VODACOM REMAINS MARKET LEADER, BANKS ON NETWORK INVESTMENTS & INNOVATION

• Ended the year with a 16.9% increase in customer base to 19.6 million and a 15.1% rise in data users to 10.1 million.

• Invested in network infrastructure accelerating 4G and 5G roll-out, and modernizing IT infrastructure.

• Positively contributed to promoting financial inclusion and bridging the digital divide through M-Pesa service offerings, innovative initiatives in digitizing critical sectors.

Dar es Salaam - September 11, 2024: Vodacom Tanzania PLC, Tanzania’s leading technology and communication company held its Annual General Meeting where the Annual Integrated Report for the financial year ending 31 March 2024 was presented to the shareholders. The report provides an overview of Vodacom Tanzania’s business, business model, and operating environment and reviews its strategy, operational and governance performance for the financial year.

Vodacom Tanzania Board Chairman, Judge Thomas Mihayo (retired), addresses the press in Dar es Salaam following the company's annual shareholders' meeting. From left is Vodacom Tanzania CEO - Philip Besiimire, Board Member - Margaret Ikongo and Chief Financial Officer - Hilda Bujiku.

In his address to the shareholders, Justice (Rtd) Thomas Mihayo, the Chairman of the Board of Directors of Vodacom Tanzania Plc. touched on the operating environment of the past year and the company’s resilience noting that Vodacom had managed to maintain its leading position both in terms of market share and customer satisfaction opinion, measured by a tool called Net Promoter Score (NPS).

“Our investments in infrastructure and innovative products have been strengthened by improved government-business dialogue and regulatory certainty. The removal of the levy on peer-to-peer mobile money transactions is a key example of this positive change. Moreover, our ability to grow and deliver value is underpinned by the contributions of all our stakeholders and customer centricity. This is confirmed by our leading position in customer net promoter score, ending the year with a strong double-digit lead over our closest competitor,” he said.

Vodacom’s annual report indicates that the company’s financial performance has been strong, with EBITDA growth close to 20%, supporting a 65% increase in operating profit and a net profit after tax of TZS53.4 billion.

“This success is due to our comprehensive cost optimization program, which was implemented without compromising customer experience or investments. Given this robust financial performance, the Board has approved a final dividend of TZS 11.93 per share which corresponds to 50% of our profit after tax, in line with our dividend policy. On behalf of the Board, I express our collective appreciation to Vodacom’s executive team, employees, and business partners for their contributions to this year’s successful performance,” concluded Justice Mihayo.

On his part, the company’s Managing Director, Philip Besiimire mentioned that the resilience and effective strategy execution, supported by a favourable regulatory and policy environment being the main reasons behind the company’s strong performance. Notable regulatory developments over and above the removal of levies on peer-to-peer transfers are reduced right-of-way fees for communications infrastructure, the government’s pro-investment and private sector-supportive policies, coupled with substantial public investment. These have provided valuable policy certainty, encouraging the management to confidently plan and invest in the country’s future.

“With 10 million active M-Pesa customers, we have solidified our market leadership with a 30.5% customer market share, driven by our customer-centric approach. Moreover, M-Pesa showed impressive year-on-year growth, with a 27.8% increase in revenue and a 36% rise in the total value transacted. We ended the year with a 16.9% increase in our overall customer base to 19.6 million and a 15.1% rise in data users to 10.1 million.,” said Besiimire.

Aligned with the company purpose of ‘connecting for a better future’ and its commitment to bridging Tanzania’s digital divide, Vodacom invested TZS170.1 billion in expanding network coverage and capacity, accelerating its 4G and 5G roll-out while at the same-time modernizing IT infrastructure. These investments aimed at improving customer experience, enhance cybersecurity and capitalize on opportunities in underpenetrated segments like IoT solutions.

Besiimire further highlighted that in March 2024, Vodacom Tanzania completed the acquisition of Smile Communications Tanzania Limited, gaining access to valuable spectrum in the 800MHz and 2600MHz bands. This will significantly enhance the company’s network infrastructure and customer experience.

Meanwhile, the Managing Director noted that the company’s refined it’s purpose to focus on ‘empowering people’ and ‘protecting the planet’ in a digital society. Vodacom’s initiatives such as m-mama for maternal health, Code Like a Girl, women leadership development and tree planting drive, demonstrate their commitment to creating a sustainable and inclusive digital society.

“Our M-Kulima platform connects over 3 million smallholder farmers to the agricultural value chain, providing vital information and facilitating secure payments via M-Pesa. Additionally, our new energy transformation project is reducing our carbon footprint, aligning with Vodacom Group’s goal to cut greenhouse gas emissions by 2035,” he detailed.

The Managing Director emphasized that the telco intends to deliver value for all stakeholders as they look at Tanzania’s young and growing population, combined with relatively low digital penetration which presents exciting growth opportunities. He further claimed that Vodacom is well-positioned to harness these opportunities as a leading player in the FinTech space.

In winding, Besiimire assured that despite the uncertain geopolitical environment and local challenges like foreign currency availability, Vodacom remains committed to creating sustainable value for all its shareholders and the broader stakeholder community, driven by the company’s focus on customer, simplicity and growth.

About Vodacom:

Vodacom Tanzania PLC is the leading mobile communication service provider with the fastest data network in the country. We provide communication services to over 22 million subscribers. Vodacom Tanzania and its subsidiary companies are part of the Vodacom Group registered in South Africa which is in turn owned by Vodacom Group Plc of the United Kingdom. It has been registered in the Dar es Salaam Stock Exchange (DSE) with registration number ISIN: TZ1886102715 Stock name: VODA. For further information, please visit our website: www.vodacom.co.tz