Vodacom eyes bigger Safaricom stake as profits rise
Vodacom Group has expressed a potential interest in acquiring a larger stake in Kenya’s Safaricom PLC, should existing shareholders decide to divest. Chief Executive Mohamed Shameel Joosub stated that while a breakup of the Kenyan operator is not being considered, the company would evaluate any purchase opportunity. This comment follows reports that the Kenyan government is seeking to raise funds, which could involve selling a portion of its holdings.
Safaricom remains a highly profitable asset for Vodacom, contributing 2.1 billion rand in operating profit, a significant annual increase. The performance was largely driven by strong growth in its M-Pesa financial service. Vodacom’s own financial results were robust, with group revenue and net profit showing substantial gains.
Analysts interpret Vodacom’s interest as a strategic move to consolidate its influence in the East African market. Increasing its stake could better align the two companies’ operations, particularly in the expanding fintech sector. This potential expansion supports Vodacom’s broader strategy focused on geographic and product diversification across Africa.
