VODACOM TO PAY TZS 22.3 BILLION TO SHAREHOLDERS

• Vodacom Tanzania records strong growth in revenue largely driven by Data and M-Pesa growth
• Shareholders approved a TZS 9.95 dividend per share for the financial year ending March 31, 2023

Dar es Salaam - September 22, 2023: Vodacom Tanzania PLC, the only publicly listed telecommunications and Technology Company in Tanzania, held its Annual General Meeting on September 22, attended by shareholders online from different locations. During the meeting, the annual Integrated Report for the year ending March 2023 was presented to shareholders. The report indicated an impressive improved performance from last year

Vodacom recorded a service revenue of TZS1054.8Bn which was largely driven by a strong result from mobile data, a recovery in M-Pesa, and accelerating fixed growth. M-Pesa revenue grew by 8.4% to bring in TZS 357.1 billion to Vodacom revenue coffers while data revenue grew by an impressive 34.2% raking in a total of TZS273.7 billion.

Speaking to the press after the Annual General Meeting, Vodacom Tanzania's Chairman of the Board of Directors, Retired Judge Thomas B. Mihayo expressed his confidence in the company’s resilience evidenced by its year-on-year growth.

“Our excellent financial and operational results are a testament to the quality of the Company’s purpose-led strategy and its ability to execute a deliberate plan aimed at connecting people to a better future. Despite global social-economic turbulences and a highly competitive market environment, the Company performed well financially and maintained its leading position in terms of market share and customer net promoter score”.

The company has continued with its service improvement strategies, supporting the government's efforts to expand communication services to rural areas by erecting 302 towers over the past decade. We have also contributed to economic activities by creating over 150,000 indirect jobs for Tanzanians while promoting agriculture by registering more than 3.1 million farmers in our M-Kulima which facilitates the digitization of the agriculture chain. Additionally, in supporting the government's implementation of the m-mama system, which is now available in approximately 31 regions of mainland Tanzania and across the Zanzibar Islands, we have greatly facilitated emergency transportation for expectant mothers, saving the lives of mothers and children and serving as a model for countries like Kenya and Lesotho.

Meanwhile, Mr. Philip Besiimire, the Managing Director of Vodacom Tanzania, who joined the company last year, says he’s been impressed by the quality of the management team and staff and the strong execution of the strategy. Under his leadership, the company has maintained a year-on-year growth in both revenue and customers.

"Our purpose-led strategy is driving positive growth, with strong execution across strategic pillars. We maintain our leadership position in the mobile market with 30% customer market share witnessing a commendable 8.9% growth in customer base and a significant 15.1% increase in data users, laying the groundwork for future success. Additionally, our product M-Pesa has played an instrumental role in supporting Tanzania's socio-economic growth, with our customer base increasing by 20% YoY to 8.2 million. With an expansion of our M-Pesa portfolio and our ongoing commitment to financial inclusion, we've facilitated transactions worth over TZS6 trillion and issued a trillion in micro-loans during the year." Said Phillip.

In the past financial year, Vodacom Tanzania launched Tanzania’s first 5G network and made significant investments in its Network infrastructure which paid off as the company recorded a 34.2% growth in Data revenue and customer base.

“In a bid to advance our 'Digitizing Tanzania' agenda, we invested TZS156.0 billion in network capacity, coverage, and IT infrastructure enhancements. This included the addition of 390 new 4G sites and 228 new 3G sites, significantly improving broadband coverage. We launched the 5G network with 231 sites supporting this technology. In October 2022, we successfully acquired four blocks of low and mid-band spectrum through a spectrum auction, investing US$63.2 million. This strategic investment will accelerate our future network expansion plans and unlock growth potential, particularly in fixed-wireless access. These investments, along with increased smartphone adoption and spectrum allocation, led to a remarkable 57.1% growth in 4G data usage." Said, Phillip.

During the AGM, Shareholders also elected and re-elected different non-executive directors to the company’s board. On a special business, shareholders approved the acquisition of 100% of the issued shares in Smile Communications Tanzania Limited and agreed on joint ventures with strategic partners to carry out fiber installation and provide related services as well as accelerate tower infrastructure in rural areas in order to grow fixed and mobile footprints in Tanzania.