Safaricom and Vodacom want to take over M-Pesa

Vodacom and Safaricom are in negotiation for acquiring the brand M-Pesa, from its parent company, Vodafone. The deal is reportedly worth over $13 million.

According to ITWeb, Vodacom group CEO Shameel Joosub confirmed the plans through a joint agreement with Safaricom, has done a deal with Vodafone to “take over M-Pesa completely”.

“So, Safaricom and Vodacom will own M-Pesa and the teams and everything that goes with it. Now what we want to do is put the requisite investment in place, and then grow it. So, we want to grow the platform and we will use elements of the platform even in South Africa,” he said.

Safaricom CEO Bob Collymore confirmed the deal in an interview with Reuters, saying the two groups would take over ownership of M-Pesa, the brand and the intellectual property.

“Given that the bulk of the M-Pesa business is in Africa, between Tanzania and Kenya, it is right for us to be determinants,” Collymore said in the interview.

When asked why Vodafone, which owns a 64.5% stake in Vodacom, would want to sell the M-Pesa brand, Joosub responded: “Because I convinced them. We can get more out of it and we want to capitalise it properly and really make sure we can put a lot of focus behind it; and really most of M-Pesa is Africa so essentially it’s us driving it.”