Safaricom, Kenya’s biggest telecoms firm, is about to turn in a game-changer. Following the announcement that efforts to obtain an insurance license are on track, and the recent debut of the video-streaming app Baze, the teleco now appears to be out to dominate the Kenyan market across the board. The M-Pesa Super app, which will be released today, will provide a new method to interact with money. The M-Pesa Super App and its mini-applications will be covered by the new app. Customers and companies utilizing Lipa Na M-Pesa may use the mini-apps to buy, connect with suppliers, and execute hundreds of functions without having to leave the M-Pesa super app.
All M-Pesa users will be able to use the app across all of the company’s markets, including Tanzania, Mozambique, the Democratic Republic of the Congo, Lesotho, Ghana, Egypt, Afghanistan, and South Africa.
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This launch marks a new stage for the M-Pesa brand since its creation in March 2007. This innovative payment service for unbanked populations has revolutionized mobile money in Africa and around the world. Its enormous success has led Safaricom to make it a full-fledged business unit.
Exploiting M-Pesa’s Growing Customer Base To The Fullest
Recently, Safaricom said it had been testing three new products dubbed Bima (Insurance), Mali (mobile savings) and a unit trust investment product, and had initiated moves to secure regulatory approval in that regard.
CEO Peter Ndegwa says the telco wants to tap into M-Pesa’s 26.7 million active customers that transact about Sh1.5 trillion a month to grow the savings, unit trust and insurance products.
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Mali (Kiswahili for wealth), will offer interest rates of 10 percent on deposits capped at Sh70,000 per saver based on a pilot test. It started testing the savings product in December.
Safaricom growth strategy hinges on widening M-Pesa offerings and bolster its data business through switching about four million 2G and 3G phones to 4G to offset a fall in revenue from mobile calls amid a saturated market.
Mr Ndegwa says the telco wants to use the new products as part of the strategy to broaden M-Pesa into a financial service provider that will rival banks, insurance firms and fund managers.
In November this year, Senators in Kenya expressed worries over the growing strength of the country’s leading telecoms firm, Safaricom, warning that it is too big for the competition and giving the impression that there is no level playing ground in the country’s telecoms industry.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning write