Mpesa: Safaricom, Vodacom Push for 100% Control

  • 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.”

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya; Email: [email protected]

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