2019 Sustainable Business Report

SAFARICOM SUSTAINABLE BUSINESS REPORT 2019 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS STAKEHOLDER ENGAGEMENT CONCLUDING REMARKS 49 M-PESA RECORDS IMPRESSIVE GROWTH M-PESA, our mobile money transfer and payments platform, remains a large component of our business. In this financial year we launched two exciting new services: M-PESA GLOBAL Our push to take M-PESA beyond Kenya’s borders, M-PESA Global includes partnerships with Google, PayPal and Western Union to enable seamless international money transfer and payments. FY19 FY18 FY17 FY16 M-PESA Revenue (KES billion) 75.0 62.9 55.1 41.5 M-PESA Customers (million)* 22.6 20.5 19.0 16.6 * 30-day active As the preceding table shows, there was a significant amount of activity and movement through the M-PESA mobile money platform during the year. Revenue from the service grew from KES 62.9 million in FY18 to KES 75 million during the year and the number of users (active in the last 30 days) increased from 20.5 to 22.6 million by March 2019. Our Lipa Na M-PESA merchant service, supports and enables entrepreneurial and SME activity across the economy. This service allows our enterprise customers to buy and make payment for retail purchase of goods and services. As shown in the table below, our Lipa Na M-PESA merchant service enjoyed solid growth of 41% increase in value of transactions this year. Case Study: Fuliza The world’s first contextual mobile overdraft facility, Fuliza launched in January 2019. It allows M-PESA customers to complete transactions even if they have insufficient funds in their M-PESA accounts. 10.7 million Opt-in customers KSh disbursed 29 billion Number of Merchants Transactions (KSh billion) Lipa Na M-PESA 185.2 44,554 390.6 102,337 284.3 58,167 549.1 122,879 FY16 FY17 FY18 FY19 0 0 25,000 50,000 250 125,000 1,000 75,000 500 100,000 750 Financial Year No. of Merchants Transactions