Tanzania billionaires buy big chunk of Safaricom

Two Tanzanian billionaires have bought 10 million shares of Safaricom worth Ksh295 million, becoming the third-largest individual investors in the telecommunications firm. The investments of Aunali and Sajjad Rajabali in the region’s most profitable company is disclosed in the Nairobi Securities Exchange-listed firm’s April regulatory filing of its ownership structure.

The Rajabalis are now ranked behind billionaire investor John Kibunga Kimani who has 11.8 million shares worth Ksh348 million and Ramaben Patel — the top individual investor with 12.7 million shares currently valued at about Ksh374 million. The duo has been accumulating shares in NSE-listed firms over the past two years, with their cumulative investment standing at more than Ksh1.8 billion.

The Rajabalis have taken significant stakes in Equity Group, Co-op Bank, KenolKobil, Jubilee Holdings and I&M Holdings. Safaricom is the most profitable company in the country, having dominated the various segments in the telecommunications market including voice, mobile data and mobile cash transfers.

Analysts say the attractiveness of the telco going forward will depend on the scope and intensity of proposed regulations which arose after fears that the company has cornered the market, leaving its rivals in devastating losses.

“We think it is inevitable that a material regulatory decision will be made despite protests given the current industry structure. The magnitude, however, remains uncertain. Certain measures may also take longer to implement.”