Principal risks and mitigation
Alignment with our strategy
Brilliant network experience
Must win markets
Digitise and simplify
Accelerate Airtel Money
Scale HBB and enterprise
Strengthen ‘go-to-market’
Strategic risks
1. Adverse competition and market disruption
Description of risk
We operate in an increasingly competitive environment across our markets and segments, particularly with respect to pricing and market share. Aggressive competition by existing players or the entry of a new player could put a downward pressure on prices, adversely affecting our revenue and margins, as well as our profitability and long-term survival. The nature and level of the competition we face varies for each of our markets, products and services.
How we mitigate this risk
- Ongoing monitoring of competitive landscape and competitor activities.
- Emphasis on customer experience, affordability, product penetration and development of our product portfolio.
- The continued growth of our Airtel Money business and the increased use of Airtel Money services by our GSM customers helps to increase customer ‘stickiness’ on our network.
- Simplifying customer experience through self-care and other applications across several customer touchpoints.
Key developments in the year
- Refinement of the Group’s strategy with a focus on delivering great customer experience, brilliant network experience, and digitalising and simplifying the customer journey to build brand loyalty and unlock growth opportunities across our markets.
- Continued investment in our various new businesses – Nxtra by Airtel and Telesonic – to ensure diversification and resilience of the Group’s business portfolio.
Risk appetite
Open
Risk owners
Chief commercial officer
2. Digitalisation and innovation
Description of risk
Failure to innovate through simplifying the customer experience and developing adequate digital touchpoints in line with changing customer needs and the competitive landscape could lead to loss of customers and market share.
How we mitigate this risk
- Rollout of digital apps and self-care channels to simplify customer experience.
- Airtel Africa Digital Labs’ focus on developing cutting-edge digital solutions to address customer needs and solve complex problems using the latest technologies.
- Simplifying our core IT systems and integration capabilities to allow for faster deployment of new products and services and integration with third-party applications.
Key developments in the year
- Strengthening our Digital Labs environment through the integration of key areas such as front-end, back-end, data engineering and analysis to create a comprehensive Digital Lab environment.
- Consolidation of our Mobile Financial Services (MFS) Lab into our broader Digital Labs to create better alignment and synergies.
- Rollout of our ‘All engineering hands on deck’ training programme and leadership engagement.
Risk appetite
Open
Risk owners
Chief information officer and chief commercial officer
3. Geopolitical risks and adverse macroeconomic conditions
Description of risk
Global geopolitical tensions and changes in macroeconomic conditions have the potential to impact our business both directly and indirectly. These impacts include potential increases in the cost of our inputs and negative effects on the disposable incomes of our customers, which could, in turn, affect sales and profitability. In recent months, we have observed heightened uncertainty surrounding global trade policies and the realignment of the global trade order. This has led to the imposition of tariffs and counter-tariffs between various trading nations, resulting in higher prices for consumers and increased input costs for producers
Additionally, this trade uncertainty has raised the likelihood of a global recession if the current situation persists. While these events remain fluid, there is a risk of indirect impact on the Group should the situation lead to a global recession, a deterioration in macroeconomic conditions, or further increases in the prices of goods. Any of these outcomes could drive up input costs, putting pressure on the Group’s margins.
How we mitigate this risk
- Improving the overall resilience of our business through effective strategic investment, an optimal operating model, and a solid financial base.
- Building resilience through our supply chain to minimise potential disruptions.
- Ongoing monitoring of external environment and macroeconomic trends to ensure adequacy of risk response plans.
- Continuous cross-industry engagement on key policy matters.
Key developments in the year
- On 20 January 2025, the Nigerian Communications Authority (NCC) granted approval for tariff adjustments following requests from the telecom operators in Nigeria in response to the prevailing market conditions. The adjustments are capped at a maximum of 50% of current tariffs, with requests reviewed on a case-by-case basis by the NCC. See more in our Nigeria business review.
