Safaricom - 2021 Sustainable Business Report

30 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 //// STANDING TOGETHER: GOING BEYOND / OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY The “other” category includes a number of less significant positive and negative impacts such as: improved personal wellbeing due to feelings of safety associated with carrying less cash; increased personal savings due to less money being lost to fraud and theft and interest earned through savings; reduced wellbeing due to less socialising and irresponsible borrowing and decreased financial net worth due to the interest and penalty payments associated with loans. Safaricom continuously seeks to create value for both shareholders and broader Kenyan society, demonstrating a strong commitment to ensuring shared value for all stakeholders. The graph above depicts that the social value created through M-PESA surpasses the revenue it generates for Safaricom year- on-year. The total social value created through M-PESA in FY21 was almost three times the revenue earned. Importantly, for most of FY21, there were no fees charged for M-PESA transactions up to the value of KSh 1 000 which ultimately had a negative impact on revenue but created additional value for customers during the period. SOCIAL VALUE CREATED FOR AGENTS SOCIAL VALUE VS. M-PESA REVENUE (MILLIONS) FY19 213 476 74 990 FY18 191 134 62 907 FY20 234 141 84 438 FY21 242 361 82 647 NO. OF TRANSACTIONS SOCIAL VALUE (KSh) SOCIAL VALUE CREATED FOR AGENTS (FY20 VS FY21) IMPROVED PERSONAL WELLBEING INCREASED BUSINESS PROFITS SOCIAL VALUE OF SUSTAINED / NEW AGENT EMPLOYMENT 4% 18% 82% 96% 0.3% 0.2% FY21 FY20 SOCIAL VALUE CREATED FOR CUSTOMERS INCREASE IN PERSONAL SAVING DUE TO INCREASED RECEIPT OF MONEY AND ITS CONTROL AS WELL AS FINANCIAL RESILIENCE INCREASE IN PERSONAL SAVINGS DUE TO COST SAVINGS WHEN USING M-PESA TO TRANSACT IMPROVED PERSONAL WELLBEING DUE TO ABILITY TO PURCHASE PERSONAL ITEMS (ACCESS TO CREDIT THROUGH M-PESA) INCREASE IN PERSONAL SAVINGS DUE TO TIME SAVINGS WHEN USING M-PESA TO TRANSACT OTHER IMPACTS -3.6% 40.3% 45.0% 16.8% 1.5%