Under the agreement, Vodacom will buy a 15% stake in Safaricom from the Government of Kenya and another 5% from Vodafone at KES34 per share. 

The deal is valued at $2.1 billion (R36 billion) and once approved by regulators in Kenya, Ethiopia and South Africa, Vodacom’s shareholding in Safaricom will rise from 35% to 55%.

The acquisition forms part of Vodacom’s Vision2030 strategy to grow its footprint in high-potential African markets. 

Vodacom Group CEO, Shameel Joosub, said: “This landmark transaction will mark a pivotal step in Vodacom’s journey to accelerate growth and deepen our impact across Africa.

“Acquiring a controlling stake in Safaricom strengthens our position as a market leader, while at the same time unlocks new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia. 

“Safaricom’s outstanding track record and differentiated growth outlook perfectly complement our Vision 2030 ambitions, empowering us to deliver sustainable value for all stakeholders and to connect millions more people for a better future. I look forward to working even closer with the Safaricom team and taking some of the learnings from their success and leveraging it across the Group.”

Safaricom CEO, Peter Ndegwa, added: “Vodacom has been a trusted partner in Safaricom’s journey from the very beginning and we welcome their continued commitment and long-term investment in our business. 

“Their confidence in Safaricom is a testament to the strength of our people, our strategy and the opportunities ahead. We look forward to deepening our collaboration as we continue to scale innovation, expand regionally and deliver transformative digital and financial services to our customers.”

RELATED STORIES

Huawei backs Kenya’s push for women in STEM

World’s longest subsea cable completed: Meta’s 2Africa set to supercharge connectivity across Africa