Telecom
Airtel Africa Launches its Long-term Sustainability Strategy, Building on its Corporate Purpose to Transform Lives
Airtel Africa, a leading provider of telecommunications and mobile money services, with a presence in 14 countries across Africa, has launched a comprehensive sustainability strategy which sets out its detailed plans to improve the lives of millions of people across Africa through digital and financial inclusion and access to education.
The strategy also includes specific goals around environmental protection and the ongoing development of a rewarding, diverse and inclusive workplace.
We have worked hard to identify the technical programmes needed to respond to all our material topics and to have a genuine and positive impact on people and communities across Africa. Our strategy sets specific goals and commitments, and for each of these, we have identified exactly how we will achieve them and the milestones along the way.
Our Board and Executive Committee have been integral to developing this strategy which is fully aligned with the Company’s corporate strategy and plans. We have engaged with our stakeholders throughout the development of the strategy and undertook a detailed stakeholder consultation ahead of this launch.
Our strategy is delivered through four sustainability pillars: ‘Our business’ which reflects our operations and the expansion of our network, ‘Our people’ which sets commitments around employee engagement, development, diversity and inclusion, ‘Our community’ which details our dedication to improving access to education, and ‘Our environment’ which is focused on reducing the environmental impact of our operations.
We have identified six of the United Nations Sustainable Development Goals to which we believe our work will make a genuine and tangible contribution- they are SDG 4: Quality education, SDG 5: Gender equality, SDG 8: Decent work and economic growth, SDG 9: Industry, innovation and infrastructure, SDG 10: Reduced inequalities, and SDG 12:
Responsible consumption and production.
Segun Ogunsanya, CEO, Airtel Africa, said: “Today is a significant milestone in Airtel Africa’s journey. Our new strategy provides a solid foundation for us to accelerate change for the communities we serve and the environment in which we operate. We have worked closely with our stakeholders to ensure that this strategy is ambitious, robust and credible.
This partnership approach underpins all the work we will deliver through our strategy. We will look to collaborate across the industry, recognising that by working together, we will be able to drive a more significant impact for the people who need it most. We are more committed than ever to ensuring open and honest communication on our progress as Airtel Africa embarks on its long journey towards a more sustainable future.
Goals and commitments
The sustainability strategy includes nine goals and commitments, with corresponding programmes that address the business’ material topics (identified through an extensive consultation at the beginning of the year) and enable the Group to continue delivering sustainable growth and uphold the best governance standards:
- Data security goal: Establish industry-leading data security for our customers through investments in technology and expertise, updated processes and consumer awareness – with focus areas around confidentiality, integrity and availability.
- Service quality goal: Provide underserved communities with access to reliable networks and connectivity through the rollout of new infrastructure and technology, improved fibre connectivity and capacity – with focus areas on service accessibility, delivery and reliability.
- Supply chain goal: Ensure all our suppliers are aligned with our sustainability agenda through programmes to increase supplier disclosure and audit ESG performance – with focus areas on enhanced supplier due diligence and ongoing ESG compliance.
- Commitments to our people: with our ongoing commitment to provide rewarding employment opportunities and to achieve genuine diversity and inclusion at all levels across the business through:
– Delivering equality in our workforce through recruitment and programmes to provide training and advancement for everyone regardless of gender, nationality or disability;
– Providing best practice training and development through upskilling and reskilling initiatives to ensure they can succeed in their future careers. And through supporting female entrepreneurs through training and increasing women’s participation in the technology and engineering sectors;
– Providing the highest standards of health and safety for our employees and contractors through the introduction of a best practice social and health and safety management system, improved policies and full compliance with all legislation and regulation; and,
– Maintaining the highest levels of employee engagement through the introduction of additional channels that provide every one of our people with a voice.
- Digital inclusion goal: significantly improve digital Inclusion across Africa by driving the penetration of mobile, smartphones and home broadband in rural areas through the provision of retail and support services.
- Financial inclusion goal: significantly increase financial inclusion in Africa, with particular support for women through the development of affordable financial products to meet the needs of the un- and under-banked, a reliable service and financial confidence and literacy.
- Access to education goal: helping transform the lives of over one million children through improving access to education – with programmes around connectivity, the provision of zero-rated education content under a five-year UNICEF partnership, connecting 1,400 schools to the internet by 2027, and the adoption and support of schools in all our markets.
- Greenhouse gas emissions reduction goal: Our ambition is to achieve net zero greenhouse gas (GHG) emissions ahead of the 2050 deadline set out in the Paris Agreement. To do this we must fully identify, measure and reduce our GHG emissions which can only be achieved in partnership with our peers and the wider industry. We will establish and launch a sector leading and credible decarbonisation pathway in 2022, ahead of the publication of our first Sustainability Report.
- Environmental stewardship: Eliminate hazardous waste from our operations, significantly reduce our non-hazardous waste and minimise our water consumption with programmes to replace damaging materials, expand recycling schemes and build employees’ awareness around the protection of our natural resources.
A recent Groupe Spécial Mobile Association (GSMA) digital economy report has cast a spotlight on the significant contributions of Nigeria’s telecom sector to the nation’s GDP, highlighting its crucial role in driving economic growth and development.
