Minister Kairuki hails Vodacom’s massive investment in market at 1.6tr

17Sep 2020
The Guardian Reporter
Dar es Salaam
The Guardian
Minister Kairuki hails Vodacom’s massive investment in market at 1.6tr

CORDIAL relations existing between the private and public sectors is essential for the development of businesses which in turn pay taxes to Treasury hence contributing towards rapid socio-economic growth of the country.

Minister for State in the Prime Minister’s Office responsible for Investment, Angela Kairuki (L) speaking to Vodacom Tanzania Plc officials when she visited the telco’s head office in Dar es Salaam recently.

Minister for State in the Prime Minister’s Office responsible for Investment, Angela Kairuki said recently when he made courtesy call at Vodacom Tanzania Plc where she commended the largest telecommunications company in the market that apart from creating millions of jobs both directly and indirectly, the telco has also invested in health, agriculture and education in support government initiatives.

“I commend Vodacom Tanzania for the investment they have made in the country in developing e-learning with their Instant Schools program that enables students and teachers to access education materials from primary to secondary schools free of charge,” Kairuki said.

The telco has invested over 1.6trn/- between 2012 and March 2020 both in network expansion and development with focus on innovations in mobile services. With over 15 million subscribers, Vodacom boasts 31 percent market share with its brand mobile money platform, M-Pesa commanding 39.3 percent of the market’s share.

The Dar es Salaam based telco also paid a whopping 1.9trn/- in taxes in the past five years to 2020 with an impressive annual growth average rate of eight percent. Vodacom’s annual tax contribution will peak 435bn/- by end this year.

Kairuki said such an impressive contribution by the giant telco is appreciated by the government which promised to ensure that, “A conducive business environment prevails in the domestic market.”

In addition, Vodacom in partnership with Universal Communications Services Access Fund, has invested over 390bn/- in provision of computers, routers, data and training to bring digital technology in primary and secondary schools across the country reaching 16,555 students as part of its social investment in digitizing Tanzania.

The company’s Managing Director, Hisham Hendi said that closer cooperation between the private and public sectors has provided opportunities to unlock some of the challenges with a view to develop businesses in  the country by having conducive investment conditions that allow rapid growth to the benefit of community.

“Vodacom is the only mobile operator to comply with the Tanzania’s Electronic and Postal Communications Act No. 3 of 2010 (EPOCA), requiring domestic telecoms companies to issue at least 25 percent of their shares on Dar es Salaam Stock Exchange,” Hendi said.

He noted that the DSE listing in 2017, allowed more than 40,000 Tanzanians to own shares in the profitable telco while also allowing transparency, both in terms of management and tax payments. “Our business and social investment programs are focused on areas that are also in line with the government’s national development agenda and the international sustainable development goals in health, education and agriculture,” he added.

Minister Kairuki’s entourage to Vodacom included Tanzania Investment Centre’s Managing Director, Dr Isaac Kazi, representatives from Ministry of Works, Infrastructure and Communication and Dar es Salaam Regional officials.

During the visit, Kairuki’s delegation had dialogue with Vodacom’s senior management team with discussion centred around how to improve the investment and operational climate for businesses in the telecommunication industry locally with issues such as compliance, regulations and fees and fines in focus.

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