Browsing: Safaricom

• In Kenya, mobile phone users are opting for internet calls and texting as a measure to cut on costs.
• Last year, customers spent more time on a single on-net call averaging 2.8 minutes.
• Safaricom customers spent more on off-net calls, averaging at 1.4 minutes while Airtel accounted for 33.3% of voice and 10.3% of SMS traffic in Kenya. 

An increasing number of mobile phone users in Kenya prefer using internet calls and texting as a measure to cut communication costs, a 2023 report by the Communications Authority shows. This shift is steadily eroding both voice and text revenues for mobile network providers in Kenya.

The report shows that the minutes of use per month per subscription decreased to 120.4 minutes in the three months to December 2023 compared to a higher 123.4 minutes during the previous quarter.

Similarly, short messages sent per month per subscription declined marginally to 65.4 from …

• Safaricom has requested telco industry watchdog, the Communications Authority (CA) to block satellite internet providers, such as Elon Musk’s Starlink, from operating independently within Kenya.
• Kenya’s largest telco argues that allowing satellite providers to operate independently could lead to challenges in enforcing compliance with local laws.
• Safaricom insists satellite ISPs should only be allowed to operate under the license rights of a local company.

A fierce battle is looming in Kenya’s internet service provider (ISP) industry, with Safaricom PLC, the region’s largest telecommunications operator, requesting the Communications Authority (CA) to block satellite internet providers, such as Elon Musk’s Starlink, from operating independently within the country.

This development sets the stage for what could turn out to be a fierce contest over the control of Kenya’s lucrative internet market, as telco heavyweights Safaricom and Starlink vie for dominance in a rapidly digitizing economy.

Listed on the Nairobi Securities Exchange and …

• Africa’s evolving telco sector faces challenges such as brand loyalty and infrastructure costs.
• Some of the most recognised brands in Africa are telcos MTN, and Safaricom PLC.
• Africa, and particularly the smaller emerging markets such as Rwanda and Ethiopia are home to a diverse customer base, new report notes.

The African telecommunications market has seen significant consolidation over the past decade, characterised by mergers, acquisitions, and closures such as Telecel’s acquisition of MTN’s operations in Guinea-Bissau and Guinea Conakry; as well as its acquisition of Vodafone Ghana.

According to Robert van Breukelen, CEO of Itemate Solutions, this comes as mobile financial services in Africa have grown with around 435 million (9 per cent YoY rise) active mobile money accounts by the end of 2023.

Breukelen argues that larger, more established telcos are shifting their focus to larger markets, diversifying into mobile financial services such as banking, loans, remittance, insurance, and …

• Nala Money has Payment Service Provider licenses in several countries, including its founder’s home, Tanzania.
• In 2020, Africa’s e-payments industry, across domestic and cross-border payments, generated approximately $24 billion in revenues, of which about $15 billion was domestic electronic payments.
• Africa’s domestic e-payments market is expected to see revenues grow by approximately 20 per cent per year, reaching around $40 billion by 2025

“Little did I know that if a European-based client of mine could have subscribed to Nala Money, I would have received $100 more to my fee.  Unlike Nala, the money order service I use has a low exchange rate and is somehow unconventional.”

This testament is not a promotion or a boost for the latter but an admission of facts and experiences Tanzanians who might receive remittance often or once could face.

Nala, started by Tanzanian youth Benjamin Fernandes in 2017, aimed to increase economic opportunities for …

• The latest Nairobi Securities Exchange monthly Barometer shows month-on-month growth comparing January this year and December last year, with prospects looking much better after a bear run last year.
• Market capitalisation increased by 0.08 per cent in January to $9.11 billion from $9.05 billion in December 2023.
• The NSE 20 and NSE 25 Share Index recorded increases in activity of 0.89 per cent and 1.32 per cent, respectively, while the All-Share Index experienced a 0.08 per cent increase.

Nairobi Securities Exchange showing recovery signs

Kenya’s capital market is showing a sign of recovery this year, with the Nairobi Securities Exchange (NSE) recording a gain in January, albeit minimal, as large stocks pay investors.

