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 reviewed the group’s capital allocation framework to balance investment in network infrastructure, scaling digital and financial services, progressive deleveraging and shareholder returns,” Vodacom said.
