Moving People


/ News / Article

  • Africanews

Safaricom, Vodacom plan $13 million M-Pesa deal

Kenya’s Safaricom will start a joint venture worth $13 million with South Africa’s Vodacom to acquire the intellectual property rights of M-Pesa from Britain’s Vodafone, Safaricom’s CEO said on Thursday.

The two mobile phone operators will acquire the intellectual property rights to the financial services platform M-Pesa, from Britain’s Vodafone.

Safaricom Chief Executive, Bob Collymore said the deal would be used to expand M-Pesa services to more African markets and to develop new products.

“It is about us (Safaricom) determining the future and the roadmap of M-Pesa. Because at the moment the roadmap is determined by Vodafone, and given that the bulk of the M-Pesa business is in Africa and between Tanzania and Kenya, it is right for us to be determinant,” He noted.

The deal will allow both companies to make significant savings on royalties they currently pay to Vodafone.

It still needs to be approved, but Collymore said it’s expected to be completed this year.

“We have got shareholder approval on this side, it is not a big transaction. You know for us (Safaricom) it is a six million euros transaction, so it is not about the scale but the related party transaction that requires us to get approval of our board and shareholders and requires them (Vodacom) to not only get approvals of their shareholders but they also require the South African Reserve Bank’s approval,” Collymore added.

The success of M-Pesa has helped build Safaricom into East Africa’s most profitable company.

Vodacom owns 35% of Safaricom, while Vodafone has a 5% stake.


Subscribe and keep up to date with all the latest news from Oakmark

Subtle Shapes Transparent

Oakmark Global Vision provides a bespoke business package to established corporate bodies, investors, and entrepreneurs who desire to enter the West & Pan African market. Find out more >

© 2021 Oakmark Global Vision Ltd - All Rights Reserved.

UK Company No. 07634879 / Nigeria Company No. RC 1288232

Regional Office

International Office

1 Kandi Close, Off Aminu Kano

Crescent, Wuse 2, Abuja F.C.T


+234 -(0)- 929 207 02

+234 (0) 704 497 6500

King Court, 17 School Road

Hall Green, Birmingham

United Kingdom  B28, 8JG

+44 (0) 121 244 1814

+44 (0) 746 625 2505

 Oakmark Global Vision Limited