Peter Ndengwa of Daegeo/EABL to head Safaricom

[RV Pundit]

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https://www.businessdailyafrica.com/news/Former-EABL-finance-director-tapped-as-new-Safaricom/539546-5323584-eeit6iz/index.html

Solid choice. Peter Ndegwa, the former managing director of Guinness Nigeria Breweries Plc, has been named the new head of Diageo's operations in Europe to become the first African to hold this position. Ndegwa took over this position in July and he has been working in Amsterdam, the Netherlands.

[Nefertiti]

Interesting profile. time will tell.

[Pragmatic]

Absolutely.... a solid pick! Wishing him all the best.

I hope he will bring about some transformative and disruptive new change at Safaricom. Only earlier yesterday we were saying that their is none amongst the senior management who could take this office. Mulinge would have been a woeful pick.

Peter was credited with disruption at EABL sales & distribution line of business, hope he brings new ideas at Safcom and thinks outside the box. Time to build and scale new innovations ala what Robina suggested. He needs to have a radical mind.

Time to also debunk the notion that there are no Kenyans who can run (a successful) business like Safcom.

[Nefertiti]

Pragmatic that's lotsa hope i see. Selling Tusker is hardly props for running tech. A Pepsi guru once attempted and presumably with catastrophic failure settled the matter. It is my take that this man Ndegwa is more doomed than endowed.

Time will tell.

[RV Pundit]

Safaricom is not a tech company - it's more a telecom company like AT&T or Vodafone- and I think if Ndegwa concentrates on the core business he will just be fine - and so will the company.  Voice is going down - data and m-pesa are going to be their salvation - and nicking Ethiopia would be the holy-grail. Now that they are not being shackled by Vodafone - Safaricom should try to expand to countries like South Sudan, Somalia and name them - using M-PESA are their launching pad. They have cash - and are paid handsome dividend -  that money can be invested in snapping companies and regional expansion.

Pragmatic that's lotsa hope i see. Selling Tusker is hardly props for running tech. A Pepsi guru once attempted and presumably with catastrophic failure settled the matter. It is my take that this man Ndegwa is more doomed than endowed.

Time will tell.

[Pragmatic]

Pragmatic that's lotsa hope i see. Selling Tusker is hardly props for running tech. A Pepsi guru once attempted and presumably with catastrophic failure settled the matter. It is my take that this man Ndegwa is more doomed than endowed.

Time will tell.

[Nefertiti]

The story of John Sculley is a very big history that should not be underconsidered. He was a master salesman - milked the billions out of Jobs and Wozniak's inventions. When there was nothing else to hawk - and reserves nosedived - he proposed to split the company. He was sacked 10 years late - almost ran the company into the dustbin. Jobs had to return to fix the mess. MJ is exactly a Jobs. Bob was enough Sculley - no need for another. You are wrong my friend.

[Pragmatic]

Pundit, we don't anymore have telco business in the strict sense... disruption is shaping up that industry and certain strategies wont work anymore. Premium Content and Cross Industry Alliances, Mergers and Acquisitions are the new normal. The AT&T and Vodafone that you quote are now unified businesses and are looking for consolidation up the value chain to survive. Content is king and if you don't control content you will be history. Robina has been telling this.... that is how Google has shaped up with Alphabet and Facebook has done similar to control the content value chain as well as dominate the space. You know who owns, whatsapp, youtube, vimeo etc.... You will see a huge drive at revenue optimization, optimization with no compromise; decreasing margins mean rationalization of operational cost. Digitization in customer support for improved efficiency, IOT, Machine Learning and Artificial Intelligence (Robotics, Chatbots) etc. These and 5G are the trends that are shaping the industry.

Safcom wont go to South Sudan, or Somalia there is no value in going to a market where conditions are not favorable and Safcom can't compete in that kind of market. In Kenya, it has benefited immensely from state capture and a relatively easy environment. It has had an easy ride. Ethiopia would be good for them if they can get in, but they will need some bit of helping to get ahead. A bit of what they got here....buying into Ethiotel (state telco) and benefiting from some state protection otherwise if they were to go for an independent license and build from scratch, they won't hack it.

Let us be honest buying into Ethiotel or building a new network would require deep pockets. Safcom doesn't have that money and will require a big brother (Vodacom or Vodafone) to stand by it and syndicate some big greens. A couple of billion dollars for a 49% stake. Ethiopia remains one of the biggest market available globally for a new wave of investment. It is going to be competed for aggressively.

Telco operators are now mostly looking to "rent" the infrastructure that they operate on. This gives them flexibility to do other things and be innovative from a technological view. So today you have new providers who offer purely infrastructure co-location e.g. cell towers, fiber infrastructure, data centres, satellite infra etc... This is a new market that has opened up and some of the MNO's simply ceded/sold off their tower infrastructure to independent service providers and used that money on other ventures and emerging unique offerings. Soon we will also see the re-emergence of VNO's (virtual network operators) who own no infrastructure at all and concentrate on only some niche offerings e.g. mobile money (with voice as a freeby!) piggy-backing on someone else's infra...

