The stability of the Nigerian naira has significantly driven up the share prices of telecommunications companies in the country. Since January, the naira has appreciated to ₦1,447.79 to the dollar, following devaluations in 2023 and 2024 that had pushed it as low as ₦1,690. This development has allowed growth in data and mobile money businesses to positively impact the bottom line of telcos.
The Central Bank of Nigeria’s decision to allow price hikes after a 12-year freeze has also contributed to the surge in share prices. In 2025, tariffs were lifted by 50%, further boosting the industry. Airtel Africa, majority-controlled by India’s Bharti Airtel, has been a key beneficiary of this trend. The company’s share price has surged 164%, with after-tax profit rising nearly fivefold to $376 million in early September.
Airtel’s mobile money arm, Airtel Money, has been a crucial factor in the company’s re-rating. The business is slated for a separate listing in the first half of 2026, with market growth expectations already factored into the company’s valuation. Airtel Africa trades at 4.6 times expected core earnings, up from below 3 only four months ago, and is valued at $14.6 billion.
Other African operators, such as Kenya’s Safaricom and MTN, have also seen their shares rally, although they remain below record highs. Safaricom, which pioneered mobile money in 2007, is up 70% in U.S. dollar terms this year, while MTN has more than doubled and Vodacom is up 52%. The growth prospects of these companies are underpinned by the low phone penetration and population growth in the continent.
In a region where much of the population lacks access to banks, telecom operators have provided financial lifelines through mobile money services. Airtel Money processed transactions worth an annualized $193 billion in the second quarter of this year, a rise of 36% and roughly equivalent to Nigeria’s entire GDP. The investment case for these companies extends beyond voice to data and mobile money, with a long runway for growth.
The number of unique mobile subscribers in Africa and the Middle East is expected to grow 71%, or by some 800 million, by 2050, compared with 15% in the rest of the world. Despite potential currency volatility and regulatory unpredictability, investors remain optimistic about the sector’s prospects. With the listing of Airtel Money on the horizon, there is still upside potential for investors, according to portfolio manager Sergey Dubin. The growth of mobile money services and data businesses is expected to continue driving the share prices of telcos in the region.