Vodacom Share Price JSE: VOD Eyes Breakout as Safaricom Acquisition Strengthens East Africa Strategy

Quick overview

Vodacom shares are attempting to resume their longer-term uptrend after months of consolidation as the company strengthens its East African footprint with majority ownership of Safaricom.

Vodacom Share Price Attempts Fresh Breakout

Vodacom Group shares are showing signs of renewed bullish momentum after consolidating for nearly four months. The improving technical picture comes as the telecommunications company completed a major strategic acquisition that further expands its presence across East Africa.

The renewed buying interest follows the completion of Vodacom’s $2.1 billion acquisition of an additional 20% stake in Safaricom, giving the South African telecom operator majority ownership of one of Africa’s largest mobile network providers.

Safaricom Acquisition Strengthens Regional Leadership

The transaction, first announced in December, officially closed last week and increases Vodacom’s ownership in Safaricom to 55%.

Under the agreement, Vodacom acquired a 15% stake from the Kenyan government and an additional 5% interest from Vodafone Group at KES34 per share. Following the transaction, the Kenyan government retains a 20% ownership stake in Safaricom.

The acquisition represents a key milestone in Vodacom’s Vision 2030 strategy, which focuses on expanding the company’s presence across Africa’s fastest-growing telecommunications markets.

Chief Executive Officer Shameel Joosub said majority ownership of Safaricom strengthens Vodacom’s market leadership while creating new opportunities to accelerate digital and financial inclusion across both Kenya and Ethiopia.

Expansion Strategy Supports Long-Term Outlook

With majority control of Safaricom now secured, Vodacom is positioned to deepen its exposure to high-growth East African markets while leveraging Safaricom’s established leadership in telecommunications and mobile financial services.

Combined with continued growth in fintech and expanding digital infrastructure, the acquisition strengthens Vodacom’s long-term growth profile. While integration and execution remain important factors to monitor, investors appear increasingly optimistic that the company can translate its regional expansion strategy into sustained revenue growth and improved shareholder returns as the share price attempts to break out of its recent consolidation range.

Revenue and Profit Growth Accelerate

Vodacom delivered solid financial performance for the year ended March 31, 2026, supported by strong momentum across its telecom, fintech, and infrastructure businesses.

The group reported:

• Revenue increased 10.1% to R167.7 billion
• Service revenue rose 10.6% to R133.6 billion
• EBITDA climbed 12.8% to R62.6 billion
• Headline earnings per share increased 22.9% to 1,053 cents
• Net income rose to R20.7 billion from R16.6 billion a year earlier

The company also declared a final dividend of 405 cents per share, bringing the total annual dividend to 735 cents per share, an 18.5% increase year-over-year and above analyst expectations.

Shares of Vodacom have risen around 11% over the past year on the Johannesburg Stock Exchange as investors responded positively to improving profitability and expanding operations across Africa.

Share Price Performance and Outlook

Vodacom’s share price reflects the improving narrative. After bottoming near R86 in April 2024, the stock rallied sharply to around R147 by mid-2025. While consolidation followed in the second quarter of 2026, the recent rebound off the 50-week simple moving average has brought prices back to the 20 SMA in gray, but buyers need to break above it to resume the uptrend.

While valuation and execution risks remain—particularly in a competitive and capital-intensive sector—the combination of international growth, expanding financial services, and accelerating digital transformation suggests Vodacom is steadily repositioning itself for the next phase of growth.

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Financial Services Continue Driving Growth

The strategic acquisition builds on an already solid financial performance delivered during Vodacom’s FY2026 results announced in May.

One of the company’s strongest growth engines remained its financial services business, reflecting rising adoption of mobile payments and digital banking solutions across its operating markets.

Financial services revenue increased 19.6% year over year to R16.8 billion, while the value of transactions processed through Vodacom’s fintech platforms reached approximately US$525.6 billion during the financial year. The business also continued expanding its customer base, reinforcing Vodacom’s position as one of Africa’s leading digital financial services providers.

Management continues to view fintech, digital infrastructure, and mobile financial services as central pillars of its Vision 2030 strategy, reducing dependence on traditional voice and data revenue while supporting long-term earnings growth.

Safaricom and International Markets Support Expansion

Vodacom’s international operations delivered another year of double-digit growth, particularly in:

• Tanzania
• Democratic Republic of Congo
• Lesotho
• Egypt

Egypt stood out with local currency service revenue growth of 36.2% and EBITDA growth of 44.5%.

Meanwhile, Safaricom contributed R4.6 billion to group operating profit, supported by continued growth in Kenya and rapid expansion in Ethiopia, where customer numbers surged 54.2% to 13.6 million.

Vodacom also agreed to acquire an additional 20% stake in Safaricom, further strengthening its exposure to East African growth markets.

Infrastructure Investment Remains Aggressive

The company continued investing heavily in network expansion and digital infrastructure.

Capital expenditure reached R23.6 billion during the year, while the group rolled out:

• More than 3,000 new 4G sites
• Over 6,000 new 5G sites

Vodacom also completed a strategic investment in Maziv aimed at expanding fibre connectivity in underserved communities.

Management emphasized that connectivity expansion, cybersecurity, and responsible AI governance remain long-term priorities as digital adoption accelerates across Africa.

Outlook Remains Positive but Competitive Risks Persist

Vodacom’s latest results reinforced confidence in its long-term growth strategy, particularly as fintech adoption and data demand continue rising across emerging markets.

However, competition across African telecom and fintech markets remains intense, while continued infrastructure spending may pressure margins if economic conditions weaken or currency volatility increases.

Investors will likely focus on whether Vodacom can maintain strong earnings growth while balancing capital expenditure, regulatory risks, and expanding operations across multiple high-growth regions.

ABOUT THE AUTHOR See More

Skerdian Meta

Lead Analyst

Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.

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