The recent launch of M-Pesa marked the first time
in the world that a mobile service provider had
ventured in the e-money business… A profi t of
kshs12.77 billion in its last fi nancial year made Safaricom
the most profi table company in the region…a subscriber
base that has grown from 20,000 in 2000 to 5.5 million
today … This is just a taste of what has happened
during
Michael Josephs watch as Safaricom’s Chief Executive
Officer.
The 2007 ICT Hall of Fame recognized Michael as an
individual, whose record of achievements demonstrated
innovative courageous thinking, vision and innovation,
inspiring leadership, community mindedness and good
role model. These characteristics together with his
previous experience in turnaround management for other
Vodafone group companies, particularly in the customer
care environment, and consulting for new start-up
operations in the wireless field has been a great asset
in his effort to establish Safaricom as a leading Kenyan
company.
Obviously Michael was no stranger to the world of mobile
telephony when he joined Safaricom. After graduating
with a degree in electrical engineering from the University of Cape Town he set off on what would turn out to be a
grand trip around the world.
A seven year stint with GTE Mobile International saw
him overseeing all wireless license applications and
implementation for Latin America including design,
engineering, and implementation of cellular, fixed
cellular, wireless loop, paging and trunking systems
and as General Manager/Chief Operating Offi cer of CTI,
the operator of the two cellular licenses in the interior
of Argentina, having previously served as the Project
Director.
He worked with Vodacom Group (PTY) LTD in South
Africa as a Business Consultant where he advised
on new acquisitions, performing due diligence and
turnaround management and succeeded in implementing
new operating systems, quality controls and changing
the company culture to focus on high quality customer
care. He was Senior Vice President – Operations for
International Wireless Communications (IWC) where
he was responsible for business development, contract
negotiation and subsequent project development,
management and operations of Latin America.
As Chief Technical Offi cer (CTO) for Vodafone Hungary
he was responsible for the implementation and
operation of the company’s DCS 1800 network. His
portfolio also included network design, engineering,
implementation, testing and commissioning, operations
and maintenance.
He landed at his current port of call Nairobi in 2000
and re-launched Safaricom. Since then it has grown
signifi cantly. It began with a workforce of 200 and now
has over 1000 employees so as to keep up with this fast
growing industry. All staff are well trained both prior
and during their tenure at Safaricom as Michael puts
great store in a dynamic workforce that operates as a
team. The subscriber base has grown by almost 600%.
With an operating profit of Sh5.964 billion, Safaricom
is arguably one of the most profi table listed businesses
in Kenya. Safaricom’s revenues and net profi t have
been growing at an annual compound rate of 27 per cent and
66 per cent — a huge omentum that could double the
business in a few years. This kind of growth will not only
make Safaricom by far the biggest and most profi table
business in Kenya but also the most infl uential in terms
of how it affects everyday lives of the citizens of this
country. So far, Safaricom is among the top five biggest
and profitable.
Safaricom’s aim is to remain the leading Mobile Network
Operator in Kenya. In order to achieve this Michael has
placed a strong focus on quality of service to customers.
Integral to this has been pricing and customer service.
The ability to grow the rural customer base and offer
them appropriately designed products is a particular
feather in Michaels cap.
Michael accredits Safaricoms growth and ability to move
fast towards bridging the digital divide to its innovative
work force and the fi rm’s development policy. With
Michaels amazing store of energy and the fi rm’s sustained
will to succeed, the team has developed tariffs which are
adapting to every lifestyle and every pocket. Safaricom
has derived most of its growth from airtime sales,
especially the introduction of the lower denomination
top-up cards.
Safaricom has also introduced innovative products
adapted to the Kenyan market such as “Simu Ya Jamii”,
the community phone concept that has revolutionalised
accessibility of mobile telephony among the lower-income
population, which cannot afford a handset. Another
ingenious product is “SMS Sokoni”, which provides
daily
agricultural commodity prices through SMS. The recently
launched “M-Pesa” which allows subscribers to
make
simple financial transaction from their phones looks set
to become a popular service.
Michael recognizes that a signifi cant part of the economy
is informal and is being facilitated by the mobile phone
sector. Safaricom promises to transform communities in
Kenya so that the mobile phone should no longer be a
status symbol but a business and personal tool.
As Michael remarked when announcing that Safaricom
would soon be launching a regional network in conjunction
with Uganda’s MTN and Tanzania’s Vodacom, “Ours
will
be different …We want to launch what is needed and
wanted by many,”.This comment epitomizes the tenets
that Michael Joseph lives by. Not content to be average,
or rest on his laurels, he and the business he runs will
always stand out from the rest of the contender.
