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SAFARICOM
As one of Africa’s leading telcos, Safaricom PLC continues to shape the continent’s digital and social landscape. Established in 2000, Safaricom has grown beyond providing mobile services to become a tech giant with a purpose-led approach. Under the transformational stewardship of CEO Dr. Peter Ndegwa, Safaricom has reinforced its commitment to sustainability, incorporating robust Environmental, Social, and Governance (ESG) practices into its core business strategy. The 2024 Sustainable Business Report highlights the company’s steadfast achievements in these areas, underscoring its mission to create meaningful societal impact in both Kenya and Ethiopia.
Safaricom has made significant progress on its environmental goals, particularly around energy efficiency and climate action. The company has set an ambitious target to reach net-zero emissions by 2050, with an accelerated focus to achieve substantial reductions by 2030.
A key highlight in Safaricom’s green journey is its renewable energy initiatives. Despite facing some delays in solarisation projects, Safaricom has been relentless in its efforts, connecting two of its sites to a privately owned hydro mini-grid network and converting its indoor BTS (Base Transceiver Stations) to outdoor units to minimise energy consumption. Furthermore, the company has committed to installing 3,000 solar PV (photovoltaic) sites over the following 15 months, aiming to reduce dependency on conventional energy sources.
Safaricom’s recently unveiled Limuru Data Centre is a beacon of energy efficiency in Africa. With a Power Utilisation Effectiveness (PUE) of 1.35, it is designed to be one of the most energy-efficient data centres in the region. Its 200 kWp (kilowatt peak) rooftop solar installation, which Safaricom plans to expand to 2MWp (megawatt peak), underscores the company’s commitment to sustainable infrastructure.
Additionally, through a partnership with the Kenya Forest Service (KFS), Safaricom is working to plant 5 million trees by the end of 2025, contributing to carbon offsetting and biodiversity restoration. On the waste management front, the telco achieved a 99.8 percent recycling rate for solid waste, with plans to recycle or repurpose 100 percent of its waste by the end of this year.
In Ethiopia, Safaricom has already installed 31 solar-powered sites as part of its goal to have 40 percent of its operations running on solar energy by 2030. Training engineers in ESG best practices further demonstrates Safaricom’s holistic approach to environmental sustainability.
At the heart of Safaricom’s social impact is its transformative M-PESA platform, which has generated KES 348 billion in societal value, representing a 7.2 per cent year-on-year increase. By empowering millions of Kenyans with access to financial services, M-PESA continues to play a critical role in promoting economic inclusion and driving social change. Safaricom’s influence extends to healthcare and education, impacting over eight million lives through the Safaricom and M-PESA Foundations. From digital literacy programs to health initiatives, the company is leveraging technology to bridge gaps in essential services across Kenya.
In a bid to expand digital inclusion, Safaricom has rolled out 5G network infrastructure in 43 of Kenya’s 47 counties, enhancing access to vital services for underserved communities. This expansion is expected to narrow the digital divide and create new opportunities for socio-economic growth.
Safaricom’s internal policies reflect a strong commitment to diversity and inclusion, with 42.4 percent of senior management roles held by women and 3.2 percent of its workforce composed of persons with disabilities (PwDs). While these numbers are impressive, the company acknowledges the need for further progress in achieving broader representation.
In Ethiopia, Safaricom’s foray into the market reflects its dedication to driving digital connectivity and financial inclusion, tailoring its services to meet the specific needs of Ethiopian consumers. The company’s social initiatives, including support for small businesses through projects like the Hustler Fund and Pochi la Biashara, further highlight its commitment to uplifting communities.
On the governance front, Safaricom has made notable strides in securing sustainability-linked loans (SLL), which have become an integral part of its ESG journey. In 2024, Safaricom secured an additional KES 15 billion SLL, bringing the total loan facility to KES 30 billion having announced the closure of a similar amount in 2023. This is the largest ESG-linked debt facility in East Africa, designed to fuel investments in sustainable technology and further the company’s environmental and social initiatives.
Safaricom’s commitment to ethical sourcing is evident in its stringent requirements for suppliers to adhere to the Code of Ethics for Business in Kenya. The company also operates under a robust Risk Management Framework, aligned with ISO 31000 standards, ensuring that decision-making processes are informed and responsible.
The telco actively engages its suppliers through regular performance evaluations, offering improvement plans and fostering diversity across its supply chain.
In Ethiopia, Safaricom has focused on building a solid governance structure, aligning its operations with local regulatory frameworks and forging partnerships with key stakeholders. This strategic approach is central to ensuring the company’s long-term success in the region.
As Safaricom continues to evolve, underpinning itself as Africa’s leading purpose-led tech company, its unwavering commitment to sustainability remains central to its mission. Dr. Peter Ndegwa, Safaricom CEO, emphasises the company’s transformative journey as follows: “Safaricom’s approach to sustainability is embedded in everything we do. From reducing our carbon footprint to supporting communities and fostering ethical business practices, we are driving a purpose-led future.”
With its ambitious ESG targets on-course and an ethos grounded in responsibility and innovation, Safaricom is well-positioned to lead Africa’s shift towards a more sustainable and inclusive digital economy.
AUTHOR: MARILENE MERCY
EDITOR: MARTIN O’NEIL
