Vodacom brings M-PESA to South Africa

PRESS RELEASE


For immediate release, 24 May 2010

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Patrick Fuller

Vodacom Group Ltd

Group Communications

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"Bringing Light to South Africa"

Vodacom brings M-PESA to South Africa

Vodacom to provide money transfer services via SMS to the un-banked population across South Africa.

Midrand, Johannesburg; May 24, 2010 - Vodacom has introduced M-PESA, a mobile payment solution that allows users to transfer money between cellphones without the need for either party to have a bank account.

Vodacom, which is the leading mobile network operator in South Africa, has focused on the users that are economically sidelined by the current banking system and need a safe alternative to sending and receiving money.

M-PESA offers a variety of services from sending and receiving, making purchases at partnering retailers, the transfer of government grants, pensions and wage payments via cellphone.

This payment service is available through all Vodashop and Vodacom4U Franchise shops, as well as all Vodacom Community Containers across the country. In addition, through partnering with Retailers and Petrol Stations such as Pick 'n Pay, Shoprite Checkers and Sasol, accessibility is further extended.

For users that are based in rural areas, and not near any shopping malls, petrol stations and major retailers, most Spaza Shops have been fitted with an M-PESA Consol and provided with the capability to facilitate deposits and withdrawals.

The process is very simple for consumers, as they register with any outlet that advertises the M-PESA Logo and then it is merely a case of depositing the funds, transferring them to the intended receiver via SMS and the receiver can either use the funds to pay for groceries at a partnering retailer or withdraw the funds at any outlet with an M-PESA logo.

Market research has shown that 60% of adults have no access to formal banking in South Africa, and consumers are concerned with safety which makes them reluctant to handle money. Mobile payment solutions currently on offer in the market are dependent on existing bank accounts, giving M-PESA a huge advantage.

M-PESA will soon become a product used to empower many economically sidelined people and will transform the way South Africans transact, send and receive money.

Vodacom Group Limited is based in Midrand, Johannesburg and is a mobile communications company. Through its various subsidiaries it provides voice, messaging, data and converged services to approximately 40 million customers. Its operations outside of South Africa are in Tanzania, DRC, Mozambique, and Lesotho and through its recently acquired subsidiary, Gateway; it reaches over 40 African countries. Vodacom is majority owned by Vodafone and is listed on the JSE under the symbol VOD.