Vodacom Group Ltd., South Africa’s largest mobile operator, is set to take control of East Africa’s biggest telecommunications company, Safaricom Plc, through a multi-billion-dollar acquisition that significantly expands its footprint in the region, as reported by Bloomberg.
According to a stock-exchange filing on Thursday, Vodacom has agreed to acquire 15% of Safaricom from the Kenyan government, alongside an effective 5% stake from Vodafone International Holdings BV, in a transaction valued at $2.1 billion. In addition, Vodacom will pay 5.3 billion rand ($310 million) upfront for rights to receive future dividends previously due to the Kenyan government.
Once completed, the purchase will increase Vodacom’s total holding in Safaricom to 54.9%, giving it majority control of the $9-billion telecom giant.
The deal—first reported by Bloomberg last month—marks a major step in Vodacom’s expansion strategy. The company said the acquisition will strengthen its position in mobile payments, digital wallets and lending, further supporting its push toward improving financial inclusion across African markets.
To finance the transaction, Vodacom will rely on a combination of loan agreements with Vodafone and an externally sourced Kenya-shilling facility guaranteed by Vodacom.
Safaricom, best known globally for its pioneering mobile money service M-Pesa, remains one of Africa’s most profitable and influential telecom players. By taking control, Vodacom aims to consolidate the service’s reach and accelerate digital financial growth across the continent.
