Safaricom, the largest telecoms provider in Kenya, has announced plans to establish two venture capital companies as part of its aim to further entrench itself in Kenya’s burgeoning technological start-up ecosystem.
The telecom firm plans to use these new subsidiaries to scout for, incubate, and ultimately invest in promising startups and growing businesses. This strategic action is consistent with Safaricom’s long-term goals of continued development and expansion.
Safaricom’s plans to drive its expansion in the future years would rely heavily on the planned venture capital companies. The telecommunications behemoth plans to fund and assist both new ventures in the “seed stage” and more established “growth stage,” or scale-ups. Safaricom’s mission is to aid in the expansion of Kenya’s digital ecosystem by spotting and fostering promising young innovators.
The establishment of the two venture capital businesses is subject to shareholder approval at Safaricom’s forthcoming annual general meeting on July 28. This major move exemplifies the firm’s dedication to promoting innovation and entrepreneurship in Kenya’s technology industry. Safaricom’s commitment to openness and accountability in its strategic decisions is reflected in its decision to seek shareholder approval for the project.
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Developing a network for the future
Safaricom’s goals for VC firms are laid out in the special business agenda for the next annual general meeting. One subsidiary will specialize in investing in seed-stage start-ups, providing essential funding to support technology entrepreneurs’ early development and growth. The other subsidiary will invest in early-stage businesses poised for rapid expansion (scale-ups) and other endeavors that support Safaricom’s overarching goals. Safaricom’s dedication to supporting a wide variety of IT companies, as well as its desire to see a return on its investments, are both reflected in this dual strategy.
In the realm of digital business, the company’s focus is on cloud computing, cybersecurity, and the Internet of Things (IoT), backed by IT consulting services for both private and public sector customers.
The company began operations on the plan in March 2021, and it has since activated its 5G service and grown to 35 5G sites, with plans to grow to 200 sites in the next fiscal year. Safaricom’s goal is to give its clients more control over their lives by providing them with high-speed internet wherever they go. With approximately 6,000 4G base stations, its 4G coverage in Kenya has reached 97%.
About
Safaricom PLC is a mission-driven technology provider of mobile phone, messaging, data, financial and convergent services, and digital services that power business and consumer platforms and ecosystem collaborations.
Safaricom invests in a novel approach to business via its stated mission of “transforming lives,” and the company actively attempts to give Kenyans a stake in its success by providing Kenyans with the resources they need to thrive. It has over 6,100 towers linking Kenyans all across the nation, serving 42 million clients and more than 30 million users of its M-PESA service.