Vodacom Group has completed its $2.1 billion acquisition of an additional 20 percent stake in Safaricom, Kenya’s largest telecom operator, securing a controlling 55 percent share in the company. The transaction, which closed last week, marks a significant step in the South African telecom giant’s broader strategy to expand its footprint across East Africa.
The deal, first announced in December, was executed in two parts: Vodacom purchased a 15 percent stake from the Kenyan government and an additional five percent from Vodafone Group at a price of KES 34 ($0.26) per share. Following the transaction, the Kenyan government retains a 20 percent stake in Safaricom, while Vodacom now holds majority control.
Vodacom said the acquisition aligns with its Vision2030 strategy, which focuses on strengthening its leadership in high-growth African markets. “Acquiring majority ownership in Safaricom strengthens our position as a market leader, while at the same time unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia,” said Shameel Joosub, CEO of Vodacom Group.
The Kenyan government had signaled its intent to sell shares in Safaricom as early as May last year, aiming to raise 149 billion shillings ($1.16 billion) in the 2025/26 financial year through partial divestitures of state-owned stakes in several enterprises, including the telecom operator. Safaricom also operates an Ethiopian unit, launched more than three years ago as Ethiopia moved toward greater privatization of its telecom sector. That unit now serves over 10 million customers.
Vodacom noted that it will provide a market update on its medium-term targets later this month, when the company reports its first-quarter earnings. The deal underscores a growing trend of consolidation in African telecom markets, as major operators seek to scale up in regions with rising mobile and financial services demand.
Source: datacenterdynamics