Risk appetite
Flexible
Risk owners
Chief financial officer, chief supply chain officer and chief regulatory officer
Operational risks
4. Cyber and information security threats
Description of risk
Cybersecurity threats through internal or external sabotage or system vulnerabilities could potentially result in customer data breaches and/or service downtimes. Like any other business, we are increasingly exposed to the risk that third parties or malicious insiders may attempt to use cybercrime techniques, including distributed denial of service attacks to disrupt the availability, confidentiality and integrity of our IT systems. This could disrupt our key operations, make it difficult to recover critical services and damage our assets.
How we mitigate this risk
- Security posture assessments and control gap review across the technology stack to identify security solutions and tools to address inherent and emerging risks.
- Security assessments covering technology infrastructure and applications to identify security risks on a continual basis.
- Cybersecurity awareness programmes, including mock exercises such as phishing simulation to evaluate preparedness of staff and effectiveness of security tools.
- Introduction of customer security awareness initiatives.
Key developments in the year
- Continued cybersecurity awareness and phishing exercises for all employees as part of our first line security defence.
- Continued improvement to our defence-in-depth strategy through strengthening and governance review of key controls.
- Annual surveillance certification for ISO 27001 and ISO 22301 for the whole Group.
Risk appetite
Averse
Risk owners
Chief information officer
5. Increase in cost structure
Description of risk
Adverse changes in our external business environment and/or supply chain processes could lead to a significant increase in our operating cost structure and negatively impact profitability. Our operating costs are subject to supply chain risks, including fluctuations in global commodity prices, market uncertainty, energy costs (such as diesel and electricity), and the cost of obtaining and maintaining licences, spectrum and other regulatory requirements. To mitigate this risk, the Group continually re-evaluates its operating model and cost structure to identify innovative ways to optimise our costs and improve profitability.
During the financial year, there was significant inflation in the price of fuel (diesel) putting pressure on our operating costs, particularly in our Nigeria operation.
How we mitigate this risk
- Continuous review of our operating model and supply chain processes to identify cost optimisation opportunities.
- Rolling out various initiatives to optimise our operating structure to improve business performance.
- Long-term planning and buying strategies mitigating the effects of short-term disruptions within our supply chain.
Key developments in the year
- By converting sites from off-grid to grid, reducing diesel consumption by deploying lithium ion batteries and working with towercos to reduce fuel consumption, we were able to mitigate and derisk exposure to energy-related price increases.
- We renewed our tower lease agreements with American Tower Corporation (ATC) and IHS for approximately 8,300 sites across Kenya, Niger, Nigeria, Uganda and Zambia with medium-term cost benefits for the Group through contractual terms addressing renewable energy transition and component of the cost linked to foreign currency.
- We continued the digitalisation of our sales and customer touchpoints to drive cost savings and improve overall efficiency.
Risk appetite
Flexible
Risk owners
Chief supply chain officer
6. Leadership succession planning
Description of risk
We need to continually identify and develop successors for key leadership positions across our organisation to ensure minimal disruption to the execution of our corporate strategy.
Our ability to execute our business strategies depends in large part on the efforts of our key people. In some of the countries in which we operate, there is a shortage of skilled telecommunications professionals. Any failure to successfully recruit, train, integrate, retain and motivate key skilled employees could have a material adverse effect on our business, the results of our operations, financial condition and prospects.
How we mitigate this risk
- Leadership development planning through skills and competency assessments for critical roles.
- Regularly update succession plans at OpCo and Group level including calibrating and assessing talent pipelines through the Group talent council.
- Long- and short-term incentives for retention of high-performing talent.
- Talent mapping a larger talent pool across Africa, Europe and Asia to meet current and future business needs.
- Inclusion of succession plans in leadership KPIs across the Group.
Key developments in the year
- Successful transition and succession planning following the announced retirement of our current CFO. We announced that the Group’s deputy CFO has been appointed CFO with effect from 9 July 2025. See more in the Directors’ remuneration report.
- Launch of our global talent accelerator programme, an Africa-India initiative to strengthen the technical and leadership capabilities of senior leaders through project-based assignments, exposure to large market operations, coaching from senior business leaders and a six-month short-term assignment to Airtel India.
- Launch of our commercial masterclass programme, a two-day programme designed to accelerate and improve our performance, capabilities, go-to-market strategy and leadership capabilities to drive results.