This is despite interest rates in advanced economies remaining high into 2024, a trend that has seen foreign investors focus on home markets, mainly the United States.

The latest NSE monthly Barometer shows month-on-month growth comparing January …

• Registered customers for M-Pesa Ethiopia rose to 3.1 million from 1.2 million as of half the Financial Year 2023/2024, transacting worth $115.63 million.
• Ethiopia’s National Financial Inclusion Strategy 2021–2025 aims to increase financial inclusion from 45 to 70 per cent of all adults by 2025, partly by scaling digital payments through mobile money services.
• The country also aims to increase the use of digital payments from 20 per cent of all adults in 2020 to 49 per cent by 2025.

Revenue growth for M-Pesa Ethiopia

Safaricom’s M-Pesa in Ethiopia reported revenue returns of $277,139.43 over the nine months ending in December 2023.

Following its August 2023 launch, the operations generated $45,000 over the first four months, with further commitment to grow the numbers.

Registered customers for M-Pesa Ethiopia rose to 3.1 million from 1.2 million as of half the Financial Year 2023/2024, transacting worth $115.63 million.

However, the opportunity for …

• In 2023, a significant investor sell-off led to a $15.5 million (KSh4.2 billion) decline in the Kenya stock market.
• During the review period, Safaricom’s market valuation declined, attributed in part to prolonged and price-agnostic portfolio outflows by foreign investors in favor of dollar-denominated assets.
• Utility Umeme Limited recorded the highest valuation gains throughout 2023, registering an impressive 115.6 percent return.

Nairobi Securities Exchange-listed firms, including Safaricom PLC, British American Tobacco (BAT), and Cooperative Bank, emerged among the top counters experiencing the highest investor sell-off in 2023, a new trading report reveals.

Over the past year, a consistent trend of investor flight led to the Nairobi Securities Exchange (NSE) witnessing a drop of $15.5 million (KSh4.2 billion) in the value of shares traded on the bourse

The 2024 outlook report by AIB-AXYS Africa Investment indicates that despite some firms, such as Safaricom, recording improvements in share prices towards the end …

• Telco giant Safaricom has reported a 2.1% increase in net profit, reaching $225 million (KES34.2 billion) for the six months ending on September 30.
• Company CEO says there was heightened pressure on consumers’ finances due to both global influences and domestic inflation. 
• Money transfer service M-PESA was the firm’s biggest source of revenue at 42% in the period.

Kenya’s telecommunications giant, Safaricom, has reported a 2.1 percent increase in net profit, reaching $225 million (KES34.2 billion) for the six months ending on September 30. During this period, earnings from the cash transfer service, M-PESA, which constitutes approximately 42 per cent of the total service revenue, saw a 16 per cent surge compared to the same period in the previous year.

Safaricom CEO, Peter Ndegwa, pointed out that during the six months, there was heightened pressure on consumers’ finances due to both international influences and domestic factors such as inflation. Furthermore, …

• Early stage startups in East Africa are set to benefit from the launch of a new accelerator programme by tech giant Safaricom.
• Safaricom is partnering with M-PESA Africa and Sumitomo Corporation, a leading Fortune 500 global trading and business investment company. 
• The accelerator plan dubbed Spark Accelerator is aimed at supporting early stage startups to grow and scale their businesses. 

Early stage startups in East Africa are set to benefit from an accelerator programme by Safaricom in partnership with M-PESA Africa and Sumitomo Corporation, a leading Fortune 500 global trading and business investment company. 

The accelerator dubbed Spark Accelerator is aimed at supporting early stage startups to grow and scale their businesses. The program will provide target startups with access to market, access to capital, technology and product development support. Previously, Spark Fund only offered capital injection.

Early stage startups to get mentorship

Safaricom CEO Peter Ndegwa says the move …

The Vodafone Foundation has set aside $6 million to extend the successful m-mama maternal health initiative to Malawi over the next five years. This expansion aims to enhance maternal and newborn healthcare access in Malawi and the region. Malawi has one of the highest maternal mortality rates in the world. Estimates show that the country currently records 5.7 maternal deaths per 1,000 live births.…