Vodacom is ending its long-standing reputation as one of South Africa’s most generous dividend-paying companies, choosing instead to retain more cash to fund an ambitious expansion strategy anchored on its majority acquisition of Kenya’s Safaricom and a push to become one of Africa’s biggest digital financial services providers.
The Johannesburg-listed telecoms group said it has lowered the minimum dividend payout under its policy to 65 percent of headline earnings from at least 75 percent previously, marking a major shift for a stock widely held by South African pension and retirement funds seeking reliable income.
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The move comes only months after Vodacom reaffirmed the 75 percent payout policy when it reported its full-year 2026 results in May, highlighting how quickly the company’s priorities have changed following the completion of its long-awaited acquisition of a controlling stake in Safaricom.
“The board has
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