Annual Report (ESEF) • Jun 1, 2022
Preview not available for this file type.
Download Source FileAirtel Africa PLC 254900ZNZDQL6OWQH623 2020-04-01 2021-03-31 254900ZNZDQL6OWQH623 2021-04-01 2022-03-31 254900ZNZDQL6OWQH623 2022-03-31 254900ZNZDQL6OWQH623 2021-03-31 254900ZNZDQL6OWQH623 2020-03-31 254900ZNZDQL6OWQH623 2020-04-01 2021-03-31 ifrs-full:IssuedCapitalMember 254900ZNZDQL6OWQH623 2020-04-01 2021-03-31 ifrs-full:RetainedEarningsMember 254900ZNZDQL6OWQH623 2020-04-01 2021-03-31 aaf:TransactionsWithNoncontrollingInterestsReserveMember 254900ZNZDQL6OWQH623 2020-04-01 2021-03-31 aaf:OtherComponentsOfEquityMember 254900ZNZDQL6OWQH623 2020-04-01 2021-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 254900ZNZDQL6OWQH623 2020-04-01 2021-03-31 ifrs-full:NoncontrollingInterestsMember 254900ZNZDQL6OWQH623 2021-04-01 2022-03-31 ifrs-full:IssuedCapitalMember 254900ZNZDQL6OWQH623 2021-04-01 2022-03-31 ifrs-full:RetainedEarningsMember 254900ZNZDQL6OWQH623 2021-04-01 2022-03-31 aaf:TransactionsWithNoncontrollingInterestsReserveMember 254900ZNZDQL6OWQH623 2021-04-01 2022-03-31 aaf:OtherComponentsOfEquityMember 254900ZNZDQL6OWQH623 2021-04-01 2022-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 254900ZNZDQL6OWQH623 2021-04-01 2022-03-31 ifrs-full:NoncontrollingInterestsMember 254900ZNZDQL6OWQH623 2020-03-31 ifrs-full:IssuedCapitalMember 254900ZNZDQL6OWQH623 2020-03-31 ifrs-full:RetainedEarningsMember 254900ZNZDQL6OWQH623 2020-03-31 aaf:TransactionsWithNoncontrollingInterestsReserveMember 254900ZNZDQL6OWQH623 2020-03-31 aaf:OtherComponentsOfEquityMember 254900ZNZDQL6OWQH623 2020-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 254900ZNZDQL6OWQH623 2020-03-31 ifrs-full:NoncontrollingInterestsMember 254900ZNZDQL6OWQH623 2021-03-31 ifrs-full:IssuedCapitalMember 254900ZNZDQL6OWQH623 2021-03-31 ifrs-full:RetainedEarningsMember 254900ZNZDQL6OWQH623 2021-03-31 aaf:TransactionsWithNoncontrollingInterestsReserveMember 254900ZNZDQL6OWQH623 2021-03-31 aaf:OtherComponentsOfEquityMember 254900ZNZDQL6OWQH623 2021-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 254900ZNZDQL6OWQH623 2021-03-31 ifrs-full:NoncontrollingInterestsMember 254900ZNZDQL6OWQH623 2022-03-31 ifrs-full:IssuedCapitalMember 254900ZNZDQL6OWQH623 2022-03-31 ifrs-full:RetainedEarningsMember 254900ZNZDQL6OWQH623 2022-03-31 aaf:TransactionsWithNoncontrollingInterestsReserveMember 254900ZNZDQL6OWQH623 2022-03-31 aaf:OtherComponentsOfEquityMember 254900ZNZDQL6OWQH623 2022-03-31 ifrs-full:EquityAttributableToOwnersOfParentMember 254900ZNZDQL6OWQH623 2022-03-31 ifrs-full:NoncontrollingInterestsMember iso4217:USD xbrli:shares iso4217:USD xbrli:shares Air tel A fr ica p lc An nual Rep or t a nd Accou nt s 20 22 Air tel Africa plc Annu al Re por t and Accounts 20 2 2 T r ans for min g l i ve s Strat egic repor t 1 Air tel Afr ic a over v iew 12 Chair ’s st ateme nt 1 4 Chiefexe cu tiveo ce r ’sreview 1 6 Our inve st men t prop osit ion 1 7 Our key p er fo rman ce in dic ator s 20 Our market environment 23 Legal a nd reg ulator y fram ewor k 2 4 Our b usines s mod el 2 6 S t akeholder eng agement 3 1 Our s tr ateg y 43 Our sus t ainabi lit y s tra tegy 59 C orpor ate social responsibility 62 Busin ess rev iew s 62 – Nige ria 64 – Eas t Afr ic a 66 – Francophone Africa 68 – Mob ile se r vi ces 70 – Air tel Mon ey 72 Air tel Busin ess 73 Digital Labs 7 4 CFO ’sintrod uc tio ntothe nancialreview 7 6 F inancial review 80 Managing our risk 83 Principal risks and mitigat ion 87 Our l ong -te rm v iabili t y st atem ent Governance repor t 90 Our B oar d of dire cto rs 94 Our E xe cut ive C ommi t tee 96 Chair’s introduction 98 Our l eade rship 1 03 Board evaluation 1 04 Au dit an d Risk C ommi tt ee rep or t 1 14 N ominat ions C omm it tee re por t 1 19 O urco mplian cewi tht heU KCor po rate Gove rnan ce C ode 12 3 D irec tor s’ rep or t 12 7 D irec tor s’ resp onsibi lit ies s tate ment 12 8 D irec tor s’ remun erat ion re por t Financial st atements 1 5 2 Ind epe nden t audi tors’ re por t 1 62 C onso lidate d s tatem ent of c ompre hensi ve inc ome 1 63 C onso lidate ds tatem entofn ancialp osi tion 1 64 C onso lidate d s tatem ent of ch anges i n equ it y 1 65 C onso lidate ds tatem entofc ashow s 1 68 N otestoco nsoli dated nancia lst atem ent s 22 5 C ompa nyst atem entofna ncialp osit ion 22 6 C ompa ny st atem ent s of chan ges in e qui ty 22 7 N otestoco mpanyo nlyna ncials t ateme nt s Ot her information 2 35 For ward-lo oking statemen ts 2 36 Glossa r y 2 40 General sha reholders’ in formation Connec t ing t he unconnec t e d. In cl ud in g the n anc ia lly e xc lude d. Br idging the digit al di vide. By pr ov id ing c r itica l se r vi ce s t o cu stom ers an d so cieti es a cro ss ou r co ntin ent, Air t el A f rica is un locki ng the po te nti al f or peop le, bu si nes s e s an d eco no mie s t o gro w . A i r t e l A f ri c a i s t rans for ming liv es a c r oss Af r i c a . 128 . 4 m total cus tomers 14 sub -Sahar an c ountri es 4 6 .7 m data customers 26 . 2m Air tel Money customers 1 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 ‘ Th e po wer o f da ta ’ Wat c h V io let ’s s tor y in ful l on ou r co rp ora te web site at ww w.air tel .afr ica Strategic repor t 2 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Mee ting Afr ica’s urgent need for connec t ion Unlocking potential through ourn et wo rk Afr ic a is a dynam ic co ntin ent fu ll of poss ibili t y , w ith a yo ung p opula tio n that ’s growi ng fas t . Mill ions of p eo ple have busine ss dreams t hat co uld tra nsfo rm t heir li ves – if o nly t hey coul d make th em happ en . Bu t whil e mobi le tel ec oms pe netr atio n is rapi dly expan ding , at 1. 8% CAG R grow t h ( 2021 -202 5) , i t is st ill fa r lower t han in much of t he wo rl d. T oo many p eo ple st ill la ck qual it y acc ess to m obil e, digital and banking ser v ices – and that’s holding back individuals , businesse s, and whole economies. We’ re bringing mobil e banking, data and tel ec oms to co mmuni ties a cros s sub- Saharan Afric a – and helping tounlo ck the potent ial of p eo ple andso cie ties . * So urc e: G lo bal G SM A re po r t (2022 ) 5 98 million popu lation ac ross the G roup’s footp rint 47 % uniqu e mob ile use r pen etr atio n Violet Kabaramizo is using Air te l Afr ic a’s 4G netwo rk an d Air tel Mon ey to run h er onl ine cl othe s busine ss fro m her vi llage i n Wester n Uga nda , sending designs directl y to Kampala. Ni ki mpa ek itiis a mu no ok uro ra en gon y e zang e niz ijw ar wa abak yara abant akaror aga – ag o nig o am an yi ga da ta. It ma k es me pro ud t o see my de si gns be in g wo rn by wo men I ’v e ne v er met – an d tha t ’ s the po we r of da t a. For info rm ati on abo ut our ‘ Win wi th net wo rk ’ st rate gy, see pa ge s 3 2- 33 For info rm ati on abo ut our ‘ Win wi th dat a’ str ateg y, s ee p ag es 36 -37 3 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Je su is heu reu x qu’ il y aitu n ki o sq ue Air t el déd ié pr ès de che z moi – ce la me fac ilit e la vie. I am hap py ther e is a ded ica ted Air t el kio sk clo se t o my ho me – it mak es m y lif e much e as ier . For mo re infor mat ion on our ‘ Wi n with dis tr ib ut ion’ st ra teg y, se e pa ge s 34- 35 Get ting closer to our cu stomers , wherever they ar e Every thing change s for people in remote ar eas whe n our ne two rk reaches their communit y . In market s like t he Democratic Republic of the Co ngo, p eo ple c an be h undre ds of miles f rom t he nea res t bank , an d cut o from bankin g ser vic es as we ll as many fr ien ds and fa mily me mbe rs . We’ve reache d an es ti mated 4 1.5mil lion pe ople thro ugh our networ k expansion programme to - date, ma king i t pos sible fo r th em to use Ai r tel M one y , dat a and m obil e ser vice s to conn ec t wi th love d on es and th e wid er ec ono my . We’ re now ser ving 10. 7 milli on cus tome rs ove rall in the DRC – including 4.6 million in remote o r rur al lo cat ions w here infr ast ru ct ure is limi ted or n on - exis tent . 4 1 . 5 million people reached thr ough our network expansion programme Including the excluded – and creating possibili ty Than ks to o ur net wor k exp ansion programme, Jean - F ran ci s Muya can acc ess ou r mobi le se r vi ces in t he marketplace wit hin a shor t walk from his hous e in Ba ndalun gwa , Kins hasa. Strategic report 4 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 5 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Strategic report Strategic repor t 6 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Ndabu ka cila bushiku uk uwamy a imikalile yandi muk ub ombesha, nemikalile y a ban tu ba mb i. I wak e up ev er y da y , no t ju s t t o ma k e my lif e bett er b y w orkin g ha rd, but t o enh an ce o ther peop le ’ s liv es as we ll. The more we ser ve, the more we gr ow Reaching the nancially excluded and bridging the di gital divide We’ re passio nate ab out p rovid ing mo re ser vice s, to mo re cus tome rs – b ec ause the ir succ ess drives ours . Our‘ Wi n w it h’ st rate gy is bu ilt aro und de live ring critical ser vices that cre ate social value f or all t he co mmuni tie s in our 1 4 market s – and t he more we g row our dis tr ibu ti on net wo rk , th e more pe opl e we can re ach . This yea r , we’ve reached more than 69,0 0 0 exclusi ve retail touchpoint s, inclu ding minishops, kiosks and Air tel Mo ney branches . We’ve also del ivere d und erl yin g revenu e grow th of 21.3% and prot af ter t ax gr ow th of 82.0 % , wh ile stren gthening our balance she et and redu cing o ur de bt . It means w e can keep bridging the digi tal divide for milli ons of pe op le – and e nsures we can p lay our pa r t in b uildi ng a bri ghterf utur e. 78 . 3% pop ulati on covera ge at t he Grou plevel 41 . 7 % of our si tes are in t he ru ral areas For i nfo rmat io n on ou r ‘ W in wi th m obi le mo ne y’ s t rate gy, see p ag es 38 -39 Olivia Ch ichenga is f ounder and dire cto r of Gl onet C onn ec tio ns Limi ted , base d in Lus aka , Zamb ia. She’s now running three Air tel Money branches, employi ng 1 2 people and supp or t ing 350 ag ent s whil e hel ping us reach m ore cus tom ers t hrou gh our unique distr ibution net work . 7 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Il mi shi ne ma bu din duk kan al kha iri ga ma t a sa n A f rica da al um mom in s u ba ki da ya. E duca tion is the k ey t o un lock in g oppo r tu nity fo r y oun g peop le an d thei r co mmu nitie s ac ro s s Africa. Building a sus t ainable fu ture in Africa Delivering on our purpose of transforming lives Afr ic a is full of o pp or tu nit y – bu t italsof ace s challeng es , and w e’ve alway s be en dete rmin ed to p lay ourpa r t in a ddre ssing the m. Our sust aina bili ty s t rateg y is at th e hear t of ever y thing w e do, sha ping h ow weredu ce our environ ment al impac t , dri ve equit abl e digital and nanc ial inclusion, create rewarding jobs, and help build the vital education servic es that are c ri tic al for l if t ing mi llions o f famil ies ou t of pove r t y . 1 million + children to access qualit y educatio n through our programmes by 202 7 $ 57m nanc ial and in- kind cont rib ut ion to UN IC EF over t he f ve year s to acceler ate digital learning For mo re infor mat ion on our sus tai nabi lit y st rat eg y , see pa ge s 43- 58 Alrea dy, we’ve reache d tho usan ds ofst uden ts like Aishatu at t he Gove rnm ent Day Nu rse r y and P rima r y Sch ool Pa ntam i, in G omb e State , Nigeria, with our ‘ Adopt a scho ol’ prog ramm e – and now, like us , she is par t of A fr ica’s sus taina ble f utur e. Strategic report 8 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 9 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Niger Po p: 25 m Chad P o p : 17 m Nigeria P o p : 211 m Uganda P o p : 47m Gabon Po p: 2m Democratic Republic of th eCo ng o Po p: 92m Republic of t he C on go Pop: 6 m Rwanda Pop: 13m Kenya Po p: 55 m The Seychelles Po p: 0.1m Malawi Po p: 20 m Zambia Po p : 19m T anzania P o p : 61 m Madagascar Po p : 28 m Nige ria Eas t Afr ic a Francophone Africa At a glance W e operate i n 1 4 dyna mic , underpen etrated ma r ke t s whe r e s tr on g de m an d dr iv es o u r con ti n ued pro t abl e grow t h . An underpenetrated telecoms m arket, ayoung p opulation and r ising smar tphone aordabilit y , along w ith low dat a penetrat ion, give us grow th oppor tunit ies inboth voice and data. The tele coms market in sub- Saharan Africa is projec ted togrow by 4.9% CAGR over th e n ext ve years. At the same tim e, l ow p enetrati on oftradit ional banking ser v ices pro vides us with the oppor tunit y to meet the n eeds of unbanked cus tomers through our de dicated mobile money plat form, Air tel M oney . So urc e for popu lat io n gure s: Wor ld Ban k data 2021 es t ima te CAG R so urc e: G SM A sub -Sa hara n rep or t 2021 14 markets in our diver si ed por tfo lio 1 s t or 2 nd large st o per ator by cus tom er market share in 1 3 markets 2 .7 % projec ted compound annual pop ulati on grow th in ou r regi on by 2 026 23 . 3% revenu e grow t h in co nst ant cur renc y for A ir te l Afr ic a in F Y ’ 22, 20.6% in rep or te d cur ren cy Underlying revenue $ 4 , 7 14 m Repor ted currency +2 1 . 3 % Co nst ant cu rren cy +2 3 . 3 % Underlying EBI TDA $ 2 , 31 1 m Repor ted currency +2 9 . 0 % Co nst ant cu rren cy +31 . 2 % Op er ati ng pro t $1 , 5 3 5 m Repor ted currency + 3 7. 2 % Co nst ant cu rren cy +3 9 . 4 % Capex $6 56 m % change +6. 9% Bas ic e ar nin gs per share 1 6.8 cent s % change +86 . 5 % Underlying re venue contribut ion by region Y ear to Ma rc h 20 22 $m Ye a r t o M a r c h 2 0 21 $m Grow th in cons tant curren cy % Nige ria 1 , 878 1 , 5 52 2 7. 7 Eas t Afr ic a 1 , 717 1 , 3 81 2 2 .7 Francophone Africa 1 , 1 31 964 17. 2 T ot al 4 ,714 3,888 23. 3 T otal $ 4,71 4m $1, 878 m $ 1 ,7 17 m $1 , 1 31 m * Br eakd own o f und er ly ing r eve nue a s st ate d in a bov e tab le w ill n ot ad d up to t ota l rev enu e, si nc e it al so in cl ude s int er-se gme nt e lim inat io n of $12m ( 2021: $1 0 m). Th edi er enc e bet we en rep or ted and und er ly ing reve nu e in Mar ch 2021 re late s to on e -t ime exce pt ion al reve nue of $20m rela tin g to a se t tl eme nt in Nige r. Th ere is no die ren ce in Marc h 2022 All n anc ial num ber s are in repo r te d curr en cy Strategic report 10 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Our voice , dat a and mobile money ser vice s a re r e ach in g mo re p eop le t h a n ev er , an d tr ans for ming cus tomer s’ li ves. Underlying re venue contribut ion by service Y ear to Ma rc h 20 22 $m Ye a r t o M a r c h 2 0 21 $m Grow th in cons tant curren cy % Vo i c e 2, 35 8 2,0 83 15 . 4% Data 1 , 525 1 , 157 34.6% Air tel Money 553 4 01 3 4.9% Other^ 407 3 47 19 .9 % T ot al 4 ,714 3,888 23. 3% By e x tending our distribution network in both rural and semi- ur ban areas and providing resilient, far - reaching coverage, we’ve enabled millions of people to access telecoms and banking s er vi ces. By leading the wa y in the rollout o f 4G net work s and enabling people t o p rogress f rom 2Gt o 3G to 4G , w e’ve helped drive digitisation. Our expanding f ootprint of ret ailer s, agents and exclusive franc hises, supplemented by our unique oper ations, have helped deliver serv ices acros s our m arkets . And we ’re he lping build a new nancial ecosystem that’s f ull o f oppor tunit y . Our focus on increasing the n umber of mobile money usecases t hrough int ernational par tn erships and produc t innovation have helpe d d rive the t ake up of our mobile money ser v ices, boosting nancial inclusion. V oice We o er pre - and p os t-paid wireless v oic e services , international roaming and xed-line telephon y ser v ices. Dat a We o er a su ite of d ata communications ser v ices, incl udin g 2G, 3G a nd 4G . We provid e 4G ser vice s in all 1 4 of our ma rket s . Air tel Money We o er mobil e money ser vi ces , including digit al wallet payments sy ste ms, mi crol oans , sav ings and international money tra nsfe rs . 26 . 2m Air tel Mon ey cus tom ers 1 2 8 . 4 m total c usto mer s 4 6 .7 m data c usto mer s We’ re drivin g Air tel Mon ey grow th and nancial inclusion through st rategic par tne rships. 2 8 ,7 9 7 infr ast ru ct ure sites >2 . 2 m retail touchpoint s ( ag ent s and d ist rib utor s ) in our n et work 6 4 . 5 k+ kilometers of conn ec ti ng bre 8 7. 6 % sites p rovid ing 4G c overag e 4G ser vices ava ilable in all 1 4 market s * Br eakd own o f reve nu e as s tat ed in a bo ve ta bl e wil l not a dd up t o tot al re venu e, s inc e it a lso i ncl ud es in tr a- se gm ent re ven ues o f $129m ( 2021: $100m). Th e die ren ce bet w ee n repo r te d and unde rl yi ng reve nue in Marc h 202 1 rel ates to one - ti me exce pti ona l reven ue of $20m relat in g to a se tt le me nt in Nige r . Th ere is no die ren ce in Marc h2022 ^ Other revenue includes messaging , value added ser vices, tower sharing and enterprise T otal $ 4,71 4m $2, 358 m $1 , 525 m $ 4 07m $553 m 11 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Strategic report Chair ’s st atement P roviding essent ia l ser v ic es , and deli v er ing on ou r pu r p ose of t r a ns f o r mi n g li ves The launch of our sust ainabilit y st rategy this year is ano t her impor t ant step for ward for our business, which has shown once again tha t by consisten t ly focusi ng on providing essential, inclusive ser vices for our customers, we tr ansform lives and communities while d elivering sust ainable, protable grow th . Sunil Bhar ti Mitt al Chair Strategic report 12 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 W e have always aimed to create a model for providing aordable tele coms ser vices that is sustainabl e as well as pro tabl e – because for us, sustainabil it y and prot abilit y are inex tr icably linked. The m arket s we o per ate in are of te n und ers er ve d by tele co ms ser vice s, an d the y all have po wer f ul un der lyi ng macr oe con omic an d demo gra phic tren ds that dri ve demand – w hic h is re ec ted in this year ’s fur t her gr ow th i n our cus tom er bas e to 12 8 .4 milli on , and in ou r revenu es to $4,7 1 4m . We know t hat mee ting t hat de mand go es han d in hand w it h addre ssing t he cha llen ges fa ce d by the mi llio ns of pe opl e who st ill lack acce ss to dat a ser vi ces , to e ec ti ve communi cat ions infr ast ru ct ure, and to n ancia l ser vic es . That is why, as well as i nves ting in net wor k s and dis tr ibu ti on chan nels to br ing us c lose r to cus tome rs , and enabli ng nancial incl usion throu gh our mobile mone y ser vic es , the b usines s has alway s deli vere d prog ramm es in areas su ch as edu cat ion , heal th an d disas ter re lief t hat add ress lo ca l nee ds and ben et our commu nit ies . This yea r we took a f ur ther im por tant s tep , wit h the l aunc h in Oc tob er 202 1 of ou r ambi tious s ust ainab ilit y s tr ateg y , w hich u nder pins o ur well ‑ es t ablish ed cor por ate purpo se of t rans for ming lives . Thes tr ateg y demo ns trate s our co mmit men t to devel opin g the i nfras t ru ctu re and ser vice s that w ill drive digi tal and nanci al inclusio n for p eo ple acros s Afr ic a, an d provi des a f rame wor k for us to co ntr ibu te to six of t he Uni ted Nations’ Sus taina ble Devel opm ent Goals (UNSD Gs) . TheB oa rd was clo sely i nvolve d in over se eing t he de velop ment o f the s tr ateg y , whic h buil ds on t he s tron g found atio ns of the w ork we a re alrea dy doin g at a Gro up leve l and ac ross al l our lo ca l ope rati ons . It cove rs ever y as pe ct of o ur busin ess ac ti vit ies , and h as enviro nme ntal , so cial and gove rnan ce c rite ria at i t s core . Going f ur t her than ever to suppor t educ ation Our in itia l prog ress ag ains t our sus ta inabil it y s trate gy is d escr ibe d on pag es 43 -58 , an d we will p rovi de our s t akehol der s wi th re gular updat es in th e fu ture. I wo uld like to m enti on t wo aspe c ts o f the st rate gy he re: our c ommi tme nt to net zer o car bon , an d our on goin g dedica tion to supporting educa tion in Africa. Our ambi tio n i s to ac hieve net zero gree nhous e gas (GHG) emissions ahead of t he 2050 dea dline s et ou t in th e Paris Ag reem ent , an d we’ve comm it ted to la unch ing a se c tor -l eadin g de car bon isati on pat hway in 2 022, ah ead of t he publi cat ion of our rs t Sust ainabi lit y Repor t . This is an exc it ing deve lop ment , a nd fur the r det ails are on p age 54. Educ ati on has lo ng be en a pr io rit y fo r me and fo r ever yone at Ai r tel Afr ic a, so I a m par t icu larl y ple ased to hi ghlig ht our e duc atio n goa l of transfor ming the lives of over one million children through improving acc ess to e duc atio n, i nclu ding t he pro visio n of edu cat ion c ontent thro ugh our ve ‑year par t ner ship wit h UNI CEF , announ ce d in Novem ber 2021. Maintaining resilien t ser vices to suppor t customers t hrough the Covid - 1 9 pandemic The C ovi d- 19 pandemi c has see n many of ou r cus tomer s and t heir comm unit ies facin g continu ed disru ptio n and d i cul ty over the last year . T he si tuati on has var ie d wide ly ac ross ou r regi on and w e, like our cus tom ers , have ha d to adapt to ch angin g circu mst anc es , whil e cont inui ng to lo ok ou t for our n eighb our s . The re are signs of r eco ver y in many markets, which we welcome , while maintaining our readiness to respo nd if n ee de d. Thro ugh out t he cr isis , it has be en ve r y cle ar that dat a and te le coms ser vice s have be en ess entia l to pe opl e and e cono mies , and e ver yo ne at Air tel Afr ic a shou ld be p roud of t he wo rk we have d one to mai ntai n our ser v ices and keep ser v ing our custom ers . The Boa rd is co nd ent that t he busin ess has ha d the r ight m easures in p lace to p rote ct ou r col leagu es and c usto mer s, a nd we have also s upp or te d pro gramm es to addre ss so cial an d heal th ne eds i n our mar ket s, s ome of w hich a re desc rib ed o n pag es 59- 61. Our bigg es t cont ri but ion – w hich w ill cont inue t hrou gho ut th e rec over y – is to e nsure our o per atio ns remain resili ent , so t hey c an keep su ppo r t ing vi tal s er v ice s and in clud e more and more peo ple in nancial eco ‑ sy s tems and the tele co ms and digitaleco nomies. A co nsistent s tr ategy that creates val ue for all stakeholders This year has s een sever al changes for the Air te l Afric a Board . Wewelco med Se gun Ogunsa nya as ou r managing direc tor and chief execu ti ve ocer follow ing Raghu Mandava’s retireme nt , and Se gun was appoin ted to t he Boa rd in O cto ber 202 1, when we were also join ed by a new inde pen dent non ‑ exe cut ive direc tor , Ms T seg a Ge breyes . Jaide ep Paul, our chief nancia l ocer , joined the Bo ard wit hee ct fro m 1 Ju ne 2 02 1. Th ey have all show n themse lves to be val uable a ddi tio ns. Whil e we con tinu e to evolve as a b usines s, o ur und er lyin g st rate gy remains u nchan ged i n it s fu ndame nta ls. We maint ain a co ntinu ous focus o n ser ving cus to mer s’ nee ds so we c an de liver sus t ainab le, pro ta ble grow t h, while mit igati ng our risks throu gh our risk manage ment f ram ewor k , whi ch is des cr ibe d on pag e 80 -86 . Ou r per forma nce this year is re ec ted in under lyi ng EBI TDA grow th of 29.0% , with unde rl ying EB IT DA margin of 49.0% , an improveme nt of 294 basis poi nts in repor ted curre ncy, a nd prot af ter tax inc reased by 82.0% w hich su ppo r t s our a bili ty to d eli ver on ou r sust ainab ili ty ambi tio ns and cre ate value fo r all ou r st akeho lde rs . At the s ame t ime, we have a l ongs t andin g foc us on s tren gt henin g our balan ce sheet . Our lever age ( n et debt to un der lyi ng EBI TDA) improved to 1.3x (2.0x as of 3 1 March 202 1) . We’ re st reng th ening t he bus iness i n othe r ways , too. L as t year I desc rib ed t he imp or tant s teps we h ave taken in o ur pur sui t of asset monetisation op por tunit ies, includin g the potential listing of our mobi le money busine ss withi n four ye ars from rs t closin g. This work has cont inu ed . We have now rec eive d a total of $550 m cumula tive pro cee ds from minor it y sta ke sale s in A ir te l Money from four investo rs . We have also recei ved rs t closin g on tow er sales in T anzania , Malawi and Madagas car. T hese trans ac tio ns are d esc rib ed in more det ail in the nanc ial review on pages 7 6 ‑ 79. In Octo ber 202 1, the Boar d approved an upgrad e to ou r progress ive div iden d polic y to re ec t our contin ued st rong busin ess per fo rma nce and the signi ca nt progress made in reduci ng the leverag e ratio. The new p olic y aims to g row th e divi den d annuall y by a mid - to hig h- singl e - digi t percent ag e from a ne w base of 5 cent s per share for F Y’ 22, wit h acont inue d focus on fur th er stre ngt hen ing the balanc e sheet . The Bo ard has re co mmen ded a nal dividen d of 3 cent s on 1 0 May 202 2, makin g a total di vid end of 5 fo r the ye ar . Strong per formance made poss ible bycom mit ted people Non e of the t rans fo rmat ions we have a chieve d over re ce nt years woul d have be en pos sibl e wit hou t the h ard wor k and c ommi tme nt of our em ploye es and t he sup po r t of all o ur s takeh old ers . In p ar t icula r , Air tel Afric a peop le have o verco me ver y signi cant chall eng es during the p ande mic wh ile main taini ng our s er v ice s and prov idin g passi onate supp or t to o ur cus tome rs an d com munit ies . I woul d like to tha nk th em all for t heir c ont inuin g ded ica tion to t rans fo rmin g lives . Sunil Bhar ti Mitt al Chair 1 0 May 202 2 13 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Chief e xecutive ocer ’s review G ro w ing our busin es s s us t ainab l y , and s t andi ng b y ou r p romises The continued strength of our bu sines s per for mance reinfor ces our belief that ser ving and emp owering customer s and their communitie s is the only wa y to sustainable success. W e earned the licence to be par t of people’ s live s by caring about the thing s that they care abou t , and unders tanding t he challenge s t hey face. Olusegun Ogunsanya Chief execu ti ve ocer Strategic report 14 A i r te l Af ri c a pl c An nu al Re po r t a nd A cco un t s 2022 This has been an imp or t ant year for Air tel Afr ica, inwhich our cont inued strong nancial per formance has meant we could make fur ther p rogress on our purpose of transforming lives. The grow t h in a ll our ser vic es speak s for i t sel f : we have grown unde rl ying revenu es in da ta by 34.6% , in vo ice ser vice s by 15.4 % , andin mobi le money by 34.9% in cons t ant curre ncy. Rep or te d revenu e grew by 2 0 .6% to $4 , 71 4m. It is to the cred it of e ver yon e at Air tel Afric a that we’ve c ont inue d to p rovid e essentia l ser vic es in all our market s throu ghou t the year , and to ser ve more cus tome rs than ever befo re, reachin g 1 28.4 millio n in tot al. Bu t when you loo k beyond thes e gures there is growt h of a kind thatis equal ly , or e ven more impor t ant . In Octo ber 202 1 we l aunc hed our sust ainabi lit y str ateg y , whic h builds on the work we have don e for years in the societ ies and commun iti es where we live and opera te. Ithas four focuse d pillars – each with spec i c and measura ble goals orco mmit ment s – designe d to hel p develop a sustain able fu ture for indi vidua ls, famili es , communi ties and busines ses acros s Afric a. Thep rog ress we have made to s tar t deliver ing on these commi tm ent s is descr ibe d on p ages 43 -58 – a nd I’d like to thank Air tel Afric a’s p eo ple and all our st akeho lde rs for helpin g make this pos sible . Succeeding by ser ving customers andcommunit ies Our st rong busine ss per fo rman ce reinforc es our belief that ser v ing and empow eri ng custom ers and their com munit ies is the only way to succ ess . The nature of o ur ser vi ces means we a re always close to our cus tome rs – p ar t of the ir daily lives, of their family con nec ti ons , and o f the way they interac t with the ec onomy and the worl d. We mus t cont inue to earn the right to t hat relations hip ever y day – thel icen ce to be par t of pe opl e’s li ves . W e do that by c arin g about the thin gs that the y care about , and under st andi ng the challen ges they fac e: challen ges such as climate chan ge, a lack of access to basic edu cat ion and healt hca re ser vi ces , poor infr ast ru ctu re in r ural areas that rest ri ct digi tal comm unic atio n, and nancia l inclusion . This has never be en more relevant than durin g the Covid - 19 p ande mic , which has hit hard among the market s we ser ve. This year ag ain meant doing busine ss in w ays that safeguard ed our peo ple and custo mer s, and cont inui ng to p rovid e essentia l ser vic es . Econom ies and societ ies are now recover ing from that impac t – b ut there is still a need for busine sses like ours to i nves t in t he future of our comm unit ies . This year , we announc ed a ve - year par tn ersh ip with UN IC EF to he lp acc ele rate digit al learni ng. By provi ding equal acc ess to quali ty digi tal lear ning , par ti cular ly for the most vuln erab le childr en, the par t ner ship will help to ensure that ever y chil d reaches their full pote ntial . W e were the rs t Afri can pr ivate sec tor par t ner to make a multi - milli on dollar comm itm ent to U N IC EF ’s ‘ Reim agine edu cat ion’ init iative , and our $57 m nancia l and i n- ki nd contr ibu tio n over ve years will bene t lear ner s in C had, Co ngo, Dem oc rati c Republi c of t he Congo , Gabon , Kenya , Madagasc ar , Malawi , Niger, Ni ger ia, Rw anda , T anzani a, Ugan daand Zambia . The re is al ways more we can do, thou gh , to inc rease our posit ive soc ialand envir onme ntal impa ct . In the year a head we will continu e towor k on o ur net zero ambit ion and on t he othe r k e y pillars of our sust aina bili ty st rate gy – w hic h include expa nding nan cial inclusi on and digit alisa tio n for c usto mer s across the regio n, as w ell as w ork ing tomake sure o ur own employe es contin ue to e njoy a w ork cul ture that is inclusive and rewardin g. Stren gthening o ur ‘ Win with’ strategy For mall y embed ding our susta inabil it y goals into ever y thing we do hasst reng th ene d our busine ss str ateg y for t he futu re. That str ateg y cont inue s to be und erp inne d by t he key t rends we see in o ur market s: a continu ous and expandin g demand for data, mobil e money and mobi le ser v ices fro m young, growin g populat ions who are unde rse r ve d by inf ras tr uc ture , especia lly in remote rural areas. We su cce e d by prov idin g aordabl e, transp arent tele coms ser v ice s ina susta inabl e manner , redu cing the digi tal divi de and enhancin g nanc ial inclusi on. We have leadi ng posit ions in many of our market s, but like any b usines s we sh ould alway s be a live to o ur comp eti tive envir onme nt – wh eth er that compe tit ion com es from telec oms busine sses , or from Fin T e ch compa nies . One of our key assets con tinu es to b e our exc lusive dist ri but ion net wor k – w hich gives us the abilit y to w in and st ay close to our cus tome rs . This year ou r total Air tel Mon ey branch es and kiosks has grown to over 16,0 0 0 and 53 ,0 0 0, respe ct ive ly. We have also add ed digi talis ati on as an overar ching st rate gic intent – be caus e fur th er digi tising our ser v ice s, creat ing digit al produ ct s , and digi tisin g our own proc esse s will play a vit al role in our s ucc ess , increasin g the at tra ct iven ess and ecien cy of our oer, and buil ding ‘st ick ines s’ , whic h helps us ret ain our custo mer s. At the same time, we cont inu ously buil d on o ur netwo rk in rural areas and improve qualit y and capac it y in u rba n areas. This year w e added more than 3,40 0 sites , taking our total sites to 28,79 7 , of whic h 8 7 .6% are on 4G . Our bre netwo rk has now r eache d over 64,50 0+ km. Andwe con tinu e to fo cus on t he mobil e money oppo r tun it y , whi ch isclos ely align ed wit h our a mbit ion of suppor ting nanc ial inclusio n inline wit h the UN Susta inabl e Develop ment Go als (UN SDGs) . Ourm obil e money custo mer s grew b y 2 0 . 7% duri ng the year , while st rate gic par t ner ships , cross- b orde r money trans fer s and d igit al paym ent s, inc ludin g merchant payme nt s, have helpe d grow our mobi le money trans ac tio n value by 37 . 