Who We Are

OUR PRINCIPAL SHAREHOLDERS

This Annual Report is the primary report of Safaricom PLC (the Company) and its subsidiaries (together, the Group) to its stakeholders, and is a concise, material, and honest assessment, reviewed and authorised by our Board of Directors (the Board) of how we create long-term value and how we deliver on our purpose of Transforming Lives. The report provides an overview, in terms of the six capitals of our strategy and business model, risks and opportunities, operational and governance performance and activities for the financial year 1 April, 2022 to 31 March, 2023.

Foreign and East African Shareholder Split

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Our Presence In Ethiopia

The Ethiopian cities we cover as at end of March 2023

The Ethiopian cities we cover as at end of March 2023

Safaricom Ethiopia at a Glance FY2023

3.0 million

Gross Adds

2.1 million

90-day active customers FY24 target: 10 million

114

Distributor shops 44k Points of sale

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Distributor business partners

1272

Network Sites: 397 Collocated 875 Own Built FY24 Target: 3,000 sites

Fastest

Data Network in Ethiopia

22%

Population Coverage

Mobile Data Customer Penetration

67% of 90-day active customer base

Voice Usage

55.4 mins/customer/month

Data Usage

1.5GB/customer/month

909

Permanent Employees 81% Ethiopians 19% Expats

Social Outreach

Created 4,610 indirect jobs Community engagements

Our Guiding Strategy in Ethiopia

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Purpose

Transforming Lives for a Digital Future

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Vision

Loved and Innovative Brand

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Brand Promise

Further Ahead Together

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Values

Customer Obsessed, Trust & Respect, Speed & Innovation, Compliance & Integrity

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Culture & Leadership Standards

Earn Customer Loyalty, Get It Done, Together, Create the Future, Experiment, Learn Fast

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Foundational Pillars

Fastest Data Network, Superior Customer Experience, Inclusive Digital Financial Services, Social Contract & ESG

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Foundational Enablers

Network & IT, Data & Analytics, Partnership, Talent & Future Fit Organisation

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Our Ethiopian Operating Environment

Macro Economic Progress

GDP – Growth in 2023 expected to be 6.2% compared to average of 9.1% (2011–2020).
Exchange rate – Liquidity pressure in the market with increasing divergence of the official vs parallel market rates.
Rising inflation – at 34.2% as of March 2023*.
Global impact of Ukraine war.

Our Ethiopian Operating Environment

Regulatory

Ethio telecom Privatisation – 45% of Ethio telecom privatisation was announced in February.
Telecom License – Ethiopian Communication Authority (ECA) is also expected to issue an EOI for the 2nd private telecom entrants.
Financial Liberalisation – Government is still keen on liberalising other industries including opening the mobile financial services and banking sectors.

Our Ethiopian Operating Environment

Political Environment

Tigray – Northern Ethiopia Region, Tigray has opened up and commercial flights are now operational along with basic services such as banking & telecom.
Engaging the government on the ongoing social media restrictions.

Our Progress Since Launch on 6 October 2022

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Customer Onboarding

Over 5k acquisition locations equipped with digital biometrics supported by E-KYC back-office verification process, registration time per customer less than 10mins.

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Network

Rolled out 4G/3G/2G sites ready for 5G.

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Distribution & Customer Care

114 exclusive branded distributor shops offering Safaricom Services. Serving our customers in 5 languages >90% of customers are served within 2 minutes.

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Brand Promise

>90% brand awareness in launched cities. >30% brand consideration youthful brand with best internet services.

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Customer Value Proposition

Acquisition offer focused on Data, Prepay Network calling, SMS, Mobile Data & Home 4G WiFi offerings. Airtime purchase via key bank digital channels CVM Personalised offerings.

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Devices

Range of branded devices 2G, 4G Feature phones, 4G Smartphones MiFi’s and Routers.

The Spirit Of Safaricom

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