Browsing: M-pesa

M-Pesa is on course to become a US$1Bn business.

Safaricom Plc (NSE: SCOM) released its interim results on 10th November announcing a 12.1% year-on-year (y/y) rise in 1H22 net earnings. Combing through its numbers against our estimates, its net earnings per share print (KES0.92) outperformed our expectation of KES0.85. The outperformance was primarily driven by lower than forecasted cost environment. Direct costs came in at KES44.5Bn (+20.3% y/y), beating our forecast of KES49.2Bn, while operating costs came in at KES23.4Bn (+10.3% y/y) outperforming our forecast of KES29.6Bn.  

M-Pesa revenues printed at KES52.3Bn (+45.8% y/y), against our forecast of KES55.9Bn. Behind the strong y/y growth, total transaction value grew 51.5% y/y to KES13.7Tn with volumes up 42.0% y/y to 7.3Bn. Two other factors were at play in the revenue performance: The lapse of zero-rated transactions (as expected) and a 31.3% y/y rise in 30-day active M-Pesa average revenue per user …

The government amended the Electronic and Postal Communication Act (CAP) last month by imposing a levy of between US$0.0043 (10Tsh) and US$4 on mobile money transactions, depending on the amount sent and withdrawn.

One of the key factors that led to the expansion of mobile money in Africa and Tanzania, in this case, was the increased interoperability, product expansion—which brought financial inclusion to enable nearly everyone with decent income-earning schedules to own a mobile wallet account.…

East Africa is a global leader of mobile money with the highest penetration of mobile money in the world according to a report by the African Union in collaboration with the Organisation for Economic Corporation and Development.

The joint report is titled; Africa’s Development Dynamics’ authored by the African Union (AU) in collaboration with the Organisation for Economic Corporation and Development.

Mobile money services are provided by telecommunication companies and supported by a network of licensed agents that allows registered users to deposit and withdraw cash in a virtual wallet.

According to data from the report, for every 1,000 adults, the East Africa region has 1,106 registered mobile money accounts compared to  600 for the whole of Africa, 533 and 245 for Asia, Latin America and the Caribbean respectively.

The penetration is higher in the region with most adults subscribers owning one or more mobile money accounts.

According …

Kenya is strategically positioning itself as the gateway to the vast African market as it seeks to attract investments into the country.

President Uhuru Kenyatta who has been on a charm offensive in foreign markets has called on Asian economies to use Kenya as a gateway to Africa’s market of over 1.2 billion people that is worth more than US$ 29 trillion.

President Kenyatta said Kenya is the best entry point for Asian businesses that want to trade in Africa with the coming into force of the African Continental Free Trade Area (AfCTA).

READ ALSO:Kenya seeks AfCFTA partnership on trade standards

“I invite you to use Kenya as a gateway to the African continent.  It is not only one of the top-ten fastest growing economies in Africa but is also one of the most pro-business Nations on the continent,” the President said when he delivered a keynote address at …

Data and M-pesa transactions accounted for almost 50 per cent of Vodacom Tanzania Plc`s income last year thanks to an over Tshs.170 billion ($73.9 million) investment to expand and modernize the network.

Vodacom`s Finance Director, Jacques Marais said in Dar es Salaam on Tuesday 14<sup>th</sup> May 2019 during a briefing to investors and the media of the company`s annual results for the year ending March 2019.

Marais said M-pesa remained a leading revenue growth with an increase of 14.5 per cent during the period with seven million customers using the service regularly transacting a record Tshs.49.3 billion ($21.4 million) per month.

`During the year, we added 620,000 new M-pesa customers, a growth of 9.7 per cent M-pesa transaction volumes increased 16.4 per cent and M-pesa values transacted grew 16 per cent,` he said while noting that `Lipa kwa M-pesa` platform had 11,000 merchants who processed Tshs.1.1 trillion ($478.2 million) …

Tanzania`s vast geographical boundaries and mobile phone penetration among its demographics have attributed to a shift of many Tanzanians from traditional cash transactions to emerging mobile payment solutions.

Mobile solutions are being used to send money home, facilitate informal business transactions, pay bills, or buy pre-paid electricity. Notably, low-income people, especially in the rural areas, find value in remote digital payment solutions.

According to the second National Financial Inclusion Framework 2018-2022 (NFIF2), mobile payment solutions have contributed to an increasing number of adults in the formal financial systems, from 58 per cent in 2013 to 65 per cent in 2017.

The framework further asserts that the combined efforts between the government and the private sector are a main factor for the upsurge in financial inclusion.

The World Bank also maintains that the inclusion of people in the formal financial system will enable communities, especially businessmen to access financial services with …

Safaricom (NSE: SCOM) has announced plans to double its 4G network coverage to 5000 base stations by March 2020, covering all major towns and 80 per cent of the Kenya population.

The announcement was made by the company CEO Bob Collymore as he released financial results for the year ending  March 31, 2019, which saw net income increase by 14.7 per cent  to Ksh63.4 billion (USD624.9 million ) with revenue hitting Ksh240.3 billion (USD2.4 billion).

“We are pleased with the strong results we have delivered for the year, building on our long track record of delivering relevant products and putting the customer first. We foresee continued growth in the future,” said Collymore.

Safaricom expects to spend over Ksh36 billion (USD354.8 million) in driving up additional 4G coverage, which will see the company roll out an additional 2,030 4G and 4G+ base station to reach more than 80 per cent …