Good points @ Kevin and Ali, Actually until last year, it appears Safaricom had no interest in the Regional Market. I must have overheard one of the Senior Executives say the same in a meeting. That said , opening up the business to the region requires the opening up of shareholding which can be quite complicated. The fact that Orange could not make it in Kenya also demonstrates how peculiar our market can be. Regards On Mon, Jan 29, 2018 at 12:36 PM, Kevin Kamonye via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Mwendwa I actually fully concur with Ali's main point. I was simply raising notice on how these stock analysts sometimes talk up some company's shares for reasons that are best know to them.
In my opinion, the boat that should have carried Safaricom into other markets sailed a long long time ago. Give me one country in which Safaricom could gain a significant return such as to justify the massive capital outlay that would be required. Right now the heavyweights in the industry are already established - MTN, Vodacom, Orascom, Orange. It is extremely unlikely that they would just sit and watch as we took over their markets.
To further concur with Ali, we need to support Safaricom because I can see a future whereby most of the infrastructure owned by most Telcos will be acquired by the content providers - Google, Facebook etc. What they will then very likely do next is to contract the management of this infrastructure to those that have a proven track record of the highest levels of service delivery and innovation.
I will even add point #5 to Ali's list - let us not complain too much about Safaricom's pricing model if we would want to continue to enjoy the benefits of being on the cutting edge of technology and in a sustainable way. Read the article below as regards to the Indian market.
“Buy one, get one free.” “Buy two, get three free.” These may be good for
fast-moving consumer goods (FMCG) like soaps, shampoos, and shirts. But that strategy, when applied to telecom—”Buy data plans, get voice calls and messages free”—is destroying the sector.
“There was no telecom professional bred in this country. The bulk of the people hired by the telecom sector more than 10 years ago were either from Unilever, Pepsico, Coke, or Xerox,” Sanjay Kapoor, former CEO of India’s biggest telecom firm, Airtel, told Quartz. And those strategies seem to have run their course, he added.
https://qz.com/1179770/indias-telecom-firms-are-bleeding- because-managers-sell-connectivity-like-toothpaste/
Regards,
Kevin
On 29 January 2018 at 12:16, Mwendwa Kivuva <Kivuva@transworldafrica.com> wrote:
Kevin, because the Sonatel region has a smaller demographic and smaller GDP than that of Safaricom, Safaricom should not venture to other regions? Or rather, because Safaricom has a bigger market share that Sonatel, they should sit pretty?
Ali, I think Safaricom's regional footprint has been frustrated by her largest shareholder, Vodafone Group PLC, who too have an interest in the region, and they want to eat their cake alone. Remember Vodafone has taken the mpesa brand all over the world (India, South Africa, Tanzania) without the involvement of Safaricom.
On Jan 29, 2018 11:34 AM, "Kevin Kamonye via kictanet" < kictanet@lists.kictanet.or.ke> wrote:
I am usually very wary of some of these talking head analysts and their opinions.
Safaricom is leagues ahead of Sonatel due to the underlying economic factors that differentiate Kenya and Senegal combined together with Guinea, Mali, Sierra Leone and Bissau).
*Country / 2016 GDP / 2016 Growth Rate*
*Kenya* 70.53 Billion USD ; 4.4%
*Senegal* 14.77 Billion USD; 6.6% *Guinea* 6.299 Billion USD ; 5.2% *Mali* 14.05 Billion USD ; 4.8% *Sierra Leone* 3.669 Billion USD ; 6.1% *Bissau* 1.13 Billion USD ; 5.5%
*Sonatel host countries total stats* Total GDP 40 Billion USD Total Population 52M Average Growth 5.7%
When we look at market penetration and market share, Sonatel already has some very high numbers - as per their 2016 reports. http://www.sonatel.com/wp-content/uploads/2017/02/Sonatel_20 16_financial_results_EN.pdf
As for the reports that indicate that Safaricom will suffer losses due to more and MPESA transactions being to business numbers - rubbish.
The biggest growth potential of African economies is in moving the informal sector into the scope of the tax administration. By enabling this, Safaricom is laying down the foundation for its own strong future growth.
Regards,
Kevin
On 29 January 2018 at 08:39, Ali Hussein via kictanet < kictanet@lists.kictanet.or.ke> wrote:
Listers
I’ve always advocated for Kenyan Companies looking beyond the country to Africa at least. Here’s an interesting story of Sonatel, the Senegalese Telco that seems to be making waves in the investment circles. A snippet of the story below:-
For Sonatel, there is an integrated regulatory and economic environment as well as a regional presence and availability of other Orange Group subsidiaries with which to have direct partnerships for purposes of remittances in SSA.
It also notes Safaricom is increasingly doing more transactions on M-Pesa that relate to businesses as opposed to withdrawals by individuals.
“We expect revenues to suffer as business transactions gain traction at a lower transaction charge than the declining withdrawals,” said Exotix.
Read on:-
https://www.businessdailyafrica.com/markets/marketnews/Exoti x-tips-foreigners-to-favour-firm-over-Safaricom/3815534-4282 002-f8gnyuz/index.html?utm_source=traqli&utm_medium=email& utm_campaign=bdafrica_newsletter
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