Safaricom - 2021 Sustainable Business Report

13 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 //// STANDING TOGETHER: GOING BEYOND / OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY MESSAGE FROM OUR CEO Last financial year was an extremely challenging period. I joined Safaricom at an extraordinary time when the COVID-19 pandemic was at its peak and majority of our members of staff had transitioned to working from home. I am grateful for the warm welcome and support accorded to me by the Board and staff of Safaricom PLC as I settled into my role. The COVID-19 pandemic altered the environment for all businesses and ours was no exception. In responding to the pandemic, we remained true to our purpose of Transforming Lives. I am pleased with the work we have done to support our stakeholders, especially our customers and communities, to navigate through this difficult period. I am proud of what we have been able to achieve and most importantly the critical role that we played in keeping the country connected during the pandemic and in delivering a sound return to our investors. KEEPING THE COUNTRY CONNECTED DURING THE PANDEMIC The onset of the COVID-19 pandemic last year brought to the fore the importance of keeping humanity connected. The pandemic forced many Kenyans to work and learn remotely. I am incredibly proud of how we stepped up to meet the sudden spike in the demand for connectivity across the country. To accomplish this, we had to accelerate network roll out, connecting 94% of the population to 4G. We are grateful to our regulator for the support accorded to us and for the allocation of an extra 3G frequency to help us meet the demand for mobile internet. Through our fibre optic network, we supported our customers to transition to the new normal and sustain high levels of productivity despite being away from their workplaces. The COVID-19 pandemic is far from over as evidenced by the recurrent waves of infection which have necessitated restriction measures such as lockdowns by the government in a bid to control the spread of the new variants. We remain committed to supporting our stakeholders to navigate through the pandemic. Businesses such as ours will continue to play an important role in the society through driving digital lifestyles and investing in solutions that address the most pressing societal needs. The pandemic has also highlighted the wide gaps that exist in access to internet especially among low income households. Despite the high mobile penetration rate, only 40% of Kenyans own a smartphone device giving them access to high quality internet. Handset costs and data bundle pricing remain some of the key barriers to access. Addressing these barriers is part of our commitment to supporting the Sustainable Development Goals, in particular SDG 9 – Industry Innovation and Infrastructure. Last year in partnership with Google, we launched a device financing initiative called Lipa Mdogo Mdogo, which offers a flexible payment plan with an 85% reduction in the upfront cost. Through Lipa Mdogo Mdogo, customers pay an initial KShs 500 for a 4G smartphone followed by an affordable daily fee of as low as KShs 20. As at March 2021, 247 379 customers had upgraded to 4G enabled devices through this device financing initiative. SUPPORTING MSMES Last year I committed to spearhead the business into developing solutions to support the Micro, Small and Medium Enterprises (MSMEs). Small businesses are the lifeblood of our economy, yet they are the worst hit by the COVID-19 pandemic. It’s therefore imperative for businesses like ours to support them to get back onto their feet as a strategy for building the resilience of our economy. We launched Pochi la Biashara which is a product that allows business owners such as: food vendors, small kiosk owners, boda-boda (motorcycle taxis) operators, second-hand clothes dealers among others to separate business funds from personal funds on their M-PESA wallet. We also recognize that small businesses face several challenges in managing the money received from their sales such as keeping track of their transactions, making payments to their suppliers and paying wages through M-PESA to their workers. To address these challenges, we launched the M-PESA Business Till which addresses these needs by providing a one stop solution for receiving and managing payments for small businesses. This is just the beginning of our journey in becoming the platform partner of choice for SMEs and micro-SMEs. Later this financial year, we will unveil revamped products, offering connectivity solutions for this important segment of our enterprise business customers. PETER NDEGWA Chief Executive Officer Safaricom PLC “I am proud of what we have been able to achieve and most importantly the critical role that we played in keeping the country connected during the pandemic.”