0% , and mobile mon ey revenu es by 34.9 % . Our pro gre ss again st our ‘ W in wit h’ stra teg y is d es cr ibe d in full on p a g e s 31- 42 T r ansf orm ing l ives Suc cess f ul delive r y of o ur stra tegy this year has mea nt that our provis ion of e sse ntial ser v ice s to cus tom ers and commu nit ies has dri ven our prot able grow t h, whic h in tu rn fue ls our a bili ty to k eep adva ncin g our sus t ainab ilit y ambit ions . This would not be poss ible wit hou t our stakeh old ers , inclu ding the gover nmen ts of the countr ies in which we operate , who recognis e the value we b rin g to th eir own goals for buildi ng a di git al , inclusive eco nomy, an d with whom we aim to work in p ar t ner ship on sustai nabl e develop ment . Ab ove all, of c ours e, it would not be p ossib le wit hou t the hard wo rk of Air tel Afric a peop le and the suppor t of stake hold er s. I’d li ke to thank the m again for t heir eor ts as, toget her, we cont inue to trans form lives . Olusegun Ogunsanya Chief execu ti ve ocer 1 0 May 202 2 15 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our invest ment proposit ion The countries we operate in hav e some of the highest population grow th projec tions in the world. Combined w ith the currentl y low levels of unique mobile customers, low minutes of usage, low data consumption an d limited tradi tional banking ser vices, this creates huge oppor tunit y for the grow t h of Air tel Af rica . Se e over vie w of our m arke t env iron men t on p a g e s 20 -21 W e have the div ersity and scale t o deliver v alue- for-money telecoms and mobile money s er vices to our customers. Our well-in vested ass et base, str ong brand values and r ecognition and eective distribution channels (both dir ect and indirect) giveus sustainable di er entiation in the mark et. Our str ong track recor d of deliv ering growth and impr oved oper ational performance continues. W ehave a lean and simplied oper ating model which, combined with our e ective management team, has deliv ered double-digit r evenue growth, str ong protability and cash ow. Strong country- level management t eams with deep knowledge of their mark ets are supported by subject matter experts at Group lev el. W e also benet from the str ength and support of our shareholder Bharti Air tel, one of the world’ s largest telecoms oper ators. Se e our nanc ial revi ew on pa g e s 7 6 -7 9 Led by our purpose of transforming liv es, with a customer-centric vision of enriching the lives of our cust omers, we deliver sustainable, pr otable and mark et-leading growth through our six pillar strat egy: Win with… network, distribution, data, mobile money, cost and people . W e are r educing the digital divide and enhancing nancial inclusion, including thr ough partnerships with gov ernments inthe countries where we oper ate. W e are f ocused on digitising how we operate, as well as how ourcustomers us e our pr oducts. And our new sustainability strategy, published in October 2021, fur ther embeds en vironmental, social and corpor ate go vernance (ESG) considerations int o ever ythingwe do. Our s tra teg y for grow t h is d esc ri be d on p a g e s 31- 42 For mo re infor mat ion abo ut our sus ta inab ili t y str ateg y, s ee pag es 4 3 -58 Our str ong balance sheet and conservative capital structur e allow us to fully e xecut e our gr owth strategy and creat e value for all our stak eholders: customers, communities, r egulators and gov ernments, par tners and suppliers, our people, and our shareholders. Our ope rati ons in 1 4 s ub -Sa har an A f rica n co untri es o er subst antial market p ote nt ia l ac ros s voice, data and mobile money ser vices. Strategic report 16 Ai r t el Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Our key per formance indicator s KPIs gi ve our B oard and managem ent a cle ars en se of pr og r e s s tha t we a re m ak ing and areas to imp rov e. * Unde rl yi ng reven ue gro w th rate s exclu des on e -t im e except io nal reve nue of $20m rel ati ng to a s et tl em ent in Nig er in the year end ed 2020/21 * * Gr ow t h perc ent ag e is in rep or te d cur ren c y Not e: grow t h per cen ta ges in KPI s are in cons ta nt cur ren cy unl es s spec i ed Financial KPIs Meas uring the succe ss of our strategy Our ope rati onal and nancial key per for manc e indic ators (KPIs) gi ve us a crucia l insight into o ur business per forman ce and the progres s being made towards our str ategi c intent . Our sele c ted KPIs help us to communic ate the Grou p’s s tr ategy acro ss all levels of t he organis atio n, and form par t of o ur governa nce and per forma nce manage ment proc ess . Ensuring our KPIs are meaningful and respo nsive Our pri mar y oper atio nal KPIs inclu de sites , data capaci ty, c usto mer base , net a ddi tio ns, averag e revenue per user (ARPU), usage per cus tome r and A ir te l Money trans ac tio ns, whil e our nanci al KPIs are revenu e, under ly ing EBI TDA , o per atin g prot , pro t afte r tax , operat ing fre e cash ow, ne t cash generate d from oper ating ac tiv it ies , leverag e, earn ings per share, and return on capit al employe d. We are in the pro cess of nalising KPIs relatin g to ou r non- nan cial per f orma nce inline wit h our sustai nabili t y strate gy, lau nch ed in Octob er 202 1. Se e more det ails abo ut our sus tai nab ili ty s tra teg y on page s 43 - 58 We ke ep our operat ional and nanc ial KPIs under review to make sure they st ay relevant to our str ateg y and our busines s. Se e deni ti on and rec onc ili ati on of our alter nat ive per for manc e measu reso n pa g e s 2 29 -23 4 Linkage wi th remuneration Our remune rat ion targe ts are linked wit h nancial KPIs ( revenu e,und er lyin g EBIT DA and operat ional fre e cash ow ). Fur t her ,we bench mark our shareho lde r return per fo rman ce wit h ape er group of c ompa nies for our long- ter m incent ive schem e. Underlying revenue * Net cash generated from operating activities ** Underlying EBITD A andmargin Levera ge Operating prot Basic ear nin gs per share ** Prot af ter ta x ** Retur n oncap it al employed Operating free cashow ** F Y ’ 22 F Y ’ 22 AP M KPI GA AP KPI F Y ’ 21 F Y ’ 21 $ 4 , 7 14 m $ 2 , 011 m $ 2 , 311 m 1 . 3x $1 , 5 3 5 m 1 6. 8 cent s $ 755 m 23 . 3 % $1 , 6 5 5 m $3,888 m $ 1, 666m $1 ,7 92 m 2.0x $1 , 119 m 9.0 cents $ 41 5 m 16 . 5 % $ 1 , 17 8 m Rep or te d cu rre ncy +21 . 3 % Co nst ant c urr enc y +2 3 . 3 % +2 0 . 7 % Rep or te d cu rre ncy +2 9 . 0 % Co nst ant c urr enc y +31 . 2 % Margin 49. 0 % Rep or te d cu rre ncy +3 7. 2 % Co nst ant c urr enc y +3 9 . 4 % +86 . 5 % +82 .0 % +4 0 . 5 % +1 9 . 4 % +2 5 . 2 % Margin 46. 1 % +32 . 8 % ( 12.6% ) + 1.8% + 34.9% 17 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our key per formance indicator s co ntinu ed Operational KPIs Co ns ta nt cur ren cy gro w th rat es are cal cul ate d using the pr evai lin g exchan ge rat es as of 31 March of the pre ce di ng year Performance Du rin g the year, as par t of our st rate gi c dr ive to Win wit h net wo rk , we have dep lo yed mo re than 3, 40 0 sites , rea chi ng 28,797 si tes in tota l as of 31March 2022. We f ur t he r adde d 3, 90 0+ 3G sites (96.5% of sites are now 3G), more tha n 5,8 0 0+ sites to 4G ( 87.6% o f sites are now 4G) and add ed al mos t 1 0 ,0 0 0 km of bre (64,5 00 + km of bre as at 3 1 Marc h 2022 ). Data cap ac it y was incr ease d by 40.4% to 1 6, 90 0+ ter aby t es (T B) pe r day , wi th pe ak hour dat a uti lis ati on at 46%. Performance Cus to mer bas e grew by 8.7% t o 128.4mil lio n . This grow t h was sup po r te d by fu r th er inve st me nt in sal es and dis tr ib ut io n infr as tr uc tur e in bot h urb an and rur al mar ket s , inclu di ng exp ansi on of our exclu sive dis t ri bu tio n cha nne l of kio sk s and mini -s ho ps. We endeav our to ensu re availa bil it y of SI M card s and rech arg e acros s our foo tp ri nt . Cust ome r base gre w acros s all thr ee re gio ns: Ni ger ia by 5.8 % , East Afr ic a by 7 . 8% , and Fra nc oph on e Afr ic a by 1 5.9% . 22,909 25,368 28,797 7,572 12,070 16,949 T otal sites number T otal da ta ca pa city tb/ day FY’ 22 FY’21 FY’20 110.6 118.2 128.4 11.8 7.6 10.2 Customer base m Customer net adds m FY’ 22 FY’21 FY’20 T ot al sites an d data capac ity Custo mer base a nd customer net additions T ot al site s number T ot al dat a capa ci ty t b /d ay Cus to mer bas e m Cus to mer n et ad s m Performance Voice tr a c grew to 3 79 bi lli on minu tes in F Y ’22, an inc reas e of 1 7 . 3% mainl y dr ive n by c us tom er bas e grow t h of 8.7% and an incre ase of voic e usag e pe r cust ome r of 9. 8% to 2 57 minut es pe r cust ome r per mon th . The voi ce usa ge grow th was driv en by inve st me nt in rura l sale s and dis tr ib ut io n alon g with exp an de d rura l net wo rk co ver age . Addi ti ona lly, highe r ado pt ion of voic e bund le s among st ou r cus to mer s con tr ibu te d to th e grow t h in voic e usag e, bun dle pe net ra tio n rea che d 54% b y 3 1Ma rch 2022. Performance Du rin g the year, voi ce und er ly ing reve nu e grew by 1 5 .4% in c ons t ant cur re nc y to $2, 358 m. Voice reve nue gro w th was dri ven by an incr ease in our cus to me r base by 8. 7% and voic e AR PU grow th of 8.0 % , led by an inc reas e in voice usa ge pe r cust ome r by 9.8% . Voice AR PU inc rea se d to $1.6 per cus tom er pe r mont h. FY’ 22 FY’21 FY’20 250 323 379 201 234 257 Voice traffic bn mins Usage per customer mins 1,970 2,083 2,358 1.6 1.5 1.6 Voice revenue $m Voice ARPU $ 5.2% 11.0% 15.4% FY’ 22 FY’21 FY’20 V oi ce trac and usage per customer V oice underlying revenue and voic e ARPU Voice tr a c bn mins Usa ge per cus to mer mins Voice und er ly in g revenu e $m Voice AR PU $ Performance T ot al und er ly ing reve nu e was $4,7 14m, gre w by 23 .3% in con st an t curr enc y le d by bot h cus tom er base gro w th of 8.7% and ARP U grow t h of 1 5. 4%. AR PU grow th of 1 5. 4% was dri ve n by all our key ser v ic es: wi th dat a co ntr ib ut ing 7 .7% , voice co ntr ib ut in g 4. 3% , mobi le mon ey con tr ib ut ing 2.7%, and wi th th e balan ce co min g fro m grow t h in othe r revenu e. 3,422 3,888 4,714 2.7 2.8 3.2 Group revenue $m ARPU $ 13.8% 19.4% 23.3% FY’ 22 FY’21 FY’20 Group underlying revenue a nd ARPU Gr oup und er ly in g revenu e $m ARPU $ Strategic report 18 A ir tel Af r ic a p lc A nnu al R ep or t and A cc ou nt s 2022 Performance T ot al dat a usage in crea se d by 48 .7% in F Y ’22 to 1,84 8 bill ion MB . 4G dat a usa ge con tr ibu te s to 6 6.7% of t ota l dat a usag e. Data usa ge pe r cust ome r pe r mont h reach ed 3.4 GB , an inc reas e of 3 1. 0% , m ain ly due to 4G netw or k den si c ati on , incr eas e in s mar tph on e pe net rat io n and high er ado pti on of dat a bund les . Add it ion all y, 4G dat a usa ge per cus to me r reach ed 5. 5 GB , sup po r ti ng the usa ge gro w th . Performance Dat a reven ue was $1,52 5 m, gre w by 34. 6% in co ns tan t curr en cy le d by b ot h cus to mer bas e grow t h of 1 5. 2% and dat a ARP U grow t h of 18 .6% . Dat a ARP U incre ase d to $2.9 per cus to mer pe r mont h. Th e data AR PU gro w th was sup por ted by an incre ase in the num be r of 4 G cust ome rs . Performance Air tel Mon ey cus to mer bas e reac he d 26.2 mil lio n, gro win g by 2 0.7% , and now rep res en tin g 20.4% of our tota l cus to mer bas e. Cus tom er bas e grow t h was larg el y driv en by the expa nsio n of our mo bil e mone y agen ts , mer cha nt ec os ys tem s and cont inu ed inv es tm ent in our excl usiv e fran chi se chan ne l of kio sk s and Air t el mon ey bran ch es . Performance T ot al tra nsa ct io n valu e incre ase d to $64 .4bn , up by 37 .0 % in FY ’ 22 in co ns tan t curr enc y. T r ans ac ti on valu e pe r cust ome r per mon th was $223, an inc reas e of 1 3 .9% in con st ant cu rre nc y. Th is was driv en by both cus to mer bas e gro w th an d incre ase d ado pt ion of Air tel Mo ney se r vi ce s, main ly in P2P , cash - in and cas h - ou t trans ac ti ons . Ann ual ise d tr ansa c tio n valu e now st ands at $64 .3 bn in Q4’22 in cons ta nt cur ren cy. Th e sligh t slowd ow n in revenu e grow t h was due to the imp lem en tat io n of new lev ie s in T anz ani a. Performance Ou r data cus tom er bas e reach ed 46.7mill ion , grow in g by 15. 2% and now co ntr ib ut in g to 36 .4% of our total cus to mer bas e. Our 4G cus to mer bas e rea che d almo st 20 milli on , whic h is 42.6% of o ur tot al data cus to me r base. Cus to mer bas e grow t h was driv en by fu r th er exp ansi on of our data net w or k, inc reas e in our net wor k data ca pa cit y and 3G / 4G ena ble d smar tph on e pe net rat io n ( w hic h inc reas ed to 34.2% , of whic h 59% are 4G) smar t ph one s. 427 534 616 1,863 711 283 2,686 1,242 708 3,520 1,848 1,232 Data usage megabytes bn 4G data usage megabytes bn Data usage per customer MB FY’ 22 FY’21 FY’20 930 1,157 1,525 2.4 2.5 2.9 Data revenue $m Data ARPU $ 39.0% 31.2% 34.6% FY’ 22 FY’21 FY’20 18.3 21.7 26.2 16.5% 18.3% 20.4% Mobile money base m Mobile money customer penetration % FY’ 22 FY’21 FY’20 167 191 223 32 46 64 Transaction value per customer $ Mobile money transaction value $bn FY’ 22 FY’21 FY’20 25.2 25.8 26.8 32.0% 35.4 10.2 34.3% 40.6 14.8 36.4% 46.7 19.9 Data customer m 4G data customer m Data customer penetration % FY’ 22 FY’21 FY’20 Data usage, 4G data usage and data usage per customer Data r evenue an d data ARPU Air tel Money customer base an d penetration Air tel Money transaction value and transactio n value per customer Data c usto mer s, 4G dat a customers and penetration Dat a reven ue $m Dat a ARP U $ Mo bil e mone y base m Mo bil e mone y cust om er penetration % T ra nsa ct io n value pe r cus tom er $ Mobile money transaction value $bn Dat a cust ome r m 2G/ 3G / 4G dat a cust ome r m Dat a cust ome r pen etr at ion % Dat a usag e m M B 2G/ 3G / 4G dat a usage m MB Dat a usag er per cus to mer MB Performance Air tel mon ey reve nue inc rea se d to $553m , up by 34.9% in con st ant cur re nc y, l ed by both cus to me r base gro w th of 20. 7 % and Air tel Mon ey AR PU grow th of 1 2.2% . Ai r tel Mo ne y AR PU was $1.9 pe r cust ome r per mon th . ARP U grow t h was driv en by an inc reas e in tr ans ac ti on valu e per cus to mer of 13.9% , larg el y due to inc reas e d adopt io n of Ai r tel Mo ne y servic es. 311 401 553 1.6 1.7 1.9 Mobile money revenue $m Mobile money ARPU $ 37.2% 35.5% 34.9% FY’ 22 FY’21 FY’20 Air tel Money rev enue and AR PU Mo bil e mone y reven ue $m Mo bil e mone y ARP U $ 19 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our market environment Populations are young and expanding rapidl y , the middle class is growing , and peopl e need to connec t with eac h other and wit h local and g lobal economies . Y et infras tr ucture is limi ted, and the re is huge scope to inc rease th e reac h and penetrat ion o f eect ive, aordable telecoms ser vices, and to include more people in the digit al economy . The r egio n has be en hi t hard by th e impa ct of t he C ovid - 19 pande mic . It s co ntinu ing re cover y has unde rlin ed t he ne ed fo r tele co ms ser v ice s as a way to fos ter nancial inc lusion , brid ge the digit al divide , and dri ve econo mic growt h. Economic recover y , under pinned by strong demographics Acc ordin g to th e IMF repor t ( Apr il 202 2), real GD P in su b -Sa haran Afr ic a is pro jec te d to grow by 3.8% in 202 2, and by 4 % in 202 3 , rec overi ng fro m th e cont rac ti ons bro ught ab ou t by the i mpac t of th e Cov id - 19 pandemi c on po pulat ions w it h relat ivel y low vac cinat ion rates . There remain challe nge s to grow th, but the World Bank ident i es the regi on as t he worl d’s largest fre e trade area – a market of 1.2 b illio n pe opl e. Over the next thre e dec ades , the popul atio n is set to nearly doub le, to around 2 b illio n. We o per ate in yo uth ful market s , with 33% of the pop ulat ion in our market s age d betwe en 1 0 and 2 4 years. T he middl e class is also growi ng , alongside a longs tan ding trend of urbanis atio n. We oe r a mix of p rod uc ts , conten t and p ri cing st ru ctu res to at t rac t and reta in this gro wing c usto mer b ase – and o ur s trate gic fo cus on d ist ri but ion means we ar e well - plac ed to w in new c usto mer s. Se e our ‘W in wit h’ str ate gy on p a g e s 31- 42 Limited infrast ruc ture, and low mobile connect ivit y Many par t s of A fr ica lack landli ne infras tr uc ture , and broa dband levels remain far lower than in develop ed market s . Mobile net wor k s will cont inue to b e th e pri mar y s ource o f voice a nd dat a ser vice s in many plac es – w hich means that our focus on e xpan ding our netw ork s , and ex tendi ng rural covera ge in par t icu lar , plays a vital role in bringi ng pe opl e into t he mobil e and d igit al eco nomy. A nd there is a signic ant opp or t unit y to ex te nd netw ork cover age . Across Afric a , mobile conn ec ti vit y remains low relati ve to oth er market s – t houg h it is growi ng fast . By the end of 2020, 4 95 millio n peopl e had su bscr ib ed to mobile ser v ice s in sub -Sahar an Afric a , represent ing 46% of the pop ulati on – alm os t 20 million m ore th an in 20 19 (i) . The GSM As soc iati on ( GS MA) proje c ts that this gure will reach 6 15 mill ion pe opl e by 202 5 . Digitalisa tion – the key t o grow th Digi ta lisat ion will be at t he hear t of Afr ic a’s fu ture grow t h – as many gover nme nts in our markets have recog nise d. Secu re, reliabl e, comp et iti vely -p ri ce d data is es sent ial to a wi de ran ge of se r vi ce provi der s, and to busine sses bot h large and s mall. Mob ile tech nolo gy enables digital solu tions and suppor t s the growing use of online chann els by co nsumer s . Whil e growing fast , smar t pho ne adopt ion in our r egio n remains relat ivel y low . The availabili t y of 4G is a lso expandi ng , but i s not ye t availab le ever y w here. Th e GSMA proje c ts that 4G coverage will reach 64% of the pop ulati on in sub -S aharan Afr ic a by 202 5, and that cus tome r usage of 4G will more than doubl e from 1 2% in 2 020 to 28% by 202 5, sti ll some way shor t of th e global averag e of 57% . Digi ta lisat ion is t here fore a c lear opp or t unit y to f ul ll our purp ose of tra nsfo rmi ng lives as w ell as gro w our busi ness – d rive n by our st rate gic focus on winning wit h data, our digit al produ ct s and content , incl udin g Air tel T V , and our focus on su ppo r t ing enterp ris es throug h Air tel Business . This is a ll suppor ted by o ur conti nuing inves tm ent in expan ding our 4G net wor k . Se e our busine ss revi ews on p a g e s 62 -7 1 Increasin g nancial inclusion t hrough mobile money The launc h and growt h of d igit al nancia l ser vic es in Afr ic a has le d to an unp rece de nted in creas e in the n umbe r of pe opl e enjoy ing ac ces s to formal nancia l ser vic es . The contin ent , which has histor ica lly bee n unde rse r ve d by for mal bankin g, is now h ome to almost half of digi tal nanc ial ser vi ces user s world wide , accor ding to the Inter nati onal Finance Corporation ( I FC ) (ii) . This gr ow th is c ri tic al to wi der devel opm ent : nancia l inclusion has been ident i ed as an ena ble r for seven of the 1 7 U N Sust ainab le Devel opme nt Goals (UN SDG s ). The Cov id - 19 pa ndem ic made clear that mobile tech nol ogy, an d mobi le money in par ti cular, has a hu ge role to p lay in ke epi ng peop le conn ec ted , delive rin g vital nanc ial suppo r t and providin g safe, no - c onta ct ways to p ay for f ood , elec tr ic it y and othe r life essentia ls. T e le coms p rovid ers c ont inue to p lay a cri ti cal ro le in b uildi ng smar t pho ne penet rat ion , increasin g mobile broad band pen etra tion and pr ovidi ng com pet it ivel y- pri ce d data to c usto mer s – bot h reta il and busine ss – to enab le dig it al inc lusion a nd acc ess to m ore op por tunit ies . Air tel Money is well - plac ed to be p ar t of this opp or tu nit y. We cont inu e to buil d the m obil e mon ey ec osy ste ms that h elp cus tom ers j oin the digi tal eco nomy, an d to wi n new cus tome rs throu gh ser vi ces , incl udin g inter - o per ator money trans fe rs , payment s , microl oans and international money trans fers. Se e our Air te l Mone y busine ss revi ew on pa g e s 7 0 -7 1 Dem an d for v oic e , da ta an d mob ile mo ney s er vi ce s co nti nue s to gro w at pac e acr os s s ub -Sah ara n Africa, wh ich i s hom e t o mor e tha n on ebi lli on peo ple . * * Acco rdi ng to the Worl d Bank at ww w.worl dba nk .o rg/en /regi on /afr/ ove r vi ew #1 Strategic report 20 Air tel A fr ic a p lc A nn ual R ep or t and A cc ou nt s 2022 Managing risk and ensuring we cont ribute to sust ainable development Som e of th e countr ies in our ope rat ing market s face poli tic al , ec onom ic , or e nviro nment al challe nges . While cont rib ut ing relati vely lit tl e to gl obal emissi ons , Afric a is disp rop or t ionat ely aec ted by climate change (iii) , while uct uatin g curren cies and high rates of inat ion can aec t econ omie s in sub - Saha ran Afri ca . Our sustai nabili t y st rate gy is d esign ed to ensure we make a meaning ful con tri but ion to the soc ieti es and econo mies where we live and w ork , whil e our r isk manage ment fra mewo rk helps the busines s to id enti f y and mitigate risk s . W e manage foreig n exchange risk as o ne of ou r princ ipal risk s as descr ibe d in d etai l on pa ge 85. Se e how we m anag e our risk s on page s 80 -8 6 For info rm ati on abo ut our sust ai nabi lit y st rat eg y , see pa ge s 43 - 58 Growing mark et s in wh ich a ordability and acces sibility a re vit al The sub -S ahara n Afric an mobil e landscap e is d ominate d by a few large comp eti tor s, wit h smaller regio nal compa nies in some market s. We c omp ete for cus tome rs throu gh our rang e of se r vi ces , our adve r tisi ng and brand image, the qualit y and reliabil it y of ou r ser vic e, the geo gra phic al breadt h of o ur coverag e, the capac it y and resilienc e of our data net wor ks – and p ri ce. We o er prici ng plans that are sim ple and transp arent , base d on t he prin cipl e of ‘mo re for more’. We use a tail ore d pr icin g st rate gy tha t vari es dep end ing on o ur posi tio n in eac h market . Our focus on distr ibu ti on is de signe d to gi ve us a comp eti ti ve adva ntag e in re cru iti ng and w innin g new cus tom er s. W orking alongside governments and complying wit h regulations The tele co ms secto r is high ly regulate d in o ur market s. All ope rator s must wor k within the fra mewo rk s created by governme nt s and regu lator y aut hor it ies , coverin g teleco ms regulati ons , banking regu latio ns and li cen ces . Kno w Y our Cus tomer regu latio ns apply in many of our market s – t hese requ ire custom ers to registe r their ident it y to ac ces s mobile ser vices . Provi ding easy acce ss to a fas t and c omp liant regis tr atio n proces s is a k ey par t of o ur ‘W in with’ dist rib ut ion appro ach . Alo ngsid e stri ct com plian ce with regu latio ns, we aim to work col labo rati vely wit h governm ent s to make sure we i ntegr ate our ser vice s into t heir key initiati ves , and p lay our par t in s tr engt hen ing ec onom ies and t rans for min g lives . Se e our legal and re gulat or y rev iew on pag e 23 Data sources: (i) w ww.gsma.com/ mobilee conomy /su b-saharan-africa/ (ii) ww w.ifc.org/wps/wcm/ connect /region_ ext _content/ifc external_corporate_ site/ sub-s aharan+ afr ica/resources/201 805_rep or t_ digital -access -afric a (iii) w w w.unep.org/regions/ africa /regional-init iatives/responding- climate- change T r ansforming lives spotlight W or king with Access Bank and the W orld Food Programme t o suppor t displa ced people in Nigeria The re are hun dreds of t hous ands of in terna lly dis plac ed p eop le (ID Ps ) in Bor no State, Niger ia – a nd our ser vic es are help ing the m meet their basic nee ds and c onn ec tin g them to n ancia l incl usion , while boos t ing the loca l econo my . As well as making telec oms ser vi ces availabl e to t his vulner able group, Air tel Afric a is p ar t of a collabo rat ion involv ing Acces s Ban k and i nter natio nal organisat ions , inclu ding the World Foo d Prog ramme that helps pe opl e access thei r daily meals. Be ne ciar ies recei ve credi ts to mobile mone y wallet s set up by the par t ner ship, whi ch can be used to pay fo r meals at Dal ori ID P camp . The progra mme, know n as t he Air tel Acc ess Mone y Cash Disbu rse ment powe red by WFP , is als o creating empl oyme nt for aroun d 1 5 peop le in the camp who supp or t Air tel Afric a’s K now Y our Cus tom er re gist rat ions an d rec harge c ard sa les . 21 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Ke y m a r ke t pro le s 5 3 2 1 6 4 Our top s ix markets * 1 DRC 4 T anzania 2 Ke nya 5 Uganda 3 Nigeria 6 Zambia 2020 2020 2020 2020 2020 2020 20 21 20 21 20 21 20 21 20 21 20 21 Populati on 92m 90m GDP $57 b n $ 49b n Mob ile cus to mer s 47m 41 m Uniqu e mobile pen etr atio n 43% 41% Mob ile mo ney us ers 9m 9m Populati on 61m 60m GDP $70bn $63bn Mob ile cus to mer s 54m 51 m Uniqu e mobile pen etr atio n 5 4% 53% Mob ile mo ney us ers 35m 32m Populati on 55m 54m GDP $110 b n $99 bn Mob ile cus to mer s 65m 61m Uniqu e mobile pen etr atio n 61% 6 1% Mob ile mo ney us ers 35m 32m Populati on 47m 46 m GDP $ 42b n $38bn Mob ile cus to mer s 30. 2m 28 m Uniqu e mobile pen etr atio n 43% 43% Mob ile mo ney us ers 23m 23m Populati on 19m 18 m GDP $ 21 b n $19 b n Mob ile cus to mer s 20m 19 m Uniqu e mobile pen etr atio n 58% 57 % Populati on 211m 20 6m GDP $ 4 42 b n $ 429 b n Mob ile cus to mer s 195m 204m Uniqu e mobile pen etr atio n 47 % 46% * in alphabeti cal order Data sources: • Pop ula tio n and GD P from th e Inter nat io nal Mo net ar y Fun d (IMF ) • Mobile customers and mobile money cu stomers from respective telec oms regulator y autho rit ies’ published dat a • U niq ue mob il e pene tr ati on rep or t fr om Omd ia mar ket anal ys t s Our market environment c onti nue d Strategic report 22 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 Legal and regulator y framework s Rapid changes in technology ha ve le d to amendments in legislation and regulation to main tain a fair and st able business environment . W e work wi th government s and r egulators in vari ous ju risdic tions to harmonise these changes wi th business needs . The le gal and regulator y f ram ewor k s we wor k with in fall into t hree cate gor ies : telec oms ser vi ces , mobil e nancial ser v ice s and broa dcas t ing ser v ices . In some of o ur market s, the re are als o comp et iti on laws. We are abreas t of t he regula tor y chang es, and we keep it under cont inuo us review. We p ublish signi c ant develo pme nt s on our corp orate websi te, under ‘Re gulato r y news’. H ere we d etai l the mos t signi cant devel opm ent s in o ur larges t market s in F Y’ 22. Kenya, Uganda and T anz ania In 202 1, several East Afr ic an governm ent s reviewe d their respe c tive ta x legis latio ns to inc rease co nsume r taxe s. • In Kenya , the excise dut y payable for telep hone ser vice s rose from 1 5% to 20% . • In Ugan da, the over the top ( OT T ) tax was replac ed with a 1 2% excise du t y on inter net d ata . • In T an zania , a n ew tax on money trans fer /wi thdr awals was brou ght in from 1 J uly 202 1. This range d from T shs1 0 to 1 0,0 0 0 depe nding on the transa ct ion amoun t . In Au gus t , the governme nt reduc ed this by 30 % in resp ons e to publ ic sen time nt . Th ere was als o a new tax on mobil e networ k oper ators – this vari es from T shs1 0 to 200 per SIM card owne r based on their daily recharg e capabi lit y. Zam bia The Data Prote ct ion Act came into force in 2 021, w hich prote ct s cus tome rs by r egula ting the col lec ti on , use, tra nsmissio n, sto rage and proc essin g of pe rso nal data. Air tel Netw ork s Zambia plc has put i n plac e measure s to ensure c ompl iance w it h this ne w ac t . We’ re aiming at f ull comp lianc e once regulat ions ope rati onalisi ng the Data Protec ti on Act are publishe d by t he regulato r . Nigeria In Dec emb er 2 02 1, the Nig erian Co mmuni cat ions Comm ission (NCC) auc tio ne d two lots of 1 0 0 MHz each in the 3.5 GH z band ranging from 3500 to 36 00 MHz and from 37 0 0 to 380 0 MHz . The spec tr um was oere d on a nationwi de basis covering all st ates of t he Fede rati on and the Fed eral Cap it al T er ri tor y of Nigeria . The reser ve p ri ce for one lot of 1 00 MHz was $ 197 .4m. Air te l Afric a quali ed to par t ici pate in the bidd ing proc ess but with drew in the cours e of th e auct ion . MTN and MA F AB were awarded the tw o available lot s of 1 00 MHz . We’ re now wor king wit h the regulator and gover nment to nd ways to a cce ss remaining unas signe d lot s. In Apr il 2 022, Air tel Afr ic a receive d nal approval from the Cen tral Ban k of Ni ger ia ( CB N) to o er ser vi ces unde r a sup er-agent lice nce and under a Payment Ser v ice Bank (PSB) licenc e. This follow s the issue by the Centra l Bank of N iger ia of t he approva l in p rin cipl e in resp ec t of t he two licen ces in Novembe r 2 021. We are get ti ng ready to launch both ser v ice s as guid ed by the Centr al Bank . Keny a The Ke nyan re gulato r has st ipul ated a re duc ti on in mo bile te rmi natio n rates (MT R) f rom KES 0.99 per minute to K ES 0.1 2 per minu te from 1Januar y 202 2. While this is be ing challe nge d by an othe r mobile ope rator, we welc ome this move as it see ks to remove the unfair subsidis atio n of th e domin ant op erato r by comp et ing playe rs in t he market . Kenya has o ne of t he highes t MT R regimes in Afric a, and rates were las t rev iewe d in 20 1 0 . Uganda In May 202 1, Air te l Mobile Co mmerc e Uganda Limite d ( an Air te l Mon ey ent it y ) was lic ense d to ope rate a pay ment s ys tem a nd prov ide ele ct roni c money in Ugan da. We we re reminde d by t he regulato r that we have to list on a li cens ed sec uri tie s exchange in Ugan da within t wo years of th e date of our lice nce , 1 6 Dece mber 2020. We are i n talks wit h the regulato r , the cap it al market s author it y and investor s on how b es t to me et this requ ireme nt , given that the recent list ing by another natio nal telec oms ope rator on the market was si gni ca ntl y undersu bscr ibe d. Uganda listing obligation Und er Ar ti cle 1 6 of Air tel Uganda’s N atio nal T ele co m Opera tor (NTO ) lice nce , Air tel Ugan da Limite d (Air tel Uganda) is obl ige d to co mpl y wit h the sec tor polic y, reg ulati ons and guidelin es requir ing the list ing of par t of its shares on the Uganda Stock Excha nge (USE). The cur rent Ugan da Communi cat ions (Fees and Fine s ) (Amen dment) Regu latio ns 2020, c reates a p ubli c listin g obligat ion for all NTO license es , and spe ci es that 20% of the shares of th e operato r must be lis ted wit hin tw o years of th e date of the eec t ive date of the lic enc e. Current ly, t his impo ses a l ist ing requi remen t by 15 D ec embe r 2 022 on Air tel Uganda . On 5 A pr il 202 2 we applie d to th e Uganda Commu nica tio ns Co mmissio n (UCC) for an extensi on on the deadl ine for a p eri od of oneyear . W e w ork with in th e la ws and r egu la to r y fram ew orks of go ve rnme nts an d re gu la to r y agencies to bri dge the di gital divi de an d expand nanc ial inclusion ac r oss Af r i c a . 23 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our busine ss mode l Our dynamic business model is under pinned by our sust ainabilit y s t rategy and deli vers value to st akeholders while t ransfor ming li ve s t hrough di gitali sa tion an d n an cia l inc lus io n. Our vision is to enrich the lives ofour customers. Delivering out st anding ser vices and product s Through a uniqu e distr ibution net work that i s close t o our customers An ecient networ k and business str uc ture in 1 4 ma r ke t s across sub -Sahar an Afr ica • O ther ser vices , inclu ding xed-line telephon y , home broa dband and datace ntre s • M ore than 6 9, 000 exclusi ve retail t ouchpoint s (including minisho ps , kiosks and Air te l Money branches ) • M ore than 2 5 1,000 activa ting outlets • A wide net wor k of mo re than 2. 2 million retail touchp oint s • Strate gic collaborations wit h regiona l and i nter natio nal par t ner s to o er nancia l andmo ney trans fer ser vices Other key inputs and enablers: • Ec ient Kno w Y our Cus tomer(K YC ) proces ses • Easi er onboa rding proc ess es, self-service through our sel f- care MyAir te l app, cur rent ly available in allmarkets Vision How w e cre ate va lu e V alues • Spe ctrum asset s in ever y coun tr y, w ith mult ipl e layers of data capaci t y • A moderni sed n etwork oer ing 2G, 3G and 4 G , large ly on ecient singl e RANtechnology • 2 8 ,797 netwo rk tower s and data cap aci ty of 16, 9 0 0 + teraby tes per day • 64 ,5 00+ km of b re acros s our market s • 3 ,70 0+ empl oyees Other key inputs and enablers: • C ompl ianc e with regulato r y fra mewo rk in all mar ket s • A sound cap it al alloc atio n st rate gy and nancial manage ment that targ et s revenu e grow th ahead of t he market and under ly ing EBI TDA margin improvement • Mo bile network part nerships that out so urce the manage ment and oper atio n of our net wor k infras tr uc ture • A st rong manage ment st ru ctu re with oper atin g comp anies in each market that can levera ge Group exper tise • O ur sustai nabili t y strat egy unde rpi ns ever y th ing we d o. It is a ligne d with the UN SDG s and suppo r te d by go als and ac tive pol icie s to resp ec t human right s , drive posi tive soc ial impac t s, protec t the natura l environme nt and cons er ve resou rces • So und and transpa rent gover nance • A net wor k of over 2,40 0 par tner s, including mobile bran ds, IT comp anies and tele coms infr as tru ct ure providers V oice Data Air tel Money Aliv e We a ct wit h passion and a c an - do at titu de. Inno vatio n and an entr epren eur ial spiri t drive us. Inclu siv e We c hampi on diversi t y . We’ re at the hear t of our commu nit ies , and antic ipate, adapt and delive r solu ti ons that enrich the lives of the pe opl e we se r ve. Respe c t f ul We a ct wit h humilit y and are alway s open and hones t . We d elive r on o ur promises to custom ers , sta kehol der s and each other. Strategic report 24 A ir tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 99. 3% of our cus tomer s use pre- paid ser vices 2.2 + million peop le nancially empowered through direct employment, busine ss par tn ers hips and ourdis tr ibu ti on netwo rk 99% of custom er reques t s processe d digitally Our customers • Convenient and competitive se r vi ces that enabl e peop le to c onn ec t , livean d work • Financial inclusion and oppo r tun it y throug h conn ec ti ons to l oc al and global economies Our economies • Accelerate d sustainable development through nanc ial inclusi on and ‘banking the u nbanked’ • Direc t and indirect contributions of $1.5bn in 2 02 1 /22 (vs $1.4bn i n 2020/21) • 2 .2 million people earning through working with Air tel Africa as entrepr eneu rs and in our distr ibu tio n networ k s Our people • Direct employm ent in a gro wing busin ess oeri ng comp et iti ve pay a nd trainin g Our communities • Programmes to suppor t edu cat ion , health and wellbeing, anddisasterrelief Our shareholders • C ons tan t currenc y under ly ing revenu e grow th of 23 . 3% in 2 02 1 /22 • Unde rlying EBIT DA margin of 49.0 % • T ota l divide nd of 5 c en t s (inter im and nal as rec omme nde d by t he Board) Oer ing simple customer journeys and c ompetitiv e pricing To r e a c h : Creating value for : • Simple , convenien t and intui tive cus tome r journe ys • Str aightfor ward pricing plans base d on t he prin cipl e of ‘more for m ore’ • A tailored pricin g stra tegy that varie s depen ding on market posi tio n Other key inputs and enablers: • Marketing and brand -building to increase consum er awaren ess and build cus tome rloyal ty 1 2 8 .4 million total customers including 4 6. 7 million data customers and 2 6.2 million Air tel Money customers Wha t makes us die ren t? Our pur p ose of trans fo rmi ng live s is s upp or ted by our sustainabilit y strategy , des cr ibe d on pag es 43 -58 Our s tra teg y is s upp or ted by a rob us t frame wor k for moni tor in g and mana ging ris k , desc rib ed on pag es 8 0 - 8 6 There are many aspec t s of our s trate gy and busines s model that are unique to us. Ifwe had to c hoose three impo r t ant ways in which we st and apar t from the competit ion, they wo uld be: Rapidly- expanding coverage tha t’s reliable and high-quali ty Simple, transpare nt pr ic ing ands er v ic e A unique distribution network We have an extensi ve, resilien t and reliabl e 4G n etw ork that ’s mee ting the growi ng demand fordat a, whil e our n et wor k expans ion progr ammes are conn ec ti ng the unconn ec ted inru ral and urban areas. Our st raig htf or wa rd pricin g mod els , simple ‘more for more’ oer s and intui tive cus tome r jour ney s are h elpin g us to win and keep custom ers all overAf ric a. By buil ding exclusive chann els and develo ping ee ct ive, digitised onboarding processes, we’ve been abl e to grow our cus tome r base f ast er than thema rket . 