Vodacom Reports Strong Q1 2026 Performance, Raises Growth Targets on Safaricom Integration

Vodacom Group  has raised its medium-term growth ambitions following the completion of its acquisition of a controlling stake in Safaricom,  as the telecommunications operator reported stronger first-quarter revenue supported by growth in financial services and its international operations.

The group completed the acquisition of an additional 20% stake in Safaricom on June 30, increasing its shareholding from 35% to 55% and marking a major milestone in its Vision 2030 strategy.

“This quarter marked a defining moment for Vodacom with the completion of our acquisition of a controlling stake in Safaricom, increasing our shareholding from 35% to 55%, effective 30 June. This strategically important transaction represents a major milestone in our Vision 2030 journey, significantly enhancing the Group’s scale, diversification and long-term growth prospects. We are now entering a new phase of growth, supported by a more balanced portfolio, broader earnings drivers and increased exposure to some of Africa’s most attractive opportunities in connectivity, digital services and financial inclusion. Reflecting this stronger growth profile, we have upgraded our medium-term EBITDA and operating free cash flow growth targets from double-digit to early-teens growth.”

– Shameel Joosub, CEO, Vodacom Group

The company also increased its long-term revenue ambition, citing the broader scale of the business following the Safaricom transaction and the growing contribution of financial services.

“In addition to these upgraded targets, the strength of our diversified portfolio and sustained operational momentum across the business gives us the confidence to raise our Vision 2030 Group revenue ambition from more than R200 billion to more than R300 billion. The transaction also materially expands the scale of our financial services footprint, increasing the contribution of financial services to Group service revenue from 13% to more than 22%, further reinforcing our leadership in African fintech.”

– Shameel Joosub, CEO, Vodacom Group

For the quarter, Group revenue increased 5.9% to R42.4 billion, while service revenue rose 6.3% to R34.3 billion. Financial services revenue grew 17.8%, with the company saying strong local currency performance across its markets helped offset the impact of a stronger South African rand.

“Our first-quarter performance highlights the benefits of our diversification strategy, with strong contributions from Egypt and our International business reinforcing the resilience and balance of our portfolio. Group revenue increased 5.9% to R42.4 billion and service revenue rose 6.3% to R34.3 billion, supported by excellent growth in financial services revenue, which increased 17.8%. While the strength of the rand created translation headwinds, the robust underlying local currency performance across our markets underscores the structural momentum within the business.”

– Shameel Joosub, CEO, Vodacom Group

Egypt remained one of the group’s fastest-growing markets, while South Africa delivered stable performance. The international business also maintained strong momentum during the quarter, led by Tanzania, the Democratic Republic of the Congo and Lesotho.

“Normalised Group service revenue growth of 12.6% remains on track to deliver our medium-term ambition of double-digit growth. Egypt once again delivered an exceptional performance, achieving service revenue growth of 32.8% in local currency, supported by our investments into spectrum and network. South Africa delivered a stable performance with service revenue growth of 2.0%. Pleasingly, our South Africa prepaid segment returned to growth in the quarter, reflecting the positive impact of the actions we have taken to improve value and simplify propositions. Our International business continued its good momentum into the first quarter, with normalised service revenue increasing 14.0%*, supported by strong contributions from Tanzania, DRC, and Lesotho.”

– Shameel Joosub, CEO, Vodacom Group

Beyond mobile services continued to play an increasingly important role in the company’s strategy, contributing R7.8 billion, or 22.8% of Group service revenue. Vodacom also expanded its financial services business, while continuing to invest in fibre infrastructure in South Africa.

“Beyond mobile services remained a key growth driver, contributing R7.8 billion, equivalent to 22.8% of Group service revenue. Financial services remains the largest component of beyond mobile and a key strategic growth engine. Including Safaricom, we process an impressive US$547.9 billion of mobile wallet transaction value annually, up 19.1%. In fixed, we advanced our strategy in South Africa by investing a further R0.8 billion into Maziv to support the completion of the Herotel transaction. We believe that Maziv is well positioned to accelerate fibre reach in South Africa, fostering economic development and helping bridge South Africa’s digital divide.”

– Shameel Joosub, CEO, Vodacom Group

During the quarter, the group also launched new initiatives aimed at advancing financial inclusion, digital innovation and sustainable development across its African markets, including Africa’s first mobile money tap-to-pay solution in Tanzania, mobile data analytics for Ebola preparedness in the Democratic Republic of the Congo, and youth employment programmes in Ethiopia.

“Our purpose, and the tangible impact we create in the communities we serve, continue to inspire and energise us. During the quarter, we advanced innovation and inclusion through initiatives such as the UN Global Compact SDG Innovation Accelerator, empowering young professionals to develop scalable solutions to pressing social and environmental challenges. In Tanzania, we launched Africa’s first mobile money tap-to-pay solution, enabling more than 22 million M-Pesa customers to make seamless contactless payments directly from their mobile wallets. In DRC, we leveraged anonymised mobile data analytics to support Ebola preparedness efforts and strengthen public health planning, while in Ethiopia we partnered with government and development agencies to create sustainable livelihood opportunities for vulnerable youth. Together, these initiatives demonstrate how we are harnessing technology to expand inclusion, improve lives and contribute meaningfully to the long-term development of the communities we serve.”

– Shameel Joosub, CEO, Vodacom Group

Looking ahead, Vodacom said the Safaricom acquisition has fundamentally reshaped its portfolio, creating a more balanced business with stronger exposure to high-growth markets and digital services. The Board has also revised its dividend policy to a payout of at least 65% of headline earnings as it seeks to balance investment, deleveraging and shareholder returns.

“Following the completion of milestone transactions, Maziv and Safaricom, Vodacom has shaped its strategy for the future. Our focus now shifts to unlocking the full potential of our portfolio through disciplined execution, innovation, and capital allocation. Guided by Vision 2030, we are well positioned to deliver sustainable growth and attractive returns. I am confident that the actions we are taking today will create long-term value for shareholders while advancing our purpose of connecting people for a better future.”

– Shameel Joosub, CEO, Vodacom Group