Hello MPESA bank

WhatsApp gets approval to launch payments feature in India

HY21 is on Monday 9th November 2020

Thanks

A mistake. Now MPesa has banks by their balls. Those against Equity were probably KCB and CBA but it's a pity Equity wasn't able to rally the other banks to their side.

HY EBIT declines by 10.5%
Service revenue declined by 4.8% to ksh.118.4bn.

Borrowings grew from sh.8bn to 32bn
Profit before income tax down 12.8% to 44.7bn from 51.3bn in 2019
Profit after tax down 6% to 33.0bn from 35.2bn

They are forecasting/providing guidance of a 10% decline in FY EBIT from kes.101.5bn in FY20 to 91-94bn in FY21

They should watch and learn

Reason behind safaricom steady price, even after the drop in profit?

https://www.theeastafric...service-licence-3020960

Twelve multinational telecom giants will soon (expected before end month) find out which among them wins one of two new full-service telecommunication licences to operate in Ethiopia.

The Ethiopian government is expected to request for proposals before the end of November.
“We are ready to go and we are waiting for the request for proposal.,” Safaricom chairman Michael Joseph told The EastAfrican.

He added that the consortium is ready to abide by the conditions that will be imposed by Ethiopia, top of which is barring new entrants into the country from investing in telecoms infrastructure such as base stations and towers.

According to Mr Joseph, the Ethiopian market offers substantial potential considering its mobile penetration rate currently stands at 45 percent in a country with a population of 110 million people.

Safaricom is looking beyond Kenya after hitting saturation in the voice business, with growth largely driven by data and mobile money service M-Pesa whose drop in earnings for the six months period ending September 30 resulted in a decline in profitability for the first time since 2012.

In August, Ethiopia said telecommunication infrastructure providers (towercos) would not be allowed in the country, while operators must share infrastructure.

“The government has decided not to allow foreign telecom infrastructure companies. They will not be allowed to operate here,” Frehiwot Tamiru, Ethio Telecom chief executive, said in August.

The country has drafted a framework to govern infrastructure sharing and collocation agreements, with the key design being to protect the vast infrastructure being controlled by Ethio Telecom, the country’s telecoms monopoly.

The other companies that had submitted an expression of interest were Etisalat, Axian, MTN, Orange, Saudi Telecom Company, Telkom SA, Liquid Telecom, Snail Mobile and the two non-telecom operators, Kandu Global Telecommunications and Electromecha International Projects.

According to John Walubengo, an IT lecturer at Multimedia University, while Ethiopia offers a huge market for voice and data, the M-Pesa service could be the biggest beneficiary by riding on Ethiopia’s nascent financial market.

Voice and text without Mpesa is not worth it. They can aswell stay here and target the new kids koining the telephony world.

New money is on Data, ecommerce and gaming

If they dare go to Ethiopia that will be the beginning of their end. History shows that no KE company has succeeded outside Kenya other than H.H. Aga Khan associated ones. Hata Memba has not yet broken even in DR Congo.

They are already a top 25 company in Africa in terms of revenue and profits with the Kenyan market alone. Besides, M-pesa is no longer an edge. All telcos in Africa have a version of M-pesa.All telcos in Africa are offering data at even cheaper rates than Safaricom.

Let them stick to fuliza in KE ama watajua hawajui.

Why was it a mistake for NCBA and KCB? Collaborating with Equitel would have only benefited Equity bank. Yet MShwari raised NCBA from a nondescript bank to a powerhouse. As a business, you look out for number one first.