Afcacia

Vodacom Group, Africa’s telecommunications behemoth, announced on Monday that it processed a staggering $437.1 billion in electronic transactions across its platforms in 2024, driven by a 19.1% surge in daily transfers to $1.2 billion. The figures solidify the South African company’s dominance in a continent where mobile money has become a cornerstone of economic life, bridging gaps in formal banking access for millions.

Central to this growth is M-Pesa, the mobile money service operated by Vodacom’s Kenyan affiliate Safaricom. Used by 51 million people across seven African nations, M-Pesa enables users to transfer funds, pay bills, and access loans via basic mobile devices, bypassing traditional banking infrastructure. This platform has been instrumental in Vodacom’s rise, particularly in markets like Tanzania and the Democratic Republic of Congo, where mobile money adoption outpaces brick-and-mortar financial services.

The company’s fourth-quarter financial results underscored its resilience amid economic volatility. Gross revenue climbed 1.6% to $2.1 billion (R39.5 billion), with financial services — a category spanning mobile wallets and microloans — rising 5.7% to $190.8 million (R3.6 billion). Core services, including data, voice, and mobile money, saw earnings jump 11.6%, exceeding internal targets. Egypt emerged as a standout market, with service revenue soaring 44.3% to $360.4 million (R6.8 billion) and financial service users spiking 40.7% to 10.5 million. Closer to home, Vodacom’s South African operations grew 3.2%, generating $858.6 million (R16.2 billion) in service revenue.

Regional disparities, however, persist. While Tanzania and the DRC fueled a 7% revenue rise in Vodacom’s international segment, political unrest following Mozambique’s October 2024 elections disrupted operations in a key East African hub. The company offset such challenges through strategic infrastructure investments, channeling $74 million (R1.4 billion) into network upgrades and partnerships with remittance firms like WorldRemit. These moves helped expand its international customer base by 8.6% to 58.4 million.

Vodacom attributed its performance to hyper-localized strategies and the accelerating digitization of Africa’s economies. “Our focus on prepaid markets and digital services has proven resilient,” the company stated, noting Egypt now accounts for 22.3% of total revenue.

The results reflect broader trends: with just 43% of African adults holding bank accounts, mobile money platforms have become indispensable. Industry analysts project Africa’s mobile transaction value to hit $1.3 trillion by 2029, positioning operators like Vodacom at the forefront of the continent’s financial evolution. Yet challenges loom, from currency fluctuations to regulatory scrutiny, as governments balance innovation with consumer protection. For now, Vodacom’s record-breaking numbers signal a mobile money revolution in full swing — one that is reshaping how Africa pays, saves, and grows.