2022 Sustainable Business Report

6 | SAFARICOM SUSTAINABLE BUSINESS REPORT 2022 KPI SUMMARY OUR STAKEHOLDERS OUR MATERIAL TOPICS OUR BUSINESS We are confident that we have overcome the regulatory challenges and consumer’s suspicions associated with 5G and we believe that traction is set to accelerate, positioning us ahead of the curve as a company and as a country. One of the highlights of FY22 was the announcement at the beginning of the year that the consortium led by Safaricom had won the bid for a telecommunications operator licence in Ethiopia. I am delighted to be able to report progress in this regard: We have signed a five-year lease agreement with Ethiopian Electric Power (EEP), the Ethiopian state-owned power utility company, to share fibre optic infrastructure. Under the deal, Safaricom will use an existing network of fibre optic ground wire cables along high voltage transmission lines – currently standing at 15 000 kilometres – owned by EEP. We have also built two data centres, made the first test call, sent the first SMS, completed the first data session and successfully tested the SIM card registration process. We remain more committed than ever to establishing a foundation for a digital society in Ethiopia and to providing quality, competitive technology services across the country. Both the Board and I have confidence that getting in on the ground floor will have significant benefits for our investors and for Ethiopian society. CELEBRATING 15 YEARS OF M-PESA In 2007, we made a significant investment to establish M-PESA which today is a household name. At the time, no one thought it would be viable but today, I think it’s safe to say, M-PESA has revolutionised the financial services sector – particularly for low- income people living in remote areas. M-PESA has opened new avenues for people to interact with financial services, providing access to affordable, convenient finance; enabling people to make financial transactions remotely; removing the necessity for travelling long distances to bank outlets and avoiding the risks of transporting physical cash from one place to another. That initial investment has continued to show rewards with M-PESA revenue growing 30.3 % year-on-year. We continue to invest in new products and services on M-PESA that include savings, wealth management and insurance. At year end, downloads for the M-PESA Super App stood at 5.3 million while M-PESA Business App downloads were recorded at 462 000. IMPACTING LIVES THROUGH OUR FOUNDATIONS Our Safaricom and M-PESA Foundations continued their work to transform lives, partnering with local and national authorities and others to make a tangible difference across all levels of society. The Foundations have now impacted over 4.2 million lives over the past three years in areas such as education, health and economic empowerment. While agriculture is integral to the Kenyan economy, productivity in the sector is low. Accordingly, we are more determined than ever before to play an enabling role in the success of small-scale farmers by providing end to end products and services and scaling the Digifarm model. Our overarching aim is to have a million farmers active on the platform. LOOKING FORWARD There are several important local and international events set to take place in the year ahead, among these the national 2022 elections. I am encouraged by the fact that, unlike other years, there appears to be no downturn in tourists and no sign of let down in economic activity. There could be some tension around local issues, but I anticipate legal challenges rather than rigging challenges. “The Foundations have now impacted over 4.2 million lives over the past three years in areas such as education, health and economic empowerment.” “We have signed a five-year lease agreement with Ethiopian Electric Power (EEP), the Ethiopian state-owned power utility company, to share fibre optic infrastructure.”