Dar es Salaam. Vodacom Tanzania Plc posted an 18.4 percent increase in net profit for the financial year ended March 31, 2026, buoyed by strong growth in mobile money (M-Pesa) and data services as the telecom firm accelerated investment in network expansion and digital infrastructure.
According to the company’s preliminary annual results released this week, net profit after tax rose to Sh107.1 billion from Sh90.5 billion recorded in the previous financial year, while service revenue climbed by 21.8 percent to Sh1.85 trillion.
Total revenue increased by 22.1 percent to Sh1.88 trillion, driven mainly by growth in M-Pesa revenue, which surged by 24.5 percent to Sh734.8 billion, and mobile data revenue, which expanded by 29.5 percent to Sh546.7 billion.
The company said customer growth remained strong during the year, with its customer base increasing by 22.3 percent to 27.7 million users, while M-Pesa customers rose by 22.6 percent to 14.1 million.
Smartphone users on the network also grew sharply by 31.5 percent, reflecting rising demand for digital services and internet connectivity across the country.
Vodacom Tanzania chief executive officer Philip Besiimire said the company’s performance reflected sustained investment in technology, financial inclusion and network modernisation as the firm marked 25 years of operations in Tanzania.
“This year, we celebrated 25 years of committed service to the people of Tanzania. During this time, we pursued a strategy guided by our purpose of connecting Tanzanians for a better future,” Mr Besiimire said.
He added that the company invested Sh323.9 billion in capital expenditure during the year to modernise its network and expand broadband coverage.
The investments included the rollout of 444 new 4G sites and 25 additional 5G sites, alongside upgrades to M-Pesa platforms and broader IT systems.
“We executed on major initiatives including the first phase of a two-year $100 million network modernisation initiative,” he said, noting that the upgrades were aimed at improving customer experience and supporting future growth.
The company also acquired a 50MHz spectrum block in the 3700MHz band at a cost of Sh49.8 billion to support future network expansion plans.
Vodacom said M-Pesa continued to play a central role in its growth strategy, supported by increasing adoption of digital lending, savings and merchant payment services.
Its digital lending portfolio disbursed Sh3.4 trillion during the year, serving more than five million customers and thousands of businesses through services such as Songesha overdrafts and short-term loans.
Meanwhile, the firm’s investment product, M-Wekeza, attracted more than Sh370 billion in customer investments since its launch in November 2024.
The company also reported that deposits through its group savings product, M-Koba, surpassed Sh1 trillion during the year, with women accounting for more than 60 percent of the value deposited.
Mr Besiimire said the telecom operator remained optimistic about future growth despite global economic uncertainties linked to geopolitical tensions and foreign exchange volatility.
“We are well on track to achieve our medium-term service revenue growth target of ‘early double-digit’,” he said.
He added that data and M-Pesa services would remain the company’s primary growth drivers as Tanzania’s digital economy continued to expand.
The report further showed that earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 38.8 percent to Sh684.9 billion, while EBITDA margin improved to 36.4 percent from 32.1 percent previously.
However, free cash flow declined by 26.8 percent to Sh143 billion due to higher tax payments and increased capital spending associated with the ongoing network modernisation programme.
Vodacom noted that despite temporary cost pressures linked to the modernisation initiative, the long-term benefits would include greater network resilience, improved energy efficiency and enhanced cybersecurity protection.
The company said it now covers more than 95 percent of Tanzania’s population, with broadband services reaching over 75 percent of the population.
It also disclosed that over the past decade it had contributed Sh5.2 trillion to government revenues through taxes, levies, licence fees and other statutory payments.
Vodacom Tanzania remains the only telecommunications company listed on the Dar es Salaam Stock Exchange, with nearly 40,000 Tanzanians owning shares in the company.
