Airtel Africa To Double Data And Mobile Money Penetration In Next 5 Years -Analysts
Analysts have reported that Airtel Africa's mobile money and data penetration are set to double in the next five years.
Airtel is Africa's second-largest telco, with over 100 million mobile subscribers as of June 2019, and holds a leading position in most of its markets.
Goldman Sachs predicts a 9 percent revenue compound annual growth rate (CAGR) over 2019 to 2024, driven by 18 percent data CAGR and roughly 30 per cent CAGR in the Airtel Mobile Money business.
The brokerage firm said that a mix of an under-penetrated telecoms market, a young population, and increasing smartphone affordability, together with low data penetration, would promote growth opportunities for Airtel Africa.
Airtel Africa's data subscribers have grown by 33 percent between 2017 and 2019.
Approximately 21 percent of Airtel Africa's users are on 4G, 43 percent are on 3G, while 36 percent use 2G. The operator continues to invest in its 4G network, having added close to 1,500 sites means that more than half its locations are now on 4G.
In regards to Airtel Africa's mobile money business, analysts feel that most of the firm's operating countries are under-banked. The company has a distribution network of close to 300,000 money agents. Airtel is currently gearing up for the launch of its Mobile Money business in Nigeria.