07 September 2021

South Africa’s Vodacom Group posted a 14.2% rise in revenue for the quarter ended June 30 thanks to demand for more connectivity services across the continent.

Revenue rose to R24.78bn from R22.73bn year-on-year as the operator, along with rival MTN, benefitted from greater demand for connectivity as the Covid-19 pandemic continues to force people to work and study from home.

Vodacom said revenue for the quarter would have been higher but for an appreciation in the South African rand which rose by 20% during the reporting period.

Revenue from Vodacom’s international business, which includes M-Pesa payments operations, was up more than 15%, it said.

M-Pesa, which allows customers to send money, save, borrow and make payments, is part owned by Vodacom and the UK’s Vodafone.

Meanwhile, the operator said about 70 businesses had signed up or committed to its new digital financial services “super app” that promises to be a one-stop shop for online transactions.

Last year, Vodacom announced a partnership with digital payments provider Alipay to build an app that would allow consumers in South Africa to shop online, pay bills and send money to family members. Alipay is owned by Ant Financial, the financial affiliate of China’s Alibaba Group Holdings.

Digital financial services have become a significant part of African telecom operators’ businesses in recent years, after they expanded from traditional voice calls into providing data, mobile payments and other digital services.

The 70 businesses include Massmart’s Makro, Game and Builders Warehouse stores, pharmacy group Clicks, department store chain Edgars, online flight booking firm TravelStart and the KFC fast food chain, according to chief officer of Vodacom financial and digital services, Mariam Cassim.