Airtel Africa Plans $1.1bn Investment as CEO Flags Power, Vandalism Challenges

Airtel Africa  plans to invest about $1.1 billion across its operations as the telecommunications group expands network coverage, increases capacity and prepares for rising demand for data and artificial intelligence services, CEO Sunil Taldar has said.

Speaking in an interview with Arise News, Taldar said the company sees significant growth opportunities across its 14 African markets, where telecom and smartphone penetration remain relatively low. He said Airtel’s capital expenditure will focus largely on expanding network coverage, adding data capacity, strengthening fibre transmission infrastructure, acquiring spectrum and developing home broadband services.

According to Taldar, data traffic across Airtel Africa’s network is growing by more than 50%, increasing the need for additional network capacity and stronger transmission infrastructure. He added that Nigeria has also seen a significant increase in the company’s capital investment, with spending nearly doubling.

The CEO said Airtel is also investing in infrastructure to position Africa for the growth of artificial intelligence. Data centres and business-to-business services are among the areas the company sees as major opportunities as AI adoption expands across the continent.

However, Taldar identified power supply and vandalism as two major challenges affecting telecom operations, particularly in Nigeria. He said unreliable electricity forces operators to rely heavily on diesel to power network sites, making operations significantly more expensive.

Taldar said running a telecom site on diesel can cost almost four times more than operating one on the electricity grid. He also noted that diesel prices in Nigeria have risen sharply, increasing from about N900 to nearly N1,800 per litre over the past eight to nine months, further raising operating costs.

Beyond fuel costs, he said the logistics involved in transporting diesel to network sites can also lead to service disruptions when fuel cannot reach sites on time. He described reliable electricity and telecom connectivity as closely linked, stressing that network availability depends heavily on access to stable power.

On infrastructure vandalism, Taldar welcomed the Nigerian government’s decision to classify telecom infrastructure as national critical infrastructure, but said more needs to be done to translate the designation into stronger protection. He pointed to continuing fibre cuts as evidence that implementation remains a challenge.

He also called on communities to protect telecom infrastructure, warning that damage to network facilities affects not only operators but businesses, livelihoods and communities that depend on connectivity.

Taldar further outlined Airtel Africa’s transition from a traditional telecommunications company towards what he described as a technology-focused business. He said the company is increasingly connecting people not only to networks but also to opportunities through mobile money, SME solutions, digital education and AI-enabled services.

On connectivity partnerships, he defended Airtel Africa’s agreement with Starlink, saying satellite technology can help extend connectivity to areas where traditional towers and fibre networks are not economically viable. The partnership is expected to support enterprise connectivity, satellite backhaul and direct-to-device connectivity in underserved areas.

Taldar said Airtel’s strategy is to compete with rivals for customers while collaborating with industry players where infrastructure sharing can reduce duplicated investment and extend coverage to more communities.

He also confirmed that Airtel Africa continues to work towards an initial public offering of its mobile money business, Airtel Money, in London before the end of 2026, subject to market conditions. He said London was selected because of its investor base and experience with fintech listings.

Beyond its commercial operations, Taldar highlighted Airtel Africa Foundation’s investments in digital inclusion, financial inclusion, education and sustainability. He said the foundation has provided free connectivity to 2.1 million children across Africa, including 1.4 million in Nigeria, while connecting 3,300 schools across its markets.

In Nigeria alone, Airtel Africa has connected about 1,500 schools and trained 74,000 teachers in digital education, according to Taldar. The company is also adopting 10 schools in Nigeria to improve their infrastructure and support digital learning.

Taldar said Airtel Africa’s broader objective is to use connectivity, education and technology to help unlock economic opportunities across the continent, positioning the company beyond traditional telecom services.