Safaricom intends to establish two venture capital firms to expand its presence in Kenya's tech start-up sector and support its future growth. These new entities will be responsible for identifying and nurturing start-ups, as well as investing in scale-ups.
The creation of these subsidiaries is contingent upon receiving approval from shareholders during the annual general meeting scheduled for July 28.
Safaricom aims to provide financial support to both seed-stage and growth-stage businesses as part of its strategic plan for future growth. Seed-stage start-ups are typically in the early stages of development and require capital to execute their ideas, whereas growth-stage businesses (scale-ups) are already generating revenue, even though they may not yet be profitable. Safaricom plans to incorporate a private limited company or repurpose an existing subsidiary to invest in these growth-stage start-ups and initiatives that align with its strategic mission and offer a financial return.