Vodacom Group has revealed that its mobile money platforms processed a staggering US$460 billion (R8.1 trillion) in transactions over the past year, including operations in Kenya. This milestone highlights the growing significance of financial services within the Johannesburg Stock Exchange-listed telecommunications giant’s business model.
In its quarterly trading update for the period ending June 2025, Vodacom emphasized the strategic importance of its financial services division, which now spans a wide array of offerings such as insurance, loans, savings, international money transfers, and merchant services.
“The sustained growth of our financial services is particularly pleasing as this seeks to deepen financial inclusion through an increasing portfolio of services,” the company stated.
Strong Financial Services Performance Across Markets
Vodacom reported group financial services revenue of R3.9 billion, driven by robust performance across several regions:
- South Africa: Strong growth in the insurance segment.
- Egypt: Exceptional revenue growth of 44.3% (or 55.1% in local currency).
- Mozambique and other international markets: A 17.4% increase (or 20.8% on a normalized basis).
Group Revenue Growth Signals Positive Momentum
For the first quarter of the financial year, Vodacom posted:
- Total revenue: R40 billion, up 10.6% year-on-year (or 12.7% on a normalized basis).
- Service revenue: R32.3 billion, a 11.4% increase, supported by an 18.1% surge in financial services revenue.
Group CEO Shameel Joosub expressed optimism about the company’s trajectory:
Encouraging trends from Vodacom Group’s first-quarter performance support the confidence we communicated in May this year, when we upgraded our financial targets.
He cited several contributing factors:
- Strong revenue growth in rand terms
- Improved performance in international markets
- Solid growth in South Africa’s contract segment and “beyond mobile” services
- Continued excellence in Egypt’s operations
Fintech as a Strategic Pillar
Joosub reaffirmed Vodacom’s commitment to financial services as a “clear strategic priority”, noting that it is now the largest component of the company’s “beyond mobile” offerings.
Including Safaricom in Kenya, we now process $460 billion in mobile wallet transaction value annually — a 14.9% increase over the past 12 months — showcasing our clear fintech leadership position in Africa.
South Africa: Mixed Performance and Investment Plans
In South Africa, Vodacom saw:
- Strong growth in contract (post-paid) services
- Continued expansion in financial services, fibre, and cloud
- A slight decline in prepaid services
The company also announced plans to accelerate capital expenditure in South Africa to R12 billion by the end of the financial year in March 2026.
