Tech

Safaricom’s Economic Value Up 17% as Company Looks to the Future

October 31, 2018

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Safaricom’s Economic Value Up 17% as Company Looks to the Future

Safaricom PLC Chairman, Nicholas Nganga (R), United Nations Environment Programme Deputy Executive Director, Joyce Msuya and Safaricom Director Corporate Affairs, Steve Chege mark the launch of the Safaricom Sustainable Business Report 2018 at the Michael Joseph Centre.

According to its just released 2018 Sustainability Report, Safaricom’s stake in East Africa’s largest economy, dubbed its True Value, has increased by 12%, to a whopping KES543 billion during its last financial year, roughly 9.8 times more than the financial profit the company made during the same period.

“We assess the significant indirect value contribution we make to the economy, society and environment in Kenya using the KPMG True Value methodology. When monetised, the net value of the most material social, environmental and economic impacts of the company, both positive and negative, gives an indication of the total value that Safaricom creates for the people of Kenya,” said Nicholas Ng’ang’a, Chairman of the Safaricom PLC Board.

In its 7th Sustainable Business Report, Safaricom has reported that it sustained 171,369 direct and indirect jobs during the year, which was a 5 percent increase from the previous year.

Additionally, the social impact of its financial platform M-PESA increased by 20% to KES191.1 billion up from KES159.6 billion in the last financial quarter. According to the report the major drivers for this growth have been the increase in customer, agent and merchant numbers.

A rise in the average number of transactions per customer, as well as the increased value paid to M-SHWARI users in interest, also contributed to the growth.

“The greatest value continues to be felt by M-PESA customers who benefit from improved ability to manage and save money, as well as the well-being that comes with access to goods,services and opportunities that would not previously have been available to them.” Ng’ang’a said.

The CEO’s address in the report sites the creation of Safaricom’s new innovation center, Safaricom Alpha, terming it as ‘an exciting evolution’ that will focus on long-term initiatives that are outside of its core telco business (the arm is even located in Kilimani, far away from the Headquarters along Waiyaki Way in Westlands), such as in health, agriculture and education, to help the company achieve its Big Data agenda.

From an environment perspective the company reported that it has replaced 7 million single use plastic bags with eco-friendly, reusable carry bags while 97% of waste generated within the business is either recycled or reused (the company has collected 855 tonnes of e-waste to date). Another section of the report notes that fuel consumption, presumably from the thousands of network boosters, is down 0.1%.

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The company also announced that it has reduced the number of sites running solely on diesel powered generators and are exploring other ways in which to compensate for its carbon emissions which went up by 5%.

Safaricom’s Sustainable Report overall outlines the ways in which the company seeks to use responsible and ethical business practices to produce transformational products and services to enhance lives and contribute towards sustainable living for Kenyans.

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