Vodacom Takes Management Of Safaricom

South Africa’s largest cell operator, Vodacom Group, introduced that it’ll take management of Safaricom, East Africa’s greatest telecom, in a $2.4 billion transaction.

Vodacom will maintain 55% after shopping for 15% from the Kenyan authorities and 5% from Vodafone Worldwide Holdings. The federal government retains 20%, and 25% stays publicly traded on the Nairobi Securities Trade. The deal, amongst Africa’s largest telecom offers in 2025, is predicted to shut in Q1 2026, pending regulatory approvals in Kenya, South Africa, and Ethiopia.

Vodacom paid $1.6 billion for the federal government stake and included an upfront fee of $310 million, securing rights to future dividends on the federal government’s remaining stake. Vodacom Monetary Controller Shaun Biljon says the dividend monetization was “structured on anticipated dividends over three years, discounted at a 16.5% IRR, and is predicted to be paid down in simply over two years.”

 “This strengthens our place and unlocks alternatives to drive digital and monetary inclusion throughout East Africa,” stated Shameel Joosub, CEO of Vodacom, in an announcement. The deal offers Vodacom management over Safaricom’s M-Pesa platform, which handles 100 million day by day transactions for roughly 38 million customers.

Safaricom has a market worth of about $8.8 billion to $9 billion. Within the six months to September 30, 2025, service income in Kenya rose 9.3%, with M-Pesa income up 14%. Safaricom holds a majority stake in Ethiopia.

Proceeds from the sale shall be used to seed Kenya’s Nationwide Infrastructure and Sovereign Wealth Funds, in accordance with Treasury officers. The transaction helps the president’s agenda of unlocking capital, including that the federal government will retain a 20% stake in Safaricom together with board illustration, added Treasury Cupboard Secretary John Mbadi. Vodacom serves 211 million subscribers throughout eight African markets and targets 260 million subscribers and 120 million monetary providers customers by 2030, with cell cash platforms processing $450 billion yearly.