So, in short, if you were the one advising Safcom and insisting to them that they are a telecom company....they will be receiving very bad advice! There is no demarcation between a tech company, a telecom company and a consolidated business with different lines of business!

Safaricom is not a tech company - it's more a telecom company like AT&T or Vodafone- and I think if Ndegwa concentrates on the core business he will just be fine - and so will the company.  Voice is going down - data and m-pesa are going to be their salvation - and nicking Ethiopia would be the holy-grail. Now that they are not being shackled by Vodafone - Safaricom should try to expand to countries like South Sudan, Somalia and name them - using M-PESA are their launching pad. They have cash - and are paid handsome dividend -  that money can be invested in snapping companies and regional expansion.

[Pragmatic]

Time will tell... Let us watch his early moves. If he simply slides into the job and takes a business as usual default setting, then we will know you were right on the money!

The story of John Sculley is a very big history that should not be underconsidered. He was a master salesman - milked the billions out of Jobs and Wozniak's inventions. When there was nothing else to hawk - and reserves nosedived - he proposed to split the company. He was sacked 10 years late - almost ran the company into the dustbin. Jobs had to return to fix the mess. MJ is exactly a Jobs. Bob was enough Sculley - no need for another. You are wrong my friend.

[Nefertiti]

That is the box they need to escape. It is a chasm. Besides that there are BIG hitec gaps in Africa - you can hardly scale, disrupt or innovate anything without technology. That's why Huawei is a permanent fixture in their board minutes. Safcom strategy docs are punctuated by Huawei this, IBM there, Oracle that. It seems to me tech is core. It is regarded as a regional leader in ICT for Pete's sake.

Safaricom is not a tech company - it's more a telecom company like AT&T or Vodafone- and I think if Ndegwa concentrates on the core business he will just be fine - and so will the company.  Voice is going down - data and m-pesa are going to be their salvation - and nicking Ethiopia would be the holy-grail. Now that they are not being shackled by Vodafone - Safaricom should try to expand to countries like South Sudan, Somalia and name them - using M-PESA are their launching pad. They have cash - and are paid handsome dividend -  that money can be invested in snapping companies and regional expansion.

[RV Pundit]

I am not sure why you imagine Safaricom ought to do what Google or Facebook are doing. Those are bigger giants than Safaricom working the developed market. Safaricom apart from doing the telcom business have a good side business in M-Pesa - they need to milk that. You say they don't innovate - but look at Fuliza - in 3 months they had loaned out 100B kshs. Look at say DigiFarm - they are starting to get there.

Anyway my view is safaricom should become the infrastructure company - for telecom (5g), data(fiber) and financial services (expand M-PESA and eventually replace cash - they have scratched the surface here) - if they keep at this - I see them become 100B dollar company soon. Once money transition from cash to digital - safaricom will be assured of small bite in huge transactions volumes.

They need to nick Ethiopia - as top priority - merge with state telcom and concentrate on M-PESA there. I think Ndegwa Sucess will hinge on getting Ethiopia.

Pundit, we don't anymore have telco business in the strict sense... disruption is shaping up that industry and certain strategies wont work anymore. Premium Content and Cross Industry Alliances, Mergers and Acquisitions are the new normal. The AT&T and Vodafone that you quote are now unified businesses and are looking for consolidation up the value chain to survive. Content is king and if you don't control content you will be history. Robina has been telling this.... that is how Google has shaped up with Alphabet and Facebook has done similar to control the content value chain as well as dominate the space. You know who owns, whatsapp, youtube, vimeo etc.... You will see a huge drive at revenue optimization, optimization with no compromise; decreasing margins mean rationalization of operational cost. Digitization in customer support for improved efficiency, IOT, Machine Learning and Artificial Intelligence (Robotics, Chatbots) etc. These and 5G are the trends that are shaping the industry.

Safcom wont go to South Sudan, or Somalia there is no value in going to a market where conditions are not favorable and Safcom can't compete in that kind of market. In Kenya, it has benefited immensely from state capture and a relatively easy environment. It has had an easy ride. Ethiopia would be good for them if they can get in, but they will need some bit of helping to get ahead. A bit of what they got here....buying into Ethiotel (state telco) and benefiting from some state protection otherwise if they were to go for an independent license and build from scratch, they won't hack it.

Let us be honest buying into Ethiotel or building a new network would require deep pockets. Safcom doesn't have that money and will require a big brother (Vodacom or Vodafone) to stand by it and syndicate some big greens. A couple of billion dollars for a 49% stake. Ethiopia remains one of the biggest market available globally for a new wave of investment. It is going to be competed for aggressively.

