- Mpesa: Safaricom, Vodacom Push for 100% Control
Africa’s second largest telecommunication giant, Safaricom, partners Vodacom in an effort to acquire the intellectual property rights to the popular M-Pesa mobile financial services from Vodafone, the CEO of Safaricom, Bob Collymore, revealed on Thursday.
“We are taking ownership of M-Pesa, the brand and the intellectual property. Joint ownership between us and Vodacom and we then use that as a platform into running into other markets across the continent.” Collymore said in an interview.
The $13.4 million (estimated) deal will save both purchasers annual royalties paid to Vodafone and aid expansion plan to new African markets.
The most profitable firm in East Africa, Safaricom, pays 2 percent of its annual Mpese revenue to Vodafone and generated 75 billion shillings or $741 million in 2018.
While Vodacom pays 5 percent in intellectual property fee to Vodafone from its M-Pesa business.
“More important than the significant savings is about us determining the future, the roadmap of M-Pesa because at the moment the roadmap is determined by Vodafone,” Collymore said.
“Given that the bulk of the M-Pesa business is in Africa, between Tanzania and Kenya, it is right for us to be determinants.”