Safaricom in Focus: Why it is The Stock to Watch in 2019

By Vera Shawiza / January 29, 2019



Safaricom 4G crazy bundles

Safaricom has grown from a voice and data service provider to the biggest communication company in East and Central Africa providing financial services and enterprise solutions to the subscribers.

At the heart of the company’s legacy has been the drive to address everyday problems and offer solutions through the over 100 products under its portfolio.

M-PESA, the pioneer mobile money transfer that has been recognized globally and one of the most successful of its kind. The product has won awards and accolades globally.

In the year that ended in March 2018, Safaricom grew its value chain by 57 billion shillings on its contribution share to Kenya’s economy.

In 2018, Safaricom sustained an estimated 896,372 jobs at a time when many companies in Kenya at the time other companies were retrenching hundreds of employees due to a hostile business environment.

171,369 jobs were directly associated with Safaricom while the rest of the jobs were as a result of indirect activities such as suppliers.

Safaricom’s contribution to the economy currently can hence be equated to 6.5 percent of GDP, according to the report, an improvement from last year where Safaricom supported 682,000 jobs contributing 486 billion shillings to the economy.

As at March 2018, Safaricom had a total of 5,556 employees who earned 10.23 billion shillings in salaries, pension contributions, bonuses, and employee performance share awards.

Why Safaricom?

  1. Safaricom’s Impact on the Economy

According to Safaricom’s 7th Sustainable Business Report 2018, its contribution to the economy stood at 543 Billion Shillings, an equivalent to 6.5 percent of Kenya’s GDP.

Safaricom is the largest listed firm on the Nairobi Securities Exchange (NSE) and has a market capitalization of 941.5 billion shillings. The company is Kenya’s most profitable company.

  1. Planning 5G Network

As of December 2018, Safaricom’s launch of 5G services had already begun following the telco’s trial of a new and innovative network coverage technology dubbed TubeStar Base Station that is aimed at enhancing coverage in urban areas.

Tubestar replaces the standard tower base station with a tubular structure that occupies up to 75 percent less the land typically required.

The TubeStar eliminates the need for a compound and perimeter wall around the base station by incorporating all equipment within the tower structure.

  1. M-PESA core networking in every mobile money deal.

M-PESA plays an important financially-enabling role in the lives of more than 20 million Kenyans.

Its impact on deepening financial inclusion is through the M-Shwari micro-finance savings and loans service, which helps underserved Kenyans access banking facilities and credit, and the Lipa Na M-PESA merchant service, which supports and enables entrepreneurial and SME activity across the economy.

Today, more than 96 percent of households have at least one active M-PESA account, which means Kenyans love and trust it for mobile transactions.

With the service, most Kenyans don’t need to visit the bank to withdraw or send money.

  1. Getting into Cyber Security

Safaricom is now offering security services to businesses and individuals to help them reduce the risk of loss of money and sensitive data.

The services include Managed Security Solutions, Security Assurance, and Advisory services as well as Managed Security Operations Center solutions.

With the new service, companies, enterprises, and individuals can secure their emails, websites, manage vulnerabilities, test and audit I.T systems and access real-time monitoring among other services

  1. The overdraft facility Fuliza

M-Pesa’s Fuliza overdraft facility allows M-Pesa customers to complete their transactions when they have insufficient funds in their M-Pesa account.

The overdraft facility has already been hailed by the market and economic analysts as something that will cement MPESA’s lead in financial innovation that will further enhance and reaffirm Kenya’s position as a leader in financial development, innovation, and inclusion.

  1. It’s CSR wing aspect

M-Pesa Foundation Academy

This is in line with the Sustainable Development Goal of education for all. Safaricom grants full scholarships to learners from disadvantaged backgrounds in order to give them an opportunity to study.

Chapa Dimba na Safaricom

The Chapa Dimba na Safaricom Tournament aims to recruit young talented footballers, aged between 16 and 20 years old, to play in a tournament, showcase their talent, and enjoy an opportunity to earn from their passion by winning the overall prize money worth 1 million shillings and an international training camp opportunity

Ghetto Classics

It is a project undertaken by Safaricom to fund young children in slums through music education. The children then get to play and perform at the Safaricom Jazz festivals alongside international and local musicians.

View more CSR projects here

ALSO, READ

As 2019 Kicks Off, Here Are The 7 Stocks To Watch

Fuliza: Reason To Buy More Shares in Safaricom and Take A Long Term Position On The NSE; Credit Access Made Easy

Buying and Selling Shares Online Via Co-operative Bank’s Kingdom Securities

 



About Vera Shawiza

Vera Shawiza is Soko Directory’s in-house journalist. Her zealous nature ensures that sufficient and relevant content is generated for the Soko Directory website and sourcing information from clients is easy as smooth sailing.Vera can be reached at: (020) 528 0222 or Email: [email protected]

View other posts by Vera Shawiza


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