1. Introduction: Celebrating 25 Years of Digital Transformation

Vodacom Tanzania PLC marked a major milestone in June 2025 — its 25th anniversary — by delivering an impressive set of financial results that underscore its position as the country’s leading telecom and fintech operator.

The company’s Quarterly Report for the period ended 30 June 2025 reveals robust growth in customer base, digital adoption, and financial performance, despite the operational costs associated with a nationwide Radio Access Network (RAN) modernization.

Vodacom continues to embody its purpose of “connecting for a better future,” focusing on three pillars — empowering people, protecting the planet, and maintaining trust. Its ongoing investments in network modernization, fintech innovation, and digital inclusion affirm this mission as it lays the foundation for Tanzania’s next phase of connectivity-led growth.

Click here to download Vodacom PLC Tanzania’s 2025 Quarter 2 financial report

2. A Year of Strategic Investment: The RAN Swap Initiative

At the heart of Vodacom Tanzania’s transformation strategy is its TZS 260 billion (USD 100 million) investment over the next two years in the Radio Access Network (RAN) Swap. This project is designed to replace legacy infrastructure with state-of-the-art network technology, enhancing service quality for voice, data, and M-Pesa users nationwide.

The RAN swap aims to:

• Improve network coverage and reliability across urban and rural Tanzania.
• Enhance 4G and 5G readiness.
• Support Vodacom’s medium-term growth ambitions by future-proofing its infrastructure.

By the end of Q1 FY2025, Vodacom had invested TZS 63.3 billion in rolling out 54 new 4G sites, increasing capacity on 138 existing sites, and upgrading IT systems. These capital investments underscore the company’s commitment to bridging the digital divide and expanding Tanzania’s digital economy.

3. Empowering People Through M-Pesa and Financial Inclusion

M-Pesa remains the engine driving Vodacom’s financial and social impact. In Q1 2025, M-Pesa’s reach and innovation continued to empower millions of Tanzanians by enabling digital payments, micro-lending, and savings.

3.1. M-Koba: Community Savings Reinvented

The M-Koba group savings product has emerged as a flagship inclusion tool. It allows communal savings groups — over 500,000 in total — to manage funds securely and transparently. The first quarter saw M-Koba customers and transaction values grow by over 60%, largely driven by women-led savings groups.

3.2. Songesha and Digital Loans

Vodacom’s digital lending solutions, such as Songesha and short-term business loans, have been instrumental in supporting 3.5 million individuals and 60,000 small enterprises, representing 15% and 20% growth, respectively. In total, Vodacom facilitated loans exceeding TZS 800 billion, marking a nearly 40% increase year-on-year.

3.3. M-Wekeza: Wealth Building for Everyone

Launched in November 2024, M-Wekeza bridges the gap between savings and investment. Through a partnership with Sanlam Investments East Africa, the platform allows customers to invest from as little as TZS 1,000, with higher returns than traditional savings accounts.
In Q1 2025, total deposits surpassed TZS 40 billion, signaling Tanzanians’ growing appetite for mobile-based investment solutions.

3.4. Lipa Kwa M-Pesa: Powering Everyday Transactions

The digital payment platform Lipa Kwa M-Pesa continues to reshape commerce in Tanzania.

• Over 4 million monthly active users.
• Transaction value of TZS 1.5 trillion per month.
• 40% growth in merchants and users, and a 60% increase in total processed value.

This platform’s success illustrates how M-Pesa is integrating seamlessly into daily trade and consumption.

4. Customer Growth and Digital Penetration

Vodacom’s strategic execution translated into tangible results:

• Total customers: 23.5 million (+16.1% YoY).
• Data customers: up 21.8%.
• M-Pesa customers: up 18.9%.
• Smartphone users: up 35% year-on-year.

This surge reflects effective smartphone financing partnerships and aggressive efforts to drive digital adoption among rural populations.

As smartphone penetration rises, Vodacom is uniquely positioned to leverage new digital services — from mobile banking and e-learning to IoT and 5G — deepening its leadership in Tanzania’s digital transformation.

5. Financial Performance Highlights

Vodacom Tanzania’s Q1 2025 results showcase broad-based growth across all revenue streams, despite temporary margin pressures due to the RAN modernization.

5.1. Key Metrics

The sharp rise in underlying profit (137.7%) highlights strong revenue efficiency and cost discipline, while the decline in reported profit reflects one-off depreciation and operating costs tied to the RAN swap.

Vodacom’s EBITDA margin rose to 33%, a 3.2 percentage-point improvement, signaling improving operational leverage despite investment pressures.

6. Balance Sheet and Cash Flow Strength

Vodacom maintained a healthy financial position:

• Total assets: TZS 3.09 trillion (up from TZS 2.38 trillion YoY).
• Equity: TZS 925 billion.
• Operating cash flow: TZS 160.8 billion.
• Capital expenditure: TZS 63.3 billion.