Telco operators are now mostly looking to "rent" the infrastructure that they operate on. This gives them flexibility to do other things and be innovative from a technological view. So today you have new providers who offer purely infrastructure co-location e.g. cell towers, fiber infrastructure, data centres, satellite infra etc... This is a new market that has opened up and some of the MNO's simply ceded/sold off their tower infrastructure to independent service providers and used that money on other ventures and emerging unique offerings. Soon we will also see the re-emergence of VNO's (virtual network operators) who own no infrastructure at all and concentrate on only some niche offerings e.g. mobile money (with voice as a freeby!) piggy-backing on someone else's infra...

So, in short, if you were the one advising Safcom and insisting to them that they are a telecom company....they will be receiving very bad advice! There is no demarcation between a tech company, a telecom company and a consolidated business with different lines of business!

Safaricom is not a tech company - it's more a telecom company like AT&T or Vodafone- and I think if Ndegwa concentrates on the core business he will just be fine - and so will the company.  Voice is going down - data and m-pesa are going to be their salvation - and nicking Ethiopia would be the holy-grail. Now that they are not being shackled by Vodafone - Safaricom should try to expand to countries like South Sudan, Somalia and name them - using M-PESA are their launching pad. They have cash - and are paid handsome dividend -  that money can be invested in snapping companies and regional expansion.

[Nefertiti]

This is Pundit's trial and error - with bets starked against them. There is affordable tech talent - for top $$ of course - out there. Why gamble with this Tusker dude? Nothing in his profile says think big.

Time will tell... Let us watch his early moves. If he simply slides into the job and takes a business as usual default setting, then we will know you were right on the money!

[Nefertiti]

There is lots of niche tech Safcom can do especially in Africa - i can name ten top of mind - without competing with Big Tech. The Googles or Alibabas are not bothered with Africa. Expanding to Ethiopia is obvious - but not so easy - they attempted DRC,  TZ, India, Afghanistan and failed.

I am not sure why you imagine Safaricom ought to do what Google or Facebook are doing. Those are bigger giants than Safaricom working the developed market. Safaricom apart from doing the telcom business have a good side business in M-Pesa - they need to milk that. You say they don't innovate - but look at Fuliza - in 3 months they had loaned out 100B kshs. Look at say DigiFarm - they are starting to get there.

Anyway my view is safaricom should become the infrastructure company - for telecom (5g), data(fiber) and financial services (expand M-PESA and eventually replace cash - they have scratched the surface here) - if they keep at this - I see them become 100B dollar company soon. Once money transition from cash to digital - safaricom will be assured of small bite in huge transactions volumes.

They need to nick Ethiopia - as top priority - merge with state telcom and concentrate on M-PESA there. I think Ndegwa Sucess will hinge on getting Ethiopia.

[RV Pundit]

What stopping those tech talent from starting out their own safaricom...like you..with all your great ideas...in Africa where you say it's easy.

This is Pundit's trial and error - with bets starked against them. There is affordable tech talent - for top $$ of course - out there. Why gamble with this Tusker dude? Nothing in his profile says think big.

[Nefertiti]

What stop them from succeeding in TZ or DRC if they can hack Ethiopia. The reverse can apply to your question. The topic is Safaricom new pick for CEO - not Robina - grand as I am. Stick to the object.

The main reason Big Tech avoid Africa - is the size of the market. 3% of GWP - global GDP. Safcom after cracking the first startup hurdle - scaling national - has the experience, mucle, cred - to go tech. We are debating the best strategy - and best man for the job.

What stopping those tech talent from starting out their own safaricom...like you..with all your great ideas...in Africa where you say it's easy.

[RV Pundit]

Safaricom has never expanded out of kenya. Vodacom and vodafone have tried to sell M-pesa outside kenya.

What stop them from succeeding in TZ or DRC of they can hack Ethiopia. The reverse can apply to your question. The topic is Safaricom new pick for CEO - not Robina - grand as I am. Stick to the object.

[Nefertiti]

Safaricom is Vodafone Kenya. MJ lead the charge of scaling global. After Safcom - when Bob took over - he was named M-Pesa gloal ambassador - to continue the growth and expansion agenda he started at Safcom.

Safaricom has never expanded out of kenya. Vodacom and vodafone have tried to sell M-pesa outside kenya.

[Nefertiti]

att

[Pragmatic]

This is Pundit's trial and error - with bets starked against them. There is affordable tech talent - for top $$ of course - out there. Why gamble with this Tusker dude? Nothing in his profile says think big.

Time will tell... Let us watch his early moves. If he simply slides into the job and takes a business as usual default setting, then we will know you were right on the money!

[Nefertiti]

Hey, that's ok. I don't mean Safcom should not go Ethiopia or be aggressive with M-pesa, FITH, etc. I just mean software and tech are gobbling up the universe - they say "everything is technology" - and i get that wisdom. It's foolhardy to say a company renowned for mobile pay technology - the biggest INNOVATION in the region - is not a tech company. That's the shackles that has held them back not Vodafone.

Once you accept  Safcom is a tech company - the heart of this matter - you will see a Tusker expat is not the best pick. He could run the Google in Alphabetic though. As an uber marketer.