Vodacom lifts long‑term customer target as financial services grow

Shoppers chat at the entrance of a South African telecoms operator Vodacom shop in Johannesburg, South Africa, 4 February 2026. Reuters/Siphiwe Sibeko

The Africa‑focused group, which is majority-owned by Britain's Vodafone, cited momentum in its core mobile business and its fast‑growing financial services operations.

Vodacom said it now aims to grow its total customer base to 275 million by the 2030 financial year, up from a previous target of more than 260 million, after its customer base reached 237.3 million in the year ended 31 March.

Vodacom has been entrenching its position in financial services, recently hiking its stake in Safaricom, Kenya's biggest mobile operator, in which it already owns 39.9%.

Chief executive Shameel Joosub said in a media call that the increased stake, which will give Vodacom effective control, would help accelerate the rollout of payments and lending app M‑Pesa beyond its most mature markets, notably Kenya and Tanzania.

Financial services generate about R41bn ($2.50bn) in revenue, and deliver better margins and higher returns on capital than traditional mobile services because they require significantly lower capital investment, Joosub added.

Vodacom also raised its 2030 financial services customer target to 130 million, from 120 million previously.

Bulk-buying diesel

Addressing energy supply risks and rising fuel costs, Joosub and CFO Raisibe Morathi said Vodacom is buying diesel in bulk, increasing on‑site storage where possible and arranging for fuel suppliers to hold stock on its behalf.

It has hedged diesel prices for the next six months in South Africa to limit cost volatility and is looking into doing the same in other markets where opportunities arise, they said.

Vodacom's energy costs are roughly 4% of its service revenue. The operator uses diesel to power generators for its towers during extended power cuts. It also powers them through batteries and solar.

Vodacom's earnings before interest, tax, depreciation and amortisation (Ebitda) grew 12.8% to $62.6bn, slightly lower than a consensus forecast of R63bn, data compiled by LSEG showed.

Group service revenue rose 10.6% to R133.6bn, supported by strong performances in Egypt, Tanzania, the Democratic Republic of the Congo (DRC) and Lesotho.