Vodacom has agreed to acquire an additional 20% stake in Safaricom in a $2.1bn transaction that significantly expands its influence over East Africa’s largest telecommunications operator. The South African telco will raise its shareholding to 55% after purchasing further stakes from the Kenyan government and parent company Vodafone, cementing a strategic shift in the region’s competitive landscape.
A landmark deal strengthens regional leadership
The acquisition marks one of the most substantial telecom transactions in Africa this year, underscoring Vodacom’s ambition to deepen its presence in a rapidly growing digital economy. Safaricom, best known for its pioneering mobile-money platform M-Pesa, is widely viewed as one of the continent’s most profitable and innovative operators. By increasing its controlling stake, Vodacom positions itself to steer strategic decisions in areas including fintech expansion, rural connectivity, and 5G deployment.
Kenyan government unlocks value while retaining influence
Kenya’s partial divestment reflects a broader policy aimed at balancing national oversight with commercial efficiency. Officials emphasised that the government will continue to hold a meaningful stake, maintaining its role in shaping regulatory and infrastructure priorities. The sale provides a substantial fiscal boost at a time when Kenya faces budgetary pressures and is seeking fresh investment in digital infrastructure and public-sector modernisation.
Fintech remains the backbone of Safaricom’s valuation
A major motivation behind Vodacom’s increased ownership is the continued growth of M-Pesa, which remains the dominant mobile-money service in East Africa. The platform now underpins everyday transactions for millions of users, from remittances to business payments. Analysts note that Vodacom’s deeper integration with Safaricom will facilitate more cohesive regional fintech initiatives, potentially accelerating cross-border payment systems and digital-banking services across Africa.
Strategic consolidation reflects Africa’s shifting telecom landscape
The deal signals a continued wave of consolidation as African telecom operators compete to scale services and modernise networks. Rising demand for high-speed data, expanding digital-service ecosystems, and the commercialisation of fintech assets are reshaping corporate strategies. By securing majority control, Vodacom gains enhanced operational alignment, improved revenue visibility, and greater leverage in future investment decisions.
Newshub Editorial in Africa – 5 December 2025
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