In a major change to its executive lineup, Safaricom, Kenya’s largest telecom company, has tapped Frankline Okata as its new Chief Enterprise Business Officer. This announcement came barely days after Cynthia Karuri-Kropac, the company’s former executive, left the role.
Catch up: Formerly, data and voice revenue used to be important revenue drivers for African telecom companies. Data has remained steady, while voice has declined. As a result, the demand for internet connectivity has led telecom companies, seeking to expand their revenue baskets, to strengthen infrastructure for data and data services.
Safaricom has run an enterprise services arm for over two decades. But it doubled down in 2022, ramping up cloud, internet of things (IoT), and data storage services for corporate clients. By the end of 2024’s financial year, the company’s fixed service and wholesale transit business (which includes enterprise connectivity and cloud) had grown by 12% year-on-year to KES 15.11 billion ($117 million). Enterprise revenue alone reached $8.63 billion ($67 million).
MTN Nigeria, another telecom company, recently finalised the first phase of its local data centre as a clear play to provide enterprise solutions. The bet seems to be that B2B sales will bring in steady volume and bigger revenue, while consumer-facing products will augment the bottom-line.
State of play: This is the third time in 2 years Safaricom has filled the same role, indicating the importance of its enterprise business arm. As a high-revenue potential business, the investment will be just as high; if it’s going to be spending money, Safaricom wants clear returns.
Yet, the leadership churn at the top of this unit is a flashing red light. Three chiefs in two years is a sign of just how high the stakes are, and how tough the job is. With Okata’s hire, Safaricom is adopting Nike’s playbook and going for a servant hire. Will local know-how bring that stability it badly lacks?
