Vodacom Boosts Growth Outlook Following Safaricom Takeover

Vodacom Group has raised its medium-term growth targets after completing the acquisition of a controlling 55% stake in Kenya’s Safaricom, strengthening its position as one of Africa’s leading telecommunications companies.

The company reported a 6.3% increase in first-quarter service revenue to 34.3 billion rand, driven by strong performances in Egypt and other African markets.

Chief Executive Officer Shameel Joosub said the results reflect the success of Vodacom’s diversification strategy and the benefits of expanding across the continent.

Following the Safaricom deal, Vodacom increased its Vision 2030 revenue target to more than 300 billion rand, up from its previous goal of over 200 billion rand.

The acquisition is also expected to significantly expand the company’s financial services operations across Africa.

Revenue from Vodacom’s financial services segment rose 17.8% during the quarter to 4.5 billion rand, while growth in Egypt and other African markets helped offset weaker performance in South Africa.

The company also announced a change to its dividend policy, lowering its payout ratio from 75% of headline earnings to at least 65% as part of a broader review of its capital allocation strategy.

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