While the RAN swap has temporarily affected free cash flow (negative TZS 13.8 billion), the long-term returns from a stronger network and customer experience are expected to be significant.

7. Regulatory and Market Developments

Vodacom navigated a dynamic regulatory environment during the quarter.

7.1. TCRA Spectrum Auction

In July 2025, Vodacom successfully acquired 50MHz in the 3.6GHz spectrum band for TZS 49.8 billion (USD 19 million) during the TCRA spectrum auction. This investment will be pivotal for:

• Enhancing 4G and 5G network capacity.
• Supporting high-speed mobile broadband.
• Enabling innovation in digital products and services.

7.2. Dar es Salaam Stock Exchange (DSE) Rule Changes

Effective 1 June 2025, the DSE implemented new trading rules to improve market liquidity:

• Reduced minimum shares to set a closing price from 0.005% of issued shares to 100 shares.
• Introduced a daily price change cap of 5%.

These changes aim to boost market participation and liquidity for listed companies like Vodacom Tanzania (stock symbol: VODA).

8. Strategic Outlook: Building a Future-Ready Vodacom

Managing Director Philip Besiimire reaffirmed Vodacom’s medium-term growth vision, emphasizing continued investment, operational efficiency, and customer-centric innovation.

Key priorities include:

1. Executing the RAN swap to enhance network quality and reach.
2. Expanding digital financial services through M-Pesa, M-Wekeza, and micro-lending.
3. Enhancing customer experience via cybersecurity and privacy initiatives.
4. Sustaining financial discipline amidst elevated CAPEX commitments.

Besiimire stated that Vodacom will continue to “maintain stringent financial discipline to manage bottom-line performance” while positioning itself for accelerated future growth once the modernization phase stabilizes.

9. Empowerment, Inclusion, and Sustainability

Vodacom’s corporate purpose extends beyond financial growth. Through its Empower People, Protect Planet, and Build Trust framework, the company invests in:

• Digital literacy programs to promote inclusion.
• Sustainable operations and energy efficiency.
• Data protection and cybersecurity as core trust pillars.

These initiatives reinforce Vodacom’s reputation as a responsible telecom leader contributing to Tanzania’s socioeconomic progress.

10. Comparative Context: Vodacom PLC vs. Tanzanian Telecom Market

Vodacom’s Q1 2025 performance must also be seen against broader industry dynamics. Tanzania’s telecom sector remains one of Africa’s most competitive, with operators like Airtel Tanzania, TTCL, and Tigo vying for market share.

Yet, Vodacom retains leadership due to:

• Unmatched M-Pesa dominance.
• Strong network investments (RAN modernization).
• Diversified revenue mix across data, fintech, and enterprise.

The company’s ongoing shift toward digital ecosystems and financial technology positions it favorably as the Tanzanian market evolves toward smart connectivity and mobile finance convergence.

11. Vodacom Tanzania PLC Financial Resilience and Investor Confidence

Despite short-term margin compression, Vodacom’s long-term fundamentals remain strong:

• Consistent double-digit service revenue growth.
• Robust EBITDA performance.
• Substantial investments in future capacity.

Its prudent cost management, coupled with diversification into non-voice services, aligns with global telecom trends emphasizing data, digital payments, and ecosystem platforms.

The company’s commitment to shareholder value is reflected in sustained profitability and its adherence to DSE disclosure standards under Section 53 of the Exchange Rules (2022).

12. Challenges and Risk Outlook for Vodacom Tanzania PLC

While Vodacom’s growth trajectory is impressive, it operates in an environment shaped by:

• Currency volatility impacting forex-denominated costs.
• High capital intensity tied to network expansion.
• Regulatory uncertainty in spectrum allocation and mobile money levies.

Nonetheless, Vodacom’s proactive risk management — including hedging, operational efficiency, and strong stakeholder engagement — provides resilience against these headwinds.

13. Conclusion: A Confident Step Into Vodacom Tanzania’s Future

Vodacom Tanzania’s Q1 2025 results affirm its leadership in telecommunications and digital finance, underscoring its ability to balance growth, investment, and innovation.

As the company continues its TZS 260 billion RAN modernization and deepens financial inclusion through M-Pesa innovations like M-Koba and M-Wekeza, it is not just building a stronger network — it is enabling a smarter, more inclusive Tanzania.

The numbers speak for themselves:

• 22.7% service revenue growth,
• 137.7% underlying profit increase, and
• 23.5 million customers connected.

Vodacom’s performance in Q1 2025 cements its legacy as a transformative force in Tanzania’s digital economy — connecting people, businesses, and communities for a better future.