Vodacom Tanzania Sees 19.8% Service Revenue Growth as Customer Base Hits 26 Million
The company recorded a 19.8% year-on-year increase in service revenue to TZS 477.5 billion, supported by strong growth in data and M-Pesa services.
Vodacom Tanzania Public Limited Company has released its unaudited quarterly results for the period ended 31 December 2025, highlighting strong service revenue growth, accelerated network investment, and continued expansion in digital financial services. The trading update, presented by Chief Executive Officer Philip Besiimire, marked the end of the third quarter of the company’s 2026 financial year.
The company recorded a 19.8% year-on-year increase in service revenue to TZS 477.5 billion, supported by strong growth in data and M-Pesa services. Total revenue rose to TZS 484.0 billion, while EBITDA increased by 24.7% to TZS 184.9 billion, with margin expansion of 1.5 percentage points to 38.2%. However, reported net profit after tax declined by 33.4% to TZS 35.5 billion, largely due to higher operating expenses linked to network modernisation, accelerated depreciation of replaced equipment, and a TZS 14.5 billion increase in foreign exchange losses. Excluding these transitional costs, underlying net profit after tax grew 37.9% to TZS 58.5 billion.
Vodacom Tanzania continued to invest heavily in infrastructure, with capital expenditure reaching TZS 79.7 billion in the quarter and TZS 230.5 billion over the first nine months of the financial year. This exceeds the total TZS 175.0 billion invested in the entire previous financial year. The investment forms part of a US$100 million network modernisation programme, under which more than 1,800 sites have been upgraded across multiple regions. The company also added 15 new 5G sites and 332 new 4G sites, contributing to a 13.7% year-on-year increase in 4G coverage.
Customer growth remained strong, with the total customer base rising 18.0% to 26.01 million. Data customers increased by 14.1%, M-Pesa customers grew by 17.1%, and smartphone users on the network rose by more than 25% over the past year. Data usage expanded by 17.7%, while both the volume and value of M-Pesa transactions grew by nearly 30%.
Digital financial services continued to play a central role in the company’s performance. The wealth management product M-Wekeza surpassed TZS 200 billion in total customer investments just 13 months after launch, offering accessible entry-level investment opportunities starting from TZS 1,000. The Lipa Kwa M-Pesa merchant base grew by 35.8% during the quarter, supporting trade by simplifying digital payments for businesses and consumers.
Vodacom Tanzania also advanced financial inclusion through short-term digital lending solutions, including Songesha and other loan products, disbursing more than TZS 800 billion in digital loans during the quarter. The M-Koba group savings platform recorded nearly 80% growth in total savings, with strong participation particularly among women.
From a cash flow perspective, the group generated TZS 284.2 billion in net cash from operating activities, while net cash used in investing activities stood at TZS 201.8 billion, reflecting continued infrastructure investment. Total assets increased to TZS 3.37 trillion, compared to TZS 2.57 trillion a year earlier.
Looking ahead, the company expects continued commercial momentum driven by sustained investment in network and IT infrastructure, increasing smartphone adoption, disciplined cost management, and ongoing commitment to cybersecurity and data privacy. While near-term profitability remains impacted by modernisation costs, management expressed confidence in stronger long-term returns for shareholders.
The quarterly financial statements were approved by the Board of Directors on 22 January 2026 and issued in accordance with the Dar es Salaam Stock Exchange Rules 2022.
“As we strive to connecting Tanzanians for a better future and provide our customers with an unmatched service experience that will support our long run business growth, investment in our technological infrastructure complemented by our initiatives in increasing smartphone adoption remains a strategic priority. Our continued investment in network and IT infrastructure is expected to support our commercial momentum, which together with disciplined cost management, will enhance shareholders’ returns. Looking to the medium term, I remain confident that although our ongoing network modernisation programme affects our profitability from its near-term investment costs, it promises strong prospects for the future.”
– Philip Besiimire, CEO, Vodacom Tanzania
