Vodacom has set its sights even higher for the decade ahead after finalising a deal that gives it control of Kenyan telecommunications giant Safaricom, a move the company says will strengthen its presence across Africa while significantly expanding its financial services business.
The acquisition, which increases Vodacom’s stake in Safaricom from 35% to 55%, has prompted the company to lift its Vision 2030 revenue ambition from more than R200 billion to over R300 billion.
The transaction, completed on 30 June, was described by Vodacom as a major strategic milestone, while BusinessTech highlighted that the purchase also means Safaricom’s financial performance will now be fully consolidated into Vodacom’s results rather than being treated as an associate investment.
Group chief executive Shameel Joosub said the acquisition marks the beginning of a new phase for the company.
‘This quarter marked a defining moment for Vodacom with the completion of our acquisition of a controlling stake in Safaricom, increasing our shareholding from 35% to 55%, effective 30 June.’
He added: ‘This strategically important transaction represents a major milestone in our Vision 2030 journey, significantly enhancing the Group’s scale, diversification and long-term growth prospects.’
Details published by MyBroadband also showed that Vodacom’s board has revised its dividend policy, lowering the minimum payout to shareholders from 75% to 65% of headline earnings.
The company said the change is intended to create greater flexibility for future network investment, digital expansion, debt reduction and continued shareholder returns.
Beyond the acquisition itself, Vodacom delivered a solid start to its 2026/27 financial year despite the stronger rand weighing on earnings generated outside South Africa. Group revenue climbed 5.9% to R42.4 billion, while service revenue increased 6.3% to R34.3 billion. When currency movements are excluded, service revenue growth reached 12.6%.
South Africa’s operations returned to positive momentum after a difficult period in the prepaid market, with service revenue increasing 2% to R16.1 billion.
Egypt remained one of the group’s standout performers, posting strong double-digit growth, while Vodacom’s international operations were supported by markets including Tanzania, the Democratic Republic of Congo and Lesotho.
Financial services continued to play an increasingly important role in the business. Revenue from the division rose 17.8% to R4.5 billion, and with Safaricom now under Vodacom’s control, financial services are expected to contribute more than 22% of group service revenue, up from about 13% before the transaction.
Joosub said the enlarged group is entering a stronger position for long-term expansion.
‘We are now entering a new phase of growth, supported by a more balanced portfolio, broader earnings drivers and increased exposure to some of Africa’s most attractive opportunities in connectivity, digital services and financial inclusion.’
Vodacom also confirmed it invested a further R800 million into Maziv during the quarter to support fibre infrastructure growth in South Africa.
The company believes continued investment in broadband, mobile connectivity and digital financial services will remain central to its long-term strategy.
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