“I am no bird; and no net ensnares me: I am a free human being with an independent will,” declares Charlotte Brontë’s character in her 1847 novel Jane Eyre.
This quote was a powerful declaration of independence, asserting that the protagonist is not a creature to be controlled but a free-willed individual.
Is this how Shameel Joosub, Vodacom’s CEO, feels now?
After the final settlement of the long-running “Please Call Me” (PCM) legal saga, swiftly followed by Thursday’s announcement of a R36bn deal to take a controlling 55% stake in Kenya’s Safaricom, one must wonder.
A fortnight ago, I called the PCM settlement a strategic liberation. Today, it looks like the prelude to a far greater emancipation. Vodacom is no longer just Vodafone’s promising African offspring. With the full consolidation of Safaricom’s towering fintech and telecom revenues, Vodacom’s top line surges towards R220bn. It becomes a continent-spanning behemoth, a clear, consolidated rival to MTN and Airtel Africa.
But in this bold move I see more than growth. I see a subtle assertion of an independent will, with Joosub slowly declaring Vodacom’s destiny to go its own way.
Some might well dismiss this theory as fantasy.
Yet the question lingers: why would Vodafone sell its crown jewel? This Safaricom deal may be the final, brilliant piece of a puzzle designed not for a tighter union, but for an amicable and logical divorce.
I believe these moves were steps in a quiet, strategic choreography. With the PCM cloud cleared and the Safaricom crown now secured for the group, Vodacom has never been more attractive
Vodafone has been methodically consolidating its African assets into Vodacom: Vodafone Egypt in 2021 and, curiously, the sale of its Ghana stake last year.
Each move was framed as “portfolio simplification”.
I believe these moves were steps in a quiet, strategic choreography. With the PCM cloud cleared and the Safaricom crown now secured for the group, Vodacom has never been more attractive.
So why would this divorce make profound sense for Vodafone? The answer lies in Europe’s urgent, capital-intensive reality.
Vodafone is at a continental crossroads. To become Europe’s definitive telecom leader, it must win a brutal war. The battles for 5G supremacy, fibre dominance and next-generation satellite connectivity demand billions in capex.
The signs of this all-in European focus are already here: the merger with Three UK to form VodafoneThree, and the sovereign satellite project with AST in Germany. Vodafone’s investors are demanding focus and returns.
The current conglomerate structure, with a high-growth African arm tethered to a struggling European core, is seen as complex and undervalued.
Selling its Vodacom stake would unleash a downpour of capital, tens of billions of euros, providing a clean, compelling solution. That cash could slash debt, fund transformative European network investments and reward shareholders directly.
And for Vodacom? Freedom is not about escape; it’s about alignment. If liberated from Vodafone’s necessarily European priorities, Vodacom could fully embrace its identity as a pure-play African champion.
Vodacom’s strategy — aggressive 5G rollout, fibre partnerships like the Maziv deal — requires a partner whose vision and capital are dedicated to the African sunrise, not a European sunset.
This is where a potential suitor like the Emirati powerhouse e& enters the frame.
For Vodacom, being “freed” to potentially partner with e& may represent a move from being a divisional outpost of a European conglomerate to becoming the central strategic asset of a like-minded, deep-pocketed, growth-orientated tech investor.
e&, backed by the UAE’s long-term vision and capital, seeks a platform to achieve its global tech ambitions.
Vodacom, armed with M-Pesa and now Safaricom, needs a partner to fuel its pan-African digital leadership.
The synergy is compelling: e& understands emerging markets, thrives in them and is transforming into a tech conglomerate. It could provide the patient capital for African expansion, free from the pressure to subsidise European debt. The separation logic is compelling.
Vodafone becomes a European consolidator and cash-flow manager. Vodacom transforms into an autonomous African growth engine, potentially turbocharged by a perfect-fit partner.
The market’s persistent “conglomerate discount” on Vodafone’s stock could vanish overnight. Of course, shareholders may cling to the comfort of Vodacom’s stable dividends and growth diversification.
But sentiment cannot override strategy. In a market demanding focus, the clearest path for both giants is to part as masterpieces of corporate sculpting: one honed for European resilience, the other unleashed for African dominance.
The Safaricom deal is not just an acquisition. It is Vodacom’s final declaration of maturity, its independent will made manifest. Vodafone would be wise to recognise this moment for what it is: the right time to let the bird out of the net to fly unencumbered.
• Lourie is the editor and founder of Tech Financials
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