5. PARTNERS
• Visa
• Credit and savings
• Global payment partners
• Ant Financial
SECTOR: Financial Services
DESCRIPTION
A service that enables M-PESA registered
customers to send and receive money
globally.
Stars-
6. NOTICEABLE FACTS
Contributed 30.3 % of the company’s service
revenue in FY21
One of the few technologies that has placed the
company on the global map.
First ever mobile money transfer service in the
world at its launch.
Launched in March 2007.
Has over 45.97 Million active subscribers and
550,000 active agents.
Operates in seven countries across North, East,
Central and parts of South Africa, namely: Kenya,
Egypt, DRC, TZ, Ghana, Lesotho, Mozambique,
and recently in Ethiopia
7. FUNCTIONALITY:
Deposits and Withdrawals
Connectivity to formal banking and credit
access.
Cashless payments, loans & savings. E.g. Lipa
na M-PESA M-Shwari, Paybill, FULIZA, KCB-
MPESA
BIGGEST ACHIEVEMENT:
M-PESA has significantly reduced the potential
risk of street robbery, burglary and petty crimes
within cash-based economy.
9. Contributes 17.9% of company’s service
revenue
During FY21 accelerated the rollout of our
4G and home fibre networks and now
provide broadband coverage to over 90% of
the population.
Fibre penetration rate grew by 15.6
percentage points to 58.5% in 2021
Remains the fastest and most consistent
mobile provider in Kenya, with the highest
4G availability.
First mobile operator in Kenya to launch a
5G network for both individual and enterprise
customers in Nairobi, Kisumu, Kisii and
Kakamega in March 2021
11. At Safaricom, voice is considered the star of
yesterday and the cash cow of today.
It remains a significant revenue contributor and
has maintained good momentum in 2021:
With a revenue of Kshs. 82.55bn
Voice traffic share grew to 70.9%
Outgoing minutes per subscriber grew 19.1%
Incoming minutes per subscriber grew 16.2%
Safaricom recognizes that to maintain a high
standard of quality of their services and maintain
their current position, they must continuously
ensure that they deliver the best communication
network by maintaining and enhancing network
quality.
12. PARTNERS
• Sendy
• Wells Fargo
SECTOR: E-commerce
DESCRIPTION
An e-commerce platform that creates
opportunities for customers to access
locally manufactured goods from anywhere
in Kenya. 64% of vendors on the platform
are SMEs and we work with local
manufacturers to help them
grow their businesses through e-commerce.
Dogs-
13. Launched in 2017
2018-Reduced the number of vendors
selling goods from 200 to 100 to tighten
standards of goods bought by
Has struggled to compete with market
leaders such as Jumia that hosts more
10,000 vendors selling over 3.5 million
products.
2020-Safaricom cut focus on growing
Masoko to concentrate on key product
lines such as M-Pesa.
Editor's Notes
The reason why we classified M-PESA as a star is based on the fact that it has not yet gained global popularity and has high potential for adoption within the global space. Though it’s has highly achieved market presence in its birth country and in some part of the regions. We still feel that Safaricom should do more to push M-PESA through the Global market. Additionally, the licensing of a Safaricom consortium to operate in Ethiopia promotes a further growth frontier for M-PESA.
The reason why we classified M-PESA as a star is based on the fact that it has not yet gained global popularity and has high potential for adoption within the global space. Though it’s has highly achieved market presence in its birth country and in some part of the regions. We still feel that Safaricom should do more to push M-PESA through the Global market. Additionally, the licensing of a Safaricom consortium to operate in Ethiopia promotes a further growth frontier for M-PESA.
Data in Safaricom is considered as a question mark due to high growth and quick adoption that has shown its potential in evolving into a star like M-PESA. Furthermore, the roll out of new technologies like 5G create a significant opportunity for this business unit to grow exponentially since it the only operator offering this service in the country.
Cash cows are named so because they represent the category that holds the most profitable brand portfolio and should therefore be “milked”, according to the BCG, to extract the most possible profits.
While voice revenue has been under pressure in line with global trends, it remains a significant revenue contributor and has maintained good momentum this year.
Voice recorded recovery in 2H FY21 declining by 2.7% YoY compared to 6.5% decline in 1H FY21. This is attributed to Safaricom’s Customer Value Management (CVM) propositions in the year offering personalized packages to their voice customers. This resulted in a voice traffic share of 70.9% as at 31 March 2021, in line with their strategic pillar to strengthen their core business and defend voice.
Ref: Page 47 and 18
Masoko is classified as a dog due to it’s low growth rate, low market share, and low profitability.
