2022 Sustainable Business Report

49 PARTNERING FOR GROWTH: TRANSFORMING LIVES | KPI SUMMARY OUR STAKEHOLDERS OUR BUSINESS OUR MATERIAL TOPICS PROMOTING FINANCIAL INCLUSION FY19 FY20 FY21 FY22 M-PESA M-PESA revenue (KSh billion) 75 84.4 82.6 107.7 No. of M-PESA customers (million: 30 day active) 22.6 24.9 28.3 30.5 No. of Lipa Na M-PESA merchants 122 879 172 561 301 597 492 772 Diaspora remittances through M-PESA Global (KSh billion) 119 158 289.7 395.7 M-SHWARI No. of customers (million: active users) 3.99 4.66 3.98 4.67 M-Shwari deposits (KSh billion)* 213.4 320 571.2 745 M-Shwari loans (KSh billion) 97.5 129.6 94.5 86.1 FULIZA No. of transations (million) 46.4 392.9 787.1 1 456 Amount disbursed (KSh billion) 29 245 351 502.6 *Deposit balance (sum of monthly deposit balances) 2 https://www.mercycorpsagrifin.org/2021/05/26/the-impact-of-digifarm-on-smallholder-farmers/ OUR DIGIFARM PLATFORM Launched in 2017, DigiFarm, a Safaricom subsidiary, is an integrated mobile platform offering digital services targeted at farmers who can access advisory services, market linkages, inputs, input credits and crop insurance through a basic feature phone. Platforms include USSD *944# for farmers, an app and WhatsApp4Business for smart phone users, portal for buyers and a free call centre 944 for agronomy and vet advice. Since launch, DigiFarm has registered over 1.4 million registered users, of whom 117 000 were active in the reporting year. With additional features, it has become a one-stop shop for Kenyan farmers. DigiFarm’s platform model opens the marketplace for farmers to access products and services from financial institutions, agri-input providers, and other value-added service firms, enabling farmers to easily source, transact, learn and grow. Over time, additional services have been added onto the platform, including the recent introduction of DigiSoko, an open marketplace for agricultural produce. Research has indicated that a few key features of access to credit and input that farmers value most include: • Affordable prices • Access to credit when it is urgent (cannot afford to miss the time window for planting seeds or adding fertilisers) • Access to quality inputs (better than inputs they get from other sources) • Flexible repayment structure, being able to repay from revenue earned from selling farm products via Digifarm However, there are challenges with the initiative, including the need for customised information. While farmers believe insurance is important, a lack of knowledge on how DigiFarm insurance works undermines its usage. Access to market and limited value chains are other areas of concern. In addition, farmers have indicated that they would like to sell non-crop products via DigiFarm, such as vegetables, dairy products, and livestock. Importantly, in-person contact is highly preferred and valued in the onboarding process. In addition, follow up is believed to be essential for not only addressing technical challenges but also for demonstrating a sense of care to users. 2