Vodacom Tanzania Plc has reported improved financial performance for the year ended March 31, 2026, as increased investment in its network and digital services helped drive higher revenue, profits and customer numbers.
The company’s performance was presented at its 10th Annual General Meeting (AGM), where shareholders approved the financial results and a total dividend payout of TZS 53.6 billion.
The dividend represents an 18.4 per cent increase from the previous year, offering shareholders higher returns as the company continues to expand its operations.
Vodacom Tanzania’s service revenue increased by 21.8 per cent to TZS 1.8 trillion, while EBITDA rose by 38.8 per cent to TZS 684.9 billion.
Profit after tax increased by 18.4 per cent to TZS 107.1 billion, while underlying profit after tax grew by 125.5 per cent.
The company’s customer base also increased by 22.3 per cent to 27.7 million, reflecting growing demand for mobile communication, internet and digital financial services.
Data customers increased by 22.5 per cent, while M-Pesa customers grew by 22.6 per cent during the year.
For consumers, the expansion points to the growing importance of affordable and reliable connectivity as more Tanzanians use mobile services for communication, business, payments and access to information.
Vodacom Tanzania increased its capital expenditure by 85.1 per cent to TZS 323.9 billion, with much of the investment directed towards network expansion, technology and modernisation.
The company deployed 444 new 4G sites and 25 new 5G sites during the year.
Consequently, 4G population coverage reached 76.3 per cent, an increase of 3.8 percentage points, while the number of smartphone users rose by 31.5 per cent.
The company said it has also continued supporting rural connectivity, having constructed 466 rural sites since 2013 under the Government’s rural connectivity programme.
The investment is significant for consumers, particularly those in areas where limited network coverage has constrained access to digital services and online economic opportunities.
The AGM approved a final gross dividend of TZS 23.91 per ordinary share, payable on or before October 15, 2026, to shareholders who were on the register at the close of trading on August 19, 2026.
The total FY2026 dividend of TZS 53.6 billion represents an 18.4 per cent year-on-year increase.
The company said it would continue balancing shareholder returns with investment required to support future growth.
Vodacom Tanzania also reported a substantial contribution to the national economy during the financial year.
The company paid TZS 848 billion into public finances through taxes, levies, spectrum payments and regulatory fees.
It also spent TZS 839 billion on nearly 400 local suppliers and partner companies, creating business opportunities for enterprises across the country.
In addition, the company invested TZS 6.9 billion in social initiatives and supported indirect employment for more than 320,000 Tanzanians, including M-Pesa agents and freelancers.
Vodacom Tanzania Finance Director Hilda Bujiku said the company’s performance reflected disciplined financial management alongside increased investment in its network, technology and digital platforms.
“We have continued to strengthen the business while investing significantly in our network, technology and digital platforms and, as a result, delivering increased value to shareholders,” she said.
Chief Executive Officer Philip Besiimire said the results demonstrated the importance of taking a long-term approach to investment in telecommunications and digital financial services.
Board Chairman David Tarimo said shareholder confidence remained important to the company’s ability to create sustainable value.
As Tanzania’s digital economy expands, the company’s next challenge will be to ensure that increased investment translates into better services and wider access for consumers.
This includes improving network reliability, expanding coverage in underserved communities, maintaining competitive and affordable services, and strengthening digital financial services.
Vodacom Tanzania said it would continue investing in network infrastructure, digital financial services, technology, customer experience and innovation.
The FY2026 results therefore point to a telecommunications sector that is becoming increasingly important to Tanzania’s economy, while putting greater focus on how investment and business growth can deliver tangible benefits to customers, businesses and communities.
