Vodacom: Mobile money woes in Tanzania dent international portfolio performance

By Xolisa Phillip, in Johannesburg

Premium badge Reserved for subscribers

Posted on May 19, 2022 11:48

Tanzania’s President Samia Suluhu Hassan
Tanzania’s President Samia Suluhu Hassan speaks with U.S. Vice President Kamala Harris (not pictured) during a meeting inside the Eisenhower Executive Office Building at the White House in Washington, U.S., April 15, 2022. REUTERS/Elizabeth Frantz

The Vodacom Group has reported R102.7bn ($6.9bn) in revenue generated mostly in South Africa. Meanwhile, the contribution of its international operations was dragged down by the introduction of mobile money levies in Tanzania.

“When you tax mobile money, and it’s an easy one to tax, it does have repercussions,” Vodacom Group CEO Shameel Joosub tells The Africa Report.

On Monday 16 May, the Vodacom Group published its preliminary results for the year ended 31 March 2022 that show:

  • South Africa contributed R80.8bn to group revenue, underpinned by sustained demand for connectivity, new services – such as digital, financial products, and Internet of Things – and moderate wholesale revenue.
  • Revenue from international operations grew by 0.6% and was negatively affected by the mobile money levies and biometric requirements for users in Tanzania.
  • Vodacom added 5.9 million customers while financial services customers, including those of Safaricom, a group associate, increased by 2.9 million to 60.6 million. The group has 129.6 million customers across its geographic footprint, which includes the Democratic Republic

There's more to this story

Get unlimited access to our exclusive journalism and features today. Our award-winning team of correspondents and editors report from over 54 African countries, from Cape Town to Cairo, from Abidjan to Abuja to Addis Ababa. Africa. Unlocked.

Subscribe Now

cancel anytime