25 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Stak eholder eng agemen t This year , we cont inued to engage wi th our most impor t ant stakeholder groups to build s hared unders tand ing and mutual long - lastin g value. Strong, suppor tive relationships not only help o ur business thri ve, they help us make sure we ’ re contribu ting in meaningful ways to the communities we ser ve. How we work to under st and our st akeholders T re ating o ur s takeh old ers f air ly s tar ts w it h unde rs ta nding t he inte res t s of each g roup. D ire cto rs re cei ve infor matio n abo ut ou r st akeho lde rs through various channels. T his includes direct interac tion and enga geme nt – som ethi ng we pla ce mu ch imp or t anc e on at A ir te l Afr ic a. T his year , f or exam ple , we enga ged d irec tl y wi th s take hol der s on our sus t ainab ilit y s tr ateg y and our r emune rati on po lic y. The B o ard also re cei ves rep or t s an d upd ates fro m our s enior lead ers hip team wh o enga ge dire c tly w it h st akeho lde rs . Ever y Boar d pap er now in clu des s ta kehol der in teres t s rele vant to th e prop ose d ac tio ns. We also c onti nue to pla n dire cto r visit s to l oca l ope rat ions an d sch edul e Bo ard me eti ngs at re gional l oc ati ons , wit h repr esent ati ves fro m the l oc al busin ess pre sent . We’ re com mit ted to re gula r comm unic atio n wi th all of o ur stakeholders. That is wh y we’ re developing a s takeholder eng agement pol icy to f orma lise why, when an d how we c ommun icate w it h each group . We expe ct t his to be pu blish ed b efore ou r June AG M . How we consider stakeholder intere st s Our di rec tor s put s t akeho lder v iew s at the h ear t of key d ec isions fo r Airtel A frica. Our c hair is co mmit te d to ensur ing t hat bot h posi tive a nd ne gati ve st akeho lde r inpu t is com munic ate d to the B oar d, an d our exec ut ive team sup por ts w ith t his . The c hair, the chair s of each c ommi t tee, inde pen dent d irec tor s, C EO, C FO an d our co mpany s ec reta r y are availab le to ad dress any c on cer ns raise d by s take hold er s. Considerin g stakehold er interests so metimes involves distilling data and ot her me tri cs to in form d ec isions . At oth er tim es , it invo lves a dire ct c onsul tat ion , suc h as the o ne bet we en ou r Remun erat ion Co mmit te e and share hol der s. I n Sep tembe r 202 1, D oug B aill ie wrote to our top 20 share hol der s and p roxy a gen cies inv it ing t hem to rev iew the d etai ls of the ex it ter ms of ou r CEO, R aghunat h Man dava, a nd th e app oint ment of his su cc esso r , Se gun O guns anya. H e wrote a gain in Marc h 202 2 i nvit ing t hem to dis cuss t he pro pos ed ch anges to o ur remun erat ion p olic y in m ore det ail . T o c onsid er our p eo ple’s inter est s , th e Bo ard re cei ves regu lar up dates on employe e engage ment from the chie f human r esour ces oc er and cha ir of th e Remun erat ion C ommi t tee an d manage ment te am. Our s eco nd ex ter nall y faci lit ated e mplo yee en gage ment sur vey is due to take pl ace in 2022. It s resul t s will h elp th e Bo ard ass ess t he cul ture of our organisation. We also have clea r busine ss s tan dards wi th s ta kehol der in teres t s at the ir core . Our C od e of Co nduc t co vers eve r y t hing f rom res pe ct fo r human r ight s to dat a pr ivac y to ac tin g law f ully. This set s o ut our h igh expe c tat ions fo r how all of us a t Air tel Afr ic a shoul d ac t in ways t hat create val ue for, and build t rus t am ong , our many s t akeho lde rs . P u t t ing p e opl e a t t h e h e a r t of o ur bu s ines s de cis ions Our sec tion 1 72 statement This s ec tio n des cri bes h ow the d irec tor s have ac ted i n relati on to the ir dut ies un der s ec tio n 1 72 ( a ) to ( f ) of th e Com panie s Act 2006 to p romot e the su cce ss of th e com pany wi th re gard to t he nee ds of wi der so cie ty a nd s takeh old ers , in clud ing cus tom ers , consis ten t wit h our c ore busi ness o bje ct ives . Eac h year , di rec tor s rec eive tr ainin g fro m our co rp orate l egal adv iser s Her be r t Smi th Fre ehil ls LLP to r emind t hem of t hei r dut ies to ap ply s ec tio n 1 72 to th eir c onside rati ons an d dec isions . Co nsiste ntl y appl yin g our pu rpo se, v ision an d core va lues (pa r ti cular ly ‘re spe ct f ul’ ) whe n makin g dec isions an d deli ver ing our s tr ateg y helps us m eaning fu lly en gage w it h all of our st akeho lde rs , reg ardle ss of th e outc ome of a ny par t icu lar decision. The i nfor matio n in th is sec ti on exp lains ho w the B oar d overs aw st akeho lde r intere st s an d con cer ns and c onsid ered st akeho lde rs w hen mak ing de cisio ns in F Y ’ 22. Strategic report 26 A ir tel Af r ic a p lc A nnu al R ep or t and A cc ou nt s 2022 Our customer s More than 1 28.4 million customers across A f rica use our data, voice and mobile mone y ser vices to connec t , live and work . How we en gaged d uri ng the yea r Our cus tomer s conti nue to h elp us den e the succes s of ou r produc t s and se r vi ces . T o be ab le to me et and exc ee d our cus tom ers’ n ee ds, we proa ct ivel y enga ge d cus tomer s ac ross all to uch p oint s du ring t he nanc ial year . The insight s we ga in are c ent ral to o ur improvem ent s to our cus tom er exp er ienc e and o ur innov atio ns to our pr odu ct s and services . We compl eted t he ro llou t out of a utomate d SM S sur ve ys acr oss all our mar ket s dur ing th e year . We also o pen ed a f ur t her 30 0+ ret ail expe rie nce s to res to inc rease ou r foot pri nt and es t ablish a c los er pres enc e to many of our c usto mer s. A nd we ex pand ed ou r ope ning time s to be ab le to sup por t custo mer s for l onge r . Our Bo ard conti nued to be infor me d of sign i cant cus tome r concer ns and pr ior it ies t hrou gh the C EO’s reg ular up date. Interests and concerns We know that c us tomer s of all t yp es want to b e abl e to easily us e our pro duc t s and se r vi ces at t imes t hat are mos t c onveni ent for t hem . Whil e mos t pe opl e prefe r sel f-ser vice , the y also wan t quic k and eas y supp or t . O ur youn ger c usto mer s want to b e able to us e our se r vi ces easily on the go and to nd these on the digit al plat forms the y’re alread y using . Air tel Mo ney cus tom ers a re loo kin g for an al ways- on, err or -fr ee, s afe and s ecu re mob ile mo ney se r vi ce. A nd for o ur enter pr ise cus tom ers , ne two rk up time is c ri tic al . Outcome and actions We’ve cont inue d to impr ove our cus tom er se r vi ce ac ross all p lat for ms. T o s t reng the n our se lf- c are suite o f chann els , we fur ther a utomate d our ph one su ppo r t s ys tems for c usto mer s. We bro ught in a n ew inter act ive voi ce res pons e (IVR) s ys tem in ou r regi onal c all ce ntre s to oer cus tomer s more assist anc e with our produc t s and ser vic es . The r ising n umbe r of pe opl e dow nloa ding ou r MyAir t el app – an d using i t to che ck th eir min utes , bu y bundl es and a cce ss mo bile money services – illustrates this gr owing preference f or self-service. We regis tered 3 .5 mi llio n new cus tom ers t his year to rea ch 11 million user s in tota l. Ac ti ve user s dou ble d fro m last ye ar , wi th a tot al mo nthl y tra nsac tio n valu e of $90 m. For o ur Air tel Mo ney cus tom ers , we fo cuse d on mi nimising t he poten tial fo r erro r and ex pandi ng our s er v ice s to more di git al chan nels and pla tfo rms . T o f ur t her i mprove o ur cus tome r supp or t s er v ice , we co ntinu ed to integ rate and s t reng the n our cus to mer dat a sy ste ms. O ur lates t upgr ade a llow s fron tlin e teams to se e all cus tom er info rmat ion o n a singl e scre en so t hat th ey ca n reso lve issu es more t horo ughl y and quickly. We’ re wor king to c reate a qui ck and eas y cus tom er exp er ienc e at ever y A ir te l Afr ic a touc hpoi nt . Our people W e aim to make Air tel Africa a great place to work for our more than 3, 700 full -time per manent employ e es encompassing 35 n at ionalities in 1 8 countries. O ur people are at t he hear t of our business success. How we en gaged d uri ng the yea r Our B oar d ac tive ly eng ages w it h empl oyees i n a vari et y of ways to bet ter u nder s tan d how we c an enha nce o ur pe opl e st rate gy an d cont inue to b ri ng our va lues to li fe. T hey als o st ay on to p of empl oyee - related matters through th eir involvement with our Sustainabili ty Com mit tee . Dur ing F Y’ 22, Boa rd memb er s met wi th e mploye es to dis cuss b oth professional and personal matters – inclu ding feedback on moving our hea dqua r ter s to Dub ai fro m Nairo bi, tea m cap abili tie s and ho w we can b es t buil d an agil e high - pe r for manc e cul ture. We also e nco urag e empl oyee s to share fe edba ck t hroug h our op en - do or p olic y , whe re anyone c an sp eak to our G rou p CEO o r any E xec uti ve Co mmit te e (ExCo ) member . The B o ard also s t ays clo se to emp loye e -re lated is sues t hrou gh: • Q uar ter ly C EO -le d town ha lls in Eng lish and Fre nch , wh ere se nior execu ti ves upda te empl oyee s on our b usines s per forma nce an d organi sational change s, and tak e questions fr om employ e es • Remuneration C ommitte e updates from our chief human resources oc er ( C HRO) o n remunerat ion , peo ple , culture, con duc t and diver sit y • Re gular B oa rd pres ent atio ns and on e -to - o ne me eti ngs as ne cess ar y fro m our CH RO • Q uar ter ly B oa rd rep or t s f rom th e HR F oru m and Rem uner atio n Forum chai r on people, cult ure an d wellbei ng • T he resul t s of our e mploye e eng agem ent sur vey and re gular p ulses share d in var ious O pC os and O pC o - le d town hal ls • O ne -to - one me etin gs bet we en our E x Co a nd Op Co ma nagin g dire cto rs and ot her l eade rs to dis cuss e mploye e - relate d mat ter s • Re gular E x Co mar ket visi t s whe re lead ers i ntera ct w ith tea ms at all levels of t he bus iness Interests and concerns In ad dit ion to s tay ing s afe fro m Cov id - 19, our peo ple c ont inue to be primaril y interested in developing their care ers and broadening their skills. Outcome and actions We’ re wor king to c ont inue to at t rac t , deve lop, an d reta in a highl y skill ed , dive rse a nd enga ge d empl oyees . T o this e nd, w e’re focusin g on bui ldin g a supp or t ive an d agile c ultu re, ce ntre d on sim plic it y and acc ount abil it y – one t hat all ows us to qui ckl y resp ond to t he cha nging nee ds of our c usto mer s. This yea r , we c onti nued to l oo k af ter t he saf ety a nd wel lbein g of our peop le through awareness campaigns around Covid - 1 9 safet y and gen eral tn ess , fully paid medi cal cover, ou r employe e assista nce prog ramm e, fre e C ovid - 19 test ing an d on -sit e vacc inati ons . We also supp or te d employe es work ing remotel y with more exibi lit y to h elp the m balan ce ho me de mands and b usines s ne eds . Our late st b i- annua l empl oyee e ngag ement s ur vey a chieve d an 87% resp onse rat e, wi th an ove rall en gage ment s core o f 79%. 27 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Stakeholder engagement co ntinu ed We also wor ked to enha nce c are er op por tunit ies an d lifel ong l earn ing thro ugh a ne w init iati ve cal led A fr ica M obi lit y, where emp loyee s can take on as signm ent s in ot her busi ness a reas and c ount ries to l ear n new sk ills , supp or t key i nit iative s and ad vanc e the ir car eer s. T his is in addi tio n to our c ri tic al ski lls tra ining in a reas like I T and dat a se cur it y and ou r lead ersh ip pro gramm es to pre pare p eop le for t he f uture of wor k. Dur ing the nanc ial year , over 20,0 0 0 course s were comp lete d on our digital training plat form. We’ re also wo rki ng to enhan ce val ues -l ed p er fo rman ce t hroug h creat ing use ful in cent ives (our pay-f or -p er forman ce ph iloso phy) based on improved appraisal analy tics and proc esses. Our communities Wit h operatio ns in 1 4 Afr ican count ries, we li ve and work closely w ith our co mmunities – doing al l we can to suppor t t heir needs and c reate positive change. How we en gaged d uri ng the yea r We heard fro m pe opl e in our c ommu niti es thr ough l et ters , em ails and tex t mes sag es abo ut t heir in div idual si tuati ons and c onc er ns. Gove rnm ent s and ot her o rganis atio ns made p ubli c appe als, as w ell as dire ct ap proa che s to our op erat ing c ompa nies , abo ut key c ommuni t y issues d uri ng the ye ar . We also c onne ct to p eo ple t hrou gh our comm unit y ini tiat ives , suc h as th e Air tel T o uchi ng Li ves pro gram me in Nig eria , wh ich re cei ved mo re tha n 70,0 0 0 requ es ts fo r supp or t in F Y ’ 22. Our C EO rep or ts on t he on goin g impa ct of C ovi d- 19 and ot her emer gen cies o n our co mmuni tie s at Bo ard me eti ngs. T he B oa rd also regularly reviews our for mal programme of community init iatives. Interests and concerns In F Y ’ 22, our co mmuni ties c ont inue d to fac e heal th an d eco nom ic chall eng es linke d to Cov id - 19. More pe opl e were t hrown i nto pove r t y , and a lac k of basic h ealt hc are le d to more h ealt h issue s beyo nd th e impa ct of C ovid - 19. Outcome and actions We worked w it h gover nme nt s acros s Afr ic a to trans fo rm t he live s of som e of the m ost v ulne rab le pe opl e on t he co ntin ent by : • creating education al oppor tunities, especially for less pr ivileged children • sup por ting p eo ple i n time s of nee d and e merg enc y • br idg ing the digit al divid e through nan cial inclusi on and other initi ative s Our O pC os wor ked w it h gover nmen ts to c ont inue to h elp comm unit ies d eal wi th th e ong oing im pac t of Cov id - 19. In Nige ria , we also inves te d in ref urb ishing a w ard at th e Lag os Uni vers it y T e achi ng Hosp it al to o er more treatme nt for C ovi d- 19 and othe r infect ious disea ses. We also focus ed o n improv ing ac ces s to onli ne ed uca tion al reso urces , par t icu larl y for le ss pr iv ile ged c hildr en in mo re remote l oc atio ns. I n Novem ber 202 1, we l aunc hed a ve- year , $57 m par t ner ship wit h the Uni ted Nat ions C hildre n’s Educat iona l Fund (U NI CEF ). Cover ing 13 of our markets, this par tn ership will champion digital e ducation for Afr ic an chil dren t hrou gh onli ne plat fo rms , co nne ct ivi ty a nd ac cess to quali ty d igit al le arni ng. S even of ou r 13 OpC os have alread y be gun initiatives through this par tn ership, targeting more than 350,0 00 children in 280 schools. We suppo r ted o ur co mmuni ties t hrou gh a hos t of ot her in itiat ives , including a cyb er - awareness campaign in Gabon , a crime prevention par tner ship with the poli ce in Zambia, and a par tner ship with the World F oo d Progr amme ( WF P) using mobil e mon ey to prov ide c ash to pe opl e displa ced b y terro rism i n the n or t heas t and n or t hwes t of Nige ria. For m ore d et ails a bou t ou r com muni t y sup po r t , se e p a g e s 5 9 - 61 Par tner s and suppliers W e wor k wit h more than 2,400 supplier s across Africa , including mobile brands, IT companies and telecoms infr astr ucture p roviders – wi th th e top 1 00 supp liers acco unting for just over 88% of our procurement. How we en gaged d uri ng the yea r We conti nue d to engag e wit h our to p supp lier s dur ing t he year at b oth Gro up and O pC o leve ls. T he B oar d rece ives re gular i nfor matio n fro m the se enga gem ent s thr ough t he C EO’s repo r t . Du rin g the yea r , our CFO a lso pre sente d a disc ussion p ape r cover ing p aymen t terms , paym ent prac tic es and vendor liabili tie s. The chie f supply chain oce r also at ten ded t he B oard m eet ings o n tw o occ asio ns to provi de a functional report which included f e edback on ou r rel ationsh ips with supp lier s. T he B oar d’s respo nse was t hen re layed to t he busin ess an d lead ers at t he C EO’s regu lar E xC o and busi ness re vie w meet ings . Wi th so cial dis t anci ng s till i n plac e dur ing th e year , w e met sup plie rs through a combination of online meet ings and face- to- face inter act ions , wh en it w as safe to do s o. Th e relo cat ion to D uba i of our key so urcin g team has all owe d us to hold m ore me et ings on the g round a nd impr ove enga geme nt leve ls. We met w ith o ur majo r supp lier s at leas t on ce eac h quar ter , and a t major c onvent ions , including MWC Barcelo na and Africa Com. These me etings included gover nance meetings , commercial meetings and , whe re nec ess ar y, grievan ce me eti ngs. O ur O pC o teams cont inue d to disc uss op erat iona l mat ters w it h supp lier s at cou ntr y level , and o ur par tner s tell us t hat th ey valu e the p roac ti ve app roac h we take in r esol vin g issues . Many of ou r par t ner s were , like us , par t of p rovi ding es sent ial se r vi ces to comm unit ies – an d we are gra teful to p ar t ner s on th e grou nd suc h as fue l supp lier s and mai ntenan ce wor ker s for hel ping us ke ep our net wor ks r unn ing and s er v ing cus tom ers . Interests and concerns We have a stro ng tr ack re co rd of par tner ship a nd many par tne rs se ek us out to d iscuss w in -w in sol uti ons . Par t ner s and sup plie rs als o prov ide infor mati on on t he lates t de velo pmen ts a nd supp or t us wit h the ado ptio n of new te chn olo gies , and w e discus s sale s and pro jec t pl ans, bids an d prop osals , and p ayme nt s. Outcomes and actions In No vembe r 202 1, we c onc lude d an ag reem ent wi th n ew par tner Cisco f or up gradi ng our C all C ent re T e ch nolo gy Pla tfo rm (CCT ). We have be en using o ur CC T plat for m fro m an alte rnat ive ven dor fo r th e pas t ve ye ars and the new par tne rsh ip with Cisco provi des Air te l Afr ic a wit h the l ates t tec hnol ogy p lat for m lead ing to subs t antia lly enhanced cap ability and features. The rollo ut is in progress. As a r esult of t he lau nch of o ur sus taina bili ty s t rate gy in 202 1 a nd foll owing a n asses smen t of our cu rren t poli cies a nd pro ce dures , we w ill be aligning our supply chain sustainabilit y target s with expe ct ations we have fro m our to p 1 0 0 cur rent ve ndo rs in 2022 and beyo nd. For m ore i nfor mat io n abo ut o ur C od e of Co ndu ct a nd t he mo de rn s laver y statement, see our website w w w.airtel.afr ica Strategic report 28 Ai r t el A fr ic a p lc A nn ual R ep or t and A cc ou nt s 2022 Regulators and government s Wit h m obile t elecoms and nanc ial ser vices seen as essential ser vices we cont inued to work closely w ith government s and regulators to build dig ital and nancial inclusion. How we en gaged d uri ng the yea r We wo rk hard to in ue nce and stay ahea d of re gulator y chang es in the 1 4 dieren t countr ies where we opera te. Our Board cont inue s to have a pro duc ti ve and op en dial ogu e wit h reg ulator y bodi es and pol icy maker s and se ts h igh s tan dards of gove rnan ce ac ross o ur busine ss . A spe cial ad vise r to the c hair an d the B oar d prov ides a dvi ce to the ma nagem ent on p oli ti cal , le gal and re gulato r y issu es reg arding our s tr ateg y in Afr ic a. T he B oard has e mpo were d the C EOs an d chie f regu lator y oc ers of our ope rati ng compan ies to re pres ent them at cou ntr y - level e ngag ement s w it h gover nmen ts a nd reg ulator s. Manag eme nt also info rms t he B oard a bou t regu lator y d evelo pme nt s in th e market s eac h mont h. Fro m tim e to tim e, we als o commis sion audi t s to veri f y le vels of reg ulator y comp lianc e. In F Y ’ 22, we cont inue d to eng age w ith g over nment s to un der s tand key pol icy c onsid erat ions a nd th e dire ct ion in w hich g over nment s are dr ivin g the ir cou ntr ies . Du e to the o ngoi ng pan demi c and tr avel res tr ic tio ns, mu ch of ou r engag eme nt wit h gove rnm ent and re gulato rs was hel d onli ne thr ough v ide o con feren cing . We engage i n a vari et y of ways wi th re gulato r y s takeh old ers a round potential changes to licencing framewo rks , market and competit ion st ru ctu res , new gover nme nt polic y initiat ives and new laws aect ing our busi ness . D epe nding o n the c omp lexi t y of the is sue and t he le vel of the st akeho lde r , a m atte r might be d ealt wit h by o ur regulator y aairs dire cto rs , or o ur Group chief regu lator y oc er work ing alongsi de a loc al team , or di rec tl y by our G roup C EO or c hair. Interests and concerns Gove rnm ent s and re gulato rs c onti nue d to moni tor th e ong oing heal th and e co nomi c eme rgen cy, and to coo per ate clos ely w it h indus tr y in doin g so. Ac ross Af ri ca , the fo cus has b ee n on op ening up society saf ely, removing gov ernment su pp or t when appr opr iate, and co ntin uing to im prove dat a se cur it y . We’ve see n Know Y our Cus tomer re qui remen ts e nhanc ed a cross ma ny of our mar ket s. Gove rnm ent s also c lose ly mo nito red tel ec oms prov ide rs to make sure th e indus tr y was abl e to meet c hangi ng de mands rela ted to new pa tte rns of wo rk ing. Outcomes and actions Gove rnm ent s ac ross Af ric a co ntinu ed to su ppo r t ou r indus tr y as the pand emic ro lle d on for a noth er year. We held var ious d iscussi ons wi th re gulato rs to rel ease sp ec tr um t hat had ini tiall y be en all oc ated o n a temp orar y basis more p er manen tly to acc ommo date on goin g pat ter ns of wor king f rom h ome. A s l ockd owns ease d and busin ess es s tar ted to get b ack to no rma l, gove rnm ent s also allowe d mobile nan cial ser v ice provi der s to on ce again charge tra nsac tio n fees . In s ome c ount ri es, g over nment s b egan to r aise t axes and rem ove ta x rebate s that busi ness es and e mplo yees ha d enjoye d in F Y ’ 2 1. Regu lator s in som e market s (N iger ia, N ige r , Keny a, T anza nia, U ganda and Z ambia) worke d to improve s ecu ri ty by e nhanc ing K now Y ou r Cus tomer re qui remen ts – s ee pa ge 23 for more . T e le com o per ators c ont inue d to enjo y rec ogni tio n as esse ntial s er v ice provi der s. T his he lpe d us keep o ur net wo rk s op en and p eo ple an d ser vice p rovid ers c onn ec ted . An d it mean t our em ploye es co uld continue to maintain facilities , distr ibute SIM cards and Air t ime, and ser ve our cus tome rs . Engaging with our stakeholde rs 5 Follow up on remedies/ ecienc y assessment 2 Promote your requireme nts 3 Inter nal and exte rnal controls 4 Gaps and remedie s identication 1 Kn ow yo ur requireme nts Our compliance managemen t sy s tem Ov er t he la st r epo r t in g year, we rol le d out a n ew way of m ana gin g co mpl ia nce t o our 14 oper at ing mar ket s . This invo lve s ve steps : 1 Unde rst anding and mapping the regulator y requ ireme nt s in t he spec ic cou ntr y 2 C asca ding re levan t regul ator y re quire ment s to busine ss uni ts s o th ey know w hat is exp ec ted ofthe m from a c ompl ianc e persp ec ti ve 3 Aud it ing th e level of a dhe renc e to comp lian ce requ ireme nt s – this is do ne by t he reg ulator y func tion, internal audit and som etimes ex terna laudi tors 4 Id entif ying gaps in meeting co mpliance requirement s, analysing the cause and prop osingr eme dial act ion 5 Impl ementing remedial measures and repe atingt hec ycle This p roc ess has he lpe d our o per atin g comp anies be com e more awa re of the c omp lianc e requirement s in their markets, leading to improved compliance overall. 29 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Stakeholder engagement co ntinu ed Shareholder s Through their investments , our shareholders enable us to deliver our st rategy and create long -term value and ongoing business success. How we en gaged d uri ng the yea r Our e ngage ment w it h inves tor s is led o n a day- to - day basis by o ur inves tor rel atio ns team wh o maint ain a t wo -w ay dialo gue b et wee n the i nves tmen t comm unit y an d Gro up manag emen t , execu tive s and the Boar d. We want to encourage shar eho lder part icipation by underst anding and acting on sharehold er feedback and by being clear and tra nsparen t whe n comm unic atin g wit h our sha reho lde rs . T o t his en d, in F Y ’ 22 we: • H eld int erac ti ve con feren ce ca lls wi th anal ys t s and sha rehol der s on the day of o ur quar terl y resul t s annou nce ment s • H eld v ir tua l inves tor roa dshow s af ter p ublish ing our f ull yea r and hal f year resul t s in May an d Oc tobe r 202 1, as we ll as ad ho c me etin gs and c alls wi th b oth exis t ing and p rosp ec ti ve shareh old ers • At tend ed o nline i nves tor and i ndus tr y confere nce s thro ugho ut t he year to all ow bot h exis tin g and pro spe ct ive sha reho lder s opp or t unit ies to sp eak dire c tly w it h our exec ut ive manag eme nt • Pro ac tive ly eng age d wit h th e sell -s ide e quit y res earch c ommu nit y • T hrou gh brie ngs to ana lys t s and the press, enc oura ged shareh old ers to at te nd our hy br id AGM i n June 2021 and to vote on resol utions • Collec ted and reviewed f e edback from shareholde rs on our engagement with them The C EO p rovid es mon thl y insight to t he B oard o n all inves tor r elati ons ac tiv it ies and as soc iated fe ed back . Le d by our d epu t y CFO a nd hea d of inves tor rel atio ns, t his rep or t i nclu des a su mmar y of sh areho lde r and shar e pri ce mar ket ac tiv it y and c omm ent ar y on i nves tor me etin gs, roadsh ows an d equi t y resea rch anal ys t cover age . The B oa rd also rec eives re gular u pdate s dire ct f rom ou r broker s. As s et ou t in th e remune rat ion rep or t, o ur Remu nerat ion C om mit tee consu lt s wi th shar ehol der s eac h year on rem uner atio n pol ic y and , as par t of t his , the c ommi t tee c hair eng ages di rec tl y wit h share hol der s and th eir rep rese ntat ive b odie s. For m ore i nfor mat io n abo ut o ur Re mun erat io n Co mmi t tee , se e pa ge 98 Interests and concerns Und ers t andab ly, inves tor s conti nue to fo cus on our busine ss nancia ls. The y expec t to s ee sust ainab le prot abl e grow th , free cash ow and div iden ds, an d sus tain ed hi gh st and ards of gove rnan ce at A ir tel A fr ica . Many shareholders are interested in our outl ook on trading and market deman d, o ur guida nce fo r F Y ’ 23 and beyon d, o ur app roac h towards addressing foreign currency r isks and par ticular ly our progress in improving our natural currency he dging by localising debt in our ope rati ng co mpani es, a nd our re pat riat ion of f unds f rom th e Op Cos to Gro up level. Th ey are als o interes ted in our ot he r nancial targe ts , our appr oach to c api ta l allo cat ion , and p ar t icula rly o ur div ide nd po lic y . In light of t he in crease d inter es t in our ap proa ch to env ironm ent al, s ocia l and gove rnan ce - relat ed po lic ies and ma tte rs , we have wo rked c lose ly wit h share hol der s to devel op our s ust ainab ilit y s tr ateg y this year. Outcomes and actions Wi th th e insight s p rovid ed in m onth ly B oard u pdates , ou r dire cto rs are able to t ake majo r st rate gic an d ope rat ional d ecisi ons wi th a g ood awarenes s of the views of o ur shar eholder s. In resp onse to i ncreas ing de mand f rom inves tor s and ot her st akeho lde rs , in 202 1 w e beg an to for mally a r ti culate h ow our s t rateg y and business model align with environme ntal, social and governanc e bes t pr ac tic es . This l ed to th e pub lic atio n of our de tail ed sus t ainabi lit y st rate gy in O cto ber 2021 and has infor med o ur ES G agen da. We’ll publ ish our progress agains t this str ategy in our rst Sus taina bili ty Rep or t late r this yea r . For m ore i nfor mat io n abo ut o ur sus t aina bil it y s tr ateg y, see pa ge s 43 - 58 T r ansforming lives spotlight Suppor ting our hospitals during Covid - 19 In resp onse to C ovi d- 19, we’ve forme d a par tner ship w it h one of the l eadin g Unive rsi ty T ea ching H osp ita ls in Nig eria – T he L ago s Unive rsi ty T ea ching H osp ita l (LUT H). This year , w it h our sup po r t , LUT H succ ess f ully re novate d and re mod ele d an ent ire 11 1 - be d ward in i t s medi cal w ing to im prove t he ac cess to q ualit y an d aord able heal th care in Nig eria – par t of ou r commit ment to help ing ou r comm unit ies bu ild ba ck s tro nger i n 202 2. For m ore i nfor mat io n on ho w we man age o ur r isk rel ate d to Co vid - 19, se e pag e 83 Strategic report 30 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Our strategy Our ‘ Win with ’ s trat egy is under pinned b y our su s t ainabilit y s trat egy and deli v er s l ong - t er m val ue f or a ll o ur sta k e ho l de rs. W e’ re transformi ng lives acr oss sub -Saharan Af rica through produc t s , ser vices and programmes that foster nancial inclusion , drive digit alisation and empower our 1 2 8 .4 million customers and t he communities in which they l ive . T o continu e to s er ve our vis ion of enriching the l i ve s of our customers, we hav e a clear busines s obje c tive: to g row mar ket share protably and creat e s uperior enterprise value while delivering our s ustainabi lity s trategy . Our ‘ Win wi th’ s trate gy has si x s trate gic p illar s thro ugh w hich we a im to deliver sust ainab le, pro ta ble grow t h. Unde rpi nning each pillar are tw o cons t ant th emes t hat info rm eve r y t hing we d o: digi talis ati on, and ou r comm itm ent to co ntr ibu te to sus taina ble d evelo pme nt and resp onsibl e busin ess th rough o ur sus tai nabili t y st rate gy, which is desc rib ed on pages 43 -58 . Workin g wit h th e gover nme nts a nd ins ti tut ions of t he co untr ies i n whic h we o per ate is a cent ral eleme nt of ou r strate gy. We aim to help the m realise t heir g oals fo r sust aina ble de velo pmen t by wor king to expan d con nec ti vi ty a nd mob ile mo ney s er v ices as p ar t s of dig itis ed , dyna mic , and nanc iall y- incl usive econ omie s, whil e ensuring our st ric t and cont inue d complia nce wit h local laws and regulat ions . We ai m to ac t as a respo nsibl e business at all times . That means doing busine ss transpa rent ly and with a s ound gover nanc e str uc ture. It also means b eing a g ood p ar t ner an d an ac ti ve cont rib uto r to soc iet y , b y creat ing jobs , paying taxes and respe ct ing the enviro nment . We als o continue t o suppor t communities by working with local stakeholde rs on our longst anding commitme nt to improving digital educatio n, improving health and suppor ting communities through disas ter relief, as descr ibe d on p ages 59- 62. Win with data Win with people Win with cost Win with distribut ion T r ans for ming li ve s Win with network Win with mobile money Accelerated b y our commitment to Digit alisation Underpinned by our Sustainabilit y s trategy 31 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our strategy cont inue d Win wit h net work W e a im t o cre at e a le adi ng, mode rni s ed ne t wo rk tha t can p ro vide th e da ta capacit y to m eet r apidly growing demand and enhance connec ti vit y and digi t alisa tion in our markets . That means impro ving basic network uptime, qualit y and resilience as we ll as expan ding ou r network footprin t and our 4 G capabilitie s. Our p rogress i n F Y ’22 Del iver ing b es t-in - class s er v ice an d 4G net wo rk s in our ma rket s remains a key fo cus , and o ur goa l is to be th e market l eade r ever y where we o pe rate, w hile c onti nuing to i nclu de mo re pe opl e in our net wor k, par t icu larl y in u nder se r ved rur al areas. This year we cont inue d to inves t in ma king o ur data n et wor k more re silie nt and expan ding t he p otentia l of our 4G n et work , i nves ting i n data c entr es that c an also p rovid e revenu e s treams f rom t hird - par t y use rs , and evol ving our bre netw ork to add additi onal bre routes to our cus tome rs , stren gt henin g the stab ilit y and conti nuit y of our ser v ice . We c onti nue d to imp rove our bre provision in metro, interci t y , and international network s, including through cos t-eec tive part nerships and co -i nves tme nt progra mmes . Our inve st men t in new an d exis tin g sites has e nabl ed us to in crease data spe eds as well as coverage . In a ddi tio n to our KPIs , belo w, we tra ck our p rogr ess by measu res tha t incl ude r ural p opu latio n cove rage : this year , that increase d from 65% to 68%. We a lso measure the numb er of new s ites in r ura l areas , a targ et that su ppo r t s our sust aina bili ty s t rateg y : this year we a dde d alm ost 1, 40 0 new si tes in rural areas. How we measu re prog ress We m easure netw ork thro ugh a numb er of K PIs , descr ibe d on p age s 1 7 - 1 9, inclu ding: T ot al sites and data capacity: we de ploye d mo re than 3 ,40 0 addi tio nal sites , reaching 2 8,79 7 sites in total as of 3 1 March 202 2. Dur ing the year , we added 3,9 00 more sites to 3G ( 96 .5% of sites on 3G), 5, 80 0 more sites to 4 G ( 87 .6% of si tes now on 4 G) an d added an incr ement al 1 0, 0 00 km of bre ( 64, 50 0+ km of b re as of 3 1 March 202 2 ). Data capac it y increase d by 4 0.4% to 1 6 ,90 0+ teraby te s (TB) per day , wit h peak hour data utilisa tio n at 46% . For i nfo rmat io n on ho w we man age r isk , s ee p ag es 80 - 86 For information about our sustainabilit y , se e pag es 43 - 58 Focusing on rural cov erage expansio n through new sit e rollout s, recognising that acces s to a reliable ser vice is t he crit ical rs t s tep for providing previously under ser ved communities with the oppor tunit y for digital and nancial inclus ion Focusing on our net work resilience and ser vice continuit y , and ad ding capacit y through aggregation Building and mod ernising our networ k through optimal end -to - end design , inclu ding spec tr um addit ions E xpand ing the reach of 4G cover ag e and building capaci t y through our 2 G> 3 G> 4G ap proach, an d f uture- proon g through 5G compa tibility Delivering best-in - class voice ser vice qualit y while improving networ k uptime Our approach includes: Strategic report 32 A ir tel A fr i ca p lc A nn ua l Rep o r t an d Ac co unt s 2022 Delivering best -in - class service: Uganda Our ab ilit y to h elp tr ans for m cus tomer s’ live s dep ends o n deli veri ng fas t , relia ble an d resp onsive s er v ices – a nd on le ading t he way in o ur market s. In March 202 2, Air tel Uganda was re co gnise d as Uganda’s f aste st mobi le netw ork at the Mob ile World Con gress (MWC ) in B arce lona , Spain , af te r spe ed te st s c arr ie d out by O ok la, a global independent leader in mobile and broadband net work intelligence, tes ting appl ica tio ns and re lated tec hnol ogie s. It is a vote of c on denc e in o ur ser vi ces – and a reec tio n of t he consis tent invest men t we cont inue to make in our net wor ks . In Ugan da, our 4G n etw ork is n ow co untr y-w ide an d uses the latest 4G techno lo gy. We now have 4G mobile cover age of 90% of U ganda’s pop ulati on . In K ampa la, 79% of our sites are also conne c ted to bre . This high - qual it y ser vi ce has h elp ed make Ugan da one of our bes t-p er fo rmin g markets – but we’ re not stop ping the re. We’ re alread y plann ing our 5G roa dmap for Uganda , while cont inui ng to roll o ut en hance ment s to o ur 4G net wor k tha t will f ur t her i mprove ou r cus tome rs’ exp er ienc e and o pen up m ore opp or t unit ies for the digita l econo my . Fo r our East Afr ic a busin ess rev iew, se e page s 64 - 65 9 8 .7 % pop ulati on covera ge in Uganda 57 % of our sites are in rural areas in Uganda Our netwo rk st rate gy in a ct ion Eb y ’ empuliziganya by ag onjodwa. W e’v e never been so well connec ted. Nalweyiso Shabibah Hairdresser Nakasongora, Cen tral Uga nda 33 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our strategy cont inue d Win wit h dist ribution W e aim to build on our unique di str ib ution n et w ork t o inc re as e our ab ility to r ea ch an d ser ve c usto mers in a ll ou r ma r k ets. This y ear w e updated the n ame of th is pill ar from ‘ Win with custom ers’ to reect the fac t t hat our distribution net work empowers our business by ex tending our brand and abili t y to oer int er link ed ser vices, as well as through customer recruit ment and retention. Our p rogress i n F Y ’22 We have conti nue d to expan d our dis tr ibu ti on net wo rk to ge t clos er to cus tom ers , de velop ing ou r infr ast ru ct ure so t hat we cou ld dri ve custom er grow th and retentio n, as reec ted in the KPIs on page s 1 7 - 19. Fast , eec ti ve digita l onboard ing is als o a c onti nuing pri ori t y , bri nging new cus to mer s to our se r vi ce in way s that are 100% c omp liant w ith loc al Know Y our Custo mer (KYC ) requ ireme nt s while being as ecient as possibl e – th is year , for exampl e, adapti ng to ne w requirem ent s in Kenya and Rwanda . In Nigeri a, we are worki ng as pa r tn er s with the gover nme nt to de liver it s nationa l identi ty numb er (NIN) progr amme, whic h makes c oll ec tin g NINs a re qui remen t for n ew and existi ng cus tome rs . Across ever y market , we have now develo pe d an ap p for digital regis tration , and most onboarding pro cesses are achieved in ve minutes or less . How we measu re prog ress We m easure dist rib uti on throu gh a num ber of KPIs, desc rib ed on pages 1 7- 19 , including: Cus tomer base and net adds: Our custom er base grew 8. 