Vodacom posts Sh90.5bn net profit as shareholders approve higher dividend

Vodacom said it also added three million new customers during the year, bringing its total user base to 22.6 million.

The telecom operator’s annual general meeting, held in Dar es Salaam yesterday, heard that net profit after tax rose by 69.4 percent to Sh90.5 billion, supported by cost efficiency measures that saved the company Sh59 billion.

Following a surge in profit and revenue, the company shareholders approved a 69.3 percent increase in dividend.

“Our performance this year reflects the strength of our strategy and our unwavering commitment to connecting Tanzanians to a better future. Through innovation and partnership, we are bridging the digital and financial divide,” Vodacom Tanzania managing director Philip Besiimire said yesterday.

M-Pesa continued to dominate as the largest growth driver, with revenue up 29.3 percent. Transaction value grew by 33.8 percent year-on-year, while the “Lipa kwa Simu” digital payment platform processed over Sh1 trillion each month.

New financial services such as M-Koba, a group savings platform and M-Wekeza, a mobile wealth management product, also gained traction. M-Koba is now used by more than 1.3 million customers, while M-Wekeza attracted nearly Sh25 billion in deposits within months of launch.

The company’s Songesha overdrafts disbursed over Sh3 trillion, supporting customers and merchants across Tanzania.

Vodacom’s mobile data revenue increased by 21.6 percent, supported by a 33.4 percent rise in smartphone penetration and the rollout of 471 new 4G sites, including 126 in underserved areas in collaboration with the government through the Universal Communications Service Access Fund (UCSAF).

The company’s board chairman David Tarimo said Vodacom’s purpose-driven strategy was transforming lives through innovation.

“As we celebrate 25 years of positively impacting lives in Tanzania, we remain focused on delivering sustainable growth and purpose-led transformation. Our results affirm the trust our customers and shareholders place in us,” he said.

The company noted that more than half of M-Koba users are women, underscoring its role in promoting economic empowerment and financial inclusion.

Vodacom also pledged continued investment in network expansion, digital services and customer experience, while reaffirming its commitment to working with the government to improve access to connectivity and financial services across the country.

The firm listed on the Dar es Salaam Stock Exchange (DSE) also anticipates a stable regulatory environment.

“Looking ahead, we remain committed to playing an instrumental role in the realization of the government of Tanzania’s Vision 2050.

We believe that digital and financial inclusion are key pillars of national progress and we will continue investing in technology and partnerships that empower individuals, businesses and institutions,” said Mr Tarimo.