In a remarkable display of financial strength, Vodacom Tanzania has revealed its intention to distribute a substantial payout of 22.3 billion Tanzanian Shillings (TZS) to its equity shareholders for the financial period concluding in March this year.
The announcement was made by Vodacom Tanzania’s Chairman, Retired Judge Thomas Mihayo, during a press briefing following the Annual General Meeting. Mihayo expressed unwavering confidence in the company’s exceptional performance, characterized by consistent year-on-year growth.
“Our outstanding financial and operational results underscore the effectiveness of the Company’s purpose-driven strategy and its ability to execute a deliberate plan aimed at connecting people to a better future,” remarked Mihayo. “Despite global socio-economic challenges and a fiercely competitive market environment, the Company has excelled financially and maintained its leading market share position while impressively enhancing customer satisfaction.”
Vodacom reported robust service revenue of 1,054.8 billion TZS, primarily propelled by stellar performances in mobile data, a resurgence in M-Pesa, and rapid growth in the fixed sector. M-Pesa revenue surged by an impressive 8.4 percent, contributing 357.1 billion TZS to Vodacom’s revenue coffers, while data revenue witnessed a remarkable growth of 34.2 percent, amounting to a total of 273.7 billion TZS.
The company’s commitment to service improvement remained steadfast, aligning with the government’s initiatives to expand communication services to remote areas. Over the past decade, Vodacom has erected 302 communication towers, furthering connectivity in rural regions.
Mihayo added, “We have also played a pivotal role in boosting economic activities, creating over 150,000 indirect jobs for Tanzanians. Additionally, our M-Kulima program has registered more than 3.1 million farmers, facilitating the digitization of the agriculture chain.”
Vodacom Tanzania’s Managing Director, Mr. Philip Besiimire, who assumed his role last year, praised the caliber of the management team and staff, as well as the company’s robust strategy execution. Under his leadership, the company has consistently achieved year-on-year growth in both revenue and customer numbers.
“Our purpose-driven strategy continues to drive positive growth, with strong execution across strategic pillars,” stated Besiimire. “We maintain our leadership position in the mobile market, boasting a 30 percent customer market share and witnessing a commendable 8.9 percent growth in our customer base. Furthermore, we’ve seen a significant 15.1 percent increase in data users, setting the stage for future success.”
Besiimire also highlighted the pivotal role of M-Pesa in supporting Tanzania’s socio-economic growth. The customer base for M-Pesa has surged by 20 percent year-on-year, reaching 8.2 million users. With an expanded M-Pesa portfolio and an unwavering commitment to financial inclusion, Vodacom Tanzania has facilitated transactions worth over 6 trillion TZS and issued one trillion TZS in micro-loans during the year.
This remarkable financial performance underscores Vodacom Tanzania’s steadfast commitment to innovation, connectivity, and economic development in Tanzania. Stay tuned for further updates as the company continues its journey of growth and transformation.
Photo Source: Google
September 27, 2023
Delino Gayweh
Serrari Financial Analyst
