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COMESA Approves Vodacom’s Acquisition of 15% Stake in Safaricom
East Africa’s telecom world is changing fast. The COMESA Competition and Consumer Commission has given the green light to Vodacom’s plan to buy a 15% stake in Safaricom from the Kenyan government. This big decision removes a key roadblock for the deal.
COMESA said the purchase will not harm competition in the region. It will not stop businesses from competing fairly or go against public interest. The commission looked closely at the market and decided it is safe to move forward.
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Safaricom is Kenya’s top telecom company. It controls 60 to 70 percent of the mobile SIM card market. Airtel has 30 to 40 percent, while Telkom Kenya has less than 10 percent. Even with this strong position, COMESA believes the deal will not give Vodacom too much power.
In broadband internet, Safaricom holds 30 to 40 percent of the market. It competes with companies like Jamii Telecommunications, poa! Internet, and Wananchi Group. The commission’s report states clearly: “The merger would not lead to market share growth that could substantially reduce competition.”
The deal comes from the Kenyan government’s decision to sell about six billion Safaricom shares. Each share costs KES 34. This sale will raise around $1.58 billion, or KES 204.3 billion. The money will help Kenya’s budget without adding more debt.
Right now, Vodacom owns 40 percent of Safaricom. After buying this stake, it will own 55 percent. That means Vodacom will have majority control. Safaricom will stay listed on the Nairobi Securities Exchange, so people can still buy and sell its shares there.
Vodacom Group CEO Shameel Joosub called this a key move. He said it will speed up growth and help more people in Kenya and Ethiopia access digital services and financial tools. Safaricom is already a leader in telecom and fintech across Africa, making big profits.
But the deal is not done yet. COMESA’s approval is just one step. It still needs okay from Kenya’s Competition Authority, Capital Markets Authority, and Communications Authority of Kenya. Parliament must also approve the government’s sale of its shares.
Other approvals might be needed too. Ethiopia could review it because Safaricom works there. South Africa may check it since Vodacom is based in Johannesburg. Plus, Safaricom’s shareholders must vote yes, and the company must follow all Nairobi Securities Exchange rules.
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This transaction is good news for everyone involved. Kenya gets cash to support its economy without borrowing more. Vodacom gains stronger control over a top telecom and fintech business in Africa. It could lead to better services and faster growth in digital tools for millions of people.
The telecom sector in East Africa is growing quickly. Deals like this show how companies are joining forces to reach more customers. Safaricom’s strong market position in mobile money and internet services makes it a prize for Vodacom. With more approvals coming, the region could see exciting changes soon.
Experts say this will boost financial inclusion. More Kenyans and Ethiopians could use mobile banking and fast internet. It also highlights Africa’s rising telecom powerhouses. As regulators review the rest, the focus stays on keeping competition fair while letting businesses expand.
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