Risk appetite
Cautious
Risk owners
Chief human resources officer
7. Internal controls and compliance
Description of risk
Gaps in our internal control and compliance environment could affect our reputation and lead to financial losses. Our financial reporting is subject to the risk that controls may become inadequate due to changes in internal or external conditions, new accounting requirements, or delays or inaccuracies in reporting. We continue to implement internal risk management and reporting procedures at the Group and OpCo levels to protect against risks of internal control weaknesses and inadequate control over financial reporting. Additionally, the Group continues to review the effectiveness of its risk management and internal control framework to ensure full compliance with Provision 29 of the 2024 Corporate Governance Code. The Group has initiated internal assessment reviews on the appropriate framework and methodology to evidence compliance with this provision when it takes effect.
How we mitigate this risk
- Ongoing self-reviews and continuous strengthening of the Group’s internal controls over our financial reporting framework and compliance processes.
- Addressing and mitigating findings from Internal Audit, with oversight from the Audit and Risk Committee.
- Implementing a robust system for assessing and monitoring key controls across the Group and commissioning independent assurance testing of internal controls.
Key developments in the year
- Implementation of the Committee of Sponsoring Organisations (COSO) framework for documenting and providing assurance for entity-level controls across the Group.
- Improvements in our Internal control over financial reporting (ICOFR) process through the incorporation of additional fraud controls and strengthening of material controls.
- Preparing for internal controls attestations required by regulations in Nigeria.
Risk appetite
Averse
Risk owners
Chief financial officer
8. Technology resilience and business continuity
Description of risk
Our ability to provide quality of service (QoS) to our customers and meet QoS requirements depends on the robustness and resilience of our technology stack and ecosystem encompassing hardware, software, products, services and applications, as well as our ability to respond appropriately to any disruptions. Furthermore, a resilient technology stack is critical for improving our operational efficiency as an organisation and the achievement of the goals that we have set for ourselves. However, our telecoms networks are subject to risks of technical failures, aging infrastructure, human error, wilful acts of destruction or natural disasters. This can include equipment failures, energy or fuel shortages, software errors, damage to fibres, lack of redundancy plans and inadequate disaster recovery plans.
How we mitigate this risk
- Implementing geographically redundant disaster recovery sites to provide back-up for our networks and IT infrastructure across our OpCos.
- Regular testing of fallback plans for network and IT systems to ensure reliability of switchover from active to redundant nodes in the event of a disaster.
- Continuous reviews and refreshing our technology ecosystem to ensure all systems are fit for purpose and to eliminate security vulnerabilities.
Key developments in the year
- Redesign of our technology disaster recovery strategy for both main and recovery sites to improve latency and minimise disruptions in the event of a disaster incident.
- Significant improvement over the past year in our disaster recovery portfolio through focused implementation of our revised strategy and continuous disaster recovery drills to test the performance of our recovery sites.
Risk appetite
Cautious
Risk owners
Chief technology officer and chief information officer
Financial risks
9. Exchange rate fluctuations and shortage of foreign currency
Description of risk
Our multinational footprint means we’re constantly exposed to the risk of adverse currency fluctuations and the macroeconomic conditions in the markets where we operate.
We derive revenue and incur costs in local currencies where we operate, but we also incur costs in foreign currencies, mainly from buying equipment and services from manufacturers and technology service providers. That means adverse movements in exchange rates between the currencies in our OpCos and the US dollar (USD) could have a negative effect on our liquidity and financial condition. In some markets, we face instances of limited supply of foreign currency within the local monetary system.
This negatively impacts our ability to make timely foreign currency payments to vendors and constrains our ability to fully benefit at the Group level from strong cash generation by those OpCos. Given the severity of this risk, specifically in some of our OpCos, Group management continuously monitors the potential impact of exchange rate fluctuations based on the following methodology:
- Comparing the average devaluation of each currency in the markets in which the Group operates against US dollar on a ten-year historic basis and onshore forward exchange rates over a one-year period if available.
- Additionally, for our Nigerian operations, management uses different sensitivity analysis for scenario planning purposes which includes the recent impact of the naira devaluation.
