The milestone comes weeks after Vodacom completed its acquisition of an effective 20% stake<\/a> in Safaricom, increasing its shareholding to 55% and giving it controlling ownership of East Africa\u2019s largest telecom operator. While the South African-headquartered operator built its business on voice and data, its future growth strategy is now firmly centred on digital financial services across the continent.<\/p>\n Vodacom\u2019s latest quarterly trading update reveals a company undergoing a profound transformation. The Safaricom transaction not only expands its geographic footprint but also accelerates its ambition to become a leading pan-African fintech player.\u00a0<\/p>\n According to the trading update, financial services now contribute more than 22% of Group service revenue, up from 13% before the transaction, while mobile money platforms processed nearly $548 billion over the past year. Those figures signal that fintech, not traditional telecoms, is becoming the company\u2019s primary growth engine.<\/p>\n \u201cThis quarter marked a defining moment for Vodacom with the completion of our acquisition of a controlling stake in Safaricom,\u201d said Shameel Joosub, Vodacom Group chief executive officer (CEO). \u201cThis strategically important transaction represents a major milestone in our Vision 2030 journey, significantly enhancing the Group\u2019s scale, diversification and long-term growth prospects.\u201d<\/p>\n The acquisition strengthens Vodacom\u2019s position in Kenya through Safaricom while broadening its exposure to fast-growing digital finance markets across Ethiopia, Tanzania, the Democratic Republic of Congo, Mozambique and Lesotho, alongside its established operations in South Africa and Egypt.<\/p>\n The deal also gives Vodacom greater access to M-PESA, Africa\u2019s largest mobile money platform, at a time when digital payments, remittances and financial inclusion are reshaping the continent\u2019s financial services landscape.<\/p>\n Joosub said the stronger financial services business had prompted the company to raise its long-term ambitions. \u201cReflecting this stronger growth profile, we have upgraded our medium-term Earnings before interest, taxes, depreciation and amortisation (EBITDA) and operating free cash flow growth targets from double-digit to early-teens growth,\u201d he said.<\/p>\n The company also increased its Vision 2030<\/a> revenue ambition from more than R200 billion ($12 billion) to more than R300 billion ($18 billion), reflecting confidence that fintech, digital services and higher-growth African markets will become increasingly important contributors to future earnings.<\/p>\n While South Africa remains Vodacom\u2019s largest and most cash-generative market, the latest results illustrate why the operator is looking across Africa for growth.<\/p>\n Joosub said South African service revenue grew 2% during the quarter, supported by an improvement in prepaid performance. Egypt delivered one of the strongest performances across the group, with service revenue increasing 32.8% in local currency, while financial services revenue surged 73%. Vodacom\u2019s International business, which includes Tanzania, the Democratic Republic of Congo, Lesotho and Mozambique, recorded 14% normalised service revenue growth.<\/p>\n Beyond mobile connectivity, digital services generated R7.8 billion ($467 million), representing almost 23% of Group service revenue. Financial services remain the largest component of that business.\u00a0<\/p>\n Vodacom is also expanding the role of financial technology across its markets. During the quarter, its Tanzanian operation launched <\/a>what it described as Africa\u2019s first mobile money tap-to-pay solution, allowing more than 22 million M-PESA customers to make contactless payments directly from their mobile wallets. In the Democratic Republic of Congo, the company used anonymised mobile data analytics to support Ebola preparedness<\/a> and public health planning, demonstrating how its digital platforms are extending beyond financial services.<\/p>\n The Vodacom trading update noted that the acquisition of Safaricom represents more than a larger telecom footprint. It cements the company\u2019s transition from a connectivity provider into a diversified technology business spanning mobile networks, digital platforms and financial services.<\/p>\n True scale demands moving beyond surface-level integrations to robust execution. We\u2019ve filtered the noise out of Moonshot 2026, optimising the conference strictly for high-calibre connections between startup founders, global financial operators, enterprise leaders and individuals rewiring Africa\u2019s technical frameworks.\u00a0Get 20% off Early Bird tickets for a limited time<\/a>.<\/p>\n![\"\"](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2026\/07\/IMG_4259-3-1-1024x581.jpg\")
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