Business: Safaricom’s Contribution To The Economy, Ksh. 543 Billion Is Equivalent To 6.5% Of Kenya’s GDP
This week Safaricom released their 7th Sustainable Business Report. Since 2012, Safaricom has documented their sustainability journey as they believe in holding themselves accountable in a transparent manner. Safaricom is the largest listed firm on the Nairobi Securities Exchange (NSE). It has a market capitalization of Ksh 941.5 billion and is Kenya’s most profitable company.
Safaricom’s true value increased by 12% to Ksh 543 Billion during the 2017/18 financial year. This was 9.8 times more than the financial profit the company made during the same period. Additionally, this accounted for an equivalent of 6.5% of the country’s GDP.
“When monetized, 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, Safaricom PLC Board.
It has sustained 171,369 direct and indirect jobs during the year. This 5% increase reflects in the number of customers and vendors using Safaricom’s services. As of March 2018, the company alone had 5,556 employees. They earned a total of Sh10.23 billion in salaries, bonuses and other employee appraisals.
Safaricom is also active in societal value with various ventures. Through the M-PESA foundation, M-TIBA and Safaricom Twaweza, the company’s true value increased. On education, Safaricom helped 43,000 refugee students access high-quality education through Instant Network Schools programme. Additionally, 2.8 million students received educational support through Shupavu 291 and The MPESA Foundation.
Through M-TIBA, nearly one million users have registered for medical services. The platform has more than 400 medical facilities in Nairobi, Mt Kenya, Western and Nyanza regions.
The social impact of M-PESA increased by 20% to Ksh 191. Billion from Ksh 159.6 Billion in the last financial year. The major drivers of this growth were the increase in customer, agent and merchant numbers. There was also a rise in the average number of transactions as well as the increased value paid to M-shwari users in interest.
“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 wellbeing that comes with access to goods, services and opportunities that would not previously have been available to them.” Ng’ang’a said
The sustainability report also shows that Safaricom registered 700,000 farmers on the DigiFarm platform. This included over 200,000 farmers using the service daily. Additionally, 7,000 successfully took loans to purchase quality seeds, fertilisers and pesticides. Safaricom says they have a target to register 1.4 million farmers on DigiFarm by December 2018. Read how Safaricom’s Connected Farmers Alliance Is Transforming The Lives Of Kenyan Small-Scale Farmers
In terms of environmental sustainability, the company replaced 7 million single-use plastic bags with eco-friendly reusable carry bags. Additionally, they recycle or reuse 97% of waste generated within the business which goes towards improving their true value. The company also announced that it has reduced the no. of sites running solely on diesel-fueled engines. It is exploring other ways to compensate for their carbon emission.
Safaricom provides 1.2 million households with M-Kopa solar which is a clean, green energy home lighting solution. This is a 128% increase from the 2017 Financial Year.
Safaricom’s impact on Kenya’s economy is felt throughout the country and many Kenyans benefit from their business.