Safaricom 2023 Sustainable Business Report

46 OUR BUSINESS OUR STAKEHOLDERS KPI SUMMARY SAFARICOM SUSTAINABLE BUSINESS REPORT 2023 OUR MATERIAL TOPICS ABOUT myCounty APP The myCounty app is a platform that enables all 47 counties to digitise all their services in one place providing a single, citizen access channel. The platform will include payment for county services, revenue management systems, a citizen reporting and engagement tool and solutions around agriculture, health, utility bills and SME programmes. myCounty will be accessible through a USSD short code, Android and iPhone App for all counties, and a mini-app on the M-PESA Super App which will offer county services and payments including parking fees, single business permit fees, market fees, land rates, property rates amongst others. The service seeks to ease access and payment of county services for the public, saving them from having to visit county offices for manual payments. Counties will benefit from more convenient - 24/7 access to their services, increased revenue collection and better visibility of revenue collection and performance. Safaricom has developed a ‘gateway’ that integrates services from all county providers in one digital channel. Counties will also benefit from additional capabilities including revenue management, cash and bank reconciliation, credit control and debt management, and business intelligence systems. We will host the service as part of the Safaricom Cloud, provide Big Data and Analytics Solutions, and for app users, digital receipts, and electronic notifications. 3 African Post-Harvest Losses Information System, cited in The YieldWise Approach to Post-Harvest Loss Reduction: Creating Market-Driven Supply Chains to Support Sustained Technology Adoption, available at: https://www.mdpi.com/2077-0472/13/4/910 GROWING REVENUE As indicated in the table below, M-PESA revenue grew despite the impacts of macro and political uncertainty which reduced customer activity and spend. Following our development of acquisition offers which targeted both registered and non-registered customers, we grew the core of 30-day active customers to stand at 32.1million. FINANCIAL INCLUSION PROFILE FY20 FY21 FY22 FY23 M-PESA M-PESA revenue (KSh billion) 84.4 82.6 107.6 117.2 No. of customers (million: 30 day active) 24.9 28.3 30.5 32.1 No. of Lipa Na M-PESA merchants 172 561 301 597 492 772 606 662 Diaspora remittances through M-PESA Global (KSh billion) 158 289.7 395.7 418.0 M-SHWARI No. of customers (million: active users) 4.66 3.98 4.67 5.28 M-Shwari deposits (KSh billion) * 319.9 571.2 745.0 416.7 M-Shwari loans (KSh billion) 129.6 94.5 86.1 91.5 FULIZA Transaction volumes (million) 392.9 787.1 1 456.0 2353.8 Amount disbursed (KSh billion) 245 351 502.6 701.5 * Deposit balance (sum of monthly deposit balances) OUR DIGIFARM PLATFORM: PROMOTING COMMERCIAL SUSTAINABILITY Kenya’s smallholder farmers face key issues - estimates are that 30–40% of agricultural production is lost because of a combination of post-harvest loss (PHL) and food waste. Limited access to markets and inability to obtain fair prices for their products is another key issue 3 . An integrated mobile platform, DigiFarm’s goal is to help smallholder farmers become commercially sustainable by offering a one-stop access to quality farm inputs at discounted prices, input loans, learning content on farming as well as access to market. Traditionally, smallholder farmers have faced various challenges in accessing appropriate, adequate financial services. The lack of flexible credit products and last-mile access coupled with low production levels, has hindered farmers’ capacity to service their debts. Leveraging technology and partnerships, DigiFarm has developed digital agri-specific lending products (e.g. cereals and pulses) targeting farmers with an acre of land. The products have been tailored to reflect farming realities such as basing the tenure on the production cycle of the crops, bundling with insurance and ensuring access through USSD as most farmers use feature phones.