- With respect to currency devaluation sensitivity going forward, on a 12-month basis assuming that the USD appreciation occurs at the beginning of the period, a further 1% USD appreciation across all currencies in our OpCos would have a negative impact of $46m-$48m on revenues, $22m-$24m on underlying EBITDA and $25m-$27m on foreign exchange loss (excluding derivatives). Our largest exposure is to the Nigerian naira, for which, on a similar basis, a further 1% USD appreciation would have a negative impact of $12m-$13m on revenues, $6m-$7m on underlying EBITDA and $14m-$15m on foreign exchange loss (excluding derivatives). This does not represent any guidance and is being used solely to illustrate the potential impact of further currency devaluation on the Group for the purpose of exchange rate risk management. The accounting under IFRS is based on exchange rates in line with the requirements of IAS 21 ‘The Effect of Changes in Foreign Exchange’ and does not factor in the above-mentioned devaluation.
How we mitigate this risk
- Renegotiating forex-denominated contracts to local currency contracts.
- Hedging foreign currency denominated payables and loans, and matching assets and liabilities, where possible.
- Adequate funding arrangements to mitigate any short-term liquidity constraints caused by fluctuations in forex supply.
- Geographical diversification enables access to liquidity across our footprint.
Key developments in the year
- On 20 May 2024, the company announced that it had repaid in full the 5.35% Guaranteed Senior Notes maturing in May 2024. This bond repayment of $550m was made exclusively out of the cash reserves at HoldCo and is a continuation of its strategy to reduce external foreign currency debt. See more in the Financial review.
Risk appetite
Flexible
Risk owners
Chief financial officer
Governance and compliance risks
10. Uncertainty in policy and regulatory environment
Description of risk
We operate in diverse legal and regulatory environments. Establishing and maintaining adequate procedures, systems and controls enables us to comply with our obligations for the services we provide to our customers in all the jurisdictions where we operate.
In some of our markets, we are faced with the risk of unanticipated changes in the policy, legal, tax and regulatory environment, exposing us to adverse financial and reputational impact.
The legal and regulatory frameworks we work with fall into two categories: (1) telecom services (2) mobile financial services. In addition, we seek to comply with requirements regarding consumer protection and fair competition. The legal frameworks are unique to each country, and they constantly evolve.
How we mitigate this risk
- We operate within the laws and regulatory frameworks of governments and regulatory agencies in our markets – and we always work to ensure that our operations meet local legal and regulatory requirements.
- Institute various policies across the Group to comply with compliance obligations in jurisdictions where we operate.
- Continuing engagement with regulators and active participation in industry bodies on key policy matters.
- Regular compliance tracking, identifying root causes for cases of non-compliance and taking corrective actions.
- Escalation process for reporting significant matters to the Group office in a timely manner.
- Communicating with and training employees in relevant company policies.
Key developments in the year
- We significantly strengthened our process for identifying, monitoring and remediating compliance obligations across our Airtel Money subsidiaries with regular reporting and oversight from the Board.
- Legal and regulatory developments in each of our regions this year are described in our 'Business reviews' section.
Risk appetite
Averse-cautious
Risk owners
Chief legal officer and chief regulatory officer
Emerging risks
Climate change: we continue to evaluate the potential impact of climate change on our business operations and on the economies in which we operate. In TCFD disclosures we describe the outcome of our assessments of physical and transition risks related to climate change and the mitigation in place. In October 2021, we launched an ambitious sustainability strategy that underpins our well-established corporate purpose of transforming lives. As part of our reduction of greenhouse gas (GHG) emissions goal, our ambition is to achieve net zero emissions ahead of the 2050 deadline set out in the Paris Agreement. To achieve this, we understand the importance of fully identifying, measuring and reducing GHG emissions which can only be achieved in partnership with our peers and the wider industry.
Our goal of reducing our GHG emissions is not only a core component of our sustainability strategy but also a key imperative to reduce energy costs across some of our markets through the adoption of renewable energy sources to mitigate the increased diesel costs in markets where grid availability is a challenge. We continue to publish progress on GHG emissions reduction initiatives in our Sustainability Report 2025. For more details, visit www.airtel.africa.