Safaricom - 2020 Sustainable Business Report

SAFARICOM 2020 | SUSTAINABLE BUSINESS REPORT 10 INTRODUCTION OUR BUSINESS OUR MATERIAL TOPICS OUR STAKEHOLDERS CONCLUDING REMARKS Ensuring the stability and resilience of our network It seems fair to say that our commitment to sustainable business practices and recognition of our interdependent relationship with the society within which we operate have guided us even more proficiently this year. We have redoubled our dedication to keeping Kenya connected and ensuring the stability and resilience of our network in the face of dramatic changes being wrought by the pandemic. We invested KSh 36 billion during the year in the modernisation of equipment and expanded our reach through 2 284 additional Base Transceiver Stations and 2 300 kilometres more of fibre optic cable, which not only enabled us to meet the surge in demand for voice and data triggered by the lockdown, but to support remote workers and families as well – by doubling the speed of broadband bandwidth available to residential customers without charge. Despite the uncertainty that lies ahead, we expect to increase our YoY investment in the network in the coming financial year. Regulatory highlights With regards to the regulatory environment, there were two key highlights during the year. The first was the signing of the Data Protection Act into law in November 2019. The Act has introduced a set of laws that provide clarity and certainty regarding the collection and use of personal information. We welcome this legislation and believe that it will promote greater trust between customers and companies, which, in turn, will enable innovation and progress to flourish. The second highlight was the progress made regarding the new Quality of Service (QoS) framework. We believe that the new methodology being developed by the Communications Authority of Kenya (CA) represents a significant improvement on the previous testing metrics and processes. Embracing shared value thinking and sustainable business practices While external events have overshadowed the year to a great extent, I am pleased to report that, internally, we continued to consolidate the gains made in terms of embedding the United Nations (UN) Sustainable Development Goals (SDGs) into our strategic thinking and corporate DNA. The SDGs continue to develop as a guiding influence for us as individuals, with SDG-related objectives successfully included in the annual performance targets of every employee. We also hosted the 2019 Africa Shared Value Summit in partnership with the Africa Shared Value Initiative and brought together more than 300 business leaders and delegates to discuss ways of enhancing inclusive business and shared value practices in Africa. We believe that the pandemic has made embracing shared value thinking and sustainable business practices even more imperative. Gratitude and thanks With my retirement scheduled for August 2020, I would like to take this opportunity to thank my colleagues on the Board and every member of staff. It has been a wonderful 13 years and I will leave with many happy memories of our achievements together. Of course, our growth as a company since I joined – from 6 to 35.6 million customers and from 1 000 to 4 515 employees – is a source of great pride for me. I am also pleased that we have continued to improve the representation of women and persons living with disabilities among our employees. We should also be proud of the fact that we have increased shareholder value by 607 per cent since listing in 2008; at the same time, though, we should be pleased that we have done so while focusing on our purpose of transforming lives and our commitment to responsible business. In that regard, I am satisfied that our integrating of nine SDGs into our daily operations and performance targets will stand us in good stead and ensure that we remain a company of purpose. In closing, the Board and I would like to extend our gratitude and thanks to every member of staff and management. We appreciate that it has been your resilient energy and efforts throughout the year that have helped us navigate the internal and external challenges of this disrupted transitional period successfully. Nicholas Nganga Chairman and Non-Executive Director Safaricom PLC We believe that the pandemic has made embracing shared value thinking and sustainable business practices even more imperative.