Kenya’s leading mobile service provider Safaricom is planning to roll out its successful mobile money service M-Pesa to other markets outside East Africa. Currently, M-Pesa enjoys a dominant market position in its home base in Kenya and some of its East African neighbors.
This news comes hot on the heels of UK’s Vodafone Group selling 35% stake in the telecom to its South African subsidiary, Vodacom. Although the transfer of shares is subject to shareholder and regulators’ approval, it would be safe to assume it is a done deal. When the deal goes through South Africa’s Vodacom will be set it back some $2.6 billion.
The Kenyan government owns 35% stake at Safaricom. The telecom says it has given “appropriate assurances” to Kenya’s government on the deal. Vodafone will maintain a 5% stake at Safaricom, with 25% being free floated for trade at the securities market.
According to a financial analyst Aly-Khan Satchu based in Nairobi while talking to Quartz, said the deal is lucrative for both companies and will go a long way in consolidating their combined reach to markets across Africa.
“I think by …read more