Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON) has said the telecoms sector should not be a palliative to solve economic woes.

Gbenga Adebayo, chairman of ALTON,

He made this call during his address at the Groupe Spécial Mobile Association (GSMA) digital economy report launch which took place in Abuja.

According to Adebayo, the telecom industry faces numerous challenges that hinder its growth and development.

He emphasized the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.

The GSMA digital report, launched May 9th 2024, 2024, highlights the telecom’s 8 percent contribution to Nigeria’s GDP and 13.5% when considering the broader ICT ecosystem.

The report also highlights the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.

Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right of way costs.

He said that it creates an unfavorable business environment, discouraging investment and hindering the industry’s ability to deliver quality services.

He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.

The price review should be a simple regulatory process.

The public debate this has gained makes it appear the industry is insensitive to people’s concern.

“While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms  sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” , Adebayo said.

He concluded that the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress; encouraging stakeholders, including policymakers, regulators, and operators, to work together to address the challenges facing the industry, in order to drive economic growth, and fulfill its potential as a critical sector in Nigeria’s economy.

Airtel Africa Plc released its full-year financial statement for the year ending March 31, 2024. The company posted a loss after tax of $89 million during the fiscal year, a significant decline from the $750 million profit after tax recorded in the previous fiscal year.

The company’s financial performance was mainly hit by the Naira’s instability over the fiscal year. As Airtel recorded FX losses of $770 million due to the devaluation of the Naira from N463/$ as of June 2023 to N1303/$ as of March 2024. The Naira devaluation also affected the company’s revenue baseline.

In reported currency, the USD, Airtel Africa posted a revenue of $4.98 billion in FY ‘23/24, representing a 5.3% decline from the $5.26 billion posted in FY ‘22/23. However, in constant currency, Airtel’s revenue grew by 20.9% over the course of the fiscal year.

However, Airtel Nigeria posted a revenue of $1.50 billion during the fiscal year, representing a 29.4% decline from the $2.13 billion revenue posted in FY ‘22/23. More so, in Naira terms, the group’s revenue appreciated by 25.8%.

Airtel Nigeria posted $711 million and $654 million in voice and data revenue respectively. Airtel customer base in Nigeria also increased to 50.9 million, representing a 5.3% growth from the 48.9 million customers posted in the previous fiscal year.

During the year, the group’s voice revenue constituted the bulk of its total revenue with $2.18 billion. Data revenue constituted $1.73 billion of its revenue.

In constant currency terms, Airtel Africa’s mobile services revenue experienced a significant increase of 19.4%. This growth was primarily driven by an 11.9% increase in voice revenue and a 29.2% growth in data revenues, as the group’s 4G customers increased by 42.3% during the fiscal year.

Airtel’s mobile money, SmartcashPSB recorded a 20.7% growth in customers as well as a 21.1% growth in revenue, hitting 38 million customers and $837 million.

Despite inflationary headwinds and currency devaluation across the group’s operational markets, Airtel Africa displayed resilience in its financial performance as it generated a net cash of $2.26 billion from its operations during the fiscal year.

Also, in terms of constant currency, Airtel maintained a double-digit growth across its revenue, pre-tax profit, EBITDA, and operating profit profiles.

Commenting on the results, Olusegun Ogunsanya, the group’s CEO, said: “This strong revenue performance is a reflection not only of the opportunity that is inherent across our markets, but also the resilience of our affordable offerings despite the inflationary pressure many of our customers have experienced.

“Furthermore, our rigorous approach to de-risking our balance sheet and our capital allocation priorities has materially reduced the risks that the currency devaluation has had on our business. Key initiatives include the reduction of US dollar debt across the business and the accumulation of cash at the [holding company] level to fully cover the outstanding debt due. We will continue to focus on reducing our exposure to currency volatility. At the beginning of March, we launched our first buyback programme reflecting the strength of our financial position.”

Airtel declared a 3.57 cents final dividend, a rise of 9.2% on-year from 3.27 cents. Its total dividend amounted to 5.95 cents, also up 9.2%, from 5.45 cents.

The CEO added: “The growth opportunity that exists across our markets remains compelling, and we are well positioned to deliver against this opportunity. We will continue to focus on margin improvement from the recent level as we progress through the year.”

Google has announced the opening of applications for the 2024 cohort of its Hustle Academy, a program dedicated to accelerating the growth of small and medium-sized businesses (SMBs) in Sub-Saharan Africa. This year, the program introduces a significant upgrade: business-focused AI training integrated directly into the curriculum.

SMBs are the backbone of Africa’s economy, yet many face challenges accessing funding and developing the essential skills needed to grow their businesses. According to the International Finance Corporation (IFC), 40% of formal SMBs in developing countries have an unmet funding need of $5.2 trillion annually.

The Hustle Academy aims to address this gap by providing comprehensive business education, mentorship, and networking opportunities. Since its launch in 2022, over 10,000 businesses have benefited from the program. Participants who received grants nearly doubled their success rate in accessing new funding sources beyond friends and family, increasing from 11% to 20%. The program has also spurred job creation, with an average of 4 new jobs for every 10 businesses that graduated.

Kristy Grant, Head of B2B Marketing, SSA commented, “Artificial intelligence (AI) holds immense potential for African small and medium-sized businesses (SMBs), enabling them to drive innovation, increase efficiency, and unlock new levels of economic growth. The Hustle Academy has supported over 10,000 businesses who have gone ahead to raise funding and create jobs since inception. By incorporating AI into our curriculum, we aim to further amplify this impact, equipping SMBs to harness AI technologies for improved business performance and economic progress.”

The new AI modules focus on data-driven decisions, optimising operations, and building AI-powered marketing strategies. Participants will explore practical applications through modules like “Boost Your Productivity with AI” and “Marketing Strategy and AI,” learning how to save time and supercharge digital outreach.

Applications for the 2024 Hustle Academy cohort are open to SMBs in Kenya, Nigeria, and South Africa, and the program will run through the end of the year. For more information and to apply, visit g.co/hustleacademy.