Vodacom Raises 2030 Revenue Target After Increasing Safaricom Stake

Vodacom has raised its long-term revenue target following the completion of its acquisition of a majority stake in Safaricom. The company says the transaction strengthens its financial services business and supports its future growth strategy.

The South African telecommunications firm increased its Vision 2030 revenue target by R100 billion to more than R300 billion after completing a R35 billion acquisition that raised its shareholding in Safaricom PLC from 35 percent to 55 percent.

The deal, completed on 30 June 2026, included the acquisition of a 15 percent stake from the Kenyan government and an effective additional 5 percent from Vodafone. Kenya will retain a 20 percent stake in Safaricom, which remains listed on the Nairobi Securities Exchange.

Following the acquisition, Vodacom will fully consolidate Safaricom’s financial results under international accounting rules. The company has also upgraded its medium-term EBITDA and operating free cash flow growth targets from double-digit to early-teen levels.

The acquisition is expected to increase financial services’ contribution to Vodacom’s group service revenue from 13 percent to more than 22 percent. Its mobile money platforms, including Safaricom, now process about $547.9 billion in annual transactions, representing a 19.1 percent increase.

For the 2026 financial year, Vodacom generated EBITDA of R63 billion, with Safaricom contributing R29 billion. In the quarter ended 30 June 2026, group revenue rose 5.9 percent to R42.4 billion, while service revenue increased 6.3 percent to R34.3 billion. Financial services revenue also grew 17.8 percent to R4.5 billion, and normalised service revenue expanded 12.6 percent.

According to the company, it will focus on integrating its expanded portfolio while continuing to invest in network infrastructure, digital services and financial technology, alongside maintaining shareholder returns.