Vodacom Tanzania has reduced its carbon emissions by 24 percent while expanding its network to reach 27.7 million customers, according to its latest Environmental, Social and Governance (ESG) report.
The reduction in emissions comes as the telecommunications company steps up efforts to modernise its infrastructure, improve energy efficiency and reduce reliance on diesel-powered generators.
The ESG report, covering the financial year ended March 31, 2026, shows that Vodacom’s carbon emissions declined to 18,445.5 tonnes from 24,285.6 tonnes in the previous reporting period.
Diesel consumption also fell by 24 percent, from 8.6 million litres to 6.6 million litres.
For consumers, the shift has significance beyond environmental gains. Reduced reliance on generators can lower operating costs and improve the reliability of network infrastructure, particularly in areas where access to grid electricity remains a challenge.
Vodacom said it replaced outdated radio equipment at 1,808 sites over seven months and connected 169 sites that had previously operated outside the national grid to grid electricity.
The measures reduced the number of hours generators were required to run, contributing to lower fuel consumption and emissions.
The company invested Sh3.5 billion in energy-efficiency initiatives during the year, reporting energy savings of 18,340 megawatts, compared with 2,861 megawatts in 2025.
Vodacom’s network operates at more than 3,800 sites across the country, including 2,190 in rural areas. Base stations account for 78.9 percent of the company’s total energy consumption.
The company said 57 percent of the energy it used during the year came from renewable sources.
One example of the impact of the investment is the company’s data centre in Kwale, where increased grid capacity from 11kVA to 33kVA reduced generator use from 18 hours a day to two hours.
That resulted in an 88 percent reduction in diesel consumption at the facility.Vodacom also renewed its ISO 50001 certification for energy management.
The environmental improvements have taken place alongside continued investment in network infrastructure.
Vodacom said its 4G network now covers 76.3 percent of the population, while its customer base has grown to 27.7 million following the introduction of 5G services in Tanzania.
Smartphone ownership among its customers reached 46.7 percent, with 325,415 customers accessing devices through retail financing partnerships.
The company has also introduced an artificial intelligence-enabled service that allows customers without smartphones to access internet services through SMS and voice calls.
The service could help bridge part of Tanzania’s digital divide, particularly for customers in rural and lower-income communities who may not yet have access to smartphones.
Vodacom’s financial services business continues to play a major role in the company’s operations, with M-Pesa serving 14.1 million customers.
Its digital savings platform, M-Koba, had 299,420 active groups during the year, with women accounting for a significant proportion of its users.
Savings through M-Koba increased by 81 percent, suggesting growing demand for digital tools that allow savings groups to manage their finances without relying entirely on cash.
The trend is particularly relevant in a country where access to formal financial services remains an important development issue.
Through the Vodacom Tanzania Foundation, the company said its programmes reached 2.9 million beneficiaries during the year.
In partnership with the Tanzania Institute of Education, it removed data charges for a national teacher professional development platform, enabling 121,832 teachers to access learning materials without paying for internet data.
Vodacom also supported environmental conservation by facilitating the planting of 80,000 indigenous trees in Kahe 2 Forest near Mount Kilimanjaro.
The company said it had recorded 14 consecutive years without a workplace fatality involving an employee.
Its network modernisation programme involved 411 employees who travelled more than 1.7 million kilometres, with the first phase completed without a fatality or major incident.
Vodacom also maintained ISO 27001 certification for information security and reported no fines relating to anti-competitive practices or money laundering during the reporting period.
Vodacom Tanzania’s Network Infrastructure Director, Andrew Lupembe, said the reduction in emissions was largely a result of modernising the company’s core infrastructure.
He said replacing old equipment had improved network performance while reducing the need to operate diesel-powered generators.
According to Mr Lupembe, the measures helped the company save about two million litres of diesel.
The development illustrates how investments intended to improve network quality can also produce wider public benefits by reducing fuel consumption and environmental pollution.
Vodacom Tanzania Chief Executive Officer Philip Besiimire said the company’s performance should ultimately be judged by how its services affect people's everyday lives.
He pointed to teachers accessing learning materials without data charges and savings groups using digital platforms to manage their finances as examples of how connectivity can translate into practical benefits.
As Tanzania expands its digital economy, the company’s latest figures highlight an increasingly important challenge for the telecommunications industry: expanding reliable and affordable connectivity while keeping the environmental cost of that expansion under control.