• Vodacom buys 20% of Safaricom for $2.1 billion, including a $1.6 billion purchase of the Kenyan government's stake.

• The deal could raise Vodacom’s ownership in Safaricom from 35% to 55%, subject to regulatory approvals in Kenya, Ethiopia and South Africa.

• Vodacom will consolidate Safaricom in its financial statements, lifting group revenue to about 220 billion rand ($12.95 billion).

Vodacom’s latest takeover move aligns with its Vision 2030 strategy, which aims to strengthen its presence in high-growth African markets and expand its business portfolio.

Vodacom Group said on December 4 that it concluded an agreement that enables the company to take control of Safaricom PLC, the Kenyan telecommunications operator.

Vodacom acquires 15% of Safaricom—equal to 1,009,842,000 shares—from the Kenyan government and an additional 5% from Vodafone at 34 Kenyan shillings per share.

The $2.1 billion transaction, including $1.6 billion for the state-held shares, could increase Vodacom’s stake in Safaricom from 35% to 55%. The deal remains subject to regulatory approvals in Kenya, Ethiopia and South Africa. The Kenyan government retains a 20% stake and a board seat, while Safaricom keeps 20% ownership and its own board representation.

Vodacom views the acquisition as more than a financial investment. CEO Shameel Joosub said becoming Safaricom’s majority shareholder “consolidates our market-leading position and opens new opportunities to drive large-scale digital and financial inclusion in Kenya and Ethiopia.” He added that Safaricom’s “excellent performance and exceptional growth prospects align perfectly with our Vision 2030, allowing us to create sustainable value for all stakeholders and connect millions more people for a better future.”

Following the transaction, Vodacom will fully consolidate Safaricom in its financial statements instead of treating it as an associate. The consolidation is expected to lift Vodacom’s revenue to nearly 220 billion rand ($12.95 billion), enhancing the group’s capacity to invest in new technologies and expand its digital and financial services. Safaricom will remain listed on the Nairobi Securities Exchange.

Vodacom aims to reinforce its position in East Africa, where demand for mobile and financial services continues to rise. The company expects to connect millions of additional users and strengthen its standing in Africa’s telecommunications sector.

This article was initially published in French by Sandrine Gaingne

Adapted in English by Ange Jason Quenum