Thread by @TheAbojani

6 WAYS IN WHICH TO LOOK AT SAFARICOM

1. Toll bridge Investment Strategy
There is usually only one toll bridge and every one must pass through it. The owner is thereby guaranteed a steady income stream that in the long run will make him rich. >>

A wonderful business to own in the stock market is one that functions similarly to a toll bridge
Mpesa powers 99% of mobile money transactions in terms of volumes
Every Financial Institution that wants to do money transactions to serve many Kenyans must pass through the platform

2. Supplier of Suppliers
Safaricom supplies M-PESA and other services to different industries.
These industry players then offer these services to end-users or customers. >>

Coop, HF Group, KCB, etc will promote Safcom Services for free and sell them as value additions eg deposit cash into your KCB account from M-PESA pay bill 522522.
KCB will even pay for adverts for that, promoting Safaricom products for free.

Mobile lenders such as Timiza by Barclays, Branch, Tala, Stawika, KCB Mpesa, Mshwari etc have Mpesa as the channel for their clients to access the money that they have borrowed from the apps.

3. Non-Bank Financial Companies (Fintechs)

With the stringent capital requirements and regulation of traditional banking, sector banks have failed to meet all the financial needs of certain segments of their markets. >>

This together with the demonetization of currencies efforts in most countries has presented a strong case for the rise of NBFCs.

Asia and particularly India have seen the rise of NBFCs with the likes of Tencent-owned Wechat continuing to create value for the shareholders

4. 4. Second Curve

We all have these curves in our lives: we study, gain experiences at a job/position – that’s when we are getting uphill on the curve. Then on the top, we get comfortable, sometimes way too comfortable and we don’t see the signs of collapse and downfall.

Not only companies should start planning their next product, service, new market while the first curve is still moving upwards but we, individuals as well. If we leave or don’t reshape our current position/relationship until we hate it, then we could end up like Kodak:

looking at other companies making great digital cameras though they had the technology first. M-PESA is the golden goose that laid the second curve for Safaricom’s second curve.

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6. The Elephant can also dance

Having gotten the runway for the launch for home internet, Zuku had a 60% market share at one point. Safaricom came from behind and danced its way to position one with the nimbleness of a hare and is now ahead of Zuku in market share