06 Nov Kenya: Safaricom mulls regional expansion for profit growth
Safaricom is seeking to expands its top line by extending its footprint across Africa, starting with Kenya’s neighbours, reports Business Daily. Chairman Nicholas Ng’ang’a said the expansion plans had gained impetus following recent ownership changes at the company, which he said allowed it to set up shop in under-served areas in the region. On 07 August, UK multinational Vodafone transferred its 35 percent stake in Safaricom to its South African subsidiary, Vodacom.
Ng’ang’a said at the company’s half-year investor briefing that the reorganisation has given an expanded mandate to explore opportunities outside Kenya. Chief financial officer Sateesh Kamath, who is sitting in for Safaricom CEO Bob Collymore who has taken sick leave, said the expansion will be done by forming partnerships.
The share transfer should bring to an end a clause that barred Safaricom from venturing outside Kenya, as that would be in direct competition with Vodacom. While Safaricom would still not be free to enter Vodacom markets in Africa, it would now move to new countries where the South African firm does not have a presence.