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Vodacom is a leading and purpose-led African connectivity, digital and financial services company. The Group, including Safaricom, serves 186 million customers spanning across the consumer and enterprise segments. From our roots in South Africa, we have grown our business to include operations in Tanzania, the DRC, Mozambique, Lesotho, Kenya, Ethiopia and now Egypt. Our mobile networks cover a total population of over 500 million people. Through Vodacom Business Africa (VBA), we offer business-managed services to enterprises in 47 countries. Vodacom is majority-owned by Vodafone (65.1% holding), one of the world’s largest communications companies by revenue.
“Vodacom’s success is built around its ability to address customer needs through its products and services”.
Saki Macozoma
Our relentless pursuit of connecting for a better future encapsulates where we intend to make a difference in our markets. In line with this and our focus on ESG, the Board oversees the Group’s efforts to continue developing future-ready products and services that connect Vodacom customers for a better future; the contributions made to sustainable socio-economic development across our markets; the enhancement of financial inclusion; and the promotion of equal digital access.
“At the core of our strategy is our vision of becoming a leading African TechCo.”
Shameel Joosub
Strategic reviewDespite ongoing macrochallenges, FY2023 was characterised by the successful execution of our strategy – the System of Advantage – which continues to create sustainable value for our stakeholders. The tangible progress we made this year is a source of immense pride and the culmination of many years of planning and preparation as we continue to work to connect people for a better future.
"We have upgraded our medium-term targets to reflect Vodacom’s enhanced growth and return potential".
Raisibe Morathi
Financial reviewIt gives me great pleasure to present satisfactory financial results despite having experienced a year defined by global macroeconomic challenges and inflationary pressures. This uncertain context was largely fuelled by fragmented economic recovery after the COVID-19 pandemic and new challenges such as the war in Ukraine. The power crisis in South Africa, higher interest costs, start-up losses in Ethiopia, M&A costs, and higher inflation across our markets contributed to muted net profit growth of 2.1%.
In a year with several strategic milestones, we continue to accelerate our powerful, multiproduct strategy – the System of Advantage – to differentiate our Group in our selected markets, set us apart from competitors and deliver superior returns to our stakeholders.
“Hot topics” are top of mind in our conversations with our stakeholders. Our understanding of these hot topics informs our materiality process, helping us to articulate the key issues that affect our ability to create value over time.
Our presence in multiple markets exposes us to several global trends impacting our operating environment. The success of our business depends on how we respond and adapt under these circumstances. Our System of Advantage and purpose enables us to capture opportunities and mitigate risks, creating sustainable value for our stakeholders.
Energy availability is at risk globally from both an electricity and fuel supply perspective. Fuel price inflation, which spiked in the first half of the year, negatively impacted our cost base across our markets. In South Africa, this was exacerbated by loadshedding, which negatively impacted economic growth. The energy crisis has increased calls for the use of renewable energy and emphasised the need to reduce energy consumption across industries and households.
Dear stakeholders
I am pleased to present this snapshot of our approach to remuneration and outcomes for FY2023. Our remuneration practices are intrinsically linked to our commitment to value creation. We believe centring remuneration around our purpose and creating incentives that support our strategy, creates value for all our stakeholders.
Phuthi Mahanyele-Dabengwa
RemCo Chairman