7% to 12 8 .4mill ion as of 3 1 March 202 2. Custome r acti vatin g outle ts grew by 2 1.0 % to 25 1, 00 0+. T he overall grow t h reec t s our c ont inuo us focus o n inves tm ent in s ales an d dis tri but ion i nfras t ru ctur e in urb an and rural market s , inclu ding our exclusive Air te l Money dist rib ut ion chann el of k iosk s and branche s. Our enhanc ed dis tri but ion chann el ensures availab ilit y of SIM cards, rec harge s and m oney oat . Our unde rl ying voic e revenue grew by 15.4 % in c ons tant cur renc y. Fo r info rm ati on on h ow we ma nag e ris k, s ee p ag es 8 0 - 8 6 Strengthening our dist ribution infr ast r uc ture t o win more qual it y customers by increasing our depth and bre adth, wi th a par ticular foc us on rural are as Enhancing customer experience through s implie d digit al cus tomer onboarding processes, including the Know Y our Customer (KY C ) process Broaden ing o ur o er t o enhance usag e and ARPU , while fur ther reni ng ou r appr oach t o di s tribution so we ca n focus fa s ter a nd more res ponsively o n the needs and iss ues of customers in smaller geographies, incre asing our net customer reach Our approach includes: Strategic report 34 A ir tel Af r ic a p lc A nnu al R ep or t and A cc ou nt s 2022 Never mo re tha n 1 km away : get ti ng close r to custo mer s in DRC Less t han 26% of the pop ulat ion in Dem oc rati c Republi c of th e Congo (DRC) h as acc ess to t radi tio nal ban king – s o mobi le mone y is esse ntial to i ndiv idual a nd co untr y- wid e nancial inclusi on and prosper it y. B ut to get the most out of mobile mone y , the DRC cus tome rs ne ed to b e abl e to acc ess it w her e the y live – wh ich is w hy we’ve set o urs elves the g oal of ensu rin g our dis tr ibu ti on net wo rk ser ves ever yo ne, an d that n o - one s houl d have to trave l more t han 1 km to a cce ss Air tel Money. Our ai m is to ope n a ded ica ted ki osk for eve r y 2,50 0 peo ple in the DRC , and c reate at l eas t one Air t el Money bran ch (AMB) for eve r y 1 0 ,0 0 0 pe opl e – a prog ramme t hat wi ll create 4,0 0 0 jobs in o ur netw ork . We’ve i nves ted in pre -fabric ated, ready- to- inst all facilities for our dis tr ibu tor s, w ho also h ave acc ess to ou r cus tomise d s ys tems for ba lanc ing th eir c ash and oat . The pro gramm e is wor kin g. In FY ’22 i n the DRC our custo mer act ivat ing out let s have grown by 36 % , and AM Bs have in creas ed by 67%. Our cus tomer base incre ased by 2 0 . 7% . F or more ab out our Fran co ph one Afr ic a business, see pag es 66 - 67 36% grow t h in cus tom er ac ti vatin g out let s in the DR C 2 0 .7 % incr ease in total custom ers in the DRC Our distribut ion str ateg y in ac tio n Il est plus facile que jamais de contrôler mes nances. It i s e asi er tha n ev er to control my nances. Bibi Sombola Microentrepreneur Kinsu ka, Kins hasa (DRC) 35 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our strategy cont inue d Win wit h data W e a im t o maxi mi s e the va lue o f da t a - based se r v ic es an d in cr ease dat a pen etra tion i n all o ur m ark ets. That means encouraging sma r tphone ownership and increasing data usage at scale, while increasing acces s to the digital economy for customers in all our mar ke ts . Our p rogress i n F Y ’22 Our su cce ss in ac hiev ing ou r ambi tio ns for dat a is clos ely l inked to ou r abili t y to ex tend an d maint ain fas t , relia ble n etw ork s , and to b eing clos e to ou r custome rs throu gh dist ribu ti on. Our net wor k progra mme in Niger ia, for exampl e, increase d our data capaci t y by 40 .5% , while we moder nise d our net wor k in N ige r and a dde d 5 50+ sites in Keny a. Our p er fo rma nce is als o linke d to smar t pho ne own er ship, w hich a gain grew this year: 4 2.6% of ou r data custome r base now has 4G devic es, comp ared to 36.4 % las t year . Be ing the leading 4G provid er , and oeri ng compe tit ive, tra nspare nt data b undl es, g ives us a c omp eti tive a dvant age w hen i t com es to new cus tome r acquisit ions . Air tel Kenya , for ex amp le, launc hed new ‘B azu’ data bund les this year t hat oer custo mer s more data and choic e at no ex tr a cos t , com ple ment ing t he roll out of a h igh -sp ee d 4G net wo rk coun tr y wide. Our abili t y to prov ide cap aci ty and excelle nt digit al ser vice s also h elps drive usag e. The str ong prese nce of our o ut let s and ou r market ing inve st ment su ppo r t t his net wor k ad vanta ge – th is year we c ar rie d out smar tp hone oer ings in 1 1 market s. As the KPIs bel ow show, o ur custom er base and data usag e both grew in FY ’22. Our h ome br oadb and cus tom er base g rew by 54%, d riv ing re venue fro m this s egm ent up by 63% . How we measu re prog ress We m easure data throug h a num ber of KPIs, desc rib ed on pages 1 7- 19 , including: Dat a c us t ome r s , 4G da t a cu s tom er s a nd pe ne t ra ti on: O ur data cus tome r base i ncreas ed by 1 5.2% to 46. 7 milli on as of 3 1 March 202 2, and n ow cons tit utes 36.4% of our total custo mer base. Our total data usage inc rease d by 48 . 7 % to 1, 848 billi on MB . Data usage per cus tome r per month reache d 3.4 G B , an increase of 3 1. 0% . 4G data usag e contr ibute d 66. 7% to total data usage. For i nfo rmat io n on ho w we man age r isk , s ee p ag es 80 - 86 For m ore i nfo rmat io n abo ut o ur sus t aina bil it y s tr ateg y, see pages 43-58 Lev eraging our 4 G network for dat a ARPU an d rev enue growth and usi ng our t echnology to win and/ or maint ain mar ket leader ship Smar t phone oer ings for all new handsets t hrough well - priced , tra nsparent bundles Fur ther developing our wireless home broadband busine ss Developing innov at ive product s and dat a solu ti ons for corporate a nd SME customers t hrough Air tel Busine ss Continuing to focus on d ata secu ri t y for our customers in line with our sustainabilit y st rategy Our approach includes: Strategic report 36 A ir tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 Enabling the rapid growthin da t a use in Chadand Niger The re is no dou bt about the demand for data in our mar ket s – and o ur s trate gy aims to mee t it by reac hing m ore pe op le wi th dat a ser vice s by enhan cing o ur data c apa cit y through ne t work modernisation and expanding our 4G net work, st rengthening our unique dis tri but ion chann els , and oer ing trans parent , well - pr ice d oers that custo mer s love. Data gr ow th i n Chad an d Nige r show t his st rate gy is d eli veri ng. Bot h countr ies are landlocked and cont ain geographic ally remote ar eas – but t hat do es not p revent us expanding our distribu tion net work and cap aci ty to win m ore custo mer s. In Niger, we incr eased o ur exclusi ve out let s by 61 % and cus tome r act ivat ing o utl et s by 48% t his year , supp or te d by inc rease in to tal dat a ca paci t y by 5 5% led by new bre - shari ng agreem ent s to build netw ork resili enc e. In Chad, cont inue d invest ment in our netwo rk , data c apa cit y mo re than d oubl ed an d a 63% incr ease in ou r exclusive o ut let s alo ngsid e a choi ce of t ransp arent dat a bun dles d elive red grow t h of 35% in cus tom er number s . In both count ri es, more pe opl e than ever are gainin g acc ess to di git al opp or tunit ies – and data us age gre w by 11 2% in Cha d, an d 6 1 % in Niger. For mo re abou t our Franc op hon e Afri ca business, see pag es 66 - 67 6 3% incr ease in ou r exclusive o ut let s in Cha d 55% incr ease in tot al dat a cap acit y in N ige r Our data st rate gy in ac ti on L ’inter net o re des oppor tunités ! Data br ings oppor tunit y! Djamila M. Unive rsi ty s tude nt Niamey , Niger 37 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our strategy cont inue d Win wit h mobile money W e a im t o acce lera t e the di gital ecosys tem by r apidly e nabling Air tel Money ser v ices in all our mark et s , h arn es si ng the ab il it y of a pr otable mobile money busine ss to enhance n anc i al in clus io n in som e of the mo s t ‘un bank e d ’ p opula tions in the world . Our p rogress i n F Y ’22 We have conti nue d to execu te our mo bil e mone y st rate gy, focusing on our dist rib ut ion net wor k and oat availabi lit y , our te ch nolo gy, an d our dri ve to in crease Air tel Money ’s acc ept ance as the curren cy of choice acros s the nancial eco sys te m on t he path to b ec omin g a ‘ nan cial supe rmar ket ’ . As the KPIs bel ow show, t hes e measures have wi den ed our custo mer base and driven incr eased revenu es. Our dist ri but ion reach cont inue d to gr ow through our Air te l Money bran che s, whic h expande d by al mos t 60% in F Y ’22, and k iosk s , which incr eased by 40% . W e also increas ed the numbe r of mul ti - bran d agen ts in our netwo rk by 4 1.7%. Our rea ch has als o be en inc rease d by our use o f tech nolo gy as a key enabl er for compet it ive advant age . W e are creating desi gn- drive n digi tal jour ney s for c usto mer s that will unde rp in our abili t y to oe r a f ull suite of nancial ser v ice s. Our Payment Ser vic e Bank (PSB) lic enc e has been grante d by t he Cent ral Bank of Nig eria in Apri l 2 022, and desc rib ed on page 6 2. How we measu re prog ress We m easure mobil e money progres s through a number of KPIs , described on page 1 7 - 19 , including: Air tel Money customer base and penetration: our Air te l Money cus tome r base g rew by 20.7% to 26.2 million in FY ’ 22. Air tel Money transac tion value and tr ansaction value per custome r: our transac ti on value grew 3 7 .0 % to $6 4.4bn in F Y ’ 22. T r ansac t ion value per custo mer grew 1 3 .9% in c ons ta nt curren cy. Ai r t el M on ey re ve nu e and A R PU : Ai r tel Mon ey revenue grew by 34.9% in cons t ant curren cy in FY ’22. A ir te l Money ARP U was $1.9, up by 12.2% in cons t ant curren cy. For i nfo rmat io n on ho w we man age r isk , s ee p ag es 80 - 86 For m ore i nfo rmat io n abo ut o ur sus t aina bil it y s tr ateg y, see pages 43-58 Fur ther s trengt hening our distr ibution channel of kio sk s, mini shops and dedicated Air tel Money branches, so customer s can access as sur ed oat and c as h Build and s c ale Air tel Money across all our mar kets Make Air tel Money t he currenc y of choice by e xpanding our mobile money por tfolio t hrough additional mobile money ser vices , including merchant and commercial pa yment s , benet transfers, lo ans and savi ngs Focusing on technology as an enabler and compet iti ve advantage Continuing to recr uit cus tomers from our mobile ser v ices base Our approach includes: Strategic report 38 A ir t el A fr ic a p lc A nn ual R ep or t and A cc ou nt s 2022 Stay ing ahea d in a comp eti ti ve marketplace: Zambia Few re gio ns in the w orl d have emb rac ed th e poss ibili tie s of mobi le mo ney as th orou ghl y as Eas t Afric a. It makes it a dyna mic and exciting plac e to ope rate, w her e the sus t ainabl e devel opm ent bene t s of d igit alisa tio n are clear – while also being highly competi tive, driving innovation and entrep reneurship in our teams. Zamb ia, our seco nd - larges t Air t el Money market af ter Ugan da, is a great ex ampl e of how we’re w inning wit h mobil e money . In F Y ’ 22 we cont inue d to ex te nd and broaden our distr ibution net work in Zambia through the succ ess fu l deploy ment of 3 91 ‘mi ni- AM Bs’ – compac t outl et s that oer the ser v ic es of an Air tel Mon ey Bran ch and can be ro lle d out at scale. Th ey get us cl oser to custome rs and inclu de more peop le in the nancial ec osy ste m – re ec ted this year by an incr ease of 99% in me rchant p ayme nt s, an d of 54% in tra nsac tio n value volumes . By growi ng even more visib le and available, we’re winnin g more c usto mer s wit h our aord able prod uc t s – this year in Z amb ia our custo mer base grew by 25.6% . F or more det ai ls, se e our East Afr ic a busin ess rev iew o n pa ges 6 4 - 65 2 0 .7 % mobi le mo ney cus tom er bas e grow t h at the Gro up leve l 34.9% mobi le mo ney reve nue grow th in co ns tant cur renc y at th e Gro up leve l Our mobile money str ateg y in ac tio n K uti n ach it a in tu ingi na mobile money . I can d o mo re wit h mobile money . Florence Chipoma Mini - AM B agent Lusaka, Zambia 39 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our strategy cont inue d Win wit h cost W e ai m to ach iev e an eci ent ope rati ona l mod el, le ad in g to an e ec tiv e co st str uctu re an d imp ro ve d m ar gin s. Thi s ena ble s us t o bu ild l arg e in cre me ntal ca pac it y at lo w marginal cos t . Our p rogress i n F Y ’22 Our c os t mod el is foc used o n ensur ing t hat we ca n prov ide subs t antia l addi tio nal capa cit y at ma rginal addi tio nal cos t . W e do this through cont inue d net wo rk d esign op timis atio ns, c ons tan t focus o n valu e in our input s and our contra ct s , and volume optimis atio n. Incre asingl y we loo k for areas w here w e can sha re cos t s and in creas e our op erat iona l resili enc e while improvin g our oer to custome rs – for exampl e, by expl ori ng optio ns to use mu lti ple bre routes into and o ut of l andl ocke d countries through part nerships. How we measu re prog ress We measure cos t opt imisa tio n thro ugh: Underlying EB ITDA for FY ’22 w as $2,3 11m, up by 31.2% in cons t ant cur renc y. T he grow th in underl yin g EBIT DA was l ed by revenu e grow th and suppo r te d by be tt er contro ls on o per atin g cost . Unde rly ing EB IT DA margin improve d to 49.0 % , an imp rovem ent of 296 basis poin ts in cons tant cur renc y. In F Y ’ 22 we adde d almos t 1 0,0 0 0 km of new bre whic h helped us increase data capa cit y at marginal cost . For i nfo rmat io n on ho w we man age r isk , s ee p ag es 80 - 86 Our co s t eciency i nit iati ves, whic h seek to optimise sit e operational andma intena nce e xpenses, andba ndwidth co s t A detailed an alysis of e xpenses with the aim of improving operating margins in individual market s Ensuring fail -safe net work design with optimal c ost struc ture s , for example t hroug h multiple bre routes and high - capacit y IRUs Increasin g availab ilit y o f digit al rec harges and se lf- c are ser vices Our approach includes: Strategic report 40 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc ou nt s 2022 Win wit h people W e a im t o be the em plo ye r of ch oic e with a diverse and inclusive work environmen t t ha t co ntin ue s t o fo s t er a cu ltur e of h igh p er form anc e, employ ee wellbeing, skills enhancement and coaching. W e hav e a long - term commit ment t o our pe ople a nd ou r emp lo y er bra nd. Our p rogress i n F Y ’22 Our fo cus over t he year c ont inue d to be o n thre e key areas : tal ent , cap abili t y and te chno log y , u nde rpi nned b y our wor k to rein force t he entr epren eur ial culture and spirit of the o rganis atio n. In F Y ’ 22 we cont inue d to re cru it top t ale nt and re duc ed ou r tim e to hire for key role s, w hile o ur inter nal de velop ment p rog ramme s resul ted in 39% of our pr omot ions into s enio r manag emen t / Ex Co ro les b eing appointed internally . We made fur the r prog ress on g end er dive rsi ty, reachin g 26 % wome n inour work for ce. While there is c lear ly st ill more for us to d o, this is high relat ive to our indus tr y i n our oper ating market s . W e cont inue d to reinfo rce ou r commi tm ent to di versi t y thro ugh ac ti vati ons , incl udin g Inter nati onal Women’s Day. We continued to digitise our processes , including through our digit al lear ning p lat for ms, evo lve ou r pol icie s and pro ce dures , in clud ing t hose relat ing to in crease d hybrid wor king . W e also expande d the ways in whic h we eng age wi th e mploye es , inc ludi ng th rough a n ew pro gram me thro ugh which empl oyees engag e with Human Resourc es on a mont hly basis to put thei r quest ions and raise any issues. Our employe e enga geme nt sur ve y cont inue s to provi de us wi th insi ght and fe ed bac k fro m o ur peop le. Fur ther details of our engagement and programmes , including our empl oyee as sist anc e pro gramm e, are o n page 27 in ‘O ur s take hol der s’ section. How we measu re prog ress We measure our p rogre ss on p eop le t hroug h a numb er of met ri cs , including: • D iver sit y – by gende r ( 26 % wome n in our wo rk forc e, 28% women inE xC o at th e O p Co level) and natio nali ty ( emp loye es from 35 nation alities ) • Sk ills de velop ment – de livered key functio nal and leadership training through accel erated on- d emand learning programmes , which in return improved produc tivit y and overall per formanc e • Em ploye e enga gem ent – our l ates t bi -ann ual emp loyee e ngag eme nt sur vey a chie ved an 87% res pons e rate, w it h an overa ll enga gem ent sco re of 79% • Volunt ar y at tr it ion – t he war o n tal ent , esp ec ially o n the d igit al f ront , has cont ri bute d to an in crease i n our vol unta r y at tr it ion rate f rom 6.6% to 13%. We are put tin g measures in place to ens ure we ret ain our top t ale nt . For i nfo rmat io n abo ut h ow we ma nag e ris k, s ee p ag es 8 0 - 8 6 For i nfo rmat io n abo ut o ur sus t aina bil it y s tr ateg y, see pages 43-58 Accelerating our di verse pipeline oftalent to meet cur rent and fu ture busines s needs Improving coaching and func tional skills through our digit al learning platfor m, f unct ional programmes and cognitive asses sment s Digit ising our people processes toim prov e the ov erall employ e e experience and make Air tel Afr ica an even more engagin g place to work Continually improving our p rocesses and procedures and ev ol ving our work environment to ens ure we remain an attrac t ive employ er that recruits and retains the be s t We will achi eve this by : 41 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our strategy cont inue d Imiti ikula empanga . G row ing t re es toda y become tomorrow ’ s fores t s . Suppor ting S TEM graduates, identif y ing talent: Z ambia The re’s a wor ldw ide shor tag e of high ly- skil led tech nic al rec rui t s – as well as a gl oba l imbala nce i n the nu mber o f wome n in role s requ irin g STEM ( s cie nce , technol og y , engi nee rin g and ma ths ) exper t ise. At Air tel Zambia, our graduate programme is helping to addre ss bot h issue s – whil e wor king to ensure t hat we co ntinu e to at tra ct a nd ret ain the bes t peo ple to supp or t our futu re grow th . In F Y ’22 Air tel Zamb ia launche d a graduate training programme designed to recrui t and train technical spe cialist s with deg rees in STEM subje c ts , inclu ding T ele communicat ions, Electroni c Engineer ing, Co mpute r Scienc e and Informat ion T e chn olo gy. I n the 1 2-m onth pro gramm e, trai nee s wor k in fun ct ion al and cr oss- fun ct ional r oles a nd rec eive t rain ing in busine ss , lead ers hip, fu nc tio nal exp er t ise and per sona l eect ive ness , alongsi de mentor ing fro m a desi gnate d perso nal coach . We develo pe d the c our se and at t rac ted appl ica tio ns by engag ing wi th l oc al unive rsi ties , spec i cal ly encou ragi ng wome n to appl y – and t he resp ons e was ex tra ordina r y. We had ove r 1, 70 0 appli cat ions for th e 1 4 pla ces in o ur inau gural p rogr amme , of which half were secure d by wo men . W e’re delighted by the pilot programme – and will expl ore ways to exp and it in t he futu re. 1 ,7 3 3 total a ppli cat ions re cei ved 7 out of 1 4 graduates who joined our training programme are women Our people st rate gy in ac t ion Fra nce sce lla h Bwal ya O ah Elec tric al Engineering Lusaka, Zambia Strategic report 42 Ai r t el Af r ic a pl c A nnu al R ep or t and A cc ou nt s 2022 Our sus tainabilit y s trate gy Sus t ain abili t y is at t h e h ea r t o f e v e r y t h i n g w e d o . Our sustainabilit y strategy , launched in Oc tober 20 2 1, set s out ambit ious targ ets and l ong- term goals to help us deliver on our promise of transforming lives. The s trategy respo nds to the materialit y assessment we carried ou t in 20 2 1. It is suppo r ted by clear programmes and ini tiatives wit hin a simple framewor k of four pillars , each of which is aligne d to the United Nat ions’ Sustainabl e Development G oals (UN SDG s ), and is designed to deliver real and positive impac t . In this Annual Rep or t , we provide an interim, narrative update on our progres s since the launch of our st rategy , rath er than full d isclosure. W e will publish our rst full Sustainabilit y Repor t lat e r in 20 22, detailing our per formance and t he progress we have made to wards our target s and goals . T o succeed, our sus tainabili ty s trateg y must be embedde d in all Board de cisions and across our operations. Details of our sustainabilit y governance str uc ture can be found on page 99 of this repor t . Our Sustainabilit y Commit tee continues to meet monthly to direc t and moni tor the progress of all the progr ammes in our st rategy . Strategic report 43 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Our sus tainabilit y s trate gy co ntinu ed Letter from the CE O The launc h of o ur sustai nabili t y strat egy in late 2021 was a signi c ant ste p for w ard for A ir te l Afr ica . No t only d id it s et out o ur ambi ti ous goals to t rans for m th e lives of i ndiv iduals , fa milies , c ommuni ti es and busine sses a cross A fr ica , it is t rans for ming o ur busin ess by p ut tin g sust aina bili ty at t he hea r t of eve r y t hing we d o. T oday, our commi tme nt to sustainabilit y underpins all our corp orate strategi c pillars and it will cont inue to b e a key co nsider ati on in ever y dec ision t he B oard an d E xecu tive C om mit tee ma ke. Our sus t ainab ilit y s tr ateg y is dri ving o ur inves tme nt in o ur peop le and our infras tr uc ture. It is in ue ncin g the devel opm ent of ne w pro duc t s and se r vi ces . It is in form ing th e par tner ships we establish. An d, with ever y op erating company , div ision and busi ness f unc ti on invo lved i n the d elive r y of ou r sust ainab ili ty st rate gy, it is trans for ming o ur cul ture an d cont rib ut ing to op erat iona l ec ienc y. Q uite simpl y , it is f undam ent al to w ho we a re and h ow we operate. Our sus t ainabi lit y s tra tegy is b uilt a round a s t rong f ram ewor k that ree c ts our busines s and t he impac t we c an have. The four pillars of our s tr ateg y – Our B usines s, O ur Pe opl e, Ou r Com muni ty, and Our Enviro nme nt – set ou t a cle ar path way for t he busin ess , prov idin g us wit h foc us, a nd enab ling us to s et lon g- ter m goals a nd es tab lish det aile d pro gramm es to de liver t hem . Th is st ru ctu re ensures w e have abso lute cl ari ty a round t he c ontr ibu tio n we ca n make to the U nite d Nati ons’ Sus tai nabl e Deve lop ment G oals (U N SD Gs) and how we ca n help to a ddres s ine quali ty a nd sup por t eco nomi c grow t h acro ss Afr ic a. W e ha ve a cle ar path wa y to en sure w e deliver on our purpose and build our busine ss on a foundation of sustainabilit y . Olusegun Ogunsanya Chief execu ti ve ocer Pillar 1 – Ou r busin ess Our am bit ion is to in creas e digi tal in clusi on in Af ric a thro ugh t he expa nsion an d inc rease d reliab ilit y of ou r net wor k . This w ill pr ovid e the c onne c tiv it y to co ntr ibu te to the economic grow th of individuals , families, comm unit ies an d natio ns acro ss th e cont ine nt . Our o ngoi ng co mmit ment is to p rovid e rewar ding empl oyme nt op por tunit ies an d to achi eve genu ine diver sit y an d incl usion at al l levels a cros s the b usines s. Pillar 2 – Our people 44 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 Strategic report Sinc e the la unch o f the s tr ateg y , I have b ee n deli ghted to w elc ome Olub ayo ‘ Bayo’ Ad ekan mbi into t he busi ness as c hief s tr ateg y , par t ner ships and sust ainab ilit y oce r . His appoin tmen t underl ines our uns wer ving c ommi tme nt to achi evin g our go als and e nsuri ng sust aina bili ty re mains at t he hear t of our co rp orate s t rateg y . Bayo is buil ding a tea m to overs ee an d supp or t t he imp lem ent atio n of our sustainabilit y programmes wi th a dedicated environm ental and soc ial lea d alread y in pla ce. We have pled ge d to be tr anspar ent th rough out t he de live r y of our str ategy . Publishing our goals and programmes and repor ting regu larl y on our p rog ress all ows o ur st akeh old ers to t rac k our per forma nce an d hol d us to acc ount . I l ook fo r war d to shari ng Ai r tel Afr ic a’s r st Sus tain abili t y Repor t befo re the end of 2022 an d, prio r to that, prov iding det ails of o ur speci c de car bon isati on pathway. We have always b een d edi cate d to our c or por ate pur pos e of tra nsfo rmin g lives . N ow, with l ong - term g oals an d cred ible prog ramm es es tab lishe d, w it h ever y p ar t of t he busi ness inv olve d, and wi th a g enuin e com mitm ent to p rotec tin g the e nviro nmen t, we have a cle ar path way to ensure we d eli ver on ou r pur pos e and buil d our busi ness o n a foun datio n of sus taina bili ty. Olusegun Ogunsanya Chief execu ti ve ocer Message f rom t he B oard I am ple ased t hat Ai r tel Af ri ca’s new sus tai nabil it y st rate gy an d lon g- ter m comm itm ent s have be en re cei ved p osit ivel y by the comp any ’s sta kehol der s. I nves tor s, re gulato rs , supp lier s and par t ner s ca n now se e how t he G roup p lans to wor k wi th t hem for the ma ny years t hat this s t rateg y wil l dri ve the b usines s. T he tra nsparen cy t hat has be en b uilt i nto the s t rateg y means t hey c an have com plete t rus t in t he jo urn ey that A ir te l Afr ic a has embar ked upo n and c an tra ck th e com pany ’s progre ss . We all know t hat even the b es t laid p lans som etim es ne ed c alib rati on alo ng th e way and that t hese c an c ause de lays or fo rce a ret hink – I k now t hat Air tel Afr ic a will b e ope n abo ut any is sue or c halle nge i t enc ounter s alo ng the p athway to t he go als it has s et . This is i mpor tant as i t allo ws pe ers i n Afr ica a nd th e wid er glo bal tel ec oms ind ust r y to lea rn an d to coll abo rate to ad dress any p rob lem t hat may aris e. The m os t cri ti cal s t akehol der s , howeve r , are t he pe op le tha t make this bus iness a nd th e comm unit ies ac ross Af ri ca t hat it se r ves . Wi th the B oa rd of Air tel Afr ic a abso lutel y foc used o n th e deli ver y of t his st rate gy, emp loye es in e ver y market can have comp lete con de nce that t he G roup is wo rki ng ac tive ly to bu ild an eve r -m ore in clusive and sup por tive wo rk ing env ironm ent wh ere eve r yon e will have t he opp or t unit y to d evel op their potent ial and build our ishing care er s. And I a m deter mine d to ensur e that eve r y on e of the in div iduals , famil ies and c ommu nit ies th e Gro up ser ves in 1 4 mar ket s rec ognis es th e value A ir te l Afr ic a bri ngs and c an ac cess t he growi ng range of ser vice s that a re designe d, spe ci ca lly, to tra nsfo rm t heir li ves and f utu res . In th e six mo nths sin ce lau nch , th ere has be en p rogre ss acr oss all the g oals t hat have be en set . I a m deli ghted t hat , th rough t he expans ion of A ir tel A fr ica’s busine ss ac ross th e con tine nt , the Gro up has ac hieve d a 2.1 % inc rease in t he numb er of p eo ple in bot h urb an and r ural ar eas that c an ac cess t he ne two rk . T his is key to dri ving d igit al in clusio n and un der pins al l Air tel Afr ic a’s work to incr ease chi ldren’s acc ess to e duc ati on. I n add iti on , grow t h in th e numb er of wom en using A ir te l Mo ney ind ica tes that t he co mpany is makin g a cont rib ut ion to fem ale e cono mic e mpowe rm ent on the c ont inent . I a m pleas ed t hat dive rsit y an d inc lusion has b ee n emb edd ed in e ver y asp ec t of th e busin ess – inc lud ing inc rease d female r epres ent atio n at boa rd leve l – and th e app oint ment of envir onme ntal oc er s in eac h market is alre ady improv ing the Group’s environmental per formanc e. Air tel Afric a has t aken the rs t steps on a lo ng jour ney, and I am excite d to se e the i mpac t of th e devel opm ent s it w ill be i ntro duc ing over th e com ing mo nths an d years . Annika Poutiainen Ind epe nden t non - exec ut ive dire c tor and A ir te l Afr ic a’s sustainabilit y champion Our ambi tio n i s to dr ive digit al and nancial incl usion and acc ess to e duc atio n for p eop le an d comm unit ies ac ross Afr ic a thro ugh th e prov ision of dat a and m obil e ser vice s unde rpi nne d by our ne tw ork ex pansi on. T his is vi tal to the p osit ive t rans for matio n of live s acros s Afr ic a. Our am bit ion is to a ddres s and mini mise th e impa ct of our op erat ions o n th e enviro nme nt . This is c rit ic al for t he wor ld we li ve in. Pillar 3 – Our communit y Pillar 4 – Our environment 45 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Pillar 1 – Ou r busin ess Our ambition is to increase digital inclusion in Africa t hrough the expansion and increased reliability of our network . T his will provide t he connec tiv it y to contribute to the economic grow th of indi viduals, famil ies, communities and nations acros s the continent . SDG alignment Our sus tainabilit y s trate gy co ntinu ed This p illar of o ur s trate gy se ts o ut t he pro gram mes we are i ntro duc ing to ensure o ur ser vice s and th e way we wo rk me et s our c ommi tme nt to tra nsfo rmin g lives. Our ambit ions are to give our custo mer s conde nce that we are working towards implementing industr y -leading data sec uri t y , to in creas e digi tal in clusi on in Af ri ca th roug h the ex pansio n and in crease d relia bili ty of o ur net wo rk , and to e nsure ou r supp lier s are aligned with our sust ainability pr iorit ies. Achieving t he three goals in this pillar will provide individuals, families, co mmunities and nations acros s the c ont inen t wit h se cure dat a and in creas ed co nne ct iv it y that will suppor t ec onomic grow th. We have made go od ear ly p rogre ss on all o ur pro gram mes . We are on target to deliver agains t our rs t milesto nes for our data se curi t y and se r vi ce qual it y goa ls. We are also i ntro duc ing key even ts fo r our main sup plie rs over t he c oming m ont hs to ensure t hey are c omp letel y align ed w ith o ur ambi ti ons and to su ppo r t de liver y of all th e key init iati ves in our s uppl ier mana gem ent go al. Our data secu r it y goal Our g oal is to es tab lish in dust r y -l eadin g data se cur it y for our customers. We will ach ieve th is thro ugh inves t ment i n tech nolo gy an d exp er t ise, updat ed pro ces ses an d consu mer awa renes s, d eli vered t hrou gh programmes wit h clear target s and timelines. MA TERIAL TOPIC: DA T A SE CU R IT Y Our p rogress Data s ecu ri ty is A ir te l Afr ic a’s prior it y mater ial top ic – this is highli ghted in th e risk s se ct ion of t his rep or t o n pag e 84. O ver th e six mo nths to 3 1Ma rch 202 2, the busines s has mad e good init ial progres s against thre e of t he targe ts we set out aroun d cond entia lit y, inte gri t y and availability. For o ur tar get of em bed ding t he bes t tools and technologies , we have s ta r te d develop ing the rs t stag e of ou r secur it y upgra de prog ramm e. We antic ipate t hat this w ill be c omp lete d by Jun e 202 4 and wi ll ensure w e deli ver on o ur mile sto ne wi thin t his go al: th e impl emen tat ion of a c ompl ete se cur it y up grad e pro gramm e by 202 5. In ad dit ion , we have s tar ted wor k on t he int rodu ct ion o f a poli cy to ensure t hat all le gac y se cur it y plat fo rms w hich a re not sup por ted by supp lier s are rep lace d by 202 5 . Ove r the las t fe w mont hs, we h ave be gun a det ail ed pro ce ss to ide nti f y all l egac y se cur it y pla tfo rms an d we expec t to c omp lete this work by Augus t 202 2. Onc e nalised , we are plan ning to es t ablis h a prog ramme to r epla ce all o utdate d se cur it y solu ti ons by Oc tob er 2022. Anot her of o ur ta rget s is th e development of an industry -leading in- house team , and we are p lease d to rep or t p rogr ess wi th t he app oint ment of a G roup chief infor matio n secur it y oce r in Ja nuar y 202 2 to ensure t hat data s ec uri ty is , an d remains , our to p busin ess pri or it y . Addi tio nal rec rui tm ent to bui ld a s tro ng and fo cuse d team is unde r way. Fina lly, we have also set a t arget to b uild t he resilience of our processes and , by 2030, es tab lish a be st-i n- c lass re cover y plan for o ur core n et wor k and I P ser v ic es to be de ploye d dur ing nat ural dis aste rs . By 31 March 2022 we hit our t arget of i mple ment ing an a pprove d Net wo rk Recove r y Plan and Disas ter Rec over y tes tin g guidelin es for core n et wor k and I P ser v ic es in all o ur market s . Our ser vice qua lity goal Our g oal is to prov ide un der ser ve d comm unit ies wi th access to re liabl e net wor k and co nnec t ivi t y across o ur 1 4market s . Providing networ k accessibilit y to rural areas is key to building digital incl usion . We will ac hieve i t thro ugh t he roll out of n ew inf ras tr uc ture sites and techn olo gy, and impro ved bre conne c tiv it y and capaci t y delivered through pro grammes with clear targ ets and timelines . Our p rogress Our s er v ice qu alit y go al is foc used o n thre e key areas – in creasin g acc essib ilit y to ou r net wor k , impr oving c usto mer ex per ien ce t hrou gh new oer ings and techno log ies , and buil ding the spe ed and reliabili t y of our ser vice – each of which is s upp or te d by sp ec i c target s . Del iver ing o n thes e tar get s all ows us to pro vide m illio ns more p eo ple in ur ban and r ura l areas acr oss Af ric a wi th fas t an d reliab le ac cess to broadband. We have made pro gress a gains t all t hree of t hes e key areas . Our rs t targe t focuses on increasing the per cent age of peop le who have acce ss t o ou r ne tw or k , w it h the u lti mate goa l of achi evin g 88 -9 0% p enet rati on in ea ch mar ket by 2030. We will ac hieve t his thro ugh t he roll out o f new 2G , 3G and 4G s ites , inc reasing t he num ber of pe opl e in each o f our mar ket s who c an ac cess o ur net wo rk . Our p rogress i n the pas t six m onths : 78 . 