Safaricom 2018 Sustainable Business Report

68 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT 2018 SUSTAINABLE BUSINESS REPORT ENTERPRISE CUSTOMERS Enterprise customers are split into three major groups: Large Enterprises; Small-to- Medium Enterprises (SMEs); and Small Offices-Home Offices (SOHO). We currently have a presence in over 196,000 enterprise customers, which represents an increase of over 72,000 customers from the previous year. This growth can be attributed to the acquisition of 23,777 SME and 62,042 SOHO customers. FY18 FY17 FY16 FY15 Number of enterprise customers 169,000 96,712 84,000 67,925 Market share by revenue 65% 61% 54% 49% The SME and SOHO segments have experienced solid growth during the year. In terms of large enterprise customers, our focus has remained on nurturing long- term relationships and up/cross-selling in this market segment. Enterprise Market Share by Segment (% customer) FY18 FY17 FY16 Large enterprises (public and private sector) 99% 99% 99% SMEs 23% 20% 13% SOHOs 11% 11% 5.2% Delivering value to our enterprise customers During the year, we experienced continued growth and acquisition of SME and SoHo customers by offering business payment solutions and tailored mobile GSM solutions. We are satisfied with this growth, but believe that there is still an opportunity to drive additional growth based on the addressable market opportunity. The large enterprise customers still account for most of the enterprise revenues and within this space we will up/cross sell new segmented propositions. Looking ahead, we want to continue to offer enterprise customers real-time monitoring of services and an enhanced billing service, together with an improved self-service portal. BUSINESS PARTNERS Our business partners include suppliers, dealers and agents. We rely heavily on our partners from both an operational perspective and in terms of our reputation as they are our interface with many of our other important stakeholders. We also understand that we can play an important role in encouraging sustainable practices throughout our business ecosystem and value chain by engaging with our partners in this regard. Our business partner network is currently comprised of 1,164 suppliers, 440 ‘active’ dealers and 156,000 M-PESA agents. SUPPLIERS FY18 FY17 FY16 FY15 Total no. of suppliers 1,164 1,204 1,094 994 Total spend (KES billion) 85.6 84.4 76.8 89.9 We partnered with 1,164 providers and spent a total of just over KES 85.6 billion on products and services during the reporting period. As the following graphics (overleaf) show, we continue to favour local suppliers where feasible and we are satisfied with the weighting towards Kenyan companies achieved during the year, with an 8 per cent increase of spend with local suppliers and 83 per cent of our providers remaining local companies. S D G 5