Released amidst growing interest in the Nigerian telecom landscape, the report provides a comprehensive analysis of the sector’s impact on the country’s economic metrics. Key findings reveal that in 2023 alone, the telecom sector directly contributed 8% to Nigeria’s total GDP. However, when factoring in the wider ICT industries’ value-added contributions, this figure surged to an impressive 13.5%.
Beyond mere numbers, the report delves into the intricacies of the telecom sector’s influence on various economic sectors. It elucidates how the mobile industry’s cumulative contribution to Nigeria’s GDP reached an estimated 20 trillion NGN in 2023, accompanied by substantial tax revenue contributions totalling 2.8 trillion NGN. Such figures further highlight the sector’s role in driving fiscal revenues and national economic stability.
Moreover, the report sheds light on the transformative potential of the telecom sector in enabling digitalisation across key industries. Projections indicate that by 2028, sectors such as agriculture, manufacturing, transport, trade, and government are poised to witness a remarkable GDP increase of approximately 2 percentage points.
This surge is expected to generate an additional NGN 1.6 trillion in tax revenue, marking a significant milestone in Nigeria’s quest for economic diversification and resilience.
“The telecommunications sector is the backbone of the digital economy. We have a strong appreciation of the fact that if we are able to improve the business environment and invest in the sector, we can continue to improve the level of productivity.
A country like Nigeria has significant opportunities to contribute to the world, but this is impossible without diversifying the economy”. Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy added.
The report also highlights the vital role of 5G networks in enhancing operational efficiency across sectors through real-time data transmission and remote monitoring.
It spotlights the immense potential of digitalisation in sectors like manufacturing and trade, with the capacity to add trillions in industry value and generate substantial employment opportunities and tax revenues.
Despite these promising revelations, the report also acknowledges the challenges faced by the telecom sector, particularly its capital-intensive nature.
The report’s findings beckon a clarion call for concerted efforts to leverage the telecom sector’s potential as a catalyst for economic advancement. With the right policies and investments, Nigeria stands poised to harness the full spectrum of opportunities offered by its vibrant telecom landscape, driving inclusive growth and prosperity for all.
While the advocacy for tariff increase remains under deliberations, revelations in the latest Groupe Spécial Mobile Association (GSMA) digital economy report have watered the ground for an increased tariff increase advocacy. The report, offering a deep dive into the sector’s dynamics, provides compelling arguments for adjusting tariffs to ensure sustainability and growth.
L-R: Juergen Peschel, Chief Executive Officer, 9Mobile; Dr. Bosun Tijani, Honourable Minister of Communications, Innovation, & Digital Economy; Dr. Aminu Maida, Executive Vice Chairman, Nigerian Communications Commission; Gbenga Adebayo, Association of Licensed Telecommunications Operators of Nigeria (ALTON); Bella Disu, Executive Vice Chairperson, Globacom; Karl Toriola, Chief Executive Officer, MTN; Angela Wamola, Head of Sub-Saharan Africa, GSM Association (GSMA); Ibrahim Dikko, Chief Executive Officer, Backbone Connectivity Networks Nig. Ltd.; at the GSMA Nigeria Digital Economy Report launch in Abuja on May 9 2024.
Highlighted in the report is the telecom sector’s significant contribution to Nigeria’s GDP. In 2023 alone, it accounted for 8% of the nation’s total GDP, a figure that swelled to 13.5% when considering the broader ICT ecosystem. The mobile industry’s overall contribution to GDP was estimated at a staggering 20 trillion NGN, with substantial tax revenues of 2.8 trillion NGN.
The sector’s potential to drive digitalisation across various domains is of paramount importance. The report projects a significant boost in GDP across sectors like agriculture, manufacturing, transport, trade, and government, translating into nearly 2 million jobs and an additional NGN 1.6 trillion in tax revenues by 2028.
The promise of 5G networks is poised to revolutionise operations, particularly in critical sectors like oil and mining, with real-time data transmission and remote monitoring enhancing efficiency. Digitalisation, especially in manufacturing and trade, holds immense potential for value addition and job creation, promising billions in additional tax revenues.
Despite Nigeria’s noteworthy internet usage figures, with 29% of the population regularly online, the sector faces challenges. The country boasts the lowest-cost data baskets in Africa, yet maintaining competitive mobile data network speeds remains essential. With an average speed of 21Mbps, Nigeria’s performance is comparable to neighbouring countries, underscoring the need for sustained investments.
However, sustaining this growth requires recognizing the capital-intensive nature of the telecom sector. Operators must continually invest in network maintenance and expansion, necessitating a conducive regulatory environment that ensures fair returns on investments.
Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, commenting during the report launch, said, “We raised several issues on the state of affairs of the telecom industry, and among the challenges articulated is the return on investment, stability of the infrastructure and the need for pricing rights. As an ecosystem, tariff hike is one of the sensitive issues affecting the telecom sector and has to be addressed by all stakeholders. We need to look at the state of affairs of the industry and examine holistically. There are ongoing obligations to our end users including infrastructure security. Tariff increase is a solution to solve multiple challenges of the telecom industry.“
The GSMA report positions the ongoing tariff adjustment deliberations as a strategic move to secure the sector’s long-term viability. With Nigeria’s digital future at stake, finding a balance between affordability for consumers and sustainability for operators is paramount to ensure continued growth and innovation in the telecom landscape.
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.
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