South Africa’s biggest mobile operator, Vodacom Group, has announced a major step to increase its presence in Africa with a plan to take control of Safaricom, East Africa’s largest telecoms company. The move, valued at $2.1 billion, is expected to reshape the telecoms market across the continent and strengthen digital services in Kenya and Ethiopia. The company disclosed that the takeover still needs regulatory approval in both countries and other relevant markets.
According to a statement issued by Vodacom, the deal will see Kenya’s government selling 15 percent of its shares in Safaricom, while British multinational Vodafone will release an additional five percent. Once completed, Vodacom’s ownership will increase from 35 percent to 55 percent. This means the South African telecoms giant will become the controlling shareholder of the Nairobi Stock Exchange-listed company for the first time.
The Chief Executive Officer of Vodacom Group, Shameel Joosub, described the planned share acquisition as a landmark development for the company. He explained that the deal represents a bold growth strategy and builds on Vodacom’s ambition to expand and influence technology, connectivity, and digital finance in Africa. Joosub stressed that gaining control of Safaricom will position Vodacom to deepen its service delivery footprint and strengthen innovation in the region.
His words: “This landmark transaction marks 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 unlocking new opportunities to drive digital and financial inclusion at scale in Kenya and Ethiopia.”
Safaricom is widely regarded as one of East Africa’s most valuable companies. The telecom provider made history in 2021 when it became the first private operator to obtain a license to run services in Ethiopia. Ethiopia, with a population of over 110 million people, has traditionally maintained strict control over telecommunications, so Safaricom’s entry marked a major policy shift and opened the sector to competition and private investment.
Another key component of Safaricom’s dominance is its widely used mobile money platform, M-Pesa. The service was launched in Kenya in 2007 and has revolutionised how people send money, pay bills, access credit and conduct daily transactions. Today, millions of Africans rely on M-Pesa for basic financial services, particularly in rural areas where traditional banks are unavailable. Safaricom estimates that M-Pesa accounts for more than 40 percent of its profit, making it one of the most influential fintech solutions in Africa.
Analysts say the transaction could help Kenya raise much-needed revenue to support its strained public finances. The East African country has been facing economic pressure due to debt servicing costs, budget deficits and calls for broader economic reforms. Selling part of its stake in Safaricom is one way Kenya aims to generate funds to stabilise its finances.
Industry watchers also believe this takeover aligns with Vodacom’s broader ambition to expand beyond South Africa and diversify earnings from new markets. The deal may unlock synergies in digital banking, telecoms infrastructure, financial technology, enterprise services and cross-border mobile money transfers. It could also strengthen competitive pressure on other telecom brands operating within the continent.
However, the deal will depend on approvals from Kenyan authorities, Ethiopian regulators, market participants and competition bodies. Both countries will examine issues such as competition impact, national interest considerations, service quality, local ownership and implications for smaller players in the telecom industry.
Observers expect the regulatory process to be closely monitored by economists, investors, and technology analysts, given Safaricom’s central role in Kenya’s economy and its growing influence in Ethiopia. Some economists have also argued that foreign ownership of strategic companies must be managed carefully to avoid weakening local participation in key national services.
Nonetheless, both companies remain optimistic. Should the deal succeed, it may open a new phase of telecom innovation in East Africa, stimulate digital finance penetration, and boost market confidence in cross-border corporate partnerships. As Africa pushes toward a digital future, industry leaders believe the Vodacom-Safaricom alliance could become an important case study in telecom transformation.
