South Africa’s largest mobile operator, Vodacom Group, announced that it will take control of Safaricom, East Africa’s biggest telecom, in a $2.4 billion transaction.
Vodacom will hold 55% after buying 15% from the Kenyan government and 5% from Vodafone International Holdings. The government retains 20%, and 25% remains publicly traded on the Nairobi Securities Exchange. The deal, among Africa’s largest telecom deals in 2025, is expected to close in Q1 2026, pending regulatory approvals in Kenya, South Africa, and Ethiopia.
Vodacom paid $1.6 billion for the government stake and included an upfront payment of $310 million, securing rights to future dividends on the government’s remaining stake. Vodacom Financial Controller Shaun Biljon says the dividend monetization was “structured on expected dividends over three years, discounted at a 16.5% IRR, and is expected to be paid down in just over two years.”
“This strengthens our position and unlocks opportunities to drive digital and financial inclusion across East Africa,” said Shameel Joosub, CEO of Vodacom, in a statement. The deal gives Vodacom control over Safaricom’s M-Pesa platform, which handles 100 million daily transactions for roughly 38 million users.
Safaricom has a market value of about $8.8 billion to $9 billion. In the six months to September 30, 2025, service revenue in Kenya rose 9.3%, with M-Pesa revenue up 14%. Safaricom holds a majority stake in Ethiopia.
Proceeds from the sale will be used to seed Kenya’s National Infrastructure and Sovereign Wealth Funds, according to Treasury officials. The transaction supports the president’s agenda of unlocking capital, adding that the government will retain a 20% stake in Safaricom along with board representation, added Treasury Cabinet Secretary John Mbadi. Vodacom serves 211 million subscribers across eight African markets and targets 260 million subscribers and 120 million financial services users by 2030, with mobile money platforms processing $450 billion annually.
