• Will the NPA stand up?

    Solly Moeng wonders if the NPA head will reinstate criminal charges against president Zuma.

  • Commodity currency

    Jac Laubscher asks if the true exchange rate of the rand is really a cue from commodity prices.

  • Accoutable government

    Mandi Smallhorne says government should be taken to court for its wasteful expenditure.

All data is delayed
See More

Vodacom boasts growth in Tanzanian users

Feb 17 2012 14:23

Company Data


Last traded 164
Change 0
% Change 0
Cumulative volume 973884
Market cap 0

Last Updated: 04-05-2016 at 01:13. Prices are delayed by 15 minutes. Source: McGregor BFA

Related Articles

DRC court orders Vodacom to pay up

Google boosts small businesses in SA

Vodacom appoints new CFO

Vodacom ups revenue on data boost

Vodacom boasts sales jump

Knott-Craig joins rival Cell C

Dar Es Salaam - Vodacom Tanzania, part of South Africa’s Vodacom Group [JSE:VOD], said on Friday it had boosted total users by a third last year and will spend about $94m over the next year-and-a-half to expand network and data services.

Rene Meza, Vodacom Tanzania’s managing director, said the increase in users came from new customers joining its M-Pesa money transfer service, which has an 85% share of the total mobile commerce transactions in the country.

“We added over 4 million customers in one year. The biggest driver for such a growth was M-Pesa,” Meza told Reuters in an interview. He said the firm now has more than 12 million users.

M-Pesa, through which users can buy airtime and make payments, has been popularised in neighbouring Kenya by its biggest mobile operator, Safaricom.

He said Vodacom Tanzania had invested over 1 trillion shillings ($625.00m) over the past decade to make it the biggest mobile operator in the country.

Meza, who joined the company in September from rival Bharti Airtel’s Kenyan unit, said the company’s next main focus was to expand its mobile internet service.

“We have very ambitious plans for expansion... the next probably 12 to 18 months will see us spending over 150 billion shillings ($93.75 million) expanding our coverage,” Meza said.

“The mobile internet penetration in Tanzania is no more than 3 or 4% as compared to the 15% in neighbouring country Kenya, so there is tremendous opportunity for growth.”

Meza said just a third of the 42 million people in east Africa’s second-largest economy are connected to cellphones.

Vodacom Tanzania’s parent company, Vodacom, a unit of Britain’s Vodafone, reported a 12% jump in earnings in the third quarter on February 8, buoyed partly by its mobile data, and expected to have huge growth potential in Africa.

Communications is the fastest-growing sector in Tanzania, accounting for 20% of gross domestic product. Other major players in Tanzania’s cellphone industry are Bharti Airtel, Millicom’s subsidiary Tigo Tanzania and Zantel.

Meza said inflation and exchange rate fluctuations were pushing up costs. He said the company paid its frequency fees to the mobile sector regulator in US dollars while it charged users in shillings.

Tanzania’s year-on-year inflation rate eased marginally to 19.7% in January, but is expected to remain in double digits in the coming months due to high food and fuel prices.

Meza said he does not expect further reduction of cellphone tariffs in the country after a fierce price war in the past few years stifled new investments in the sector.

“We have reached a level where we feel comfortable as mobile operators with the level of prices we have, to continue investing and injecting capital in the industry,” he said.

tanzania  |  vodacom


Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
Comments have been closed for this article.

Company Snapshot

We're talking about:


Marketing is a big concern in SA's small business community, followed by a lack of confidence and partnering with the wrong people, according to a survey.

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

The drop in inflation:

Previous results · Suggest a vote