26% have acc ess to 2G + 0. 8 3% 72 . 23% have acc ess to 3G + 0. 96% 62 . 59 % have acc ess to 4G + 4. 53% Our s eco nd t arget i nclu des a c ommi tme nt to buil ding a n uninterrupted ser vice and im provi ng cus tom ers’ ex per ien ce of usin g our netw ork . Spe ci ca lly, we are w ork ing towards exceed ing regulato r y KPIs a nd ach ievi ng a net wo rk avail abili t y rate of 99.99% by 2030. We are on tra ck to ac hieve ou r miles to nes and o ur net wo rk avai labili t y st ands at 99. 52 % as of Marc h 202 2. In lin e wit h our t hird t arget , w e are buil ding t he reliabilit y and speed of ou r se r v ic e for p eo ple acros s Afric a throug h the rollout of bre in our ne two rk . N ot onl y will t his prov ide c usto mer s wit h fas ter mo bile conn ec ti ons bu t it als o improve s the re silie nce of o ur con nec ti vi ty infr ast ru ct ure. A s of 3 1 M arch 2022, 1 5 . 7% of o ur sites a nd 55.4% of our data cent res have bre conn ec tiv it y – t his represe nt s an incr ease of 1.4% and 0.6% , res pe ct ivel y , si nce t he laun ch of ou r sustainabilit y st rategy . Strategic report 46 A ir tel Af r ic a p lc A nnu al R ep or t and A cc ou nt s 2022 Our supply cha in goal Our g oal is to ensur e all our su ppli ers a re align ed wi th ou r sustainabilit y agenda. We will ach ieve th is thro ugh pr ogra mmes to in creas e suppl ier disclosure and audit their Environmental , Social and Governanc e (ESG) per forman ce. T his way we c an mo nito r suppl ier s’ comp lian ce wit h le gal and re gulato r y re quire ment s , resp ec t for hu man and lab our right s, and work to minimise their environmental impac ts . MA TERIAL TOPIC: SU PPLY C HA IN Our p rogress We under st and w e have a respo nsibil it y to dr ive imp roveme nt acro ss our ent ire val ue chai n. We have set a sup pl y chain mana gem ent go al whic h will b uild o n th e st anda rds and dis closu re we exp ec t of all ou r supp lier s and w ill int rodu ce a pr oce ss of reg ular mo nito ring . T he goa l we have set is s tr uc ture d arou nd t wo foc us areas: 1 enh ance d due d ilig enc e whic h will i ncreas e the l evel of dis clos ure we exp ec t of supp lier s dur ing t he onb oard ing pr oce ss , and 2 improved on going monit or ing o f suppli ers’ ESG compliance, p olicies and co ntro ls thro ugh t he fu ll ter m of supp lier s’ con tra ct s . We have spe ci c targe ts to suppor t b oth of these focus areas and have made g oo d prog ress in t he six m ont hs to 3 1 Ma rch 2022. T o e nsure enh ance d due d ilige nce f or new s uppl ier s, we a re in th e pro cess of d evel opin g a det aile d ques t ionnai re to be c ompl eted by any co mpany ap ply ing fo r a cont rac t wi th A ir te l Afr ica . In a ddi tio n to coverin g stan dard ESG require ment s , it w ill also inclu de spec i c ques ti ons relatin g to th e areas t hat we have identi e d as mate rial topi cs . We will tes t this q ues tio nnaire b efore w e intro duc e it duri ng 2022. We have also made p rogre ss agai nst o ur tar get s to imp rove our ong oing E SG mon itor ing of ex ist ing sup pli ers . In 2022 we will b e hol ding an e vent for o ur top 100 cur rent ven dor s ( w ho rep rese nt appr oximatel y 90 % of all ou r purc hase sp end) to pre sent o ur ent ire sust aina bili ty s t rateg y and ex plain ex ac tly w hat we ex pec t of t hem in line w it h our sup ply c hain go al. We wil l be ask ing all t hes e exis tin g vendo rs to c ompl ete our n ew qu est ion naire to ensu re we have th e same l evel of d etai l on bot h new a nd more e st abl ishe d suppl ier relatio nships. In ad dit ion , and in l ine wi th ou r tar get s , on 3 1 M arch 2022 Air te l Afr ic a join ed the Joint Allia nce for CSR ( JAC) . JA C veri es and asses ses CS R impleme ntat ion acros s the leading suppl ier s to th e ICT indust r y. JAC memb ers c ollab ora te to ensure b es t prac t ice in t he sha red sup ply chain and this collab orat ion has signic ant ly increas ed the number of audi t s and co rre ct ive p rogr ammes t hat have be en im ple mente d, dri ving i mprove d s tan dards ac ross th e supp ly cha in. We will imp leme nt a pe rio dic au dit p roc ess for ve ndo rs to mo nito r comp lian ce wi th ES G cr iter ia by 2023. Ser vice quality in ac ti on Maint ainin g our ser vices when t hey’re needed mo st : Malawi One of t he mo st im por tant w ays we ca n ser ve our cus tome rs is by keeping our network s available, especially in hard times . In Mala wi in ear ly 2022, tropi cal s tor ms , cyc lon es and h eav y o odin g led to a tragi cal ly high number of deaths, as well as des tr uc ti on and disrupti on that aecte d nearl y a mil lion peo ple . Power li nes an d roads we re des tro yed , bri dges w ashe d away , and p ower s tat ions w ere pu t out of a ct ion . Th e ex trem e weath er had an imp ac t on our o pe rati ons , too, w ith e qui pmen t damage d, vehic les lo st , an d trave l made h ighly c hall engin g – and ini tial ly we had ou tag es at 15% of our sites . Our M alawi teams to ok im med iate ac tio n to res tore ou r net wor k , desp ite th e ong oing c ondi ti ons. O n th e day foll owin g the w ors t event , T rop ica l Storm A na in Janu ar y, they pu t a plan in p lace to make sure exp er t t eams and f uel c ould r each o ur sites a nd keep the net wor k runnin g for o ur custom ers . Wit hin ve days o ur teams restor ed 97% of our aec ted sites – meaning that families coul d keep i n cont ac t , gove rnme nt age nci es and N GO s coul d coo rdinate o n the g roun d, an d Air tel Mon ey cus tome rs c ould rec eive nanci al suppor t fro m their families . It is a clear examp le of the re sour cef ulnes s and de term inati on of our te ams – and of our co mmit men t to ser v ic e quali ty. Our programme s are set out to ensure our s er vices and the way we work meet our commitment to transfor ming lives. 47 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our sus tainabilit y s trate gy co ntinu ed Pillar 2 – Our people Our ongoing commitment is to provide rewarding employment oppor tunit ies and to achie ve genuine diversity and inclusion at all levels across the business This goes to the c ore of who weare. SDG alignment We have made enc our aging p rog ress aga inst o ur co mmit ment s . Ove rthe six months to 3 1 Marc h 2 022, we have update d polic ies and intro duc ed n ew measu res to impr ove gen der di versi t y in our c andi date po ol, su ppo r t ing ou r wide r init iati ves to ac hieve a di vers e and in clusi ve wor kfo rce. We have laun che d deve lop ment p rogr ammes w it h a spe ci c focus on drivin g func tio nal exper tise, lead ers hip skills and supp or t ing fe male uni ver sit y s tude nt s on th eir tr ansit ion to t he wor kfo rce. We co ntinu e to foc us on crea ting a h ealt hy and s afe working environment . Diverse and inclusive workforce Our co mmit ment i s to cont inue c reatin g a diver se and incl usive work force – wit h speci c goals of in creasin g the tot al pe rcent ag e of female e mploye es fro m 28% in Septem ber 202 1 to 30% i n 20 2 5, and fema le seni or execu tives f rom 25 % in Septe mber 202 1 to 30 % in 202 5. We will ach ieve th is thro ugh re cr uit ment , de velo pmen t prog ramm es and en hanci ng our wo rk e nviro nment . We are pr oud to b e an equ al opp or t unit y em ploye r and remai n ful ly co mmit te d to diver sit y an d inclus ion in o ur workplace. We have made go od pro gres s on our g oals , bui lding o n our lon gst andi ng co mmit ment to d iver sit y and in clusi on , whic h is embedd ed in our values. Our mate rni t y and pare nta l leave po lic y and o ur heal th an d safet y pol icy h ave both b ee n refre she d and wi ll be ro lle d out a cross t he busine ss in t he com ing mo nths . We have stre ngt hen ed g ende r dive rsit y w ith in our wo rk forc e, as ree c ted in the inc rease in female hires and interna l promoti ons . The p rop or t ion of fe male e mploye es in s enio r manage ment w ho we re prom oted in t he las t six m ont hs was 23.1 % as comp ared to 20 % in the rs t half of t he year . We are also co mmit te d to welc omin g pe opl e from a d iver se ra nge of com munit ies an d natio nali ties i nto the b usine ss. O ur wo rk forc e is made up of em ploye es from 35 di ere nt national iti es. Fina lly, we are making p rogre ss towards a chie ving t he F TSE Women Leade rs Revie w target of 40% femal e represent ati on on the Board . Wi th th e app oint ment of T se ga Ge breyes to t he B oard i n Oc tob er 202 1, we have 31 % female re pres ent atio n at Bo ard leve l and are wor king tow ards 40 % by 202 5. C urre ntl y , fe male rep rese ntat ion at the E x Co l evel (in clud ing O pC os ) s t ands at 28% and we are comm it ted to b uild ing on t his in th e fu ture. T raining and development Our co mmit ment i s to cont inue to p rovide a ll our permanent employee s with access t o functional and leadership programmes. Ongoing coaching and mentoring programmes aim t o facilitate grow th and career enhancement. We are work ing wi th o ur ex ter nal par tner s to ensure t hey su ppo r t us indeve lopi ng the next gen erat ion of tal ent . As par t of this , we have st ar te d to rol l out c oac hing an d mento ring p rog ramme s desig ned spe ci c ally to suppor t femal e graduates and post- gra duates into the wor kpla ce and to n ur tur e the sk ills tha t will al low t hem to de velo p rewarding careers . We are sup por ting t his with internship programmes for female graduates which we are currently impl ementing in Zambia, Repu blic of the Congo and Niger. I n additi on , we are set tin g up ‘lea der ship potent ial ’ program mes for employe es oerin g dedic ated trai ning an d cou nsel to t hose w ho have th e abili t y and amb it ion to t ake the ir care er s to manag emen t level . Healthy and safe work environment Our co mmit ment i s to maint ain a heal thy a nd safe wor k environment. We are commi t ted to pr ovidi ng th e highe st s t andards o f healt h and safet y for o ur emp loye es. We wil l achi eve this t hrou gh th e intro duc ti on of a bes t pr ac tic e soc ial , healt h and s afet y manag emen t sys te m, improved policies and full comp liance with all loc al legislation and regulat ion. Our Heal th and Safety Co mmit te e now repo r t s to t he Sust ainab ilit y Co mmit te e as well as t he E xec uti ve Co mmit te e (Ex Co) . T his mea ns that he alt h and safe ty is n ow add ress ed as a key co mpo nent i n the deli ver y of o ur co mmit ment s to ou r pe opl e as well as a c rit ic al busin ess and co mmer cial co nside rati on . Supp or t ing t his, a n ew an d enhan ced Gro up heal th an d safet y p olic y has be en d evelo pe d and wi ll be launc hed s hor tly. This wil l forma lise ou r appr oach to s et tin g, moni tor ing and ma inta ining ro bus t s tand ards . Employ e e engagement Our co mmit ment i s to engag e wit h and li sten to o ur employee s. Our p eo ple are a t the h ear t of ou r busin ess suc ces s, a nd we aim to make Air tel Afr ic a a great pla ce to wo rk fo r our 3,700+ full - tim e permanent employ e es. We have always en joyed a g oo d level of e mpl oyee en gage ment a nd we will n ot ta ke this for gr ante d, as we are c ommi t ted to s tre ngt hen ing and bu ildin g on it . I n add iti on to reg ular co mmuni cat ions , pre sent ati ons and mar ket visi ts by m emb ers of t he E xC o, in clu ding qu ar ter ly C EO - l ed townha lls in Eng lish and Fre nch , we r un enga gem ent sur ve ys ever y tw o years w hich p rovid e all ou r pe opl e wit h th e opp or tu nit y to share the ir vie ws . Our p revio us year ’s employe e en gagem ent sur vey achi eved an 87% re spo nse rate , wit h an over all en gagem ent sc ore of 79% – we aim to imp rove fu r th er in t he up comi ng sur ve y . We will co ntinu e to lis ten to our p eo ple t hrou gh manag eme nt ’s daily inter act ions w it h teams , our mo nthl y managi ng dire cto r town halls , our qua r ter ly C EO town halls and ‘s kip le vel’ m eet ings w ith s enio r manage rs . W e are commi tted to s trengt hening and building on o ur good leve l of emplo yee engagement in the future. Strategic report 48 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 This yea r’s Inte rnat iona l Women’s Day (IWD) campaig n invi ted pe op le ever y where to i magine a g end er eq ual wor ld , fre e of bias , s tere oty pes , and dis cri minati on – chi ming w ith o ur own a mbit ion to c reate an organi sation where people ar e included a nd engaged. So, o n 8 March 2022 we cel ebr ated di vers it y and in clusio n acro ss Air tel Afric a by a rmi ng and suppor ting the #IWD2022 t hem e #Break TheBias. Diversit y and inclusion spotlight Celebr ating Inter nat iona l W omen’ s Day : #B reak T he Bias 49 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Pillar 3 – Our communit y Our ambit ion is to drive digi tal and nancial inclusion and access to education for people and communit ies across Afric a through t he provision of data and mobile ser vices underpinned by our network expansion. This is vi tal to th e posit ive tra nsfor mation of lives across A fr ica . SDG alignment Our sus tainabilit y s trate gy co ntinu ed Sinc e we laun che d our sus t ainabi lit y s trate gy, we have made pro gres s on all our targets , including reaching more pe ople by rolling out new sites an d ser vice c ent res , ser ving mo re cus tome rs in r ural a reas, and exp andi ng our dat a ca paci t y . At t he sa me ti me, ou r landma rk par t ner ship on digit al inclusio n with UN IC EF has t aken a si gni ca nt ste p for w ard: all o ur rel evant mar ket s are now i nvolve d in th e creat ion of natio nal rol lou t prog ramm es, a nd th ese have b een c omb ine d into an overarching continental impl ementatio n plan which will guide our work wit h UN IC EF over t he co ming yea rs . Our digit al inclusion g oal Our goal is to signi cant ly improve digit al inclusi on acrossAf ri ca . We will do t his by inc reasing o ur ret ail and su ppo r t se r vi ces w hich w ill drive penetra tion in mob ile telephon y, smar tphones and hom e broa dband i n rur al areas . Th is is key to addre ssing t he dig ita l div ide. MA TERIAL TOPIC: DIG IT AL INCL USION Our p rogress We have thre e speci c targ et s to sup po r t our goal to in crease digi tal incl usion: t he de velop ment o f new ret ail an d supp or t c ent res in r ural areas; i ncreasi ng th e numb er of pe opl e who c an ac ces s our di git al ser vice s; and p romot ing c onveni ent pay ment s olu tio ns for all o ur cus tome rs . In th e six mo nths to 31 March 2022, we have made prog ress ag ains t all of th ese t arge ts . Key to ou r rst targ et is t he increas e of th e number of people in rural areas who can access our network from 67 .1 % i n Septe mbe r 202 1 to 80 % by 202 5. Si nce t he laun ch of ou r sust aina bili ty s t rateg y , w e have impro ved ou r cover age to 68 .2% . A s a resul t of this ex pansi on, we have grow n our cus tom er bas e in rur al areas to 63 .3 m illio n, an improve ment of 6 . 7 % . This p rogre ss op ens real o ppo r tun iti es for pe opl e today an d tomor row – f rom ac ces sing on line e duc ati on to futu re employ ment . Alo ngsid e this ne two rk ex pansio n, i n the las t six m ont hs, we h ave incr eased t he num ber of re tail to uch poin ts b y 1 1.7% to 2.2 milli on as of 3 1 Ma rch 2022 – ensurin g that p eop le als o have the re tail a nd supp or t faci lit ies th ey ne ed to p urchas e devi ces an d acc ess su ppo r t . T his expans ion of ou r retai l net wor k also b uilds e mplo ymen t opp or tu nit ies for anyo ne – rega rdles s of gen der o r disab ilit y – wh o woul d like to ru n an Air tel Afr ic a fr anch ise or op en a ki osk se r vin g the ir lo cal c ommun it y . Our s eco nd t arget is to inc rease smartphone penetr ation from a basel ine of 33. 6% in Sep tembe r 202 1 to 45% by 202 5 t hroug h collaborat ion with ori ginal equipment manufacturer s ( OEMs ) to devel op att rac ti ve data bundles for rs t-time buyer s . In t he six months to 3 1 Ma rch 2022, our prog ress has b een i n line w ith o ur exp ec ta tio ns, and we have e nhanc ed bu ndle d pro duc t s in all o ur mar kets , in creasin g smar t pho ne pe net rati on to 34. 2%. A n exam ple of t his is our sp ec ial ‘L earn f rom ho me’ bu ndle s whic h we laun che d in Malaw i and U ganda for lea rne rs to ac ces s edu cat iona l resou rces . Th ese p rodu ct s are 50 - 60% cheaper t han standard bundles available in the market. Our t hird t arget f or dr ivin g digi tal i nclusi on is th e development of ser vices to make it eas y for c us tomer s to top up t heir b alanc e at any tim e and f rom any l oc atio n, me asured by a n incr ease in dig it al rec harges f rom 39. 7 % in Se ptemb er 202 1 to 60 % in 202 5. We are creat ing dig it al com munit ies t hat ensure o ur se r vi ces are a lways availab le to cus tom ers by ro llin g out ap ps tha t allow c usto mer s to buy a ddit ion al tal k time a t the to uch of a b ut ton . This eas e of acc ess to top ups is c rit ic al for m eet ing th e ne eds of p eop le ac ross Af ri ca an d, in par ticu lar , t hose i n rur al lo cat ions . We expe ct to s ee t he numb er of digi tal re char ges in crease i n the c omin g mont hs as a resul t of this activity. Our nancial inclusion goal Our goal is to signi cant ly increase nanc ial inclusio n in Africa – with par ticular suppor t for w omen. We w ill do this t hrou gh the develo pmen t of ao rdabl e nancial pro duc t s to meet t he n ee ds of the un - an d unde r - ba nked , a reliab le ser vice and nancia l cond enc e and l itera cy. MA TERIAL TOPIC: FINANCIAL INCLUSION Our p rogress Fina ncial i nclusi on is a key dr iver i n pover ty al levia tio n and a cr it ica l goal of o ur sus tai nabili t y st rate gy. Our wor k is base d aroun d thre e focus a reas: • t he aordabi lit y of p rodu ct s and ser v ices desig ned to meet the n ee ds of the u n- a nd und er -b anked • ensu rin g our se r vi ces are a cce ssib le whe rever p eo ple are • building awareness and knowledg e among our cus tomers. We have set targ et s to ensure w e deli ver and m oni tor our p rogre ss agains t eac h of th ese fo cus areas . Sinc e th e launc h of our sus t ainabi lit y st rate gy in O cto ber 2021, we have made s tron g pro gress ag ains t som e of thes e tar get s we have se t in this g oal . As a r esult of t his exp ansion , our to tal mo bil e mone y cus tome r base acros s all mar ket s has grow n by 20. 7% in t his ti me, an d tra nsac tio n value has g rown by 37 . 0% , i ndic ati ng that o ur cus tome r base is be comi ng more nanciall y acti ve. We have increas ed th e numb er of wom en wh o have be com e Air tel Mon ey custom er s and a re using o ur ser vi ces . We wil l provide spe ci c det ails in o ur rs t Susta inabil it y Repor t later in 2 022. Fina lly, in Uganda , we have laun che d a savi ngs pro duc t to ad vanc e nanc ial inclusi on – i t will be r olle d out in ot her market s over the cour se of 2022. We are commit ed to de signin g more s avings p rodu ct s targ eted spe ci c ally at women in t he comin g months . Financial inclusion of women is pa r ticular ly impor t ant for gender equalit y and women’ s economic empowerment. Strategic report 50 Ai r t el A fr ic a p lc A nn ual R ep or t and A cc ou nt s 2022 Adopt a school spotlight ‘ Adopt a s c hool’ in Gombe State, Ni geria Supp or t ing s cho ols in n ee d is an esse ntial p ar t of o ur sust aina bili ty s t rateg y – whe the r that ’s throu gh dat a, conn ec ti vit y, or improve ment s to th e sch ool ’s build ings an d teachi ng env ironm ent . In N iger ia , we’ve ad opted 7 s cho ols across the countr y, providing refurbishment, ins talling drinking water an d sani tat ion fa cili tie s whe re the y’re ne ed ed , and he lpin g teachers and stu dents throu gh training and educat ional resou rces . T he imp act c an b e trans fo rmat ional – of ten mean ing chil dren have acc ess to bo oks for the rs t time. This yea r we ex tend ed th e pro gramm e to inc lude t he Gove rnm ent Day Nu rse r y and P rima r y Sc hoo l Pant ami, i n Go mbe St ate, wh ich s er ves 7 ,11 7 nurse r y and p rima r y sc hoo l stu den ts . It b rin gs us clos er to t he co mmuni ties w e share wi th our cus tom ers – a nd und er pins our g oal of su ppo r ti ng ac cess to edu cat ion , ever y wher e we ope rate. Our access to education goal Our g oal is to tr ans form t he li ves of over one mi llio n chil dren t hroug h educ ati on by 202 7 . We will achieve this through programmes and par t nerships to connec t sch ools to t he inte rne t , provi de ac ces s to quali ty l earn ing co ntent an d supp or t t he sc hoo ls that a re mos t in ne ed . MA TERIAL TOPIC: ED UC A T IO N AND DI G ITAL LIT ER ACY This g oal is ce ntr al to Air tel Afr ic a’s corp orate p urp ose an d phil osop hy . We know that e du cat ion is th e key to unlo ck ing pote ntia l and bui ldin g bet ter l ives , bet te r fut ures and b et ter e con omic p rosp ec t s, a nd in our sustainabilit y st rategy we detail how we will achieve this through three key programmes: 1. Our lan dmar k par t ner ship w it h UNI CEF We are delig hted to b e wor king in c olla bor atio n wi th UN I CEF to de live r prog ramm es that w ill have a p osit ive imp act o n indi vid uals and t heir wid er co mmuni ties . We beli eve that e duc at ion is a r ight for a ll chil dren , and we w ill lo ok for e ver y o ppo r tuni t y to advo cate fo r this as o ur par t ner ship cont inu es. We have agre ed a ve -yea r par tne rshi p with UN IC EF that w ill dr ive ac ces s to edu cat ion in 13 of our 1 4 ma rket s . We signed t he ag reem ent on 27 Oc tob er 202 1 a nd, w it h UN IC EF , have devel op ed a de tail ed p lan to roll o ut t he par tner ship p rogr amme . The par tn ership is based around three pillars: • advoc acy and championing digi tal educ ation for children • the provis ion of accessible learning platforms • co nne ct ing s cho ols to th e inter net to e nable d igit al lea rnin g. In th e six mo nths sin ce t he par tner ship a gree ment w as signe d, ea ch of our mar ket s has be en invo lved i n ‘co - crea tio n’ work sh ops wi th UN IC EF to d ene how they can suppo r t the thre e acti vit ies , and the wor k requ ired . Th e market s t hen d evelo pe d det aile d cou ntr y p lans . The se have b ee n assesse d and ren ed and have b een brou ght toge the r to create a ph ased c ont inent al imp lem ent atio n plan . 2. Conn ec tin g 1,400 sc hool s to the i ntern et by 202 7 In ad dit ion to ou r wor k wit h UN IC EF , we co ntin ue our w ork w it h a rang e of par tner s to prov ide t he inf ras tr uc ture and e qui pmen t nec ess ar y to co nne ct a n addi tio nal 1,40 0 s cho ols to th e inter net . Det aile d pla ns have be en create d in ou r coun tr ies of op erat ion a nd prog ress is on t rac k . Th e numbe r of sch oo ls we have con nec te d to the inter net will be repor ted in o ur Sust ainabi lit y Repor t later t his year . 3. Adopt ing an d suppo r t ing sch ools i n ever y ma rket to bri ng th em up to nat ional s t andard s We have exten de d our exis t ing pro gram me of sc hoo l ado ptio n and wi ll repo r t on the number of ado pted scho ols in our S ust ainab ilit y Repo r t later t his year . Education i s the ke y to transformin g the future of Africa’ s c hildren. And access to da t a and information is key to education in some of the remotest communities on the planet . That is why our educa tion-focused work on the ground in e ach of our marke t s and through our par tnership wi th UNICEF is so vital. Olubayo Adekanmbi Chief s trate gy, p ar t ner ships and sust ainab ilit y oc er 51 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our sus tainabilit y s trate gy co ntinu ed Our par tnership with UNICEF We are delig hted we have si gne d and comm it ted to a ve - year par t ner ship wit h UNI CEF that will fundamentall y transfor m acc ess to qua lit y ed uc atio n – and th erefo re life o ppo r tuni ti es – for t housa nds of chi ldren acros s 13 of our 1 4 market s to 2027 . We are commit t ing $5 7m na ncial and in- kin d cont ri but ion to UNIC EF ’s ‘ Re imagin e Educ ati on’ initiat ive over the ve years to acc ele rate digit al learni ng, a rst for the Africa n priv ate s ector . In th e six mo nths sin ce t he laun ch of our sust aina bili ty s t rateg y , w e have be en wor king ha rd on id enti f yi ng th e nee ds of more t han 200 s ele cte d sc hoo ls acros s the 13 market s . We have develo pe d a cont ine ntal ro llo ut plan in c olla bor atio n wit h UN IC EF fo cuse d on th e nee ds of eac h of the m arket s and aligned wit h their national curricu la and their readiness to engage with digital lear ning prog ramm es. Wor k has s tar ted on al l thre e pillars of the par tner ship, and we are on tra ck to hi t our Y ear One targ et of p rovid ing 200, 0 00 c hild ren wi th ac ces s to digi tal learning solut ions through connec ting sch ools an d mul ti -m edia c ent res to th e inter net an d by prov iding ze ro -r ated c onte nt to stu den ts l ike Abu bakar, pictur ed . “Ed ucat ion is t he r ight of ever y chil d. It shou ld be f ree an d fair , w it h equa l access f or gir ls and b oys.” Ar t icl e 2 8 , Convent ion on the Right s of t he C h il d , 19 8 9 Access to education in ac ti on This par t nership reect s our pur pose of t rans for ming lives as we s eek to in vest in children – the future o f t he continent – as w ell as o er them access to quality educational content. Olusegun Ogunsanya Chief execu ti ve ocer Strategic report 52 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 Championing digit al education Our p rogress Our s t ated t arget is to a dvo cate fo r ambi tio us pol icie s and f rame work s to ens ure chil dren’s rig hts to e du cat ion an d to prom ote the to ols and pla tfo rms to ke ep th em safe o nlin e, a key par t of o ur wor k wi th U NI CEF . In D ece mbe r 202 1, our C EO, S egu n Oguns anya , spoke at t he Rewir ED Summit in Dub ai, a t hre e - day event t hat bro ught toge the r the most inuen tial glob al st akeho lde rs in e duc ati on . The su mmit was foc used o n the n ee d for t he glo bal comm unit y of p olic yma kers , inves tor s and edu cato rs to exp lore n ew ap proa ches to tackling e ducation challe nges, par t icularly in deve lopi ng reg ions . He also spoke at U NI CEF ’s rs t ever G lo bal For um for Children and Y o uth , which brou ght toge the r lead ers f rom t he Uni ted N atio ns, government , business, philanthropy and civ il so ciet y. The for um foc use d on th e acc ele rati on of ne w solu tio ns to create chang e and mo bilis e reso urces to a dvan ce chil d rig hts to m eet t he Sus t ainabl e Deve lop ment G oals by 2030 . At the s ame time , our O pC os in G abo n, t he De moc rat ic Repu blic of the Congo and Niger ia took the opp or t unit y to ann ounc e th e par t ner ship at natio nal leve l and b ring s t akeho lde rs to th e tab le to disc uss th e ne eds of ch ildre n and adva nce t he ri ght to ed uc atio n. T o fur ther our advo cac y, we have i dent i ed key glob al and Af ri ca -fo cuse d even ts fo r our lead ers hip to at tend a nd, as p ar t of eve r y coun tr y p lan , we have devel op ed an ex te nsive programme of engagement with nation al politi cal and funding s takeholder s. In ad dit ion to t he ad voc acy w ork a lread y unde r way, we have a number of l oc al par t ner ships w it h UN IC EF in pl ace w hich supp or t and suppl emen t the ve- year Group - level par tner ship. These include a natio nal pro gram me in Keny a focus ed on online safety for children. Accessible digital educational content Our p rogress Our p ar t ner ship wi th U NI CEF is a lso foc use d on prov idin g lear ner s wi th ac ces s to digit al edu cat ional c onte nt fre e of char ge. As p ar t of t he U NI CEF - led 'c o - creat ion' wor ksh ops , eac h of our mar ket s devel ope d a det aile d road map for t he roll ou t of zero - rate d conte nt and identi e d governme nt-supp or te d digi tal p lat for ms. B y 3 1 M arch 2022, 1 5suit abl e platfo rms across seven of our market s – Keny a, Ma dagasc ar , Malaw i, Nige ria , Rwand a, T anz ania and Uganda – ha d be en identi e d and approved . Also in M arch , the G over nme nt of Nig eri a, U NI CEF , A ir te l Nigeria and o t her partners launched the Nigeria Learning Passpor t (NL P ), an online, mobi le and soon -to - b e oine learnin g platform that will provide con tinuous edu cat ion to t hree m illio n lear ner s in 2022 alon e, and a to tal of 12 milli on by 202 5 . The p rovisi on of fr ee dig it al con tent in t hese market s b egan i n May 2022. W e w ill wor k to acc ele rate th e launc h of gover nme nt- supp or te d plat fo rms in ot her ma rket s , or advo cate t heir d evel opme nt wh ere th ey do not yet exis t . Connec ting schools for digit al learning Our p rogress UN IC EF ’s ‘GI GA’ initiat ive aims to c onne c t ever y s cho ol to t he inter net by 2050 . Thro ugh the p ar t ner ship, we a re supp or t ing t his ambitious goal in 13 Afric an markets. We have agree d a phase d app roac h to deli ver ing sc hoo l con nec ti vi ty a nd have iden ti ed nine count ri es for the rs t phase of the roll out : Dem ocr atic Repu blic of the Congo , Repu blic of the Congo , Gabon , Kenya, Malawi , Nige r , N iger ia, T anz ania an d Ugand a. A s of 3 1Ma rch 202 2, deta ile d program mes for all nin e coun tri es were a pprove d and w ill cont ri bute to our Y e ar One target s of br ingin g conn ec ti vit y to ove r 2 50 pr imar y an d sec ond ar y sc hoo ls and 30 yo uth c ent res . This w ill ensu re that ove r 1 0 0, 0 00 l earn ers and 1, 00 0 teac her s wil l have acc ess to A ir tel Africa ’s network. We will wor k tog ethe r to asse ss sch oo ls’ capacit y and build capabili ty among teacher s as par t of t he p rogr amme. Ove r the c our se of our p ar t ner ship w ith UN IC EF , we wil l col labo rate wi th ot her par t ner s in ou r sec tor w hich s hare our v alues to supp or t o ur wor k and f ur t her i ncreas e connectivi ty for learners acro ss Afric a. * Source: htt ps: / /african .busines s/2022/03 / apo-ne wsfeed/ 1 2-mi llio n-nige ria n-stude nts-t o- have-inc reased-ac cess-to - educatio n-throu gh- new- learning- passpor t / Three pillars of our par tner ship w it h UN IC EF Addre ssing the learning cris is in Africa is a priori ty for UNICEF . This p ar tnership is the rst o f its kind. It builds on the expert ise an d footprint of o ur t wo organisations to reach marginali sed children wit h digital learning oppo r tunities. It also cre ates new approache s to scalable and s us tainable re sult s. Rania Dagash Dep ut y Regio nal Dire cto r , UNI CE F – E aste rn and Sou the rn Afr ica 53 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our sus tainabilit y s trate gy co ntinu ed Pillar 4 – Our environment Our ambit ion is to address and minimise the impact of our operations on the environment. SDG alignment Our greenhouse gas reduction g oal Our ul ti mate goal is to a chieve n et zero gree nhouse g as ( G HG) emissions a head of 2050. T o achi eve this we mus t fully ide ntif y , measure and reduc e our G H G emissi ons whi ch c an onl y be ac hieve d in par tner ship w it h our pe er s and th e wid er ind ust r y. MA TERIAL TOPIC: CL IM A T E CHA N GE Our p rogress Rec ognisi ng the impac t of t he climate crisis on Afric a, we acknow le dge the re spo nsibili t y we have to limi t our env iron ment al imp ac t. We are focus ed o n redu cing o ur dire ct c ar bon e missio ns and are i nves tigat ing ways to o ptim ise our operat ional ene rgy ecie nc y . We f ull y suppor t the 201 5 Par is Agre ement to l imit g loba l temp eratur e rise s bel ow 1.5° C, and the GSM A T ask Force denin g the emission redu ct ion pathw ay for th e tele co ms indus tr y . In th e six mo nths f rom t he laun ch of our s ust ainab ilit y s tr ateg y , we have be en ca rr y ing o ut inte rnal as sess ment s , col lec t ing dat a and wor king w it h the C arb on T rus t , t he lea ding gl obal e nviro nmen tal consu lt anc y , to evaluate our cur rent Scop e 1, 2 and 3 G H G emissions and estab lish a carbon acco unting polic y , which will guide our appr oach to c ar bon a cco unti ng and p rovid e an over view of S cop e 1, 2 and 3 emis sions . It w ill all ow us to ac curat ely se t our bas elin e emissi ons ahead of t arg et-set tin g. We have also c arr ie d out hi gh -l evel ana lysis to iden tif y car bon h ot spot s in o ur ope rat ions an d fun ct ions , whi ch wi ll be focus p oint s fo r our de ca rb onisat ion p rogr amme . This is es sent ial fou ndati on wor k for o ur ‘pat hway to net zer o’ st rateg y , whic h we w ill launch ahead of our rs t Sust ainab ilit y Repo r t , due to b e publ ishe d later in 2022. Responsibl e use of energy In th e Uni ted K ingd om , our en ergy c onsump tio n is approx . 