Vodacom, South Africa’s largest mobile operator, has announced plans to acquire a controlling stake in East African telecommunications giant Safaricom in a deal valued at $2.1 billion.
The transaction, which still requires regulatory approval, forms part of Kenya’s effort to raise funds by selling state-owned assets. Vodacom confirmed that the Kenyan government has agreed to offload a 15% stake, while British parent company Vodafone will contribute a further 5%.
If approved, Vodacom’s ownership in the Nairobi Stock Exchange-listed operator will increase from 35% to 55%.
Vodacom Group CEO Shameel Joosub said the deal represents a major milestone for the company.
“This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa,” he said. “Acquiring a controlling stake in Safaricom strengthens our position as a market leader while unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.”
Safaricom, one of East Africa’s most influential companies, expanded into Ethiopia in 2021 after becoming the first private telecoms provider to receive a licence in the country. It also operates the widely used mobile money service M-Pesa, launched in 2007, which has grown into a critical financial tool across the region.
M-Pesa is now used in seven African countries and accounts for more than 40% of Safaricom’s profits, according to the company.