Safaricom - 2021 Sustainable Business Report

58 SAFARICOM SUSTAINABLE BUSINESS REPORT 2021 / STANDING TOGETHER: GOING BEYOND //// OUR MATERIAL TOPICS / OUR STAKEHOLDERS / KPI SUMMARY PARTNERING FOR FARMERS We partnered with the Ministry of Agriculture, Livestock and Fisheries (MOALF) so that, for the first time ever, farmers can access government subsidies digitally. The farmer pays 60% on M-PESA while the Ministry adds the 40% and 100% is given to the agro dealer on his till so that farm input can be released. Previously, the Ministry would give all farmers the same input, whereas now, farmers can choose whichever input they need. Payment is digital and instant. SUPPORTING SMES AND MSMES THROUGH FINANCIAL SERVICES SMEs and MSMEs are the heart of our society and the lifeblood of Kenya’s economy given that they contribute to over 40% of all economic activity. For this reason, it’s important for businesses like ours to support small businesses so that they grow and thrive as part of our economic recovery from the COVID crisis. • Pochi La Biashara , is a product that allows owners of businesses such as food vendors, small kiosks, boda-boda operators and second-hand clothes dealers, to receive and separate funds received from business transactions from their personal funds on their M-PESA line. This provides convenience in managing and accounting for the funds received. A total of 1.01 million SMEs and MSMEs had signed up for this service at the close of the year. • M-PESA Bill Manager targets schools, landlords, utilities and other businesses with repeat payments, offering a platform where they can present and receive pending payments from customers, and issue electronic receipts. For M-PESA customers, the service offers a single point where they can view all their bills, receive reminders and automate payment of bills. The Bill Manager enables institutions like schools to customise different type of fee such as tuition, lunch, transport and school trips among others, and also to send fee reminders. We onboarded 375 000 merchants, of whom there were 212 000 (56.7%) actively using the service. Through M-PESA Bill Manager, we hope to empower businesses in Kenya to digitize their businesses beyond collecting payments. • The M-PESA for Business App gives our Lipa na M-PESA merchants access to real-time statements, the ability to export statements and to track their business performance on the go. Through the app, business owners are able to transfer funds from Lipa na M-PESA to their M-PESA accounts, bank accounts or at an agent outlet. The app also enables business owners to make payments to other businesses, pay wages or suppliers and receive detailed reports on till activity from the convenience of their smartphones. The app eliminates the tedious, manual process of accessing funds paid through a merchant till. At the close of the year over 800 merchants had signed up for the service with transactions valued at KSh 63 billion. • The M-PESA Merchant Transacting till is an enhancement of the existing Lipa Na M-PESA Buy Goods till that enables business owners to collect payments on the till and use the money collected to conduct other transactions directly from their till. This till is ideal for businesses in retail, such as supermarkets, restaurants, hardware, pharmacies, boutiques, salons etc. that collect money from customers regularly as part of their business. There were one million transactions to value of KSh 70 billion. DELIVERING STEP CHANGES IN GROWTH AND VALUE PERFORMANCE FOR VENTURES M-GAS: PROMOTING THE USE OF AFFORDABLE, CLEAN ENERGY According to the Common Market for Eastern and Southern Africa (COMESA), by the end of April 2021, Kenya had achieved energy access of over 75%. As the name suggests, in line with SDG 7 Affordable and Clean Energy, M-Gas aims to promote the use of gas - a cleaner burning fuel – and broaden access to energy. M-Gas also enhances affordability through a pay-as-you-go system. M-Gas was officially piloted in early 2020 in Mukuru-Kwa-Njenga, Nairobi. The pilot involved the installation of a gas cooker and cylinder with a smart meter at no cost. Provided by Circle Gas, M-Gas is a essentially a digital service that leverages Safaricom’s connectivity by enabling the pay-as-you-go purchase of gas from The formal retail penetration in Kenya is ranked at 30% and the fraction of Kenyans shopping online is only 0.5% but the figures are anticipated to rise. Through Masoko , our online marketplace, we offered phones and accessories delivered to customers in three hours. While the marketplace is still in the development phase, this initiative has laid the foundation for the potential rise in online shopping. PARTNERSHIP WITH THE HELB ON AN EDUCATION E-WALLET The Higher Education Loan Board (HELB) disburses in excess of KSh 15 billion to over 200 000 beneficiaries annually. In March 2021, we partnered with the HELB to roll out a smart mobile payment solution for students at tertiary institutions to access and utilise their loans and bursaries. The solution will enable HELB to promote responsible spending as funds can be locked for specific allocations, such as tuition or library fees only accessible to the specific Paybill account of the recipient’s university or Technical and Vocational Education and Training (TVET) institution. From the students’ perspective, their upkeep allowance can now be transferred into their M-PESA wallets for everyday use. The portal gives them the capability to receive notifications and plan their finances. In addition, those who have graduated can track their loan repayments.