By Business Insider Reporter
South Africa’s largest mobile operator, Vodacom Group, has agreed to take controlling ownership of Safaricom, East Africa’s most valuable telecoms company, in a US$2.4 billion transaction that ranks among Africa’s biggest corporate deals of 2025.
Under the agreement, Vodacom will raise its stake in Safaricom to 55 percent, acquiring 15 percent from the Kenyan government and 5 percent from Vodafone International Holdings. The Kenyan government will retain a 20 percent stake, while 25 percent of shares will remain publicly traded on the Nairobi Securities Exchange (NSE).
The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals in Kenya, South Africa and Ethiopia, where Safaricom has a strategic presence.
Strategic control of East Africa’s telecom crown jewel
Safaricom is the dominant telecom operator in Kenya and a regional digital powerhouse, with a market valuation estimated at between $8.8 billion and $9 billion. The company’s flagship mobile money platform, M-Pesa, processes roughly 100 million transactions daily for around 38 million active users, making it one of the world’s most successful fintech ecosystems.
By taking control of Safaricom, Vodacom gains full strategic oversight of M-Pesa, significantly strengthening its ambitions to scale digital and financial services across East Africa.
“This strengthens our position and unlocks opportunities to drive digital and financial inclusion across East Africa,” said Vodacom CEO Shameel Joosub in a statement announcing the deal.
Vodacom already operates M-Pesa platforms in several African markets, but Safaricom’s Kenyan business remains the system’s most profitable and innovative anchor.
How the deal is structured
Vodacom paid US$1.6 billion for the Kenyan government’s 15 percent stake. The transaction also includes an upfront payment of US$310 million, which secures Vodacom the right to future dividends from the government’s remaining 20 percent shareholding.
According to Vodacom Financial Controller Shaun Biljon, the dividend monetisation was structured based on expected dividends over three years, discounted at a 16.5 percent internal rate of return (IRR), and is expected to be fully paid down in just over two years.
“This allows us to optimise cash flows while maintaining balance sheet discipline,” Biljon said. The acquisition of the additional 5 percent from Vodafone International Holdings consolidates Vodacom’s long-standing relationship with the Safaricom business, removing legacy cross-shareholding complexity.
