Vodacom, Safaricom eye m-Pesa export after rights buy

first_img Author AddThis Sharing ButtonsShare to LinkedInLinkedInLinkedInShare to TwitterTwitterTwitterShare to FacebookFacebookFacebookShare to MoreAddThisMore 06 APR 2020 Previous ArticleZoom US privacy probe gathers steamNext ArticlePayments start-up Lydia adds health donation feature Chris Donkin Former EE, Sunrise boss Swantee given Vodafone role Related Vodacom Group and Safaricom completed the acquisition of m-Pesa IP from Vodafone Group, a move hailed as a significant step towards the planned expansion of the mobile money service into new African markets.In a statement the three announced the completion of the deal, first announced in 2019. The purchase was made by a specifically created joint venture between Vodacom and Safaricom. Vodafone noted the financial implication was broadly neutral for the group.As part of the agreement, support and development facilities for the m-Pesa platform and brand will be moved to Kenya.The m-Pesa brand operates in Kenya, Tanzania, Lesotho, Democratic Republic of Congo, Ghana, Mozambique and Egypt. It processes more than a billion transactions every month, with a total of 40 million users.Vodacom CEO Shameel Joosub said: “This is a significant milestone for Vodacom as it will accelerate our financial services aspirations in Africa. Our joint venture will allow Vodacom and Safaricom to drive the next generation of the m-Pesa platform.”Nick Read, CEO of Vodafone, added: “With the rapid increase in smartphone penetration, the evolution into financial services and the potential for geographical expansion, we believe the next step in m-Pesa’s African growth will be more effectively overseen by Vodacom and Safaricom.”The companies are tightly tied together: Vodafone owns a 60.5 per cent stake in Vodacom, which in turn owns a 35 per cent stake in Safaricom. Vodafone holds a 5 per cent stake in Safaricom, giving Vodacom control of the unit, in which a 35 per cent is retained by the Kenyan government. Subscribe to our daily newsletter Back Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved… Read more Home Vodacom, Safaricom eye m-Pesa export after rights buy Vodafone sets wheels in motion for tower IPO Vodafone seeks at least €2B from tower IPO Tags SafricomVodacom GroupVodafone Grouplast_img read more