East Africa – mobile services

Our six markets in East Africa are at the heart of one of the most dynamic parts of the continent, with a regional GDP growth rate of 4.7% in 2024 and an expected rate of 5.7% in 2025/26, according to the World Bank. What is more, the population is relatively young, with a median age of 18 – meaning that tens of millions of young people are joining the digital economy every year. Smartphone penetration increased by 3.9% in our markets last year – but was still only at 42.3% as of March 2025. So there is a clear growth runway for services and products that help unlock digital opportunity.

We aim to win new customers – and retain the loyalty of existing ones – by expanding reliable connectivity and improving user experience. This year that has included rolling out 1,722 new 4G sites and adding 432 5G sites while significantly expanding our data capacity. And across our markets we have made it easier for customers to use our services – for example, through digital self-recharges which now account for almost half of all recharges, a transaction that, until recently, was entirely paper-based. MyAirtel app users has increased 74% year on year.

Like our customers and other mobile network operators, we have adapted in the face of some challenges this year. A severe drought in Zambia, where hydropower makes a significant contribution to the energy network, caused extensive load-shedding and served as a reminder of the importance of our net zero ambitions and our climate resilience planning. Our Zambia business quickly returned to growth. There were also periods of devaluation in Malawi, Rwanda and Zambia. Nonetheless, the region saw strong constant currency growth while we continue to transform lives – for example through the ConnectRwanda 2.0, programme which has so far helped more than a million Rwandan customers own their first smartphone – see more details in Our sustainability strategy.

East Africa revenue grew by 13.6% in reported currency to $1,843m and by 18.8% in constant currency. The constant currency growth was made up of voice revenue growth of 11.9%, data revenue growth of 26.2% and other revenue growth of 27.1%, respectively.

Voice revenues were supported by customer base growth of 11.7% and voice ARPU growth of 1.3%. The customer base growth was largely driven by expansion of both increased network coverage and the increasing scale of the distribution network.

Data customer base growth of 18.4% and data ARPU growth of 9% drove the strong performance in data revenues. Our continued investment in the network and expansion of 4G network infrastructure resulted in 99.5% of our East Africa network sites enabled for 4G, compared to 96.4% in the prior period. Furthermore, 1,231 sites are 5G enabled across four key markets. Data usage per customer increased to 6.2 GB per customer per month, up by 30.2%, with smartphone penetration increasing 3.9% to reach 42.3%. Smartphone data usage per customer reached 7.8 GB per month compared to 6.3 GB per month in the prior period.

Underlying EBITDA increased to $877m, up by 11.4% in reported currency and up by 17.1% in constant currency. Underlying EBITDA margins of 47.6% declined by 96 basis points as a result of rising fuel prices in key markets.

Operating free cash flow was $585m, up by 26.0% in constant currency, due largely to underlying EBITDA growth.

The differential in growth rates (between constant currency and reported currency) is primarily driven by the devaluation in the Zambian kwacha and the Malawian kwacha, partially offset by the Kenyan shilling appreciation.

We operate in an evolving legal and regulatory landscape. Relevant changes in our region this year include:

Know your customer (KYC)

Rwanda
In August 2024, the regulator, RURA, issued an enforcement notice that required all operators to stop all street and kiosk-based SIM card registration and swaps, and revoke the KYC credentials of all SIM registration agents within 24 hours. Airtel Rwanda implemented this directive and addressed the gaps in its SIM card selling outlets to ensure strict adherence to the KYC requirements. Airtel Rwanda co-operated with RURA and, in December 2024, Airtel Rwanda was granted written authorisation to restore KYC credentials to authorised kiosks, enabling agents to provide SIM registration and swap services in rural and underserved areas.

Zambia
Following an amendment to the Income Tax Act, on 20 December 2024, the Zambia Tax Authority required that MNOs, with effect from 1 January 2025, collect customer tax PINs as part of the onboarding KYC process for both telecoms and mobile financial service customers. Compliance with the legal requirement was to take effect on 1 January 2025.

Mobile termination regulation (MTR)

Rwanda
In August 2024, the Government of Rwanda signalled an end to the current zero MTR rate. The consultant hired by the regulator has proposed the introduction of a symmetric MTR rate of Rwandan franc 0.83 per minute for voice and Rwandan franc 0.1 for SMS, respectively.

Uganda
In August 2024, the Uganda Communications Commission (UCC) reduced the MTR rate from Ugandan shillings 45 per minute to Ugandan shillings 26 per minute with effect from 1 September 2024, pending the conclusion of an MTR cost study, which has not yet been finalised.

Zambia
Effective 1 January 2025, the Zambia Information and Communications Technology Authority (ZICTA) imposed an interim asymmetrical MTR rate in favour of Zed Mobile, a new entrant in the telecoms market. The MTR payable to the three existing operators remains at Zambian kwacha 0.09 per minute, while the MTR rate payable to Zed Mobile has been set at Zambian kwacha 0.13 per minute pending the conclusion of a cost study.

Licences and spectrum

On 6 September 2024, Airtel Kenya received confirmation from the regulator of the extension of existing network facility provider, application service provider, content service provider and international gateway station and service licences as well as its spectrum in 900 MHz, 1800 MHz and 2100 MHz that were due for renewal in January 2025 for a period of 24 months effective from January 2025.