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IHS Towers Expands Partnership With Airtel Africa by Renewing and Expanding Contract in Nigeria

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IHS Nigeria, a subsidiary of IHS Holding Limited (NYSE: IHS), has announced a commitment for Airtel Nigeria to take 3,950 tenancies over the next five years and extended the term of its existing tenancies covering approximately 6,000 tenancies until December 2031. The agreement includes 2,500 colocations in addition to 5G amendments and build to suit sites to be owned and operated by IHS Nigeria. Both companies have agreed to cooperate on new green initiatives on the collective sites going forward. The expansion and renewal of the relationship with Airtel Nigeria is a testament to IHS Towers' commitment to serving its customers and the connectivity demands of Africa. Sam Darwish, Chairman & CEO of IHS Towers, expressed delight in continuing to strengthen the collaboration with Airtel Nigeria to facilitate mobile connectivity in Nigeria.
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The announcement by IHS Nigeria and Airtel Nigeria signifies a substantial commitment in the telecommunications infrastructure sector. The deal secures 3,950 new tenancies, with a focus on the years 2024/2025 and extends 6,000 existing ones until 2031. This move reflects a strategic expansion and retention of key infrastructure by Airtel Nigeria, ensuring they have the necessary tower capacity to support their network expansion, including the rollout of 5G technology.

From a telecommunications perspective, the inclusion of 2,500 colocations is particularly noteworthy. Colocation is a practice where multiple mobile network operators (MNOs) share tower infrastructure to host their equipment. This is a cost-effective strategy that reduces the need for multiple towers, thus minimizing environmental impact and operational costs. Moreover, the commitment to green initiatives aligns with the global trend towards sustainable operations, potentially reducing energy costs and contributing to corporate social responsibility goals.

The agreement between IHS Nigeria and Airtel Nigeria incorporates a significant sustainability component. Both companies have pledged to cooperate on new green initiatives, which is in harmony with Airtel Africa's sustainability strategy and IHS Towers' Carbon Reduction Roadmap. This roadmap aims for a 50% reduction in carbon intensity by 2030, which is a bold target given the energy demands of telecommunications infrastructure.

Implementing green initiatives in the telecom sector often involves transitioning to renewable energy sources, optimizing energy consumption with newer, more efficient technologies and implementing energy management systems. These initiatives not only contribute to the global effort to combat climate change but can also result in long-term operational cost savings and improved brand reputation among environmentally conscious consumers.

The financial implications of this agreement for IHS Towers and Airtel Nigeria are multifaceted. For IHS Towers, securing both new and extended tenancies provides a predictable revenue stream well into the next decade. This can be favorable for the company's valuation and attractiveness to investors. On the other hand, Airtel Nigeria's commitment to a significant number of tenancies indicates a strong forecast for customer growth and network utilization, which could translate into increased revenue and market share.

However, investors should also consider the capital expenditure associated with the build to suit sites and the 5G amendments. While these investments are essential for future-proofing the business and staying competitive, they will impact short-term cash flows. The long-term benefits, including the potential for higher margins due to increased efficiency and customer reach, should be balanced against these initial costs.

Commits 3,950 Tenancies Over The Next 5 Years

With The Majority Over 2024/2025 

Renews Approximately 6,000 Existing Tenancies Through 2031

LONDON--(BUSINESS WIRE)-- IHS Nigeria and related entities, which are subsidiaries of IHS Holding Limited (NYSE: IHS) (“IHS Towers”), one of the largest independent owners, operators, and developers of shared communications infrastructure in the world by tower count, and Airtel Nigeria, a subsidiary of Airtel Africa Plc (LSE:AAF), one of the largest MNO’s on the African continent, have today announced a commitment for Airtel Nigeria to take 3,950 tenancies over the next five years (with the majority expected over 2024/2025) and extended the term of its existing tenancies covering approximately 6,000 tenancies until December 2031.

The agreement includes 2,500 colocations in addition to 5G amendments and build to suit sites to be owned and operated by IHS Nigeria.

In line with Airtel Africa’s sustainability strategy launched in October 2021, and IHS Towers’ plans to pursue its Carbon Reduction Roadmap aimed at reducing IHS Towers’ intensity metric by 50% by 2030, both companies have agreed to cooperate on new green initiatives on the collective sites going forward.

Sam Darwish, Chairman & CEO, IHS Towers, said “The expansion and renewal of our relationship with Airtel Nigeria is a testament to our continued commitment to serving our customers and the connectivity demands of Africa. Airtel Nigeria, as well as Airtel Africa who we serve in other markets in Africa, has been a long-term partner of IHS, and I am delighted that we continue to strengthen our collaboration to help facilitate mobile connectivity in our largest market, supporting our customers in rolling out new sites throughout Nigeria.”

About IHS Towers: IHS Towers is one of the largest independent owners, operators and developers of shared communications infrastructure in the world by tower count and is one of the largest independent multinational towercos solely focused on the emerging markets. The Company has nearly 40,000 towers across its 11 markets, including Brazil, Cameroon, Colombia, Côte d’Ivoire, Egypt, Kuwait, Nigeria, Peru, Rwanda, South Africa and Zambia. For more information, please email: communications@ihstowers.com or visit: https://www.ihstowers.com

communications@ihstowers.com

Source: IHS Holding Limited

FAQ

What is the commitment made by Airtel Nigeria with IHS Nigeria?

Airtel Nigeria has committed to taking 3,950 tenancies over the next five years with the majority expected over 2024/2025.

What does the agreement between Airtel Nigeria and IHS Nigeria include?

The agreement includes 2,500 colocations in addition to 5G amendments and build to suit sites to be owned and operated by IHS Nigeria.

What sustainability strategy was launched by Airtel Africa in October 2021?

Airtel Africa launched a sustainability strategy in October 2021.

What is IHS Towers' Carbon Reduction Roadmap aimed at?

IHS Towers' Carbon Reduction Roadmap is aimed at reducing IHS Towers' intensity metric by 50% by 2030.

Who is the Chairman & CEO of IHS Towers?

Sam Darwish is the Chairman & CEO of IHS Towers.

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