The financial year under review was characterised by multiple global economic shocks including the aftermath of the COVID-19 pandemic, the war in Ukraine, food and energy crises as well as high inflationary pressure. These conditions adversely affected the global economy and many businesses.
During this period, Safaricom faced other significant challenges, such as increased regulatory scrutiny, changes in taxation, political uncertainty surrounding the elections, significant economic slowdown compounded by currency depreciation, drought and famine.
This saw us experience a slowdown in the first half of the year. Still, we saw a recovery in the second half, demonstrating the resilience of our business amidst the challenging macroeconomic conditions.
Transforming Lives is at the heart of what we do at Safaricom. Recognising that digital technologies have immense potential to address socioeconomic challenges, we continue to invest in those technologies that touch the lives of communities.
For instance, the ubiquitous M-PESA has revolutionised financial inclusion in Kenya, Africa and the globe. This has been achieved through the provision of accessible, affordable financial services to individuals and businesses, thereby promoting economic empowerment, entrepreneurship and poverty reduction.
Through our sustainable business and social impact programmes, we have invested in innovations such as Daktari Smart, Zeraki Learning, Uzazi Salama among others, all of which leverage technology to Transform Lives.
Other ways in which digital technologies are essential to addressing socioeconomic challenges and contributing to sustainable and inclusive economic development in Africa include:
It is crucial to ensure that digital solutions are accessible, affordable, and inclusive, focusing on digital literacy, infrastructure development and regulatory frameworks that support innovation and protect users’ rights to truly, transform lives.
The theme ‘pathway to a purpose-led technology company’ aligns with our purpose of Transforming Lives and reaffirms our commitment to continue leveraging technology and our platforms to connect people to people, people to opportunities and people to information.
Our strong partnership ecosystem, high levels of connectivity and technology, as well as our innovative products and services, help us to address societal challenges, create and strengthen business opportunities, thereby driving inclusive economic development.
“It is crucial to ensure that digital solutions are accessible, affordable, and inclusive.”
Safaricom’s strategic focus on being a customer-obsessed, digitalfirst purpose-led organisation has driven our growth. We have created products, services and experiences that resonate with our over 43.75 million customers. Understanding and meeting customer expectations and evolving needs are crucial for building customer loyalty, attracting new customers and driving revenue growth.
Safaricom’s expansion into Ethiopia is a positive step towards enabling the country to realise its digital potential and leverage technology for a more prosperous society. The expansion signifies our commitment to grow beyond Kenya, expand our services and contribute to developing Ethiopia’s telecommunications and digital infrastructure.
The recent award of the M-PESA licence in Ethiopia is a significant milestone. Although our roll-out in Ethiopia faced initial security concerns, skills and infrastructure obstacles, we are well-positioned to increase our momentum. We are confident that we will deliver value as we grow the Ethiopia business. The country remains a key part of our strategy to accelerate new growth areas, drive digital connectivity and financial inclusion.
“The recent award of the M-PESA licence in Ethiopia is a significant milestone.”
To address social and environmental issues, partnerships continue to play a pivotal role in how we deliver shared value. We will continue to partner with like-minded public and private organisations to implement initiatives that positively impact Kenyans. Collaborations of this nature leverage the strengths of different sectors to address complex challenges, drive innovation and foster economic growth which in turn benefits citizens through job creation and improved lifestyles.
We are committed to working with Government, regulators and other stakeholders to strengthen regulation in key sector issues such as mobile money, data privacy and spectrum.
Moving forward, Safaricom will continue to scale partnerships in areas such as health, agriculture, education, financial technology, digital payment solutions, e-commerce and other emerging sectors that align with our digital-first approach. We can create a more equitable and connected Africa by bringing together governments, the private sector and civil society.
That initial investment has continued to show rewards with M-PESA revenue growing 30.3 % year-on-year. We continue to invest in new products and services on M-PESA that include savings, wealth management and insurance. At year end, downloads for the M-PESA Super App stood at 5.3 million while M-PESA Business App downloads were recorded at 462 000.
I am proud of the progress we have made in the diversity of our board where currently 45% of the members are women. This is in line with our target to achieve gender parity by 2025. As a Board, we are happy to note that there are 40% of women in senior leadership. This means that we have a wider range of perspectives, experiences, and skills in the decision-making process, leading to better business outcomes.
These positive developments reflect our commitment to ensuring robust and effective governance, fostering diversity and enhancing our strategic capabilities.
This inclusive, equitable Board helps us to conduct our oversight responsibilities by providing valuable guidance to management. We have remained true to our strategic focus as guided by our purpose to Transform Lives and our vision to become a purpose-led technology company by 2025.
I would like to thank my fellow Board members, our CEO, our employees, our business partners and other stakeholders for their commitment in ensuring our sustained success in FY23. Through their efforts, despite significant challenges in the global and domestic economic landscape, Safaricom has demonstrated resilience, navigated through headwinds and delivered exceptional outcomes.
As a business, we will continuously assess and adapt our strategies to further intensify Safaricom’s position as a trusted brand and align with evolving societal expectations and global sustainability goals, especially in becoming a net zero emitting company by 2050.
In the short term, we will continue to focus on scaling technology solutions and executing our strategic goals. These include increasing 4G penetration, expanding connectivity for homes and enterprises and driving innovation in 5G and IoT. We will also continue to prioritise customer-centric initiatives, digital transformation and partnerships to enhance our offerings and deliver value to our customers.
In the medium term, we intend to consolidate our position as a technology company and further diversify our revenue streams. This may involve expanding our financial services, credit offerings and insurance, particularly through M-PESA. Ethiopia will continue to be a key area of investment as we work towards achieving profitability and growth in this country. Other key focus areas include increasing digital talent and utilising big data analytics to drive business strategies and improve operational efficiency.
Our long-term vision is to continue our transformation as a technology leader. Our aim is to be a preferred technology partner for Government, supporting its digitisation agenda as it seeks to be more efficient and responsive to citizens by democratising internet and fintech solutions. In addition, we aim to be a partner of choice for small and medium enterprises (SMEs) and other businesses. We will also explore opportunities for expansion into other geographic areas and seek strategic partnerships to accelerate growth in new areas. Additionally, the company will continue emphasising sustainability, responsible corporate citizenship and aligning our practices with the United Nations Sustainable Development Goals (UN SDGs).