Safaricom delivered a remarkable performance in FY 2023/24, exceeding its revised group guidance.

The Kenyan operation achieved a notable KES KES 140 billion earnings before interest and taxes (EBIT), marking a robust 20% year-over-year growth becoming the first regional company to go past the billion-dollar mark in earnings.

Group service revenue saw a significant rise, growing 13.4% year-over-year to KES KES 335 billion. Ethiopia also displayed promising signs, with 4.4 million active customers and strong data usage.

The establishment of a strong customer base in Ethiopia is undeniably a significant milestone for Safaricom.

This will enable them to expand their services and offerings in the Ethiopian market, which has great potential for growth.

Additionally, the expansion of M-PESA in Ethiopia will provide a convenient and accessible way for Ethiopians to conduct financial transactions.

Key Highlights and Milestones Achieved by Safaricom in FY 2023/24

Ethiopean Market Growth

Safaricom has made significant progress in Ethiopia, one of the key highlights being the establishment of a strong customer base.

They have achieved milestones such as enrolling 4.4 million active customers and a robust network expansion, including a variety of 2G, 3G, and 4G sites, to enhance population coverage.

M-PESA Expansion

M-PESA, Safaricom’s breakthrough mobile money service, has witnessed accelerated growth and penetration in Ethiopia.

The number of registered M-PESA customers has surged to an impressive 4.5 million, promoting financial inclusion for a wider population.

This rise is accompanied by a significant increase in active merchants to 62,700 and agents to 25,800, creating a vibrant financial ecosystem that empowers both businesses and individuals.

The rise in transaction volume to Kshs 24.5 billion and transaction value to 31.5 million further highlights M-PESA’s contribution to the Ethiopian economy.

Digitization of Key Sectors in Kenya

Safaricom has been active in digitizing key sectors in Kenya, notably through initiatives like the ‘Dishi na County‘ and collaborations with the Kenya Tea Development Agency (KTDA) and Food for Education.

These efforts aim to leverage digital wallets and other fintech solutions to enhance financial inclusion and service delivery.

Investment in Technological Infrastructure

The company has significantly invested in its technological infrastructure, including enhancements in IoT solutions, cloud and security services, and broadband access through new technologies, which are important for supporting its digital transformation agenda.

Customer-Centric Strategies

Safaricom has focused on improving customer engagement and value through refreshed consumer segmentation and personalized offers, particularly targeting youth and specific consumer needs with segment-led propositions.

Sustainability and Community Resilience

Safaricom is committed to sustainability and reducing environmental impact. This is evident from their initiatives aligned with the Science Based Targets initiative (SBTi) and their efforts to support community resilience, such as partnerships with the Kenya Red Cross to support families affected by floods.

Business Resilience and Economic Challenges

Safaricom has demonstrated resilience in the face of economic challenges, including inflation and currency fluctuations, by adopting strategic measures that ensure sustained growth and stability in both the Kenyan and Ethiopian markets.

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Safaricom’s investment in technological infrastructure is also crucial for supporting its digital transformation agenda. This will ensure that Safaricom remains competitive and relevant in the rapidly evolving digital landscape, both in Kenya and beyond.

Safaricom’s robust financial performance in FY 2023/24 is a testament to their commitment to innovation, sustainability, and customer-centricity.

The company’s investment in technological infrastructure, expansion into new markets, and focus on digitizing key sectors in Kenya positions them well for sustained growth and success in the future.