22,0 0 0 kWh. A s t he en ergy c onsump tion o f the U K-in cor po rate d enti ti es in th e Gro up, exclu ding ove rs ees sub sidiar ies , is les s than 40 ,0 0 0kW h the Co mpany has re lied o n th e exempti on set o ut in p aragr aph 15( 5) of Sch edu le 7 of th e Larg e and M ediu m- sized C omp anies a nd G roups (Acc ount s and Repor t s) Re gulat ions 2008 / 4 10. Our environmental s tewa rdship goal Our g oal is to eli minate haz ardo us waste f rom ou r oper atio ns, signi can tly reduc e our no n- ha zard ous waste an d minimi se our water c onsumpt ion . We will achieve this through programmes to replace damaging mater ials, ex pan d rec ycli ng sch emes a nd bui ld emp loye es’ awaren ess around protection of natural resources. MA TERIAL TOPIC: CIRCUL AR ECONOMY Our p rogress Our enviro nme ntal ste wardshi p goal is sup por ted by t hre e speci c target s: • t he elim inati on of haz ardous w aste f rom o ur op erat ions by 2040 • t he red uc tio n in non - haza rdous w aste by 2025 • re duc tio n in wate r consum ptio n by 2030. Be twe en t he laun ch of ou r sust ainab ili ty s tr ateg y and 31 March 2022, our fo cus has be en o n the re duc ti on of our n on - hazar dous was te through est ablished internal proces ses. We hav e appointed envir onme ntal oc er s in all our 1 4 markets , typ ic ally exis tin g facilit ies manage rs , so we e mbe d resp onsib le co nsumpti on into e ver y asp ec t of our oce s and d raw on an exis t ing net wor k of exp er t ise. In Febr uar y, we provide d traini ng to al l environme nta l ocer s and s et target s aroun d redu ct ion , re cyc ling an d reusing i n supp or t of t he ci rcular ec onomy. The t raini ng cove red top ics , in clu ding mo nito rin g water consu mptio n, re du cing e lec tr ici t y usag e and resp onsib le disp osal o f was te. In addi tio n, our enviro nment al oce rs regul arl y sign u p to U N Gl obal C omp ac t’s circ ular e con omy tr ainin g sessi ons wh ere th ey lea rn abou t glo bal b es t prac t ice in m oni tori ng s tan dards so t hey c an app ly the m to Air tel Afr ic a’s facilit ies . In lin e wit h our c ommi tme nt , we have bui lt on ex ist ing was te manage ment i nit iative s in our mar ket s and have c onso lidate d th em unde r a Gro up - wide i nit iative . We are work ing tow ards a rob ust improve ment p lan for re c yclin g and wi ll rep or t t he imp roveme nt s in our rs t Sust ainabi lit y Repor t later i n 2 022. Redu cin g our p ape r and p las tic wast e through eec t ive recyc ling is par t icu larl y imp or t ant . T heref ore, we have c ar rie d ou t an inter nal asses sment to u nde rs tan d pap er re cyc ling fa cili tie s acros s all our premis es and , wh ere ne ed ed , we have be gun bu yin g new re cyc ling b ins. Cur rentl y each m arket is de velo ping a ‘ Gre en pl an’ whic h will c ommi t the m to ini tiat ives to addr ess the spec i c challeng es they face . Once comp lete d and ap prove d, t hes e plans w ill be i nco rp orate d into ou r Gro up -w ide p rogr amme s to deli ver our e nviro nmen tal g oals . T C FD disclosure Air tel Afr ica i s commi t ted to tr anspare nc y in our dis closure and repor ting of all sustainability- related data. We’ re also co mmi tte d to anal ysing o ur cli mate -r elate d risk s and readin ess an d to wor king tow ards ac hievi ng th e 1 1 d iscl osure rec omme ndati ons of t he T as k Forc e for Cli mate - relate d Fina ncial Disc losure ( TCF D ). T his is the ve r y s ta r t of our sus t ainab ilit y jo urn ey. It ’sthe right time to assess our current per forma nce and est ablis h a prog ramm e to bri ng our dis clo sure to at leas t t he leve l of our gl obal tele coms p ee rs . Governance Disclose the organisation’ s governanc e around climate -relate d risks and opp ortunities. Strategy Dis cl ose t he a ct ual a nd po ten tia l impact s of climate-related risks and oppor tunities on the organi sation’ s busi ne sse s, st ra teg y and nan cial planning whe re such informatio n is material . Risk management Disclose ho w the or ganisation ide nt i es , asse sse s and manag es climate -relate d risks . Met r ic s and t ar ge ts Dis cl ose t he m et ri cs an d ta rge t s use d to ass es s and ma nag e rel ev ant climate -relate d risks and opp or tuniti es where such infor mation is material . In th e six mo nths f rom t he laun ch of our s ust ainab ilit y s tr ateg y to 3 1Ma rch 202 2, we appointe d the Carb on T r ust to under t ake a tho roug h gap anal ysis . This ass ess ed ou r cur rent disc losur e readin ess and matur it y ag ains t the TCF D’s four th emati c areas – gove rnan ce , st rate gy, risk manage ment , an d met ric s and t arge ts – as w ell as agains t th e 1 1 unde rl ying re co mmen dati ons . This is pa r t of a wi der climate s t rate gy pro jec t wi th t he Ca rb on T rus t to es ta blish ou r car bo n acc ount ing poli cy, de ne a credibl e carb on reduc ti on progr amme and, ult imatel y , d elive r our l ong -te rm go al of ca rb on neu tr alit y. Strategic report 54 A ir tel Af r ic a p lc A nnu al R ep or t and A cc ou nt s 2022 The C ar bon T r ust h as comp lete d the g ap anal ysis base d on a thorough r eview of publicly avail able information, scrutiny of internal doc umen ts a nd ong oing e ngag emen t wit h Air tel Afr ic a to raise ques ti ons . It sc ore d our cu rre nt per forma nce a gains t TCFD’s 1 1r eco mmen dati ons , using a ve - leve l scor ing sys tem: Go od Prac ti ce, Our path way to T CFD -aligned re por ting T o ma tch th e indus tr y uptake of t he TCFD a nd co mply w it h mandato r y re quirem ent s , we wil l be enha ncin g our re por ting as o utl ine d bel ow : High , Mediu m, Low, a nd No Disclosu re. The result ing repor t shares key ndings and gives us pr ior it y reco mmen dati ons for actio ns and a de tail ed t hree - year roa dmap to ali gn our d isclo sure wi th t he TCFD’s rec omme ndat ions . Governance Strategy TCFD recomm endations Carbon T rust gap analysis Air tel A frica response Ann ual Rep or t 202 1 /22 Ann ual Rep or t 20 22/23 A nnu al Rep or t 2023/2 4 Page De scr ib e th e B oar d’s ove rs igh t of cl imat e - rel ate d ris ks a nd op po r tu ni tie s Describ e the climate-related risks and oppor tunities the orga nisation has ide nt i ed ove r the shor t-, medi um -, and long-term Describe management’s role in assessing and managing climate-related risks and oppor tunities Describ e the impact of climate-related ris ks a nd o pp or t uni ti es on t he organisatio n’s businesse s, st rategy, and nancial planning De scr ib e th e res ili en ce of t he organisation’s strateg y , taking into consider ation dierent climate- related scenarios , including a 2ºC or lower scenar io Current s tatus and roadmap 56 57 Par tial Par tial Par tial No No Disclosur es now describe CR Os and the B oar d’s oversight and managemen t’s role Disclosur e now describes how t he B oa rd c onsi de rs climate -relate d issues Pro ce ss st ar t ed to den e shor t-, medium- and long-term time horiz ons and ensure these are aligned wi th o ur bus ine ss , s tr ate gy, and nancial planning Set CR O revi ew as a recurring Board agenda item ( via Sust ainability and Aud it and Ris k Comm it te e r e p o r t s) Under take full assessment of the CR Os to prio ri tis e based on likelihood, time hor izo n , and ma gni tu de of impact (including scenario anal ys is in t his wo rk) Set CR O revi ew as a recurring Board agenda item ( via Sust ainability and Aud it and Ris k Committee report s ) Undert ake and disclose ‘d eep d ives’ of prioriti sed CR Os to full y unde rs t and na nci al , busin ess and strateg y implications Disclose ho w ‘ deep dives’ inform for mulation of strategi c and business planning Risk management Metrics and targets Describe the org anisation’ s processes for identif ying and assessing climate- related risk s Dis cl ose t he m et ri cs us ed by t he organisatio n to assess climate- related ris ks a nd o pp or t uni ti es in l ine w it h it s strategy and risk management process Describe the org anisation’ s processes for managing climate-related risks Disclose Scope 1, 2 and, if appropriate, Sc op e 3 G H G emissi ons an d the related risk s Describe how pr o cesses f or identifying, assessing, and managing climate- rel ate d ris ks a re int eg rate d in to th e organisation’s overall risk management 58 58 Low No No No No Disclose the process for identif ying and assessing climate -relate d risk described Ana ly sis of GHG emi ssi ons for S co pe 1, 2 a nd 3 , and pat hwa y to net ze ro currently ongoing Ensure ongoing integration of climate- related risk considerations into overall risk ma nagement activities Measure and disclose Sc op e 1, 2 and 3 e mis sio ns and set science- based reduct ions targets Develop metric s and targets lin ked to spe ci c CR Os Develop process es to monitor the emergence of new CR Os and ensu re the ir ongoing integration with exis t ing r is k ta xono my – disclose examples of h ow pro ce ss es have i nfo rm ed decisions on mitigating act ions Disclose pr o gress against science-based targets De scr ib e th e ta rge t s use d by t he organisatio n to manage climate- related risks and opp ortunities and performance against targets No 55 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our sus tainabilit y s trate gy co ntinu ed Governance Desc rib e the B oard ’s oversigh t of clima te -r elated r isk s andopportunit ies The B o ard has over all resp onsib ilit y fo r the man agem ent of A ir tel Afr ic a’s cli mate - relate d risks and oppo r tuni tie s ( CRO s ). Our Board maint ains this o versi ght thr ough t wo of i t s comm it tee s – the Au dit an d Risk Commi t tee and the Sust ainabi lit y Commi t tee. Th e Audit and Risk Co mmit te e overs ees o ur ris k manage ment p roc esse s, in clu ding t he asses sment and miti gatio n of C ROs . The Sust ainabi lit y Commi t tee , meet s monthly and is responsible for implementing our sust ainability st rate gy, includi ng th e climate re spo nse ac ti ons add resse d wi thin t he environment pillar of the strateg y . Our C EO cu rren tly c hairs t he Sus t ainabi lit y C ommi tte e and at te nds ever y Audi t and Risk Commi t tee meet ing and those of the Exec uti ve Risk Commi t tee (ERC) . He provid es a d irec t link to t he manageme nt of CRO s as do es our Board sust ainab ilit y champi on , Annika Pouti ainen , who also atten ds Board , Audit and Risk Commit te e and the Sus taina bili ty C omm it tee m eet ings . Ann ika rep or ts to t he B oard o n the wo rk of t he Sus t ainabi lit y Co mmit te e and , tog eth er wi th th e CE O, supp or te d by rel evant me mbe rs of t he manag eme nt team , will s eek appr oval for an y act ions . Desc rib e manage ment ’s role i n assessing an d managi ng climate - related r isks and op por tunities Thro ugh the ERC , manageme nt overse es our risk managemen t pro cess es , incl udin g the as sessm ent an d devel opm ent of mi tigat ion ac tio ns for C ROs . The ERC meet s on a quar terly basis . Our Execu ti ve Co mmit te e (Ex Co) ensures that ou r climate a ct ions a re integ rated into our o per atio nal busi ness s tr ateg y . The t wo c omp one nt s of our st rate gy towards CROs are environm ent al stewards hip and reduc tio n in GHG emissi ons. In light of t his two - pro nge d approa ch , our c hief tech nol ogy oc er and chief supply chain oc er jointl y lead the ‘Our environment ’ pillar of our sustainabilit y strateg y . Our mate rial it y asse ssme nt show s that en erg y use fro m our dat a cent res , net wor k op erat ing c entr es and inf ras tr uc ture si tes co ns titu te a large p erc enta ge of t he tota l ener gy co nsumpt ion wi thi n our busine ss . So, our chief tech nolo gy oc er overse es our stra tegy to bri ng energy - e cien t initiat ives into our c ore oper ati onal proc ess . A signic ant perc ent age of our i nfras t ruc tur e sites ( 93% ) is owned by tower c ompa nies (towercos) and we lease sp ace f rom t he towe rcos . Our chief supp ly chain oce r leads our eor t s to generate climate ac tio n from our towerc o vendor s to ac hieve energ y ecie ncy and redu ce GH G emissions . We have also app ointe d a chie f st rate gy, par tne rshi ps and sust aina bili ty oc er to l ead our climate acti ons and ensure a seam less integ rati on be twe en o ur busin ess s tr ategy a nd cli mate resp onse ac tio ns. The chief st rate gy, par tne rshi ps and s ust ainab ilit y oce r is a memb er of t he Gr oup E xC o and re por ts to o ur CE O who c hairs t he Sustainabilit y Commi ttee . Audi t and Risk C ommi t tee (ARC) Oversees our risk management processes, including the a ssessment and mitigation of climate - related r isks E xecu tive R isk Com mit tee (ERC) Id ent i es , asses ses and deve lo ps miti gat ion ac ti ons fo r cli mate - rel ate d ris ks Sustainabilit y Commit tee Resp on sibl e for the impl eme nt ati on of oursustainability strategy, including climate response actions within ‘Our environment ’ sustainabilit y pillar Executive Committee ( E xCo ) Ensures integration and implementation of climate- related actions within func tional strateg y and operating plans Air tel Afr ica p lc Bo ard Overall responsibility for the management of th e Gr oup’s cl imate - re late d ri sk s Chief str ategy , par t nerships and sust ainability ocer Resp on sibl e for leadi ng the impl em ent ati on of our su stainabili ty str ategy , includin g its climate - related ac tio ns Board Committee s Executive managem ent Strategic report 56 Air tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 Strat egy : risk and oppor tunitie s Des cr ibe the climate - relat ed risk s and o pp or tu niti es the organisat ion has identi e d over t he shor t, medi um, and long term Categor y Risk type Nature of impact Planning horizon T r ansition risks Cus tomer p ressu re Revenue loss due to cus tome rs choosi ng more envir onme ntal ly co nsci ous bra nds Me dium ( ve years ) New re gulat ions Reg ulati ons and attenda nt penalt ies or carb on taxes coul d adve rse ly impac t prot abil it y Mediu m Shareholder /stakeholder advo cac y Lack of a credible action on clim ate ch ange could res ult in incre ased stakeholder advocacy negatively impac ting our op erat ions Shor t ( t hre e years) Reputation Damage to b ran d repu tat ion ar ising f rom a p erc eive d lack of ac tio n on cli mate init iati ves Shor t Physical risks F loo ding at t rib ute d to risin g sea le vel or an in creas e in rainfall Inc rease in freque nc y and s ever it y of oo ding att ri bute d to risin g sea leve l and / o r incre ases in r ainfal l coul d damag e company infrast ruc ture Long (ten+ years ) Ex treme weather events, such as t rop ica l sto rms , cyclones, typhons Inc rease in t he fr equ enc y and s ever it y of ex trem e weath er event s co uld res ult in da mage to c ompa ny infr ast ru ctu re Long Heat Inc rease in ex t reme h eat event s an d days co uld in crease coo ling requ ireme nt s and c os t s and n egat ivel y aect company infrast ruc ture Long Busin ess dis rupt ions Loss of reve nue an d prod uc tiv it y due to b usines s disru ptio ns at tr ibut ed to cl imate - relate d physi cal e vent s Long Oppor tuni ties Enhanced mar ket valua tion Im prove d ESG per forma nce will have a po siti ve eec t on share pr ic e per forma nce an d inves tor p erce ptio n Shor t Acc ess to c apit al Inc rease d access to and lower cos t of sus tai nabl e nancing options Shor t Cos t eci enc y Adopti ng energy ec ient meth ods and cheape r environmentally f riendly business proc esses will improve cost eciencies Mediu m Reputation Impr oved c ompany r epu tat ion w ill hel p us to at tra ct an d reta in cus tome rs an d empl oyees Mediu m Desc rib e the im pac t of cli mate - related r isk s and oppor tunities on the organisa t ion’ s businesse s, strategy and nancial planning Dur ing the nanc ial year , we rev ise d our “ Win wit h” s t rate gy to e mbe d sust aina bili ty as a key e nable r of eac h of the s tr ateg ic pill ars . Th is ree c ts our ambit ion to deliver pro tab le grow th in the long -ter m by integ rati ng sus tain abili t y into th e core of o ur busin ess s tr ateg y ( s ee pages 43- 58 ). ‘Our environment ’ pillar , encompassing climate risks and op por tunit ies , is on e of the fo ur pil lars of o ur rec ent ly pub lishe d sustainabilit y st rategy . This highlights our focus on environmental ste wardshi p and ou r ambi tio n to achi eve net zero w it hin our ope rati ons . Se e page s 3 1 -42 for more i nfor matio n abo ut our s t rate gy. This nanc ial year we compl eted a climat e risk asses sment . This iden ti es both transi ti on and physical risk s which cou ld aec t our busine ss in t he shor t to lon g terms. We als o consider ed each CRO wit hin our business , st rateg y , and nanc ial planning hor izons . See table on page 5 7 for time hor izons for each of th e CROs . Our cur rent impac t assessm ent of C ROs is qualitat ive. We have n’t yet comp lete d a C RO impac t quanti ca tio n, scena rio analy sis or te st ing for s tra tegy r esilie nce . We plan to inte grate t his into our s ust ainab ilit y repo r t ing as we ad opt a s ys temat ic and s t ruc ture d ap proac h for iden tif ying , assessin g, and monito rin g CROs. Our risk asses sment has alread y identi e d mitigat ion ac tio ns which are bein g integrate d into our operational strategy . For ex ampl e, in ad dres sing tr ansit ion r isk s in relat ion to s t akehol der expe c tat ions , we’ve s t ar te d wor k wit h th e Car bo n T r us t to acc uratel y capt ure and repo r t all GHG emissi ons withi n our o per ati ons , includi ng our su pply chain. In par alle l, A ir te l Afr ica h as join ed ind ust r y ini tiat ives , suc h th e GSM A Climate A ct ion T ask force a nd th e Car bo n Disc losure P roje ct to wo rk wit h indust r y pee rs to nd comm on solut ions to address the climate crisis . We’ve s tar ted an in dus tr y -l eadin g app roac h to meet t he challenges of creating a credible carbon reduction plan wit hout a viab le indus t r y- wi de sol uti on to die sel p owere d tower s , and t he repo r t ing and a cco unti ng of emis sions f rom le ased to wers . O ur aim is to n d and a gree a common indus tr y app roach to ensure credibl e long-term decarbonisation pla ns and targets. Describe the resilience of the organi sation’ s strategy , tak ing into consid erat ion dier ent climate - relate d scenarios, including a 2 O C or lower scenario Foll owi ng the Group’s risk assessme nt on i t s CROs in l ine with the TCFD’s rec omme ndat ions , we have ini tiate d a sce nari o analy sis for the iden ti ed climate risk s (phys ica l and t ransi tio n ) and o pp or tu nit ies whic h we ex pe ct to repor t in the Annual Repor t 2 022/23. The outc ome of t he sc enar io ana lysis exerc ise wi ll impr ove the G rou p’s resilience and preparedness to address climate risks in a var ying range of possible outcomes. 57 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Risk manag ement Desc rib e the o rganisat ion’s proce sses for id enti f y ing and assessing climate - related r isks We have a robus t enter pr ise r isk manag ement p roc ess w hich is uniformly imple mented across all our operating subsidiaries . Our pro cess fo r ide nti f yin g and ass essin g climate - re lated r isk s follo ws our es tab lishe d risk manageme nt framew ork . The classi c ati on of c limate risk has b ee n comp lete d using t he TCFD ’s recomm endat ions a round physi cal an d tra nsit ion r isks . Se e pag e 80 fo r det ails of our e nter pris e risk man agement framework. As c limate c hange has b ee n rec ognis ed by t he B oard as a n emerg ing risk , this recei ves the ongoin g attent ion of the ERC an d the Audit and Risk Commi tte e as p ar t of our risk review pro cess . We mit igate physical climate risks through our business continui ty management pro cess es , as well as t he cur rent i niti ative s to addre ss tr ansit ion r isk s detaile d within the environment pillar of our sustainabilit y st rategy . Desc rib e the o rganisat ion’s proce sses for mana ging climate - related r isks The ERC assess and miti gate climate - relate d risks , with overs ight bythe Bo ard throu gh the Audit and Risk Com mit te e. Our Board ’s Sus taina bili ty C omm it tee a lso over se es the i mple ment ati on of oursus ta inabil it y str ategy, i nclu ding climate -rela ted act ions and prog ramm es relate d to our e nviro nment al ob jec ti ves . We have also app ointe d a chi ef str ateg y , par t ner ships and sust ainabi lit y oce r , amemb er of o ur execut ive managem ent team, who is pri mari ly resp onsibl e for t he desi gn and im ple ment atio n of our c limate resp onseac ti ons . Desc rib e how pro cesses for i dent if ying , assessing a nd managing climate - related risk s are integrated into th e organisation ’s ov erall risk man agement We have iden ti ed and assess ed our climate - relate d risks base d on likelihood and impact and are developing app ropriate quantitative metr ic s for meas urin g and t rack ing t he cli mate impa ct of o ur ope rati ons . Dete rmin ing cu rren t basel ine met ri cs wi ll all ow us to car r y out s cena rio an alysis to g uide o ur clima te ac tion p lan an d moni tor and repo r t on o ngo ing pro ces ses . We intend to p ublish o ur pat hway to net zero later this ye ar , when we’ll provid e data on o ur GHG emissio ns basel ine, p athway to n et zero an d sce nari o analy sis in line w it h the TCFD re comm endat ions . Air tel Africa plc has complied with the requirements ofLR 9.8.6R by in clud ing climate -re lated nancial disclosures consis tent with the TCFD recommendations and r ecommended disclosures except for the following metrics and targets. Metr ics and t arget s Whil e we’ re gath eri ng data for o ur Scop e 1, 2 and 3 G HG emissi ons , we’re not ready to d iscl ose th ese an d we haven’ t yet deve lop ed dec ar bon isati on ta rget s . In du e cour se, w e will s et sci enc e -b ase d redu ct ion t arge t s for all e mission s co pes . Th is work is a lread y unde r way, and we’ll disc lose o ur ben chma rk Sc op e 1, 2 and 3 emissi ons wh en we pub lish ou r pathw ay to net zero p rogr amme ahead of our rs t Sust ainab ilit y Repo r t later this year . We have est ablish ed sus t ainabi lit y KP Is bu t haven’t ye t devel ope d spe ci c metr ics to monitor and manage CROs . Mem ber s of ou r ExC o are nanci ally ince nti vise d to re duc e our company ’s c arbo n footprint , and our incentive plan includes per forma nce agains t achieve ment of our C ROs as par t of ou r broader sustainabilit y st rategy . We have sta r te d the p roc ess to dis clos e cur rent and p lann ed wor ks tr eams for t he nex t rep or ting c ycle (Sco pe 1, 2 and 3 a nd SB Ti). We have made our rs t climate - relate d nancial discl osures consis tent wit h th e TCFD re comm endat ions i n comp lianc e wi th th e req uirem ent s of LR 9. 8 .6R . Our sus tainabilit y s trate gy co ntinu ed Strategic report 58 A ir tel Af r ic a p lc A nnu al R ep or t and A cc ou nt s 2022 Corp orate social res ponsibilit y Ever yone at Air tel Africa feels strongly about suppor t ing projec t s and ac tivi ties that make a real dierence to the lives of some of the m ost vulnerable and underser ved people on the continent . Alo ngsid e the t rans for mati onal im pac t we make thr ough o ur busin ess and it s e mbe dde d sus tai nabili t y st rate gy (see pag es 44 -58), we’ve lon g bee n com mit te d to givi ng bac k to the c ommu nit ies in w hich we ope rate by pa r tn eri ng wi th gove rnm ent s and n on - gove rnme nta l organis atio ns (NG Os) , a nd by reac hing o ut dire c tly to i ndiv iduals and co mmuni tie s to addr ess so me of th e soc io - e con omic an d envir onme ntal c halle nge s that fa ce th e pe opl e aroun d us. As w ell as ou r cor po rate do natio ns in cas h or kin d, em ploye es volunte er and oer suppo r t in a wid e range of c ommun it y prog ramm es – be caus e this is w ho we are as a tea m, an d as Air tel Afr ic a pe ople . Our G rou p -w ide ap proa ch to key co mmuni t y act iv iti es focus es on t hree ma in areas : edu cat ion , heal th an d wellb eing , an d disaster relief. Focus on education We’ve bee n comm it ted to su ppo r t ing ed uc atio n in our c ommun iti es for many year s , be caus e supp or t ing c hild gro w th , deve lop ment an d wellb eing is i mpo r ta nt to ever yone at Ai r tel Af ri ca , and we k now t hat edu cat ion is a p ower ful to ol for b reakin g the c ycl e of pover ty a nd one of t he be st w ays to clo se gaps in s ocia l ine quali ty. It is also an impo r t ant dr iver of w ider e co nomi c prosp er it y : acc ordi ng to UN IC EF , on aver age, o ne ad dit ional ye ar of edu cat ion c an in crease a n indi vidua l’s earnings by 1 0 % . Girls’ edu cat ion has a par ticu lar bene t , to indi vidua ls and to f uture g ene rati ons – chi ldren of e duc ate d moth ers are muc h more l ikely to go to s cho ol t han chi ldren of m othe rs w ith l it tl e or n o edu catio n. • B y 2055 Afric a wi ll be ho me to one billion children under the a ge of 18, maki ng Afr ic a’s child popul ation la rger tha n that of any ot her c ont inen t • Y outh unemployment rates are on aver age 54% , rising to 70 % in s ome co unt ries • School closures during the Cov id - 19 pandemi c have aec te d around 250 million students in sub-Saharan Afric a, and learning completely stopped for mos t of th em • A tot al of 8 1 million children were alr eady o ut of sc hoo l in sub -Saha ran Afr ica b efore the pandemic • 87 % of c hil dr en in s ub - Saharan Afric a were unable to read a simp le pa ragr aph by the a ge of 1 0 befo re the pandemic Source: UNIC EF Our comm itm ent to e duc ati on is re e cte d in t he fac t that i t is a promi nent g oal of ou r sust aina bili ty s t rateg y , a nd our p ar t ner ship wi th UNI CEF , to enhance digital inclusion, espe cially for less privil eged children in hard-to- reach location s , is de scribed on pages 5 2-53. E xamp les of ou r othe r edu cat ion p roje ct s are d esc rib ed o n page 60. $2 . 2m tot al C SR e xp ens e in 2021/22 Focus on health and wellbeing, and helping out in emergencies The continuin g Covid- 19 pandemic has shown how challenging it can b e to acc ess h ealt hc are. Sin ce t he pan demi c beg an, we’ ve be en don ating h ealt hc are eq uipm ent to sup por t gover nmen ts a nd comm unit ies , and s et up c all ce ntres i n many mar kets to h elp hea lth and se cur it y ag enc ies dea l wit h the c risis . In Ju ne 202 1, fo r examp le, we d onate d $75,0 0 0 to the N ige ria Pr imar y Heal th care D evel opm ent Age nc y to supp or t t he ro llou t of Cov id - 19 vaccines in Niger ia. In Ma dagasc ar , w e donate d oxy gen on cen trato rs wo r th $1 1, 50 0 to the C ovi d- 19 T re atme nt Ce ntre , and pai d $2,0 0 0 for PPE fo r heal th perso nnel in three public hospit als in Antananarivo. In Uganda, we donate d four 10 -l itre ox yge n con cen trato rs to B uk wo Ge ner al Hospit al, Kampala. And i n Nige r we prov ide d supp or t w or t h 65,0 0 0, 00 0 F CFA ( e quiva lent to $1 00 ,0 0 0) to the governm ent as par t of the ght agains t th e pand emic . O th er exam ple s of our sup por t can b e found on pag es 60 -61. “ The philos ophy behin d our social inv est ments isunderpinned by the hope of goodness begetting greatnes s . W e suppor t our communitie s in the rm belief that being a good corporate org anisation of good people will ultimat ely t ransl ate t o greatnes s, and lov e for and lo yalt y to our comp any and brand by the people we serve and suppor t. ” Emeka Oparah Vic e pres ident , C omm unic atio ns and C SR G i ving back to t he comm unit ies w here w e l i v e a n d w o rk. 59 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Focus on education spotlight Suppor ting graduate s in Niger There’ s no substitute for e xp erience when it co mes to su cce ss ful j ob app lic atio ns – so our Niger oce dec ide d to en cou rage grad uates from the commun it y by o eri ng a one - year inter nship to s t reng the n the ir skills and employability in our oper ations. Laun che d in A pri l 202 1, th e sch eme s aw 35 graduate s join o ur teams , supp or te d by Niger’s Na tional Agency of E mployment. The y were given the chan ce to s ee at rs t hand ho w a busine ss like ou rs op erate s, whil e lear ning t he ski lls req uired to w ork in our oces and in t he eld . Three grad uates have alrea dy b een t aken on b y Air tel Nig er as a resul t of th e prog ramme . A bet ter future for mothers and b abies inUgand a Child bir t h sho uld b e safer fo r moth er s and bab ies – w hich is w hy , i n Jul y 202 1, we dona ted mo bile u ltr asou nd sc an devi ces to t he mate rni ty h ealt h fac ilit y at the B uk wo G ener al Ho spit al in E aste rn Ugan da, an d prov ide d trai ning to midw ives t hrou gh the ‘ Sa fe Mot her hoo d’ programme. Ugan da’s Bureau of Sta ndards es t imates that in Uganda mor talit y ratio, the annual numb er of deat hs of wom en fro m pre gnanc y- rela ted c auses p er 1 00 ,0 0 0 live bir t hs , stan ds at 343 – signi c antl y higher than t he U N targ et of red ucin g mater nal mor tali ty b elo w 70 deaths p er 1 00 ,0 0 0. We believe t he U N tar get is ac hievab le if we al l set ou t to prov ide ac ces sibl e, aordable quality health se r vices , especially to marginalised communities . The Air tel Saf e Motherhood programme has spo nsore d t wo midw ives f rom B uk wo General Hospital to u nder take practical trai ning in o bs tetr ic ul tras ound s er v ice s, whic h means they can now o er obs tetr ic ult raso und c are to the e xpe ct ant m othe rs and fol low up w it h pri mar y c are. M ore tha n 1, 300 m oth ers have n ow had ac ces s to the m obil e ult raso und sc an se r vi ce through the Airtel ‘Safe Motherhood’ programme. Corp orate social res ponsibilit y co ntinu ed Focus on education spotlight Focus on health and wellbe ing spotlight Kazipow er – ‘Girl power’ – in Zambia In 202 1, A ir te l Zamb ia par tnere d wi th t he SM ART Z ambia I ns titu te to prov ide d igit al skills t rain ing to sc hoo l- age d gir ls in a ne w proj ec t cal led ‘ K azip ower ’ – G ir ls in IC T . The p ar t ner ship was p ar t of t he Di git al T r ans form atio n Cen tre’s init iati ve launc hed by the Int er national T elecommunication Unio n (IT U), the U nite d Nati on’s agen cy fo r ICT , alon gside d igit al co mmuni cat ions an d tech nol ogy rm , Cisco. The proj ec t aims to supp or t c ount ri es in deve lop ing dig it al skills , fo cusing o n und erp ri vile ge d and marginalised communities . In Za mbia , 1 50 gir ls from u nde rpr iv ile ged secondary schools in thr ee provinces rec eive d six mo nths of I CT tr ainin g desig ned to h elp t hem pu rsu e care er s in Science , T ec hnology, Engineering and Mathematics ( STEM). T he top-p er forming 1 6 gi rls wen t on to rec eive j ob -s hadow ing opp or t unit ies at A ir te l Zamb ia, wo rki ng wit h dedic ate d mentors from our st a. Strategic report 60 Air tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 Focus on di saster rel ief spotlight Goma ’ s N yiragongo volcano programme inthe DRC The e rup tio n of the 11,50 0 - foot-hi gh volc ano Nyi rago ngo in M ay 202 1 an d result ing ear t hquakes k ille d at leas t 32 pe opl e and des troye d mo re than 3 ,60 0 ho mes , pub lic buil dings , sc hoo ls and hea lth s t ru ctu res. Over 2 0, 000 people were made homeless, around 400, 00 0 were displaced, and busine sses w ere cl osed f or a we ek . Af ter t he er upt ion i t emer ged t hat th e Obs er vato ire Volcano lo gique D e G oma (O VG) had be en w ith out i nter net ac cess to m oni tor seismi c ac tiv it ies for si x mont hs , due to lac k of funding. As p ar t of o ur resp onse to t he em erge nc y , Air tel Afr ic a provi de d drin king wat er to displa ce d pe ople i n nee d and d onate d a daily allow anc e of fre e voic e and dat a for p eop le in Go ma for se veral we ek s . At the s ame ti me, we entere d a t wo -yea r par t ner ship w it h the OVG , giv ing th em fr ee inte rne t to allow t hem to moni tor th e ac tiv it ies of t he vol can o, and supp or te d th e ins tall atio n of 1 6 se ismic probes and their required data co nnect ion. Suppor ting our communities in Malawi This yea r Air tel Malaw i made d onati ons aroun d K25m towards th e edu cat ion an d heal th se cto rs in itia tives . We par tn ere d wit h the M inis tr y of Gen der and do nated Pe rki ns Br aille ma chin es , Braille hand -frames , st yli and embosse d pap ers va lue d at K1 5m to v ari ous sch oo ls to assis t st ude nts w it h visual c halle nges . The h andove r took p lac e on 15 July , 202 1 at Capital Hill in Lilo ngwe. Also , aroun d the s ame t ime, o ur Air tel Malaw i empl oyees r aise d K1 0 m (Malaw ian kwacha) and, in part nership with O njezani Kenani ’s Private C iti zens Ini tiat ive, supp or te d Chir adzul u Dis tr ic t Hosp it al in Bla nty re by do natin g this sum to wards cons t ruc ti on of a so lar po were d water supp ly so lut ion as pa r t of #B eS mar t Be Safe initi ative . Empo wering refugees through nancia l inclusion in Ugan da Inc lusion i n the d igit al e con omy and nanc ial ecos ys tem is impo r t ant for ever yo ne – and p ar t icul arl y for ref uge es see king to s uppo r t t hemse lves i n new plac es . Acc ordin g to Unite d Nat ions gure s, Ugan da is Af ric a’s la rges t refug ee host , wit h 1. 1 million evacue es calling it the ir new h ome. I n the A djuman i and Y u mbe dis t ric t s in Wes t Nile , at leas t hal f of the p opu latio n are ref uge es . Air tel Ugan da has be en sup por ting t his new p opul atio n for so me year s, in clu ding thro ugh ou r tele coms mas t s in t he B idi B idi and Palabek Refugee ce ntres. Now we’re reach ing ou t to the ‘u nbanke d’ ref ug ee communities of Uganda, br inging them onlin e with the oer of acc ess to nanc ial ser vice s and co llab orat ing wi th t he Uni ted Nati ons Ca pit al D evelo pme nt Fund (UN CD F) to b oos t mo bile m oney a nd bri dge the digi tal nanc e divide . The a rea is ser ved by 11 5 of our dis tri but ion a gent s an d 32 franc hise par t ner s , creat ing jo bs for so me for mer refugees , including eight who joine d our dis tri but ion n et wor k in 202 1 /22. At the last c ount , m ore th an 25,00 0 ref uge es in Adjuma ni and Yumbe dis tr ic t s had be en emp owere d wit h mob ile p hone s, S IM cards and nanc ial ser vi ces . Focus on di saster rel ief spotlight Focus on health and wellbe ing spotlight 61 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Business review Nigeria i s a countr y where demand for data and mobile ser vices is st rong and growing stronger , and where the government continues to see digit al entrepreneurship as anengine of economic progr ess. W e aim t o suppor t our customers through this tr ans format io n. Surendran Chemmenko til MD & C EO, Ai r tel N iger ia Summarised statement o f operations Description Unit of measure Y ear ended Repo r ted curren cy change % Cons ta nt curren cy change % Ma r-22 M a r-21 Revenu e $m 1 , 878 1 , 552 21 . 0 % 2 7. 7 % V oic e revenu e 1 $m 985 897 9.8% 15 . 9 % Data re venue $m 734 549 3 3 .7 % 41 . 1% Other revenue 1 $m 1 59 10 6 5 0.0% 58 . 2% Underlying EB ITDA $m 1 ,0 37 8 39 23 . 6% 30 . 4% Underl ying EBI TDA margin % 55. 2% 5 4 . 1% 115 b p s 1 14 b p s Depreciation a nd amor tisation $m (26 8) (23 6) 13. 2% 19. 5% Op erat ing exce ptio nal ite ms $m – – – – Op er at in g pro t $m 769 602 2 7. 8 % 34. 8% Cap ex $m 2 51 275 (8 . 8 %) (8 . 8 %) Op erat ing free cash ow $m 786 564 39. 3 % 5 0 .7 % Operating KPIs ARPU $ 3.8 3.0 2 6 . 1% 33.0% T ot al cus tom er bas e million 4 4.4 42 . 0 5. 8% Data c usto mer bas e million 20. 3 17.7 1 4.9% 1 Voice r eve nue i nc lud es in ter-s egm ent r eve nue o f $1m and oth er re ven ue in cl ud es in ter-se gm ent r even ue of $2m in th e year ende d 3 1 Mar ch 2022. Excl ud ing inte r-se gme nt reve nue , voic e revenu e was $984m and oth er reve nu e was $ 157m in th e year ende d 3 1 Ma rch 2022 Gr ow t h % i n cons t ant cu rr enc y P ar tner ing our customers on the jou r ne y to a d igita l f ut ur e. Underlying revenue $1 , 8 78 m Underlying EBITDA $1 , 0 37m Op er ati ng pro t $ 76 9 m ARPU $3. 