Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

Business of Tech

Vodacom completes Vodafone Egypt acquisition

Article Image
Vodacom Group has completed its long-awaited purchase of a 55% stake in Vodafone Egypt.

The group said it had "cleared all outstanding regulatory and procedural hurdles" and the deal was "unconditional and officially completed."

In November 2021, Vodacom announced its plan to acquire the majority stake in Vodafone Egypt for R48.1 billion (US$2.7 billion), which has now been successfully settled through the issuance of almost 242 million new Vodacom Group shares and a cash consideration of R10.8 billion (US$614 million).

As a result, Vodafone's shareholding in Vodacom increases from 60.5% to 65.1%.

"This is an important milestone for Vodacom Group as it will cement our position as a leading pan-African Technology company in addition to diversifying and accelerating our growth profile. We are ideally positioned to partner with Vodafone Egypt to unlock the massive addressable market opportunity in Egypt, supporting and accelerating financial and digital inclusion," said Vodacom Group CEO Shameel Joosub of the deal.

Fintech ambitions

Vodacom sees Vodafone Egypt as an opportunity to advance its strategic connectivity and financial services ambitions in Africa.

Joosub previously told Connecting Africa that Vodafone Egypt had about 44 million subscribers, but only about 3 million are using financial services from Vodafone, providing huge growth potential.

Vodafone Egypt recently delivered strong interim results with local currency service revenue growth of 18.6%.

"This transfer simplifies the management of Vodafone's African assets. Vodacom gains exposure to another leading business in an attractive market, diversifying its portfolio and accelerating its growth profile," Vodafone said in a separate statement on the deal.

"In addition to being an attractive asset on a standalone basis, we will seek to leverage our financial services product roadmap, including our super-app approach, to accelerate Vodafone Egypt's financial services opportunity," added Joosub.

"We also see upside from cross pollination between Vodafone Egypt's software factory and our big data capabilities and closer cooperation between both companies by scaling pan-African enterprise and Internet of Things (IoT) solutions."

Want to know more about telco financials, regulation and deals in Africa? Check out our dedicated Business of Tech content channel here on Connecting Africa.

Vodacom expects to consolidate Vodafone Egypt into its financial statements over the remainder of the financial year.

Vodafone Egypt had previously been an acquisition target for Saudi Arabia's STC but that deal never came to fruition.

Related posts:

*Top image source: David Evers on Flickr CC 2.0

Paula Gilbert, Editor, Connecting Africa

Innovation hub


KaiOS targets merchant market for growth, digital inclusion

KaiOS Technologies, the creator of a mobile operating system for smart feature phones, is piloting affordable merchant payment terminals - which look like feature phones - in Africa to help underserved merchants and transport providers accept digital payments solutions.


Ilara Health aims to improve quality of care in Kenya

Kenyan healthtech startup Ilara Health aspires to improve the quality of care in the country's clinics by providing equipment financing and digitizing facilities with its software.

More Innovation hub

Latest video

More videos

Guest Perspectives


Leadership Lessons: The importance of mentorship for career growth

By Nollie Maoto

Nollie Maoto, First Rand Group's compliance chief data and analytics officer and Africa Tech Festival Leadership Council member, reflects on the importance of mentorship for career growth for African women in data analytics.


Omdia View: May 2024

By Omdia Analysts

May 2024's telecoms highlights in the Middle East and Africa included African 5G subscriptions surpassing 5 million, growth from SpaceX's satellite Internet service Starlink, and a major fiber partnership in the Middle East and North Africa.

More Guest Perspectives

Sponsored video

More videos

Industry announcements

More Industry announcements

Upcoming events

Cyber Revolution Summit
August 9, 2024
Gaborone, Botswana
Africa Tech Festival 2024
November 12-14, 2024
Cape Town, South Africa
More Upcoming events

Africa Tech Perspectives


Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.


The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.


Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Follow us on X

Like us on Facebook

Newsletter Sign Up

Sign Up
Tag id test-002