Vodacom now processes over $1.2 billion (R22.7 billion) in daily transaction value through its mobile wallet offerings.
The JSE-listed telecommunications group disclosed this figure on Monday for the quarter ended 31 December 2023, highlighting the scale of its business and solidifying its position as Africa’s largest mobile money platform by transaction value processed.
Excluding Safaricom, Vodacom Group generated R3.6 billion in service revenue during the quarter, up 5.7%—or 17.2% on a normalised basis
Across Its geographic segments, Vodafone Egypt remains a star performer having grown service revenue at 44.3% in local currency, well above the rate of inflation.
South Africa delivered an improved 3.2% increase in service revenue, while Tanzania and DRC were significant contributors to the normalised 7.0% growth in our International business.
The improved Vodacom South Africa performance was underpinned by a variety of factors including successful seasonal campaigns, improved consumer environment in the prepaid segment and a 40.6% increase in data traffic.
Service revenue from beyond mobile was another highlight, increasing by 11.3% and contributing R2.8 billion to South Africa’s total of R16.2 billion. Having invested R3.2 billion in the quarter, we expect to invest between R11 and R11.2 billion of capital expenditure in the current financial year to further enhance customer experience.
Resilient strategy sxecution
Despite ongoing currency headwinds in several markets, Vodacom said focused strategy execution has delivered a resilient operational performance, keeping the company firmly on track to achieve its medium-term financial targets.
Recent currency market stability, particularly in Egypt, further strengthens the Group’s outlook for the year ahead.
The quarter saw accelerated growth in South Africa’s prepaid market, alongside strong performances in Egypt and Tanzania. However, network operators in Mozambique, including Vodacom, faced challenges due to post-election tensions since October 2024.
On a normalised basis, excluding currency fluctuations, Vodacom Group service revenue grew by 11.6%, comfortably exceeding our medium-term target.
Driving connectivity and financial inclusion
Aligned with Vodacom’s purpose of connecting people for a better future, the group has achieved several key milestones:
- Partnering with Orange in the DRC to expand rural coverage.
- Launching M-Wekeza in Tanzania to make investments more accessible.
- Introducing a cloud-based handset in South Africa to reduce smartphone costs.
“As part of our digital and financial inclusion efforts, we now serve over 210 million customers across our footprint, including Safaricom. Our goal is to connect the next 100 million Africans to the digital economy, with Ethiopia, Africa’s second most populous country, playing a pivotal role. In Ethiopia, our customer base has grown 63.6% to 7.1 million, showcasing impressive progress.”
Beyond mobile services
“We are well on track to meet our medium-term target of 25-30% Group service revenue contribution from beyond mobile services. Formerly termed “new services,” this segment includes digital and financial services, fixed connectivity, and IoT. In the quarter, beyond mobile services accounted for 21.4% of Group revenue, generating R6.6 billion in service revenue.”
XLink Communications, a subsidiary of Vodacom and part of the Vodafone Group, is redefining Africa’s payments ecosystem with a suite of cutting-edge solutions designed to enhance the customer payment experience.
Established in 2004, XLink has evolved from a connectivity provider into a purpose-driven PayTech leader, championing financial inclusion across the continent.
Operating in South Africa, Zambia, Kenya, and Ghana, the company is now at the forefront of payment innovation under the visionary leadership of CEO Dr. Thanusha Govender.
Since assuming the role in 2022, Dr. Govender has led a strategic transformation, repositioning XLink as a multifaceted payment technology powerhouse.
The company now offers end-to-end integrated payment solutions, including hardware, software-as-a-service (SaaS), infrastructure, connectivity platforms, lifecycle and supply chain management, field technician networks, and call center services. This shift has solidified XLink’s role as a key player in Africa’s payment orchestration landscape.
“This was a complete reset for the organization,” Dr. Govender explained. “Our market diversification strategy required us to reimagine every aspect of our operations. It wasn’t about changing one thing—it was about transforming everything to meet the evolving needs of the market.”