Tech in Africa
For the period ending March 2020, Safaricom registered an impressive Ksh.74.7 billion in net profit, a 19.5 percent increase in revenue over the previous year. The growth was largely fueled by the significant uptick in M-PESA and Data usage, with both sectors rising by 12.6 and 12.1 percent respectively. M-Pesa drew in Ksh.84.4 billion while mobile data rose to Ksh.40.7 billion. The growth of M-PESA earnings accounts for 33.6 percent of the company’s service revenue. However, there were small declines in betting industry earnings and voice use. M-PESA witnessed a 17 percent growth in revenue, indicating a positive trend for the Kenyan telecom giant.
During the announcement of their 2019/2020 full-year financial results on April 29, CEO Peter Ndegwa gave a brief recollection of his humble background and desire to focus on a strong digital strategy that invests in agriculture, education, essential services, and health. The company had to make its annual meeting virtual given the prevailing COVID-19 pandemic that requires social distancing among other measures. Michael Joseph, former CEO attributed the progress achieved during his brief stint as head of the company a keen focus on the consumer with the intention of regaining market trust and brand market share.
The new developments are just after Safaricom and Vodafone fully acquired ownership of the M-PESA brand. In addition, the company has its eyes set on the Ethiopian market. Back in February, the company announced a resell partnership with Amazon Web Services. As part of the company’s cooperation with the government on the COVID-19 efforts, Safaricom will assist the government in its cash-to-the-vulnerable program and then expand the pilot project further.