8 Repor ted currency 21. 0 % Co ns ta nt cu rr en cy 2 7.7 % Repor ted currency 23.6 % Co ns ta nt cu rr en cy 3 0 .4% Repor ted currency 27. 8 % Co ns ta nt cu rr en cy 34. 8% Repor ted currency 26 . 1% Co ns ta nt cu rr en cy 33.0% Nige ria Underlying revenue ( $m ) FY’2 2 FY’2 1 1, 878 2 7. 7 % 21. 9 % 1, 552 Underlying EBI TDA ( $m) FY’2 2 FY’2 1 1, 037 55. 2 % 5 4 . 1% * 839 Revenue sp lit Others 8% V oice 53% Data 39% Ot her market par t icipant s MTN Globacom 9 Mobile MAF AB Commun ications ( succ ess f ully bid for the 5Gspec tr um) * Underlying EBIT DA margin Strategic report 62 A ir tel A fr i ca p lc A nn ua l Rep o r t an d Ac co unt s 2022 O ur m a r ket Nige ria is Air tel Afri ca’s largest singl e countr y market , wit h a gro wing pop ulati on of m ore than 2 10 mill ion peo ple , more than half of whom are under 30 years old . It i s a co untr y where demand for data and mobi le ser v ices is stron g and growi ng stro nge r , and where the gover nme nt cont inu es to se e digi tal e ntrep rene ursh ip as an eng ine of economic progress. We ai m to joi n with and suppor t our c usto mer s through this tra nsfo rmat ion , and this ye ar we’ve ma de fur t her inves tm ent s in net wor k upgrad es to b oos t capa cit y and reinforce resili enc e. At t he same tim e we’ve c onti nue d to exp and our distr ibu tio n netwo rk , while devel opin g our oer to custome rs . W e’re als o helping pe opl e move alon g the ladder from 2G to 3G to 4G : in pa r ti cular, we’ ve expande d our 4G fo otp rint by 34 .2% to reac h more c ommun iti es to supp or t digi tal trans fo rmat ion and drive eco nomi c empower me nt . This year has s een us create cent res where new cus tomer s can get SI M regis t rati ons and re gis ter un der t he Nat ional I de ntit y N umbe r (NI N) regu latio ns introdu ce d in D ec emb er 20 20. As of A pri l 2 022, we had co llate d NI N infor mati on for 35.9 mil lion of o ur ac tive c us tomer base. T his sup po r ted t he go vernm ent ’s imple ment ati on of th e sch eme while easing the delay in regist rati on that many c us tomer s expe rie nce d in F Y ’ 2 1. In Apr il 2 022, we w ere also noti ed that all SIMs that had not b ee n linked to a NIN woul d have ou tgoi ng voice calls bar red wit h immediate eec t . Subscr ib ers can st ill link their SIM s to the ir NI Ns in or der t hat the se res tr ic tio ns can b e li f ted . Ou tgoi ng voic e revenu es for ac tive subsc rib ers who have not ye t linked their NIN wit h the ir SI M amou nt to aroun d 7% of our to tal reve nues f rom N iger ia . We cont inue to work close ly with the regu lator and will make eve r y eor t to minimise disrupt ion and ensure custom ers ben et fro m full ser vi ce conn ec ti vit y as s oon as p ossib le. We’ re also d evel opin g our m obi le money oer . In Apr il 2 022, A ir tel Afr ic a receive d nal approval from the Cent ral Ban k of Ni ger ia ( CB N) to oer ser vic es under a super - ag ent licen ce and under a Pay ment Ser vice Ban k ( PSB) licenc e. This follow s the issue by th e Centr al Bank of Niger ia of th e approval in princ iple in respe ct of the tw o licenc es in Novem ber 2021. W e are g et tin g ready to l aunc h both s er v ice s as guid ed by t he Cent ral Bank , allow ing Air tel Afric a to cr eate an a genc y net wor k to s er ve the custo mer s of li cens ed Nige rian bank s, paym ent ser vice b ank s, an d lic ense d mob ile mo ney op erato rs in N ige ria , as described on page 2 3. The re have be en ch allen ges at t imes d urin g the ye ar . T he C ovid - 19 pand emic has c ont inue d to have an imp ac t on cus tom ers an d comm unit ies , with loc kdowns in some regio ns. We’ve als o closel y moni tored Ni geria’s foreign exchan ge situat ion: our anal ysis of foreign exchang e risk is des cr ibe d on p age 85. Overall , however, th is has be en anot her year of gro w th , with our custo mer base growing by 5.8% , and revenu es by 27 . 7 % in co nst ant cu rren cy. Our per formance Rep or te d curren cy revenu e grew b y 2 1.0% to $ 1, 878m with cons ta nt cur renc y grow th of 2 7 . 7% . Th e dierent ial in growt h rates was du e to deval uatio n of the N ige rian na ira by 5. 6%. T he c ons tan t cur renc y revenu e grow th of 27 .7% w as driven by both custom er base grow th of 5.8% and ARPU grow th of 33.0% largel y driven by higher data and voic e usage . V oic e revenue grew by 15.9%, dri ven by a n increase in voice usage per cus tome r of 20. 8% which led to a n ARPU increas e of 20. 7 % . Custome r base grow t h was ae c ted by the NI N -S IM linkag e regulati ons in Nige ria duri ng the rs t half of th e year b ut return ed to g row t h, addin g 4milli on custom ers in the seco nd half of t he year , achiev ing net grow th of 2.4 milli on cus tom ers ove r the f ull year. The numb er of re gulato r y appr oved ou tl et s expan de d to over 19,1 00 as of 31 March 2022. Data revenu e grew b y 4 1.1 % in cons t ant curre ncy, d rive n by dat a cus tome r base g row t h of 1 4.9 % and d ata ARP U growt h of 37 . 6% , led by grow th in data usage per custom er to 4. 0 GB per month ( f rom 2.8 GB in the prior year ). O ur cont inue d 4G n etw ork expa nsion and incr eased s mar t pho ne pe netr ati on has supp or ted dat a usage grow t h. Almo st 99% of ou r sites in Ni ger ia are n ow delive rin g 4G, and smar t pho ne pe net rati on of ou r cus tomer s has inc rease d by almo st 1 perc ent age p oint . Dat a reve nue ac coun ted fo r 39. 1 % of tot al revenu e in Nig eria i n the yea r , up by 3 . 7% o n the p ri or year . For Q4’ 22, 43.6% of our da ta custo mer base were 4G us ers , cont rib uti ng to 76.0% of tot al dat a usag e. Dat a usage p er cus tom er reac he d 4.2 G B per m onth a nd 4G dat a usag e per c usto mer rea che d 6. 5 GB p er mont h, a signic ant increas e on t he 4.6 GB usage per custo mer per mont h of Q4’21. Ot her revenu e grew by 58.2% , with the main contr ibu tio n coming fro m the growt h in v alue adde d ser vi ces revenu e, led by a ir t ime credit services . Und erl yin g EBIT DA was $1,037 m, growin g by 23.6% in repo r te d cur renc y and represen ting cons t ant curre ncy grow t h of 30 .4%. Und erl yin g EBI T DA margin imp roved to 55. 2%, a n incr ease of 1 15basis point s in re po r ted cur renc y and 1 1 4 basis poi nts in cons tant cur renc y , as a result of improvemen ts in opera tio nal ecie ncy. Op erat ing free cash ow was $7 8 6m, up by 50 . 7% in const ant cur renc y , due to t he exp ansion of u nder ly ing EB I TDA . T r ansforming lives spotlight Harnessing entrepreneurship, crea t ing value Adel eye Adetimi lehi n typi es the entre pren eur ial spiri t on w hic h our dist rib ut ion net wor k depends – as wel l as th e positi ve ec onom ic impa ct o ur busin ess c an have in ou r comm unit ies . Made r edun dant f rom his las t job b ut d eter mine d to supp or t his famil y , M r . Ad etim ilehi n enro lle d as a fre elan ce Ai r tel F iel d Sale s Agent i n 20 16. His per forma nce q uick ly ear ne d him an acc redi tat ion as a n Air tel SI M dist ri buto r , op erat ing i n Be nin cit y, Edo State. F ocusi ng onl y on subs cri ber a cquisi tio n, Mr .A deti mile hin made rapid progres s and set up his ow n comp any, Al eyetonto Nig eria Ltd, whic h deals exclusi vely wit h Air tel Afr ic a busine ss – and by D ec emb er 202 1 h e cont rol led 1 0 A ir te l Afr ica s hops , emp loye d 18 peop le and g rosse d arou nd N 1 0 0 m ( over $20 0, 00 0) month ly , ac tiva ting a n averag e of 20,0 0 0 new subsc ript ions thro ugh his net wor k each month . Inspired by our ‘T ouching lives’ programme, Mr. Ad etimilehin has also devel ope d his o wn ways to gi ve back to th e comm unit y, sup por ting wid ows , youths and vulner abl e pe opl e in his area . 63 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Business review cont inue d For the 2 1 5 million people in ou r region, our produc t s and ser vices a re a ga tewa y to nan cial and digit aloppor tunit y . Ourstrategy is s imple: to connect t he unconnected and unlock commercial and digital benets for our customers, their communities, and ourbu sines s . Ian Ferrao Regi onal di rec tor, East Afr ic a Conne c t ing millions more customers to digi t al op por tunit y . Underlying revenue $ 1 , 7 17 m Underlying EBITDA $848 m Op er ati ng pro t $ 576 m ARPU $2. 5 Repor ted currency 24. 3 % Co ns ta nt cu rr en cy 2 2 .7 % Repor ted currency 34.4% Co ns ta nt cu rr en cy 31 . 6 % Repor ted currency 41. 0 % Co ns ta nt cu rr en cy 36 .8% Repor ted currency 12.2% Co ns ta nt cu rr en cy 10 .7 % East Africa Summarised statement o f operations Description Unit of measure Y ear ended Repo r ted curren cy change % Cons ta nt curren cy change % Ma r-22 M a r-21 Revenu e 2 $m 1 , 717 1 , 3 81 24 . 3 % 2 2 .7 % V oic e revenu e 3 $m 783 650 20. 3% 19. 2% Data re venue $m 4 57 354 2 9 . 1% 2 7. 4 % Mobile money reven ue 4 $m 411 291 41 . 5 % 3 7. 1% Other revenue 3 $m 152 15 0 1 . 1% 1.6% Underlying EB ITDA $m 848 6 31 3 4. 4% 31 . 6 % Underl ying EBI TDA margin % 49. 4% 4 5 .7 % 369 b ps 33 1 b ps Depreciation a nd amor tisation $m (240) (221) 8 .7 % 7. 9 % Op erat ing exce ptio nal ite ms 5 $m ( 32) – – – Op er at in g pro t $m 576 408 41 . 0 % 36 . 8% Cap ex $m 271 24 9 8. 8% 8 . 8% Op erat ing free cash ow $m 57 7 382 5 1 . 1% 46 . 8% Operating KPIs ARPU $ 2.5 2. 3 12. 2% 10 .7 % T ot al cus tom er bas e million 5 7. 2 53.1 7. 8 % Data c usto mer bas e million 18 . 3 16 . 2 12 .9 % Mob ile mo ney c usto mer bas e million 21 . 7 18 .0 20. 5% 1 T he Eas t Afr ic a busin ess re gio n incl ud es Kenya , Mala wi , Rwan da , T a nza nia , Ugan da and Zam bia 2 Rev enu e in clu de s int ra -s eg men t eli min ati ons o f $85m f or t he yea r en de d 3 1 Mar ch 2022 an d $64m fo r th e prior period 3 Voice r eve nue i nc lud es in ter-s egm ent r eve nue o f $1m and oth er re ven ue in cl ud es in ter-se gm ent r even ue of $6m in the year en de d 3 1 Marc h 2022. E xc lu din g inter-s egm ent rev enu e, voi ce reve nue was $782m and othe r reve nu e was $ 146m in th e year ende d 3 1 Mar ch 2022 4 M ob ile mo ney reve nu e post int ra - se gme nt eli mina tio ns wit h mob ile se r vi ce s was $32 6 m for the year end ed 31March 2022 and $22 7m for the pr io r per iod 5 Op er ati ng ex cep ti ona l ite ms of $32m in t he ye ar en de d 31 March 2022 c ons ist o f $12m provis ion f or ex pe c ted set t le men t of a cont ra ctu al disp ute in whi ch one of Gro up’s subsi dia ri es is a pa r t y and $20m cos t of set tl eme nt of ag ree d his to ri ca l sp ec tr um f ees i n on e of th e G rou p’s subsi dia ri es Gr ow t h % i n cons t ant cu rr enc y Revenue contribution of others includes eliminations Underlying revenue ( $m ) FY’2 2 FY’2 1 1 , 7 17 22. 7% 23. 5% 1 , 3 81 Underlying EBI TDA ( $m) FY’2 2 FY’2 1 848 49. 4% 45. 7% 6 31 Revenue sp lit Others 3% Mobile Money 24% V oice 46% Data 27% Ot her market par t icipant s Kenya: Safaricom and T elkom Mal awi : TNM Rw and a: MTN T anzania: Vodac om , Ti go, Ha lotel an d T TCL Uganda: MT N , UT L and Af ri cel l Zambia: M T N and Z amte l * Underlying EBIT DA margin Strategic report 64 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc ou nt s 2022 O ur m a r ket Our six market s in E ast Afr ic a include the fas tes t-grow ing eco nomi es in the contin ent , as w ell as s ome of the world ’s yo unge st pop ulati ons . For t he 21 5 mill ion pe opl e in our r egio n, o ur pro duc t s and se r vi ces ar e a gateway to nan cial and digit al oppo r tuni t y . Our s tr ateg y is simpl e: to co nne ct t he un conn ec ted a nd unl ock comm ercia l and d igit al bene t s for our cus tome rs , their commun iti es , and our business . This year we have c onti nue d to imp rove our net wor k , simplif y o ur produ ct s and increase cus tome r touchpo int s for our ser vi ces . W e grew from 53.1 milli on custo mer s to near ly 57 .2mill ion , and our ser v ice s are no w accessi ble in more househo lds acros s East Afri ca , a rea ch that we ai m to co ntinu ally expan d. T o st reng th en our netwo rk we dep loyed over 1,40 0 sites and g rown our base of 4G sites by nearly 30% , resul ting in data usage grow th of 4 7 .4%. We sim pli ed our prod uc t por t foli o and d iver si ed custo mer touc hpoi nt s to Air tel App , USS D and A ir tel s hops . Fur t her mo re, in orde r to s tre ngt hen our produ ct oer ings , we have cont inu ed to b uild st rong par tner ships wit h SME s, bank s, merc hant s , star tups and gover nme nts a cros s our mar ket s. Dis tr ibu tio n is a crit ic al level in o ur business . This year , we g rew our kiosk s , mini -sh ops an d Air tel Mon ey br anch es (AM Bs) by nearly 20% as we s tr ive to ensure that our produc t s and ser vic es are available whe re our c us tomer s live, work and play . Air tel Mon ey co ntinu es to rema in a key busin ess enab ler fo r indi vid uals and S ME s in our mar ket s. T his year o ur ac ti ve Air tel Mon ey cus tom er base cross ed the 20 mil lion mark whic h is a test amen t to our rele ntle ss focus o n buil ding p rodu ct s t hat me et cus tome r ne eds . Our g oal remains to b ec ome t he tr ansac t ional p lat for m for ho useho lds and SM Es throu gh solv ing the nancia l barrie rs that custo mer s face. In our eor t s to r un an asset-l ight and agile busines s, we have cl ose d tower sales in ve out of six of market s over t he last ve years. Rec ent ly , we cl ose d tower sale deals in T anza nia and Malaw i. The Cov id - 19 pa ndem ic conti nue d to ae ct pe opl e and c ommu nit ies , an intermi t tent cur few and some disru ptio n to sup ply chains create d head winds for our business . Despi te this, we were able to deliver anot her year of gro w th while maint ainin g Covid - 19 p rotoc ols to p rotec t our p eop le and o ur cus tom ers , and s upp or t ing lo ca l camp aigns to supp or t aec te d communi ties . Our per formance Eas t Afric a revenue in repor te d curren cy grew by 2 4. 3% to $1, 71 7m wit h cons tant cur renc y revenue grow t h of 22. 7% . This grow th was deli vere d across all k ey ser vi ces ; voice revenue grew by 19.2% , data revenu e by 27 .4% and mobi le mon ey reven ue by 37 .1 % i n cons ta nt cur renc y. Rep or ted curren cy revenu e grow th was slight ly highe r than cons t ant cur ren cy ra tes due to c urre nc y appre ciat ion i n the U gandan shilli ng and Zambian kwac ha, par tially os et by c urre nc y devaluati on in the Malaw ian kwacha . V oic e revenue grew by 19.2%, dri ven by b oth cus tome r base grow t h of 7 .8% and voice ARP U grow th of 7 .5% . The cus tomer base grow t h was largely dri ven by ex pansi on of b oth net wor k coverage and the dis tri but ion net wor k . V oic e usage per custom er increas ed by 5.8 % to 349 minutes pe r cus tome r per m onth , t hereby d ri ving vo ice A RPU grow t h of 7 .5% . Data revenu e grew b y 2 7 .4%, largel y driven by data custome r base grow t h of 12.9% and data AR PU grow th of 5.6%. We co ntinu ed to inves t in o ur netwo rk and expand ed our 4G n et wor k infras tr uc ture whic h helpe d us to grow both data usage and the data custom er base. The data cus tome r base incr eased 12.9% to 18.3 millio n, wit h 4G cus tome rs ac cou nting f or 40. 5% of our tot al dat a cus tomer b ase and cont ri bute 60. 2% of total data usag e. 85.8% of o ur total sites are n ow on 4G , compare d with 7 6.4% at the end of th e prior year . Data usage per c usto mer rea che d 3. 3 G B per c usto mer p er mo nth , up by 22.1 % Mob ile money revenu e was up by 3 7 .1 % , largel y driven by grow th in Zamb ia, Ugan da and M alawi . The mobil e money custom er base grew by 20.5% and m obil e mone y AR PU inc rease d by 1 4. 5%, d ue larg ely to expansion of our d ist rib ut ion net wor k . The transac ti on value per cus tome r reach ed $1 8 3 per c us tomer p er mo nth , up by 16.0% f rom $1 53 per custom er per month in the prior year . The slowd own in mobi le money revenu e growt h was d ue to im ple ment ati on of addi tio nal levie s by th e Gover nment of T anzan ia on m obil e money wit hdr awal and P2P tr ansac ti ons from July 202 1, which were subse que ntly revis ed downwa rds in ea rly Septe mbe r 2 021. The u nde rly ing EB I TDA marg in reac hed 49.4%, an im provem ent of 33 1 basis p oint s in c ons ta nt cur renc y, as a result of s tron g revenu e grow t h and impro vement s in operat ing ec ienc y. Op erat ing free cash ow was $5 77m, up by 46.8% in cons t ant cur renc y , due lar gel y to the ex pansio n of und erl ying E BI T DA . So urc e: Wo rl d Ba nk r ep or t (2021) 65 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Business review cont inue d Air tel Africa ha s a critical role t o play in building oppor tunit y and a sust ainable future in Francophone Africa. Eve n in our most economically chall enge d mar ket s, aor dable, fast and reliable connecti vit y and mobile nancia l ser vices are essentia l for g row th . Michael Foley Regional direc tor , Francophone Af rica G rowing sust ainably through s trong net work s and gr ea t distri buti on. Underlying revenue $ 1 , 1 31 m Underlying EBITDA $ 464m Op er ati ng pro t $ 2 61 m ARPU $ 3 .7 Repor ted currency 17. 2 % Co ns ta nt cu rr en cy 1 7. 2 % Repor ted currency 27. 6 % Co ns ta nt cu rr en cy 2 7.7 % Repor ted currency 53 .7% Co ns ta nt cu rr en cy 54 .6% Repor ted currency (1. 9 %) Co ns ta nt cu rr en cy (1 . 9 %) Francophone Afr ica Summarised statement o f operations Description Unit of measure Y ear ended Repo r ted curren cy change % Cons ta nt curren cy change % Ma r-22 M a r-21 Underlying revenue 2 $m 1 , 1 31 964 17. 2 % 17. 2 % V oic e revenu e 3 $m 594 5 41 9 .9% 1 0.0% Data re venue $m 334 254 31 . 5 % 31 . 0 % Mobile money reven ue 4 $m 142 110 29. 0 % 29 . 6% Other revenue 3 $m 10 4 96 8 .9% 8 . 3% Underlying EB ITDA $m 464 36 4 2 7. 6 % 2 7. 7 % Underl ying EBI TDA margin % 41 . 0 % 3 7. 7 % 33 2 b ps 337 bps Depreciation a nd amor tisation $m (2 0 3) (20 7 ) (2 . 0 %) ( 2 . 1% ) Op erat ing exce ptio nal ite ms 5 $m 0 14 – – Op er at in g pro t $m 2 61 17 0 5 3 .7 % 54. 6% Cap ex $m 125 88 42. 0 % 42 . 0 % Op erat ing free cash ow $m 3 39 276 23.0% 2 3 . 1% Operating KPIs ARPU $ 3 .7 3. 8 (1 . 9 %) (1 . 9 % ) T ot al cus tom er bas e million 26 . 8 23 . 1 15 .9 % Data c usto mer bas e million 8.2 6 .7 21 . 3% Mob ile mo ney c usto mer bas e million 4.4 3.6 21 . 8 % 1 Th e Fra nc op hon e Af ri ca b usin es s reg io n inc lu des C had , De mo cr ati c Re pub li c of th e Co ng o, G abo n , Madagascar , Niger , Republic of the Congo, and the Seychelles 2 Un der l yin g reve nu e inc lu des i nt ra -s eg men t eli mina ti ons of $ 44m f or t he yea r end e d 3 1 Mar ch 2022 an d $36m for t he p ri or p er io d. I t als o excl ud es on e -t ime e xce pti ona l rev enu e of $20 m rel ati ng to a s et tl em ent i n Nig er i n th e year e nd ed 31 Marc h 2021 3 Voice r eve nue i nc lud es in ter-s egm ent r eve nue o f $2m in th e yea r end ed 31 Mar ch 2022. E xc lud ing i nte r- se gme nt reve nue , voic e revenu e was $592 m in the year ende d 3 1 Ma rch 2022 4 M ob ile mo ney reve nu e post int ra - se gme nt eli mina tio ns wit h mob ile se r vi ce s was $98m in th e year ende d 31March 2022 and $7 4m in the pr io r per iod 5 Op er ati ng ex cep ti ona l ite ms in p ri or p er iod i nc lud es ex cep ti ona l reve nue r ela tin g to a on e -t im e set t le men t in Nig er for $20 m par ti all y os et by one - o cos t of $6m in Fra nc oph on e Afri ca Gr ow t h % i n cons t ant cu rr enc y Underlying revenue ( $m ) FY’2 2 FY’2 1 1 , 131 17. 2 % 1 0.0% 964 Underlying EBI TDA ( $m) FY’2 2 FY’2 1 464 41 . 0 % 3 7. 7 % * 364 Revenue sp lit Others 5% Mobile Money 13% V oice 53% Data 29% Ot her market par t icipant s Chad: Maroc , S otel Th e Demo cr at ic Repu bl ic of the Cong o: V odac om , Ora nge an d Afr ice ll Gabon: Moov (M aroc T elecom ) Madagascar: Oran ge and T elma Niger: Zamani , Moov (Maroc T e lec om), Niger T elecom Rep ub lic of the Con go: MTN The Seychelles: Cab le & Wi rele ss and Intelvi sion * Underlying EBIT DA margin Revenue contribution of others includes eliminations Strategic report 66 Ai r t el Af r ic a pl c A nnu al R ep or t and A cc ou nt s 2022 O ur m a r ket Acros s all o ur business es , usage has in crease d materiall y , showing how fast the comm unit ies we ser ve are di git ising and embrac ing mobi le ser v ices . Our custo mer base grew by 15.9% , data users grew by 2 1.3% , and mobil e money users grew by 2 1. 8% . The c ont inuin g deman d for ou r ser vices is c lear. More than 1 70 millio n pe opl e live i n our Fr anc oph one Afr ica seg ment, which is ma de up o f Chad , De moc rati c Repu blic o f the C ong o, Ga bon , Mad agasc ar , N ige r , Repu blic of t he C ong o, and t he Se yche lles . Cur rent ly on ly arou nd 58% of this pop ulat ion, w hich has a me dian age of 16.2, is reach ed by mobi le se r vi ces . Tha t means th ere’s a great op por tunit y to ex pand net wor k coverag e, win more custom ers , and help drive loc al ec onom ies by in creasin g pe ople ’s access to t he di git al ec ono my and nanc e ser vic es . This year , we expande d our bre opti c coverag e across our por t foli o and built esse ntial met ro bre netwo rk s in N iamey, N iger, and N’ D jamena , Chad. We als o impleme nted ex tensive interc it y bre proj ec t s in the D em ocr atic R epub lic of t he C ongo to e nhanc e our net wor k resilien ce. Alto get her, 384 covera ge and capaci t y sites were add ed ac ross ou r Franc oph one ma rket s , and in Ma lé, t he c apit al of t he Seyc hell es , we co mmissi one d a mo der n data centre , contr ibu ting to the t rans for mati on of a tou rism - base d ec ono my badl y impa cte d by th e Cov id - 19 crisis . Our per forman ce was also s uppo r te d by a cont inue d increase in our reta il dis tr ibut ion p oint s , reac hing 760, 00 0+, an increase o f 4 7% o ver the last tw o years. As a result of o ur contin ued inves tm ent in i nfr ast ru ctu re as wel l as the d igit alisa tio n and exp ansion of o ur dis tr ibu tio n chann els , our par t ner ships wi th commun iti es and gover nme nt s have grow n, makin g Air tel Afric a an e ssen tial cont rib utor to the societ ies we ser ve. Our per formance Und erl yin g revenue grew by 1 7 .2% both in repor ted curren cy and in cons t ant curren cy. T his grow t h was larg ely dri ven by D RC , Chad, Nig er and Gabon . The slight currenc y devaluation of the Central Afr ican fra nc was o s et by ap pre ciati on in t he Seych elle s rupe e. V oic e underl yin g revenue grew by 10.0% in c ons ta nt curren cy, dr ive n by custom er base grow th of 15.9% par tia lly ose t by voi ce ARPU dec line of 7 .9% . The ARPU dec line was mainly drive n by re duc tio ns in international call revenue and local inc oming call revenue ( the lat ter due to ch anges i n loc al inte rco nne ct ra tes in Ga bon , Nig er and Repu blic of the Congo) . Th e custome r base growt h was d rive n by expans ion of b oth net wor k coverag e and dis tri but ion infr ast ru ctu re. Data revenu e grew b y 3 1. 0% in const ant curre nc y , supp or te d by b oth cus tome r base g row t h of 21.3% and da ta ARPU grow t h of 1. 3% . We c onti nue d to exp and our 4G n et wor k ( 65.3% of s ites now on 4G) and data net work cover age , and w e enhance d our dis tr ibut ion infr ast ru ct ure suppor ting fur ther grow t h of t he data custo mer base. 30.5% of the Franc oph one Afr ic a custome r base now us e data ser vice s. 4G dat a usa ge co ntr ibu tes 64.1 % of tot al dat a usag e and 44. 8% of dat a users were 4G c usto mer s. Data usag e per custome r was 2.4 G B per month ( up 2 3.1 % on the prior year) whi le 4G d ata usag e per c usto mer rea che d 4.5 G B ( u p 3.4% ). Mob ile money revenu e grew by 29.6% in co ns tant cur renc y , driven by bot h cus tome r base grow t h of 2 1.8% and mobil e mon ey ARPU grow th of 5.2%. The mob ile money AR PU grow th was driven by an increase in the transa ct ion value per custo mer of 8.3% , now at $ 4 22 per cus tome r per month. E xpans ions of o ur exclusive dist rib uti on net wor k and the numbe r of age nt s helpe d us to grow the mobile mone y cus tome r base by 21.8% . Und erl yin g EBIT DA grew by 2 7 .6% with a margin of 4 1.0 % , an improve ment of 33 2 basis point s in r epo r te d currenc y and 33 7b asis poin ts in cons tant cur renc y. T his under lyin g EBIT DA grow th was dri ven by b oth revenu e growt h and increase d ecien cy in operating expense s. Op erat ing free cash ow was $339m, up 23.1 % in const ant curre nc y , due to t he expa nsion in u nde rly ing EB I TDA . * So urc e: Wo rl d Ba nk r ep or t (2021) T r ansforming lives spotlight Dr ivin g digit al, nanci al and so cial inclusi on by empowering disabled peop le in Madagascar Claud e Rasolon janahar y , bet ter known by the name ‘B on ne Rée xion’, has be en worki ng with Air tel Afric a as an exclusive reta iler fo r over ten yea rs . Bas ed in A nt sirab e, Ma dagasc ar , he hel ps us ser ve our cus tom ers by s ellin g SI M car ds and rec harges a nd hand ling A ir tel M on ey tra nsac ti ons fro m his Air tel Afr ic a kiosk . Claud e, who has a mob ilit y impair ment , uses his income from his wor k for us to suppor t h is wife, who is b lind , and the ir son. ‘B o nne Réexi on’ said: “T hank s to A ir te l Afric a , I have a d ec ent job to supp or t my family, and am empowe red to cont ri bute to my communit y ” . 67 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Business review: M obile ser vices Cust omers need t o be able t o connect and access our ser vices, so fo r both voice a nd data our per formance improv ement s rely on our str ategic focu s on networ k expans ion and ex cellent distr ibution. This y ear , alo ng wit h continued inve s tment in the quali t y and c apacit y of ou r network , we incre ased ou r ex clusiv e retai l foot pr int by 44. 2% year - o n yea r . Ashish Malhot ra Chief sal es and marketin g ocer Meet ing growing customer demand through connec t ion , di str ib ution , and t r ansparent product s. Underlying revenue $ 4 , 294 m Underlying EBITDA $ 2 , 0 7 7m Op er ati ng pro t $1 , 3 4 8 m V oice ARPU $1 . 6 Dat a AR PU $2. 9 Repor ted currency 19.6 % Co ns ta nt cu rr en cy 22 .0 % Repor ted currency 5.9% Co ns ta nt cu rr en cy 8.0 % Repor ted currency 26. 8% Co ns ta nt cu rr en cy 2 9 .7 % Repor ted currency 16 . 1% Co ns ta nt cu rr en cy 18 . 6% Repor ted currency 35.5% Co ns ta nt cu rr en cy 39 .0 % Mobile ser vices Summarised statement o f operations Description Unit of measure Y ear ended Repo r ted curren cy change % Cons ta nt curren cy change % Ma r-22 M a r-21 Underlying revenue 1 $m 4, 294 3 , 592 19. 6 % 22. 0 % Underlying EBITDA $m 2,077 1, 639 26 . 8 % 2 9 .7 % Underl ying EBI TDA margin % 4 8 . 4% 4 5.6% 276 b ps 286 bps Depreciation a nd amor tisation $m (69 7 ) ( 6 5 4) 6 . 5% 8 . 4% Op erat ing exce ptio nal ite ms 2 $m (32) 14 – – Op er at in g pro t $m 1, 348 9 95 35. 5% 39. 0 % Cap ex $m 621 58 0 7. 1% 7. 1% Op erat ing free cash ow $m 1 ,456 1 , 0 59 3 7. 6 % 42 . 6 % Operating KPIs Mobile voice V oic e revenu e $m 2, 35 8 2,083 13 . 2 % 15 . 4 % Cus tomer b ase million 128 .4 118 . 2 8 .7 % V oice AR PU $ 1.6 1.5 5.9% 8 .0% Mobile data Data re venue $m 1 , 525 1 , 15 7 31 . 8 % 34. 6% Data c usto mer bas e million 4 6 .7 40.6 15 . 2% Data AR PU $ 2.9 2. 5 1 6 . 1% 18 . 6% 1 M ob ile se r vi ce reve nue af te r inter se gm ent el imin ati ons was $4 ,29 0m in the year en de d 3 1 Marc h 2022 a nd $3 ,5 87m in the p ri or ye ar. Unde rl yin g rev enu e for M ob il e ser vic e exc lud es on e -t im e exce pt ion al re venu e of $20m r ela tin g to a se t tl eme nt in N ig er in t he ye ar en de d 31 March 2021 2 Op er ati ng ex cep ti ona l ite ms of $32m in t he ye ar en de d 31 March 2022 c ons ist o f a $12m provis ion f or exp ec te d set tl em ent of a co ntr ac tua l dispu te in whic h one of the Gro up’s subsi dia ri es is a pa r t y and $20m cos t s of se tt le me nt of ag re ed h ist or ic al sp ec t ru m fee s in o ne of t he G rou p’s subs idi ar ies . T he pr io r yea r op era tin g exce pt ion al it ems i ncl ud e exce pt ion al re venu e on a cc oun t of a on e -t im e set t le men t in Ni ge r amo unt in g to $20m , par t ial ly o set by one - o cos ts of $6m in Franc op ho ne Afr ic a Gr ow t h % i n cons t ant cu rr enc y Underlying revenue – V oice ( $m ) FY’2 2 FY’2 1 2, 358 15. 4% 11. 0 % 2,083 Unde rly ing reve nue – Dat a ( $ m ) FY’2 2 FY’2 1 1, 525 34.6% 31 . 2 % 1,157 Strategic report 68 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc ou nt s 2022 O ur m a r ket Dema nd for mobile ser v ice s in all our market s remains str ong , and we cont inue d to g row our custome r base in 202 1 /22 b y connec t ing more pe opl e, oeri ng transpa rent voice and data produc t s that meet their nee ds , and g rowin g our dis tri but ion net wor k so that more custo mer s can acc ess our ser vi ces eec ti vely and eci entl y. Cus tome r grow th of 8. 7% this year has mea nt we’ re now conn ec tin g 1 28.4 millio n subsc rib ers a cros s our 1 4 mar ket s. We s ee clear opp or tu nit ies for fur th er grow th . Our market s are chara cte rise d by g rowin g populat ions of aspirati onal , price - consc ious consu mer s, who are acti vely loo king for ways to co nne ct wit h each othe r , wit h engaging conte nt , and wit h oppo r tuni tie s in t he loca l and global economy . Cus tomer s ne ed to b e able to c onn ec t and a cces s our s er vi ces , so for bot h voic e and dat a our p er forman ce imp rovem ent s rel y on our st rate gic focus on netwo rk expansi on and excellent dis tr ibut ion . This year , alon g with cont inue d invest ment in the qualit y and cap aci ty of our net wor k, we increase d our exclusive retail footp rint by 44.2% year - on -yea r . Hands et owner ship and telec om penet rat ion cont inue to build, fee ding d emand fo r our vo ice s er vi ces , and e nabl ing us to exp and or cus tome r base d espi te some headw inds from Know Y our Custo mer requ ireme nt s in mar ket s, inc ludin g Niger ia, Kenya and Rwanda . Our voic e ARPU grew by 8 .0 % compare d to 2020/2 1, and overall our mobi le voice busines s line – whi ch inclu des pre - and post-pa id wirele ss voic e ser vic es , internat ional roamin g, xed - lin e phone ser v ices and interc onn ec t revenu e – cont ri bute d 50% to A ir te l Afr ic a’s consoli dated revenu e in 202 1/22. Our l eade rship i n 4G in mos t mar ket s is an imp or t ant dr iver f or our data per forma nce , as smar tph one owner ship con tinu es to gro w acros s sub -S ahara n Afr ic a. O ur 4G base i ncreas ed to al mos t 20 millio n, growi ng by 34 .8% in 2 020/2 1. W e’l l continu e to inves t in our 4 G net wor k , which suppo r t s the digit al inclusio n ambiti ons of o ur sust aina bili ty s t rateg y at th e same t ime as c reatin g fur ther o pp or tu nit y for grow th . Our per formance Mob ile ser v ice s underl yin g revenue in re po r ted cur renc y grew by 19.6%, with cons t ant curre ncy grow t h of 22.0 % , suppor ted by g row t h in bot h voic e and dat a ser vice s. V oic e underl yin g revenue grew by 15.4 % in cons tant cur renc y, supp or te d by c usto mer base grow th of 8. 7% and voice ARP U grow th of 8.0% . Th e custome r base grow t h was d rive n by ex pansio n of our net wor k and distr ibu tio n infras tr uc ture. The slowd own in custom er base grow t h was du e to th e introdu ct ion of new SIM regist rat ion regu latio ns in N iger ia. E xclud ing Niger ia , the custome r base grew b y 1 0 .2% . In N ige ria , our cus tome r base retur ned to grow th in the secon d half of t he year, adding a ne t 2.4 millio n cus tome rs fo r the f ull year. V oic e minute s per c usto mer rea che d 25 7 minu tes p er mon th , up by 9.8% , resul ting in voice ARPU grow t h of 8 .0 % . T ota l networ k minutes incr eased by 1 7 .3% . Data revenu e continu ed to be a key dri ver of g row t h, up by 34.6% in cons t ant curren cy. T his was driven by data cus tome r base g row t h of 1 5.2% and data ARPU grow th of 1 8 .6% . Our continu ed inves tme nt in our net wor k and ex pansi on of o ur 4G n etw ork infr as tru ct ure helpe d us to expand our data custom er base. 87 .6% of our Gro up sites are n ow ope rati ng on 4G , compa red wit h 7 6. 5% in t he prio r year . 3 6 .4% of our total cus tome r base w ere data users , up f rom 34. 3% i n the prior year . 4G data us age p er cus tom er in crease d to 5. 5 GB p er mo nth co mpare d wit h 5.0 GB in t he prio r year . 4G data usage reache d 5.9 G B per cus tome r per m onth fo r Q4’22. T o tal dat a usa ge pe r cus tomer reach ed 3 .4 GB p er mo nth , up 3 1. 0% f rom t he 2.6 G B of th e pri or year. At the end of the year , 4 2.6% of t he total data custom er base were 4G data c us tomer s , up fro m 36.4% in the pr io r year . T he in crease i n 4G data custom er penet rat ion has help ed to drive data ARPU grow t h. Data re venue c ont rib uti on reac hed 32. 3% of total G rou p revenu e in the yea r , up f rom 29.8% in t he p rio r year . T r ansforming lives spotlight Par t ner ing on g reat content for o ur custome rs: Air tel Nige ria an d Spot if y Peop le ac ross ou r market s are h ungr y for con tent , and o ur data st rate gy seek s ways to pa r tn er with provi der s to gi ve our cus tome rs acce ss to di git al resourc es that will enter ta in, excite , deli ght and reward them. That ’s why A ir te l Niger ia has pa r tn ere d with the global audi o st reamin g ser vice , Spot if y, and prov ides musi c lover s acros s Niger ia with daily comp lime ntar y d ata to acc ess the Spot if y plat for m. Und er th e par t ner ship, A ir te l Nig eria’s 44.4 mil lion c usto mer s have uninte rr upted a cc ess to th e Spot if y plat for m’s 7 0 m illio n son gs wit hou t worr y ing abou t data cost s or mobile inter net plans , using c omp lime ntar y data t hat can b e use d exclusive ly on the Spoti f y plat for m whenever the y purchase data bundl es . It br ings j oy to our cus tom ers – a nd he lps s tren gth en our posi tio n as th e netwo rk of rs t choi ce for music, yout h culture and innovation. 69 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Business review: A ir tel Money W e’ re expanding the scope of our ser vices, cre ating i ncre ased ‘u se case s’ and oering our customers a ‘one stop shop’ for al l their nanc ial needs. A cross the region, mobile mone y is an i ncre asingly impor tant driver o f economic grow th . Vimal Kumar Ambat CEO, A ir te l Mo ney Air t el Mone y : a ‘ one s top shop ’ for all nancial ser vices. Underlying revenue $ 55 3 m Underlying EBITDA $270 m Op er ati ng pro t $ 256 m ARPU $1 . 9 Repor ted currency 37. 9 % Co ns ta nt cu rr en cy 34.9% Repor ted currency 38 . 1% Co ns ta nt cu rr en cy 34 .2% Repor ted currency 38.3% Co ns ta nt cu rr en cy 3 4. 4% Repor ted currency 14.7 % Co ns ta nt cu rr en cy 12 .2 % Air tel Money Summarised statement o f operations Description Unit of measure Y ear ended Repo r ted curren cy change % Cons ta nt curren cy change % Ma r-22 M a r-21 Revenu e 1 $m 553 401 3 7. 