Vodacom has invested $28m to upgrade technology for its M-Pesa platform in Tanzania, a move that the group says better positions the fintech unit for growth and scale.
In late 2025, Vodacom took control of M-Pesa through its buyout of East Africa’s largest mobile operator, Safaricom, in a R36bn deal that strengthened its place as a major player on the African continent.
M-Pesa, the continent’s best-known mobile money business, had previously been a 50/50 joint venture between Safaricom and Vodacom.
The JSE-listed group announced it has completed the transition with a $28m (R471.8m) strategic investment.
The investment moves M-Pesa from its legacy G2 system to a new financial technology platform “built for scale, resilience and innovation, positioning Vodacom to meet the accelerating demand for secure and seamless digital financial services across Tanzania”.
According to Vodacom, this is “one of the most significant fintech infrastructure upgrades in the country’s history”.
Among a host of features, the modernised platform delivers improved reliability and reduced service interruptions for customers. The company’s routine maintenance and system enhancements will result in minimal downtime, reducing disruption from hours to minutes, thereby “protecting the continuity of everyday financial transactions”.
Given the growing threat of criminals seeking to hack such a lucrative platform, security has been strengthened with a focus on safeguarding customer data and transactions.
For agents, merchants and enterprise partners, the upgrade brings greater transactional capacity, detailed reports and more transparent service management.
Businesses benefit from dependable system performance and enhanced reporting capabilities, enabling better planning, reconciliation and customer service, Vodacom said.
In the half year to September 2025, Vodacom said M-Pesa remained Africa’s largest mobile money platform, processing more than $476.8bn in transaction value over the year, including Safaricom.
Vodacom group financial services reported revenue growth of 20.3% to R8bn, accounting for 12.2% of group service revenue, while Safaricom M-Pesa reached R12.2bn.
MTN has mounted a fight with its MoMo platform, which now has 69.5-million customers.
At the half-year stage, Vodacom reported 93.7-million financial services customers, of which Tanzania accounted for 12.8-million.
Other large mobile money providers on the continent include Econet’s Ecocash, Orange Money and Airtel Money.
“This investment is about futureproofing one of Tanzania’s most important financial platforms,” said Philip Besiimire, CEO Vodacom Tanzania.
“We are strengthening the foundation of M-Pesa to ensure it remains secure, reliable and ready to support innovation at scale. Our customers deserve a platform that evolves with their needs, faster, stronger and more resilient.”
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