Safaricom Shareholders Approve New Subsidiaries Dedicated to Investing in Startups
Safaricom is committed to empowering the tech ecosystem in Kenya and this strategic move will enable them to broaden their investments, embracing both seed-stage and growth-stage startups.
During Safaricom’s 15th Annual General Meeting (AGM), shareholders approved two new subsidiaries dedicated to investing in seed-stage and growth-stage startups — representing a momentous step towards supporting techpreneurs, fostering innovation, and fortifying Safaricom’s role as a key enabler of the Kenyan tech community.
During the meeting our shareholders approved two new subsidiaries to empower and invest in tech start-ups in Kenya. #SafaricomAGM2023 pic.twitter.com/dqzHaib0up
— Safaricom PLC (@SafaricomPLC) July 28, 2023
Mr. Peter Ndegwa, Safaricom CEO said in a press statement that the telco is committed to empowering the tech ecosystem in Kenya and the strategic move will enable them to broaden their investments, embracing both seed-stage and growth-stage startups.
The incorporation of a company limited by guarantee to invest in seed-stage startups builds on the Spark Fund; an investment entity by Safaricom PLC governed by a Board of Trustees — designed to empower and nurture seed-stage startups across Kenya.
The Spark Fund portfolio companies include Shupavu 291 by Eneza Education, iProcure, Sendy, and Ajua & Soko Fresh.
“These new companies will accelerate the business’ entry into new customer segments within the consumer, financial services, enterprises, and SME space and will help unlock new business models and value chain opportunities,” Mr. Ndegwa said — further adding that “We will be looking to invest in and support early-stage companies, especially in emerging technologies such as analytics, Machine Learning, Artificial Intelligence, and the Internet of Things.”
On the other hand, the new private limited liability company will also be mandated to invest in mature, strategically aligned entities that will help accelerate Safaricom’s mission toward becoming a tech company by 2025. This entity will also act as the main investment vehicle for all strategic investments undertaken by Safaricom PLC.
“Incorporating these new subsidiaries is pivotal to realizing Safaricom’s purpose to become a purpose-led technology company,” said Mr. Ndegwa.
In his remarks, Mr. Adil Khawaja, the Chairman of the Board of Trustees at Safaricom PLC thanked the shareholders for their unwavering support in establishing the new subsidiaries to invest in startups. “By investing in tech entrepreneurs and initiatives that align with our strategic mission, we aim to continue to transform lives by connecting people, opportunities, and information while driving innovation, creating value, and leaving a lasting impact on society.”
