Airtel Africa Launches Second Phase of $100 Million Share Buyback

Airtel Africa, one of Africa’s leading telecommunications groups, has announced the second phase of its $100 million share buyback program. According to a statement released on the Nigeria Exchange Group (NGX) website, this second phase is set to begin immediately, with the aim of strengthening the company’s balance sheet and optimising its capital structure.

Aligning with a Robust Capital Allocation Policy

This buyback initiative is part of Airtel Africa’s commitment to its existing capital allocation strategy. The telecom group has consistently emphasised its dedication to driving growth while maintaining financial discipline. The company explained that the program is structured into two tranches, with the first tranche targeting a maximum of $50 million and expected to conclude by April 24, 2025.

To oversee the process, Airtel Africa has partnered with Barclays Capital Securities Limited (Barclays), which will execute on-market purchases of ordinary shares. Barclays will act as a riskless principal, ensuring that decisions are made independently and all transactions adhere to regulatory and shareholder-approved guidelines.

The company’s shareholders had previously authorised a maximum purchase of 374 million ordinary shares, out of which 328.8 million remain available following the initial buyback phase completed in August 2024.

Reinforcing Growth Amid Currency Challenges

Airtel Africa’s half-year financial results for 2024 demonstrated its resilience despite significant currency fluctuations. The company reported a 19.9% increase in revenue in constant currency, driven by a 6.1% expansion in its customer base to 156.6 million users. Notably, mobile data usage surged, with a 10.4% rise in data customers and a 30% jump in data consumption per user.

The company views the buyback as an opportunity to return value to shareholders while bolstering its financial foundation. “This program reflects the progress made in reducing leverage, strengthening the balance sheet, and enhancing shareholder returns,” Airtel Africa stated.

As Airtel embarks on this second phase, it underscores the company’s strong cash position and strategic focus on sustainable growth, positioning itself as a key player in Africa’s evolving telecommunications landscape.