Vodacom Raises Safaricom Stake to 55% on June 30, Shifts Dividend Policy to Fuel Growth

According to Vodacom's Q1 2026 trading update, the South African telecom increased its stake in Safaricom from 35% to 55% effective June 30, 2026. Concurrently, the board revised its dividend policy to a minimum 65% payout ratio of headline earnings, down from previous levels, to prioritize network infrastructure investment and digital services scaling alongside the acquisition.

Vodacom upgraded medium-term growth targets: EBITDA and operating free cash flow guidance raised from double-digit to early-teens growth, while Vision 2030 Group revenue ambition was boosted from R200 billion to R300 billion+. Financial services now represent 22% of Group service revenue, up from 13%. Including Safaricom, Vodacom processes $547.9 billion in annual mobile wallet transaction value, up 19.1% year-over-year, underscoring its position in African financial inclusion.