Vodafone transfers 35% Safaricom interest to Vodacom

All those Vodacom markets get Mpesa with less hurdles. Now that Mpesa is an app, it may get traction in markets that don’t exactly understand a USSD driven money product.

Hope it won’t mean Suud Efriken bureaucracy for Safaricom in Kenya.

This will boost Vodacom S.A’s financials while allowing Vodafone PLC to be more flexible in its oversight of its African Holdings.Therefore all Vodafone PLC’s africa holdings will be channelled under Vodacom S.A of which Vodafone PLC has a substantial stake in.

For countries like S.A, i don’t see mpesa as an app changing anything. It offers no value. The country is well banked and banks will definitely not “go down” without a fight.

I agree with you, the cartel style of that South African country doesn’t allow for such disruptions. That why they have more Internet, bigger pipes into the country, but their data is more expensive than ours, experience worse.

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MPESA failed to gain much popularity in South Africa. I think they even did away with the service. Over 75 percent of the population has access to bank services. This is so wrong now revenue generated from Kenya will be going down south and we know how Vodacom is tyrant in South Africa.

“While Safaricom will still not be free to enter Vodacom markets in Africa, it can now move to new countries where the South African firm does not have a presence.” Source: BD
“At the board level if the company decides there is a market opportunity for Safaricom, say Ethiopia, we can go there,” said Mr Mucheru in an interview." Source: BD

This is something(offering MPESA in Ethiopia) that management told me they were exploring in 2015 during the 1H2016 results briefing. It was right after they had signed a fiber agreement with Ethio Telecom.

Ethiopia is a potentially lucrative market, but the way the Ethiopian govt has a strong hold on Ethio-Tel and the country’s Telecoms Sector in general, unless Safaricom assumes a management role of the company i dont see them setting up there as a competitor to Ethio-Tel. Then again if Vodacom can get MPESA there and play their cards right in the second most populated African country, it could work out perfect for them. But im kinda getting tired of hearing about MPESA everywhere, cant they just come uo with another Value Added Service that they can also make a success of beside MPESA

It won’t be a competitor to Ethio-Telecom. They will offer the platform to Ethio-telecom-a kind of partnership.

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Then all that’s left is just to play their cards right