Thread by @MwangoCapital

We are Live: Join as for a conversation on #SafaricomFYResults 2021/22

#MwangoSpaces

twitter.com/i/spaces/1eaJb…

Safaricom [@SafaricomPLC ] has set up two data centers in Ethiopia to host their servers.

Safaricom in proposed infrastructure sharing talks with Ethio Telecom [@ethiotelecom]

The company to set up Retail Networks
-@WillisOwiti

▪️The shared knowledge in the consortium to help Safaricom break into the Ethiopian market

▪️ The uniqueness of MPESA in Safaricom's business model gives it a competitive advantage

-@Silhar13

▪️Telecommunications EBIDTA margins approximate at 50%

▪️Safaricom [@SafaricomPLC] EBITDA are within the industry margins

-@Silhar13

Safaricom [@SafaricomPLC] Core competitive Advantages

▪️Consistent investment in infrastructure has made its network more reliable
▪️More value added services than competitors

-@Silhar13

▪️MTN and Airtel spin off their mobile money services because they need the money

▪️Safaricom does not urgently require capital, and therefore no need to spin off MPESA

▪️MPESA is most likely to be spin off after the establishment of MPESA Africa

@Lisakim_kenya

▪️ The higher growth in smartphone penetration and high speed connectivity opens up more opportunities for Mobile Money services.

-@WillisOwiti

Business Opportunities in Ethiopia

▪️Ethiopia is the second largest country in Africa by population
▪️Financial inclusion in Ethiopia is bank led
▪️40% of bank branches are in Addis Ababa
▪️ Ethiopia does not have any international financial players

@Kalkidafrique

Safaricom [@SafaricomPLC ]can leverage on capital from their Kenyan business to fund the Ethiopian business

Safaricom is less likely to expand to DRC as vodacom [@Vodacom] has covered the region

-@WillisOwiti

Its too early to evaluate whether Safaricom [@SafaricomPLC] overpaid for their Ethiopian License

Safaricom has been very good with capital allocation based on their cash returns per dollar

-@Silhar13

Safaricom has structured the business as a platform provider and not a licensed institution

The current banking regulations will not apply to MPESA if they keep the same structure after spin off

-@Silhar13

▪️Look at companies in the long term perspective when investing
▪️Safaricom has opportunities waiting in Ethiopia
▪️Its vital to be wary of the current regulatory environment while investing

-@Lisakim_kenya

▪️High inflation is likely to hurt disposable income and might affect Safaricom's [@SafaricomPLC] Business

▪️Safaricom will spend heavily on setting up in Ethiopia
The Ethiopian business is likely to be profitable

-@WillisOwiti