Chairman of the board, Judge (rtd) Thomas Mihayo (centre) Vodacom Tanzania PLC MD Hisham Hendi (left) and the firms Finance Director Jacques Marais.

Although Vodacom Tanzania has experienced a drop of 5.7% in service revenue, at TZS 966-billion, the telecommunications firm has reported TZS 356.8-billion in M-Pesa revenue and TZS 186.9-billion in mobile data revenue, a rise of 3.3%.

This is according to the company’s annual integrated report for the year ending 31 March 2021, presented recently to shareholders.

The report provides an overview of Vodacom Tanzania’s business, business model and operating environment, and reviews its strategy, operational and governance performance for the financial year.

Recently appointed Chairman of the Board of Directors of Vodacom Tanzania Plc. Justice (Rtd) Thomas Mihayo touched on the operating environment of the past year and the company’s response and said: “Vodacom’s response to the pandemic, and the comparative strength of its financial performance in the context of significant pricing and regulatory pressures, is testament to its carefully considered and well executed strategy. In delivering on its strategy, the company has implemented numerous measures to ensure the safety and well-being of its employees and contractors, and to keep individuals, communities, businesses, and governments connected by maintaining the quality and stability of its network.”

Hisham Hendi, Vodacom Tanzania Managing Director, added:“From a financial perspective, revenue and profitability were adversely impacted by the barring of services to 2.9 million SIM cards late in the previous financial year and an associated step up in competitive intensity. In addition, subdued economic activity, due to the health crisis, dampened customer spend. While these factors contributed to a 5.7% decline in service revenue, there was a notable improvement in service revenue growth in second half of the year, largely supported by growth in data and M-Pesa revenue.”

According to the company, demand for data and M-Pesa services remains strong, underpinning its strategy for financial and digital inclusion.

Mihayo said: “For the potential societal contribution of business to be fully realised in Tanzania, it is important that we align with government and regulators on purposeful outcomes and foster a relationship of mutual trust and respect. To accelerate these outcomes, we need to find ways to strengthen the dialogue and address potential misalignment between government, regulators and business.”

The company also announced the departure of Hendi who is leaving the company to take up a new position within the Vodafone Group in Spain.

Mihayo added, “On behalf of the Board, I would like to thank Hisham Hendi who under his leadership, Vodacom continued to lead the industry in implementing a digital strategy that has accelerated the country’s financial inclusion through innovative mobile financial services, and for being a driving force in successful investment in universal access for millions of Tanzanians who had previously been unconnected. I wish Hisham and his family every success in their new ventures.”