Vodacom’s financial services revenue hits R4.4 billion, fueled by insurance and airtime advance

Mariam Cassim – Chief Financial and Digital Services Officer at Vodacom


Vodacom announced today that its Financial services the company recorded a 19.2% increase in revenue to R4.4 billion, fueled by insurance companywith contracts up 19.4% to 2.6 million and a recovery in Airtime Advance increase in income.

The Vodafone-owned company added that normalized M-Pesa revenue growth accelerated to 20.4% in the second quarter as Tanzania exceeded mobile money levies imposed in July 2021 and its new financial services. continuing to develop.

New financial services such as loans and merchant services contributed more than half of M-Pesa’s revenue growth during the period.

The group said Safaricom generated financial services revenue of R7.9 billion on a 100% basis, up 8.7%* on a normalized basis.

“Our financial services strategy is underpinned by a two-sided ecosystem between consumers and merchants, bringing these segments together through exceptional and personalized experiences related to entertainment, e-commerce, payments, savings, investments, loans and insurance services,” Vodacom said.

“As key drivers of this strategy, our two super-apps – VodaPay and M-Pesa – integrate our own products and services with the best offers from our partners.”

In South Africa, Vodacom said its super app, VodaPay, had reached 3.5 million downloads in less than a year since its launch.

Across the entire M-Pesa footprint, including Safaricom, app users topped 3.2 million.

“Along with the rollout of the super app, our active merchant base has continued to grow significantly in South Africa and our international markets,” Vodacom said.

“Our international merchant base has quadrupled to nearly 137,000,
while Safaricom’s merchant base grew by 39.3% to 539,000. This growth expands our addressable commission pool beyond peer-to-peer payments and withdrawals to e-commerce and offline.

“Our M-Pesa platform, including Safaricom, processed $355.2 billion or R6.1 trillion in transaction value over the last twelve months, up 17.6%, representing clear leadership in the African fintech space.”

Vodacom added that its efforts to deepen financial inclusion continue to thrive, supported by the double-digit increase in the number of financial services customers to 63.1 million (including
100% Safaricom).

Financial Services Opportunity in Ethiopia

In October 2022, and following the significant investment in the country, Safaricom Ethiopia commercially launched mobile operations.

Safaricom Ethiopia’s 2G, 3G and 4G mobile services are currently available in 16 cities,
including Addis Ababa and the country’s second largest city, Dire Dawa.

The company plans to launch services in a total of 25 cities by April 2023.

Additionally, it was confirmed in October 2022 that Safaricom Ethiopia would receive
a mobile financial services license.

“These milestones align with our ambition to transform lives in the country as we seek to connect every Ethiopian to the global digital economy, while making various ‘Tech for Good’ solutions and services available in the areas of health. , education, manufacturing, agriculture and digital. finance,” Vodacom said.

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