Vodacom completes Safaricom takeover, raises targets

The surge in data‑driven services across Africa is driving higher electricity demand for mobile networks. Vodacom’s CTO warned that unreliable grid supply forces operators to rely on diesel generators, raising costs and emissions, and the group is promoting renewable options such as mini‑grids, solar home systems, run‑of‑river hydropower, advanced battery storage and hybrid diesel‑renewable plants, while urging regulators to enable power‑purchase agreements and green tariffs.

In Kenya, the Court of Appeal lifted the conservatory order that blocked Vodacom Kenya’s purchase of an additional 15 % of Safaricom, completing a $2.1 billion transaction in June 2026 and bringing Vodacom Kenya’s stake to about 55 %. The deal transferred the government’s share to a national infrastructure fund, shifted Safaricom to full IFRS consolidation and keeps M‑Pesa responsible for roughly 44 % of revenue.

Vodacom reported a 5.9 % rise in quarterly revenue to R42.4 billion, with service revenue up 6.3 % and financial‑services revenue climbing 17.8 % to R4.5 billion. Mobile‑money platforms processed US$547.9 billion in transactions over the past year. The group lifted its Vision 2030 revenue ambition to over R300 billion and raised its medium‑term EBITDA and free‑cash‑flow targets into the early‑teens, citing the Safaricom acquisition as a defining growth catalyst.

At Safaricom’s Annual General Meeting on 31 July, shareholders will vote on a package of governance amendments that would give the majority owner the right to nominate the CEO, executive directors and board members, replace the 10 %/40 % thresholds with a single 50 % benchmark, remove the requirement for government approval for expansion beyond Kenya and Ethiopia, and introduce electronic voting and dead‑lock‑resolution mechanisms. The Capital Markets Authority has exempted Vodacom Kenya from a mandatory takeover offer, though legal challenges to the sale remain.