities in Kenya, South Africa, and Ethiopia.
This acquisition sees Vodacom buying 15% of Safaricom’s shares from the Kenyan government for $1.6 billion, along with 5% from Vodafone International Holdings. The Kenyan government will retain a 20% stake in Safaricom, while 25% of the company’s shares will remain publicly traded on the Nairobi Securities Exchange. Vodacom’s control of Safaricom is set to create a more unified and robust telecommunications network that spans across Southern and East Africa, with the potential for greater integration of mobile money, financial inclusion, and digital services.
Strengthening Vodacom’s Position in East Africa
Vodacom’s move to take control of Safaricom comes as part of its strategy to solidify its presence in East Africa, a region experiencing rapid growth in mobile money and digital services. The acquisition is not just a strategic business move but is expected to have a profound impact on the lives of millions of people in the region by driving financial inclusion, digital transformation, and the growth of mobile services across borders.
Shameel Joosub, the CEO of Vodacom, highlighted the significance of the deal, stating, “This strengthens our position and unlocks opportunities to drive digital and financial inclusion across East Africa.” This statement underscores the broader impact Vodacom anticipates from the deal, particularly through Safaricom’s M-Pesa platform, which has become a cornerstone of financial inclusion in East Africa.
The Role of M-Pesa in Safaricom’s Success
At the heart of this acquisition is M-Pesa, Safaricom’s mobile money platform, which has revolutionized the way people in East Africa handle their finances. M-Pesa processes 100 million daily transactions and serves around 38 million users across Kenya and beyond. With Vodacom now in control, it gains full access to the platform’s vast potential, including the ability to further expand its reach into other African countries, including Ethiopia, where Safaricom holds a majority stake.
M-Pesa’s importance cannot be overstated. It has transformed the financial landscape of Kenya and East Africa, offering unbanked populations a chance to access mobile banking services, make transactions, and save money without the need for a traditional bank account. Vodacom’s enhanced control over M-Pesa will likely spur further innovations in mobile payments, increase the number of financial services users, and deepen the integration of mobile money with other digital services, boosting access to a wide range of financial tools for millions of users.
Financial Terms and Impact on the Kenyan Economy
The deal’s financial structure also includes an upfront payment of $310 million, alongside the $1.6 billion paid for the government’s 15% stake. Vodacom’s acquisition also gives it the right to future dividends on the remaining 20% stake held by the Kenyan government. According to Shaun Biljon, Vodacom’s Financial Controller, this dividend monetization is “structured on expected dividends over three years, discounted at a 16.5% Internal Rate of Return (IRR), and is expected to be paid down in just over two years.”
The sale of Safaricom’s government shares will not only boost Vodacom’s financial clout but also benefit Kenya’s economy. According to Treasury officials, the proceeds from the sale will be allocated to seed Kenya’s National Infrastructure Fund and Sovereign Wealth Funds, helping to finance large-scale infrastructure projects that support the country’s long-term economic growth. This also ties into the Kenyan government’s agenda to unlock capital for future development, with Treasury Cabinet Secretary John Mbadi reaffirming that the government will retain a 20% stake in Safaricom and continue to have representation on Safaricom’s board.
Vodacom’s Broader Ambitions for 2030
Vodacom’s acquisition of Safaricom is part of its broader expansion strategy across the African continent. With 211 million subscribers already served across eight African markets, Vodacom is targeting a further growth in subscriber numbers to reach 260 million by 2030. The company is also aiming to increase its mobile money platform’s reach, projecting a user base of 120 million financial services users by the same year.
Vodacom’s mobile money platforms already process a staggering $450 billion annually, and with Safaricom’s significant presence in mobile money, the deal positions the company to dominate the African mobile financial services market. By expanding its financial services portfolio, Vodacom will help millions of Africans access banking services, even in regions with limited access to traditional banks.
The deal also gives Vodacom a stronger foothold in the Ethiopian market, where Safaricom has been operating since its entry into the market in 2022. Ethiopia, with its large population and growing mobile market, represents an untapped opportunity for Vodacom to expand its services. As Ethiopia continues to develop its telecom and financial services sectors, Vodacom’s partnership with Safaricom will likely position the company to capture a larger share of the market.
Safaricom’s Growth and Future Outlook
For Safaricom, this deal also marks an important chapter in its development. Safaricom’s service revenue in Kenya increased by 9.3% in the first half of the fiscal year 2025, with M-Pesa revenue growing by 14%. The company’s continued success in Kenya, combined with its growing presence in Ethiopia, highlights its resilience and the strength of its business model.
Safaricom’s ability to continue its growth, particularly with Vodacom’s backing, is promising for its future. With Vodacom’s expertise in mobile services and digital transformation, Safaricom is well-positioned to expand its services and continue to thrive in the competitive telecommunications industry.
A Game-Changing Deal for African Telecom
Vodacom’s acquisition of Safaricom in this $2.4 billion deal is a watershed moment for the African telecommunications industry. The deal not only strengthens Vodacom’s position as a regional telecom powerhouse but also promises to boost digital financial inclusion, innovation, and economic development across the continent. With M-Pesa now under Vodacom’s full control, the company is well-equipped to lead Africa into the future of mobile money and digital services.
The strategic acquisition also represents a win for Kenya, as the country unlocks capital for infrastructure development while retaining a stake in its telecom giant. For Vodacom, the deal accelerates its growth trajectory, positioning the company to become a dominant force in the African telecom and mobile financial services market by 2030.
As the transaction moves toward closing in early 2026, the acquisition of Safaricom by Vodacom is set to have profound and lasting implications for Africa’s telecom and financial services landscape, further integrating mobile money and digital solutions into the daily lives of millions across the continent.
