2022 Sustainable Business Report

33 PARTNERING FOR GROWTH: TRANSFORMING LIVES | KPI SUMMARY OUR STAKEHOLDERS OUR MATERIAL TOPICS OUR BUSINESS continues to be felt by customers, who benefit from their improved ability to manage and save money together with lower transaction costs and reduced levels of theft, and the wellbeing that comes with access to goods, services and opportunities, and increased safety as well as security. We aim to further transform lives by improving the wellbeing of our customers, agents, and merchants as the M-PESA service evolves over time. OUR ECONOMIC VALUE-ADD The economic impact of the estimated KSh 298 billion in annual revenue generated from Safaricom’s operations resulted in an estimated KSh 625.9 billion contribution to Kenya’s Gross Domestic Product (GDP). This impact can be separated into a direct impact of KSh 172.9 billion, an indirect impact of KSh 110.2 billion and an induced impact of KSh 342.7 billion. The total economic impact of Safaricom’s KSh 39.3 billion capital expenditure resulted in a total estimated GDP contribution of KSh 22.77 billion. This GDP impact can be separated into a direct impact of KSh 9.5 billion, an indirect Impact of KSh 3.7 billion and an induced impact of KSh 9.6 billion. The ‘Total Economic Value added’ on the Safaricom True Earnings Bridge only includes the direct and indirect GDP impact associated with Safaricom’s operations and capital expenditure. Each year, a portion of the economic value generated by Safaricom is lost owing to corruption in Kenya. It is important to note that this is not directly connected to Safaricom’s activities, but rather acknowledges the unfortunate reality that not all this value is retained. The graph below provides a high-level overview of the annual contribution we made to employment. The numbers are derived from a Kenya-specific Economic Impact Assessment (EIA) model and include direct and indirect contribution to employment, as well as the induced wider effects of employment in the economy. The positive social impact associated with the direct and indirect jobs sustained because of Safaricom has been included in the True Earnings bridge. All financial information can be found in the 2022 Annual Financial Report, including taxes paid and actual direct employment. Both capital and operational expenditure have been processed via the Kenyan national economic impact assessment model, structured to incorporate the economic structure of the communications industry according to the Kenyan Social Accounting Matrix (SAM). JOBS IMPACT FY19 FY20 FY21 FY22 1 135 588 1 003 669 1 013 728 978 633