9 % 34.9% Underlying EBITDA $m 270 195 3 8 . 1% 34. 2% Underl ying EBI TDA margin % 4 8 .7 % 4 8 .7 % 5 bps (27 ) b p s Depreciation a nd amor tisation $m (14 ) (10 ) 34. 8% 30.9% Op er at in g pro t $m 256 185 38. 3% 3 4 .4% Cap ex $m 25 32 (19 . 9 % ) (19 . 9 %) Op erat ing free cash ow $m 24 5 16 3 49 . 6% 44.8% Operating KPIs Mo bil e mo ne y key K PI s T ransac tion value $m 64,436 46,009 4 0 . 1% 3 7. 0 % Act ive cus to mer s million 26 . 2 21 .7 2 0 .7 % Mobile money ARPU $ 1.9 1 .7 14 .7 % 12. 2% 1 M ob ile mo ney ser vic e reven ue pos t inte r-seg me nt elim inat io ns wit h mobi le ser vic es was $42 4m in the year end ed 31 Mar ch 2022 an d $301m in th e pr io r year Gr ow t h % i n cons t ant cu rr enc y Underlying revenue ( $m ) FY’2 2 FY’2 1 553 34.9% 35. 5% 4 01 Underlying EBI TDA ( $m) FY’2 2 FY’2 1 270 4 8 .7 % 4 8 .7 % 195 * Underlying EBIT DA margin Strategic report 70 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 O ur m a r ket As par t of our focus on the long -ter m grow th of Air tel Mon ey , we cont inue to prior it ise assured oat availab ilit y and the expansio n of our dis tri but ion net wor k of exc lusive Air te l Money bran ches and kiosk s, as well as our growin g multi - bran d agent netwo rk . At the same time , we’ re expan ding t he sc op e of our se r vi ces , creat ing in creas ed ‘use c ases’ and oeri ng our cus tome rs a o ne -s top shop for all the ir nancial nee ds, incl udin g mobile wallet dep osit s and with drawals , mercha nt payment s , enterprise di sbursement s, internation al money tran s fer , and loan s and sav ings . We also co ntinu e to expl ore pa r tn ers hips tha t expan d paym ent oppo r tuni tie s for c usto mer s , includi ng with T e rra pay , Thu nes and M FS Afr ic a for cros s- bo rder p ayme nts , an d the ex pansio n of th e Air tel Money Maste rca rd Vir tual Car d to Za mbia . Havin g suc cess f ully s et up mo bile m oney s er v ice s acros s othe r market s , we have a clear oppo r tuni t y to rep lic ate our mod el in N ige ria . In Novemb er 202 1, we re cei ved approva l in p rin cipl e for a lic enc e to oer payme nt ser vi ces as a bank (PSB) indepe nde ntly. T he PSB lice nce woul d allow us to acce pt deposi t s from indivi duals and small busine sses , car r y out payment and remit t ance ser vice s within Nig eria , and issu e deb it and p repa id car ds amon g othe r ac tiv it ies set o ut by t he Cen tral Ban k of Ni ger ia ( CB N); we have co mpl eted and submit te d the asso ciate d administ rat ive require ment s and now await full licenc e appr oval. In anoth er develop ment , in Apri l 2 022 the CBN awarde d Air tel Mob ile C omm erce N ige ria Ltd a f ull ‘sup er-agent ’ li cen ce, allow ing us to create an agenc y netw ork to ser ve the custom ers of lice nse d Nige rian b ank s, p ayme nt ser vice b ank s, a nd lic ense d mob ile mone y ope rator s in Ni ger ia, as d escr ib ed on p age 23. Whil e the overall stor y is one of grow th in m obil e money ser v ices , we do face some chall enge s. In 20 2 1, for exampl e, T anz ania introd uce d a mobi le mo ney t ax that i ncreas es pr ic es on mo bile m oney tra nsac tio ns, inc ludin g sending , wit hdraw ing , and tra nsfe rr ing money. We b elie ve this w ill have signic ant conse que nce s for t he mobil e mone y ecos ys tem , as it will aec t the suppl y chain pricin g for va lue - added ser vices. Acros s the region as a who le, howeve r , mobil e money is a n increasingl y impo r t ant driver of econ omic grow t h across all secto rs . Econo mies are be co ming c ashles s, c onsum er be havio ur is chan ging , and la rger busine sses are nding it cheap er , fas ter and more conve nient to make bulk p aymen ts d irec t to th eir em ploye es or c usto mer s’ mob ile mo ney walle ts . At t he same time , mobile mone y is key to t he nancia l inclusion of under- and un -b anked pe ople , creating acc ess to basic nanc ial ser vice s that w ould othe r wis e be u navailab le to t hem , and helping to tra nsfo rm li ves . It rema ins our ai m to expl ore th e poten tial lis t ing of ou r mobi le mon ey busine ss , as des cr ibe d in t he nancia l review on pages 7 6 -7 9. Our per formance Rep or te d curren cy mobi le money revenue grew by 3 7 .9% with a cons t ant curren cy grow t h of 34.9 % . The slowdow n in mo bil e money revenu e grow th since July 202 1 has b ee n due to the impleme ntat ion of levies by the Govern ment of T an zania on mobile mon ey with drawal and P2P t rans act ions (subseque ntl y revised downw ards in e arl y Septe mbe r 2 021 ). Exclu ding T anz ania , revenue grew by 4 1.6% in cons t ant curren cy. T he cons t ant curren cy revenu e grow th of 34 .9% was driven by both custom er base grow th of 2 0 . 7% and ARPU grow t h of 1 2. 2%. Th e mobile mone y custome r base growt h was d ue to t he expans ion of o ur dist rib uti on netw ork , par t icu larl y our exclusive chann els of Ai r tel m oney b ranc hes an d kiosk s . We cont inue d to expan d our mobi le money por tfo lio throu gh par tn ers hips with lead ing nanc ial inst itu tions , and the expansio n of our merc hant ecos ys tem fur ther s t reng the ned o ur mo bile m oney p rop osit ions . Th e incr ease in tra nsac tio n valu e per c usto mer to $223 per mon th , up by 13.9% , led to mobile mone y ARPU grow th of 1 2. 2%. Q4’22 annualis ed t ransa ct ion v alue rea che d $67 .2bn in re por ted cur renc y , with mobil e money revenue cont rib ut ing 12.0% of tot al revenu e in th e quar te r . The mob ile money cus tome r base grew by 20. 7% to 2 6. 2 million in the yea r . M obil e mone y cus tome r base p enet rat ion rea che d 20.4%, an increase of 2 pe rce ntag e point s. Th e ARPU grow th of 1 2. 2% was largely dri ven by a n increase in transac ti on values and higher cont ri but ions f rom c ash tr ansac ti ons , merc hant pay ment s , P2P tra nsfe rs and m obi le ser vic e rech arges t hrou gh Air tel Mo ney. Und erl yin g EBIT DA was $270m, up by 38 .1 % in repor te d curren cy, wit h a c ons tant cur renc y grow th of 34.2%. The rep or te d curren cy grow t h rate was higher than the cons tant cur renc y grow th rate due to apprec iatio n in t he Zambian kw acha . The under lyi ng EBI TDA margin for the year was 48. 7 % , broadly in line with the pri or year . T r ansforming lives spotlight Harnessing the entrepreneurial spirit around us in Za mbia The pe opl e in o ur distr ibu tio n netwo rk are an es sent ial par t of creat ing op por tunit y fo r us – and for t hems elve s and th ose aroun d them, as they ful ll their own entrep rene urial ambi tio ns and create value in their communities. Oli via Chi che nga , found er and d irec tor of G lo net C onne c tio ns Limi ted , has b uilt her own succe ss ful busine ss as a par t ner to our Air tel Money oper ati ons in L usaka , Zambia – and h er netw ork of Airtel Money branch es employ s 1 2 people and provides opp or t unit ies fo r many more a gent s in t he ci t y . Her succ ess has come from doing thin gs dierent ly. Sh e saw t he opp or t unit ies for mobile mone y ser vi ces in Zambia while she was a team l eade r at Ai r tel Zamb ia, and lef t with our bles sing to f ound Gl onet Con nec t ions . And she found what was a ne w niche at t he time : openin g her rs t Air te l Money bran ch in a thr iv ing shopp ing cent re, Water falls Mall in Lusaka. She now owns three Air te l Mon ey branc hes and is lo oki ng to t he futur e. As Oliv ia says, “ the only thin g stan ding in your way wou ld be your mind; bel ieve you can do it and jus t do it, it will not be e asy, bu t it will be wor t h it.” 71 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Air tel Bu siness Internet penetration is rising across Afric a and sys tems ar e even more connec ted as digit al tr ans format io n is driv ing grow t h for organis ations. W e sup por t SMEs and entrepreneurs across Africa with their end-to - end digit al presence and a s ecure , reliab le internet. Luc Ser viant Gro up ente rpr ise di rec tor Emp owe r in g entrepreneurs and suppor ting the orga nisat io ns t hat driv e A f rica ’ s gro w th. O ur m a r ket Air tel B usin ess is our B2B oer, prov iding dynami c, reliabl e comm unic atio ns to supp or t the ente rp rise s that are h elpi ng to dr ive ec onom ic grow th and op po r tuni t y a cros s Af ri ca . We oe r a comp rehe nsive suite of busines s ICT (Infor mati on and Communic ation T e chnologies) and digital ser v ices, inc luding mobile and xed data s er v ices for major c or por ate oc es , n on - gove rnm enta l organi sations, government depar tment s, diploma tic miss ions, st art-ups and small- and med ium -size d b usines ses ( S ME s ). W e also o er confe renc ing an d coll abo rati on ser vic es, c lou d and dat a ce ntre co -location ser vices, and mobile money ser vices from Airtel Money . By suppo r ti ng our cus tom er s’ su cce ss , w e’re he lping them create value and unloc k t he possibi lit ies of digi tal isati on in th e w ide r eco nomy. We’re also creating value for A ir te l A fr ica : t his year we have se en a signi c ant grow t h in enterpr ise custom er conne ct ions , xed and mobile . +3 5 % xed data connections +1 8 % enterprise mobile subscribers Par t ner ships are a key fo cus for us . I n Novembe r 2021 we agreed a new par tn ers hip with Cisco to prov ide secure intern et access for SM Es , whic h will initi ally be av ailabl e in Kenya, Uganda, Repub lic of th e Con go and Ma dagasc ar be fore ro lling o ut to th e res t of our ma rket s . And i n Febr uar y 202 2, A ir te l Busin ess sig ned a m emo randu m of unde rs ta ndin g w it h Avaya Holdi ngs Corp, to he lp organisati ons across the c ont inent d eli ver bet te r cus tome r and emp loye e exp eri enc es. The agree ment will see Air tel Busines s Afr ic a e mpow er its enterp rise cus tome rs with the A vaya One Clou d TM A I - powe red exper ien ce platf orm , whic h inc lude s w ork s trea m c ollab or atio n, conta ct cent re, unie d comm unic atio ns , and a co mmuni cat ions pl atf orm as a s er v ice s olu tio n. T r ansforming lives spotlight Ser ving Ni ger ia’s largest ba nk – and sup por ting i t s sustainable grow t h ambitions Thro ugh Air tel Business we suppor t major companie s such asAcc ess Bank , the larges t bank in N ige ria and Afric a’s l eadin g bank by c usto mer bas e, em ploy ing 28,0 0 0 pe op le in i ts ope rati ons in N iger ia, s ub -S aharan Af ri ca an d the U nite d King dom , and at re prese ntat ive oc es in C hina, Leban on , Indiaa nd the UAE. Like us, Acces s Bank is c ommi tte d to w ide ning nancia l incl usion , and we’ re prou d to sup por t its work for its 36 milli on cus tome rs th rough a b usine ss relat ionsh ip that s t ar te d in 20 13. We p rovid e over 240 do mes ti c links to c onn ec t the oces and bran che s of th e bank in L agos , as w ell as e ight interna tio nal link sto Sierr a Leone, Ghan a, the DRC , Gambia , Sout h Afric a, Bot s wana , Guinea Co nakr y, a nd Sene gal. At the same time, we’re c onn ec tin g 1 6 ,0 0 0 point s of s ale acros s Niger ia with machi ne -to - ma chine S IM c ards . “T hrough Air tel’s part nership in providing conn ec tiv it y pan - Afr ic a, we have be en abl e to put smiles o n the f aces of ou r tr uste d cus tomer s thr ough ec ient banking and innovati ve solu tion s” . Steve Obiago Subsid iari es IT and Netw ork s Head at Acces s Bank , Lagos Strategic report 72 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc ou nt s 2022 W e’ re at the centr e of cre ating the bo ld, problem- solv ing innovat ions t hat transform customers’ experience. Digit al Labs is helping to drive Air tel Africa’ s contr ibution to a digit ised future for our customers, the economies in which w e work , and fo r our business. Neelesh Singh Chief infor mat ion oc er Air tel Afr ic a Digi ta l Labs is o ur in -h ouse d igit al hub fo r devel opi ng and deli ver ing techn olo gy plat for ms and d igit al produ ct s . W e wor k with coun tr y teams across our 1 4 market s and draw on A ir te l Afric a’s scale and market leadership to innovate technologies that enhance cus tome rs’ exper ien ces , drive nanc ial inclusio n, and harnes s the powe r of dig it alisat ion . Our produc t develo pme nt focus is wi de - rang ing: we work on a naly t ic s, plat for ms, digi tal consu mer produ c ts , enterprise product engi neering, and more. One fo cus t his year has be en im prov ing cus tom er ser vic e, deve lop ing digi tise d sy st ems that h elp ou r teams me et cus tome rs’ ne eds f aste r thro ugh a u ni ed cus tomer dashb oard call ed CS Fusion, whic h has brou ght ser vi ce handlin g times at o ur shops or call centre s down by 1 5% on averag e. We also devel op pro duc t s to enha nce c usto mer s’ use of se r vi ces su ch as Air tel Mone y . In Novemb er 2 02 1, we launche d our u pgr ade d, sec ure and seamle ss Air tel Afr ic a Develop er Por t al, whic h uses several Ope n APIs and solu tio ns to inte grate remote payme nt s with Air te l Money walle ts . We also launc he d new pro duc t s to sup por t coll ec ti ons , Air tel Mon ey remi t tan ces , bun dles p urchas es , and mo re. Ou r innovat ions a re help ing to s hape cus tomer s’ future s – and we see huge oppo r tuni ti es ahead as A ir te l Afr ic a cont inu es to put d igit alis atio n at the h ear t of it ss trate gy. A t the he ar t of o ur di gitis ed stra te gy . Air te l Africa Digit al Labs T r ansforming lives spotlight Air tel Afric a Devel oper Por t al: seamlessly expan ding mobile money opportunities Our up gra de d Air tel Afr ica D evel op er Por tal , launc hed i n Novem ber 2021, is a fur th er s tep in ou r dri ve to deli ver innova tive p rodu ct s t hat supp or t custo mer s and exp and t he mobile money eco-s ystem. The sel f-se r vic e por t al helps st ar tup s, small - and medium -size enter pr ises and ser vi ce provid ers to integrate wit h our Air tel Mon ey plat fo rm to pr oce ss pay ment s for t hei r goo ds and ser vice s – for examp le, by allowing merc hant s to c olle c t Air tel Mon ey payment s and disbur se into A ir t el Money walle ts . It is a singl e plat for m that c an sup po r t cus tom ers a cross d iver se market s whic h has be en design ed to meet custom ers’ nee ds for data sec uri t y – as well as me et ing the require ment s of regu lator s in each market. The p or tal has alr eady b ee n adopt ed by over o ne th ousa nd such p ar t ner s – and , as of 3 1 M arch 2022, has helpe d th em make clos e to 5 milli on pay ment t ransa ct ions , sup por ting t heir nanc ial ambit ions , ease of pay ment s for our cus tome rs and the grow t h of A ir tel Mo ney. DIGI T AL LABS africa 73 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Chief nancial o cer ’s introduction to the n ancial r eview Strengthening our balance sheet and seizing grow th oppor tunities The ee ct ive execut ion of our strate gy resulte d in a st ron g per for manc e across all our regi onal segm ent s and k ey ser vi ces this year , enablin g us to conti nue creati ng value for our st akehol der s . W e cont inue d to d elive r stron g revenue grow th and even stro nger unde rl ying EB IT DA grow t h, wit h improved pro ta bili ty comi ng from both sca le bene t s and increas ed eci enc ies . The cou ntr ies we ope rate in continu e to pre sent clear opp or tunit ies , both for our g row th , and for our vision of e nri chin g the lives of our cus tome rs . Our markets remain unde rp enet rate d in bot h mobile and mobile mon ey ser vi ces , and our s t rateg y is de live rin g stron g nancial result s whil e helping to bridg e digital div ides and drive nanc ial inclusi on. Pro t and los s snaps hot Description Uni t of measure Ye a r e n d e d Repo r ted curren cy cha nge % Cons ta nt curren cy cha nge % Ma r-22 M a r-21 Underlying revenue 1 $m 4,714 3 ,888 21 . 3% 23 . 3% V oic e revenue $m 2 , 358 2,0 83 13 . 2% 15 . 4% Data revenu e $m 1 , 52 5 1, 157 31 . 8 % 34. 6% Mob ile money revenu e 2 $m 553 401 3 7. 9 % 34.9% Ot her revenu e $m 407 347 17. 4 % 19 .9 % Expenses $m (2 , 41 3) ( 2 , 10 7 ) 14 . 5 % 16 . 4 % Underlying EBIT DA 3 $m 2 , 31 1 1 ,7 92 29. 0 % 31 . 2 % Underl ying EBITDA margin % 49. 0 % 4 6 . 1% 2 94 bps 296 bps Depreciation and amor tisation $m ( 74 4 ) (6 81) 9.3% 11. 3 % Op erat ing excepti onal items 4 $m ( 32) 14 – – Op er at in g pro t $m 1 ,535 1 ,11 9 3 7. 2 % 3 9. 4% Net nanc e cost s 5 $m (4 0 3) (4 2 3 ) (4 . 6 %) Non- operating exceptional items 6 $m 92 – – Pro t be fo re tax $m 1 , 224 697 7 5.6% Ta x $m (47 1 ) (318) 48 . 2% T a x – exce ptio nal items $m 2 36 – T ot al tax charg e $m (4 6 9) (2 8 2) 66 . 3% Pro t af ter ta x $m 755 41 5 82. 0 % Non - controlling interest $m (12 4) (76) 62. 9 % Pro t attr ibu tab le to o wne rs of the company – befo re except iona l items $m 6 02 308 95.9% Pro t at t ri bu ta bl e to o wn er s of the com pan y $m 6 31 3 39 8 6. 3% 1 Re ven ue inc lud es int ra -s eg me nt elim inat io ns of $ 129m for th e year ende d 3 1 Ma rch 2022 and $ 100 m for the pr ior yea r . An d it also exclu de s one -t im e excep tio nal rev enu e of $20m rel ati ng to a s et t lem ent in Nig er in the year en de d 3 1 Marc h 202 1 2 M ob ile mo ney reve nu e post int ra - se gme nt eli mina tio ns wit h mob ile se r vi ce s was $4 24m for the year end ed 31March 2022, and $301m fo r the pr ior yea r 3 U nde rl yi ng EB IT DA incl ud es oth er inc ome of $1 0 m for the year end ed 31 M arc h 2022, a nd $1 1m for the pr ior yea r 4 O pe rat in g except io nal ite ms of $32m in th e year end ed 3 1 March 2022 consis t s of a $12m provis ion fo r exp ec te d set tl em ent of a co ntr ac tua l dispu te in whic h one of the Gro up’s subsi dia ri es is a pa r t y and $20m cos t s of agre ein g hist or ic al spe ct r um fees in one of the Gr oup ’s subs idi ari es . The pr io r year oper at ing exc ept io nal ite ms inc lud es exce pti ona l reven ue rela tin g to a on e -t im e set tl eme nt in Nige r for $20m , par t iall y os et by one - o cos ts of $6m in Franc op ho ne Afr ic a 5 N et nan ce cos t s in the year end ed 31 M arc h 2022 exc lu des a one - o co st of $1 9 m on prep aym ent of $505m bo nds in Marc h 2022 6 N on - op er at ing exce pt ion al item s in th e year ende d 3 1 Mar ch 2022 inc lu de a gain of $1 11 m on the sale of tel ec omm uni ca ti on towe r asset s in the Gro up’s subs idia ri es in T a nza nia , Mala wi , Madag asc ar, a nd Rw and a, par tial ly o set by cos t s of $19m o n prep aym en t of $ 505m of bon ds The countries we operate in continue t o present clear oppor tunit ies, both for our growt h, and for our vi sion of enriching t he lives of our customers. O ur dynamic busines s model continues to deliv er value to all our st akeholders. Jaideep Paul Chief nan cial oc er Underlying revenue $ 4 , 7 14 m Rep or te d curren cy +2 1 . 3 % Co nst ant curre nc y +23 . 3 % Underlying EBITDA $ 2 , 31 1 m Rep or te d curren cy +2 9 . 0 % Co nst ant curre nc y +31. 2 % Op er ati ng pro t $1 , 5 3 5 m Rep or te d curren cy + 3 7. 2 % Co nst ant curre nc y +39 . 4 % Capex $6 56 m % change +6.9 % Bas ic ea rn ing s pe r sha re 1 6.8 cent s % change +86 . 5% All n anc ial num ber s are in repo r te d curr en cy Strategic report 74 Air tel Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Fr om a nanci al perspective , we continued our focus on four main objec tives this yea r : 1. Grow ing our operat ing prot abil it y We c onti nue d to inves t in improvin g our o per atin g prot abili t y by dri ving high er revenue grow th and , through our focus on operat ing ec ienc ies , improvi ng our underl yin g EBIT DA ow thro ugh . Under lyi ng EB IT DA margin improve d by 294 basis p oint s to 4 9.0 % and operat ing pro t during the year grew by 37 . 2% in repor ted curren cy, w ith cons t ant curren cy grow t h of 39.4%. 2. Impr oving ou r retur n on ca pit al We c onti nuall y monitor our return on capi tal to ensure t hat our capex has been depl oyed ec ient ly and eect ive ly. T elc oms is a cap ita l- intensi ve business , so regu lar monito ring of our retur n on c api tal hel ps us track the per forman ce of our asset s while also takin g long- ter m nanc ing into conside rati on. Our retur n on c api tal empl oyed has improve d to 23. 3% , from 1 6. 5% i n the prior year . 3. Strengthening our balance s heet and improving leverage Our shor t -ter m objec t ive is to st reng the n our balan ce sheet by cont inual ly reduc ing our debt at H old co level , increase debt in our Op Cos and reduc e our leverage posi tio n. I am please we delivere d on all 3 o bje ct ives . In the las t 1 2 mont hs, we repaid a $91 5m bond when due in May 202 1, and i n March 2 022 rep aid $505m bonds one year earl ier than their March 202 3 redempt ion date. We were able to make the se repayme nt s becaus e of ou r increase d cash generat ion , and by using the pro cee ds from Air te l Money minor it y invest men ts and tower sales . Our lever age posit ion cont inu ed to i mprove ( 1. 3x as of March 20 22 ) dri ven both by EB IT DA expans ion and reduci ng our debt. Fina lly, ou r balance shee t continu ed to be de -r isked thro ugh a redu ct ion of net d ebt and increase d loca lisat ion of our debt into the Op Cos , such that our gross OpCo debt of $2,92 1m is now higher than our remainin g HoldC o debt of $1,0 0 0m . Going for w ard we w ill cont inue to focus on c ont inuin g stren gt henin g our balan ce sheet . 4. Retur ns to shareh olde rs Our four t h nancial obje c tive was to en hanc e returns to sh areho lde rs over the medium - to lon ger-term . Dur ing the year , the Boa rd approved an upgra de to t he progre ssive div iden d polic y , aimin g to grow the divi den d annually by a mid- to high -si ngle - d igit perc ent age fro m a new base of 5 ce nt s per share fo r F Y ’ 22. We paid an inte rim div iden d of 2 cent s per ordinar y s hare in De cem ber 202 1. The Boar d recomm ende d a nal divide nd of 3 cent s per share and increase of 2 5% com pare d to th e prior year . Basi c EPS w as 1 6 .8 cen ts , an impro vement of 7 .8 cent s , up f rom 9.0ce nt s in t he prior per io d. Outlook Our dynam ic business mod el conti nues to deliver value to all o ur st akeho lde rs , not jus t nanciall y but by t rans for ming lives in our comm unit ies and suppo r tin g the econo mies of the countr ies where we operate . W e bel ieve that the fundame nta ls of our busin ess remain st rong , and we re main well posit ione d to s eize grow th opp or tu nit ies whil e at t he same time conti nuing to stren gt hen our balance she et , improve our retur n on c api tal and increas e return to sha reho lde rs . Jaideep Paul Chief nan cial oc er 1 0 May 202 2 • Re por ted revenue grew by 20. 6% to $4, 71 4m and cons tan t cur renc y under lyi ng revenue grew 2 3 . 3% f or the year . • C ons tan t currenc y under ly ing revenue grow t h was s tr ong in all regi ons: Nig eria up 2 7 . 7 % , East Afri ca up 2 2.7% an d Francop hon e Afr ic a up 1 7 . 2%; and across all k e y ser vic es , with revenue in V oi ce up 1 5.4% , Data up 34.6% and Mobi le Money up 34.9%. • Un der ly ing EBI TDA of $ 2, 3 11 m , grew by 29.0 % in rep or ted c u r r e n c y. • Un der ly ing EBI TDA margin of 49.0 % , increase d by 294 basis p oint s . • O per atin g prot grew by 37 . 2% to $1,535m in rep or ted curren cy. • Pro t af ter tax grew by 82.0 % to $755m. • B asic EPS of 16.8 cent s, an increase of 86.5% . EPS befo re except iona l items of 1 6.0 cent s (F Y ’21: 8 .2 cent s) . • O per atin g free cash ow of $1,655m, up 40 .5% , with net cash gen erate d from operat ing ac tiv it ies up 20. 7% to $2,0 11 m. Over the last t welve mont hs the business has repaid nearly $1.4bn of debt at Holdc o as a result of stro ng cash upst reaming acros s its Op Cos and proc ee ds from minori t y investm ent s in mobi le money and tower sales . • Leve rage rati o improved to 1.3x f rom 2.0x in the prior year , wit h $1 b n of de bt now h eld at Hold Co (F Y ’21: $2.4b n ). • Cus tom er base of 128.4 milli on, up 8. 7 % , with increas ed pene trat ion acros s mobile data ( cus tom er base up 15.2% ) and mobile mon ey ser vice s ( cus to mer base up 20.7% ). NIN/S IM regu latio ns in N iger ia impa cte d custom er grow th in H 1, but then return ed to st ron g grow t h, addi ng 4 mil lion cus tome rs in Nig eria duri ng H2’22. • T he Boar d recomm ends a nal divid end of 3 cent s per share, makin g total FY ’ 22 d ivid end 5 cents per share (F Y ’21: 4 cent s) . Perfor mance highlights 75 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Financial review GA AP measures Revenu e Rep or te d revenue grew by 20.6% to $4 , 71 4m. The prio r year bene ted fro m a on e -ti me exceptio nal revenue of $2 0 m relatin g to a set tle ment in Niger. E xclu ding this , revenue grew by 21.3% in re por ted curre nc y and by 23.3% in c ons ta nt curren cy. C ons ta nt curren cy grow t h of 23.3% was p ar t ially os et by c urre nc y devaluati ons , mainly in t he Nige rian naira ( 5.6% ) and the Malawia n kwacha (7 .2%) , in turn par t iall y oset by appr eciat ion in the Ugandan shilli ng ( 4.1 % ) and Zamb ian kwac ha ( 4.4% ). Revenue grow th for the year bene ted fro m a weaken ed per forman ce in the rst quar te r of t he prior year duri ng the peak peri od of C ovi d- 19 res tr ic ti ons across the regio n. Underlying revenue ( $m ) FY’2 2 FY’2 1 4 ,7 14 20.6% 14 . 2 % 3,908 1 Re ven ue inc lud es one - t ime exce pt ion al reve nue of$20 m relat ing to a sett le me nt in Nig er in the yeare nde d Marc h 202 1 2 G row th % i n repo r te d cur ren cy Ope rati ng prot Op erat ing pro t grew b y 3 7 .2% to $1,535m in r epo r te d currenc y as a resul t of s tro ng revenue grow th and improve ment s in operat ing ec ienc y across all our regions . Oper atin g prot inclu de d a on e -ti me cos t of $ 32 m consis t ing of a $1 2m provisio n for ex pe cte d sett lem ent of a co ntr act ual dispute in which one of G rou p’s subsi diar ies is a par t y, and $20m cost s relatin g to an agree ment on histor ic spe ct rum fees in one of the Group’s s ubsidiar ies . This compa red to the pri or year whic h incl ude d a gai n of $20m for a o ne -t ime set tl emen t in Ni ger, whi ch was par t iall y oset by one - o cost s of $6 m in Fra nco pho ne Afri ca . E xclud ing excepti onal items , operat ing pro t grew by 4 1.9% . Operating prof i t ( $m ) FY’2 2 FY’2 1 1, 535 3 7. 2 % 24 . 2 % 1, 119 Gro w th % in repor ted curren cy Net nance cost s Net nanc e cost s were broadl y at, as l ower foreig n exchange and der ivat ive losses , highe r interest inc ome and a o ne -t ime $ 12 m gain in othe r nance charge s as a result of the rever sal of an interes t provision in one of ou r operat ing enti ties were ose t by a one - o cos t of $19m for the appli cab le premium paid on the early repaym ent of t he $505m bon ds in Ma rch 202 2. Addi tio nally, in teres t cost s were also broadly at as lower interes t cost s on our re du ced market debt were ose t by an incr ease in i nteres t cos ts on lease liabili tie s. The Gro up eec tive intere st rate increase d to 5. 6% compare d to 4.9% , large ly drive n by rep ayme nt of t he EUR750m bon d in May 202 1, which car ri ed a l ower-than - averag e coupo n, and due to high er loc al curren cy debt at the OpCo level . In line with our strat egy to continu e to re duc e foreig n curren cy debt at Hol dc o, we als o repaid $505m bon ds in Marc h 2 022, one year ear lie r than their March 202 3 redem ptio n date. One - o cost s of $19m, includi ng applic abl e premium , have b een rec orde d under non - op erat ing except ional items , while the Grou p will save an a ggre gate of c . $26m on in teres t payment s from the earl y redemp tion. T axation T ot al tax charg es were $469m, an increase of $ 187 m , driven by highe r ope rati ng prot and with hol ding tax on divid ends by subsidiari es. The pri or year also b ene te d from the recog nit ion of a deferre d tax credi t of $36m i n T anzania . Prot af ter ta x Pro t afte r tax increase d by 82.0 % to $755m. This increase was mainl y led by hig her oper atin g prot s and stab le net nance cos t s whic h more than oset the assoc iated incre ase in t ax charg es. E xcept ional gains were also $ 12m hig her than the prio r year . Basic EPS Basi c EPS c limb ed to 1 6 .8 cent s , an i mprove ment of 7 .8 cent s ( +86.5% ) from 9.0 cent s in the prior year . This increas e was mai nly due to h ighe r operat ing pro ts whic h more than oset increas ed tax charg es and higher non- cont rolli ng interes t s ( du e to hig her pro t cont ri but ions in OpC os with minor it y shareho ldin gs, new minor it y shareh oldi ngs in A ir t el Money par t iall y oset by l ower mino rit y interes t s in Air tel Niger ia as a resul t of th e succes sf ul share buy- bac k). Net cash generat e d from operating activities Net cash gene rate d from operat ing act iv iti es was $2, 01 1m, an incr ease of 20.7% f rom $ 1,666m in the prior per iod . The increas e was largely dri ven by h igher pro t before tax of $5 27 m , which was par t iall y oset by highe r tax payment s on the increase d prot s and wit hho ldin g tax on d ivi dends by subsidiari es . Over the last twel ve mont hs the business has repaid nearly $1.4bn of debt at Holdc o as a result of s tr ong cash upst reamin g across it s OpCos and proc ee ds fro m minori ty inves tme nt s in m obil e money and tower sales. Alternative per formance measu res Underlying revenue Und erl yin g revenue in c ons tan t curren cy grew by 23. 3% , driven by bot h custome r base growt h of 8 . 7 % and AR PU grow th of 1 5.4%. The slow down in custom er base grow th was due to the introdu ct ion of new SIM regist rat ion regula tio ns in Ni ger ia. E xclud ing Niger ia, the cus tome r base g rew by 10.2% . In N ige ria , our cus tome r base r etur ned to grow th in the sec ond half of the year , adding a n et 2.4 mi llion Strategic report 76 Air tel Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Prof it af te r ta x ( $m) 415 March ’2 1 re po r te d pr ofi t af t er t a x March ’22 re po r te d pr ofi t af t er t a x March ’2 1 pr ofi t af te r ta x excluding exceptional i tems Operating profit Finance cost Ta x March ’22 pr ofi t af te r ta x excluding exceptional i tems March ’22 exceptional items (50) March ’2 1 exceptional items 365 19 693 755 462 (153) 62 MA RC H 2 021 MA RCH 2022 cus tome rs for the full year . At th e end of th e year o ur total custom er base was 1 28.4 millio n, an increase of 1 0 .2 million . ARPU grow t h of 1 5.4% was dri ven by a ll our k e y ser vic es : with data contr ibu tin g 7 . 7% , voic e contr ibut ing 4. 3%, mob ile money cont ri but ing 2. 7% , and the balan ce comin g from other revenue , which was m arginal ly impac ted in Q4 f rom the loss of tower shari ng revenues relati ng to tow ers sol d duri ng the year . Revenu e grow th was record ed across all our regions and key s er v ices . Und erl yin g revenue in N iger ia grew by 27 .7%, in East Afri ca by 22. 7% , and in F ranc oph one Afr ic a by 1 7 .2% . V o ice revenu e grew b y 1 5.4%, data revenu e grew b y 34.6% an d mobile mone y revenue grew by 34.9% in cons t ant curren cy. Underlying EBI TDA Und erl yin g EBIT DA was $2, 31 1m, an i ncreas e of 29.0% in repor ted cur renc y and of 3 1.2% in c ons ta nt curren cy. G row t h in u nder ly ing EB IT DA was led by re venue grow t h and supp or te d by i mprove d ope rati ng ecie nci es. The und erl ying EB IT DA margin improved by 294 basis poi nts in repor ted curre ncy to 4 9.0 % . Fore ign exchange had an a dver se impac t of $58 m on reve nue , and $26m o n underl yin g EBIT DA , as a resul t of de valuat ions of the Nigeria n naira and the Malawian kwa cha , in tur n par t ially os et by ap pre ciati ons of both the Ugandan shilli ng and the Zamb ian kwac ha. Wi th respe ct to currenc y devaluat ion sensi ti vit y, on a 1 2-m ont h basis, a 1 % currenc y devaluat ion acro ss all cur renc ies in our OpC os would have a ne gati ve impac t of $43 m on reve nues , $2 6 m on u nder ly ing EB IT DA and $2 1m on nanc e cost s . Our largest exp osure is to the Nige rian naira , for which a 1 % devaluat ion woul d have a negat ive impa ct of $1 8m on revenues , $ 11m on unde rly ing EBI T DA a nd $7 m on nance cos t s. Underlying EBI TDA ( $m) FY’2 2 FY’2 1 2 , 311 49. 0 % 4 6 . 1% * 1,7 92 * E B IT DA margi n % Ta x The ee ct ive tax rate was 39.0 % compare d to 4 3.2% in the prior per io d, largel y due to prot mix changes amon gst the Op Cos . The ee ct ive tax rate is hi gher than the weighte d average st atuto r y cor po rate tax rate of ap proxim ately 33%, large ly due to t he prot mix bet wee n various Op Cos and with hold ing taxes on divid ends by subsidiaries . Exceptional items Op erat ing excepti onal items of $32m in the year ended 3 1 March 202 2 consist s of a $1 2m p rovisio n for ex pe cte d set tle ment of a cont rac tual dispu te in w hich one of the Group’s subsidi arie s is a par t y and $20m cost s of a gree ing histor ic spe ct rum fees in one of t he Gro up’s su bsidiar ies . The prio r perio d oper ating except iona l items incl ude s ex cept iona l revenue on acc ount of a on e -ti me sett lem ent in Nige r amounti ng to $20 m, par t ially os et by a one - o cost of $ 6m in Francophone A frica. Non - o per atin g exception al items in t he year end ed 3 1 March 202 2 incl ude a gain of $1 1 1m o n the sale of tel ec ommuni cat ions tower asset s in the Group’s subsidi arie s in T anza nia, Malaw i, Madagas car, and Rwan da, par t iall y oset by one - o cost of $1 9m incl uding appl ica ble premiu m paid on t he early repay ment of $505m b onds in Marc h 2 022. E xcept ional ta x bene t of $2m recogn ised in the year ma inly relate to the provisi on for the contra ctu al dispute in which one of t he Group’s subsidia rie s is a par t y , and the $36m in t he prio r year re lates to defer re d tax credit rec ogni tio n in T anz ania. EPS before exceptional i tems EPS before except iona l items almost doub led to 1 6.0 cent s , up by 96.0 % ( + 7 . 8 cents) f rom 8.2 cent s in the prior year . This increas e was mainl y due to highe r operat ing pro t s which more than oset the incr eased ta x charges and higher non - con trol ling interes t s ( due to highe r prot cont rib uti ons in Op Cos wit h minor it y sharehol dings , new mino rit y shareh oldi ngs in A ir te l Money par t ially os et by l ower minor it y interes t s in Air tel Niger ia as a resul t of th e succes sf ul share buy- bac k). Description UoM M ar ch 202 2 Weighted averag e shares outs t andi ng 2 02 1 m 3 ,7 5 8 Weighted averag e shares outs t andi ng 2 022 m 3 ,7 5 4 Ma rc h 202 1 EPS be for e exce pt io na l item s $ cent s 8.2 Exchange $ cents (0 . 3) Op erat ing pro t ( c ons tant cur renc y) $ cent s 1 2 .7 Net nanc e charges $ cents 0.5 Der ivat ives and Forex gain/(los s ) $ cents 0.2 Fina nce charg es ( exc ludi ng deri vati ves and Forex) $ cents 0.3 Ta x $ cents (4 . 2) Others $ cents ( 0 . 9) Ma rc h 2022 E P S bef ore exc e pt ion al ite ms $ cent s 16 . 0 * O th er s incl ud es a cha nge in min or it y share ho lde r P AT an d pro t /(l oss) on j oi nt ventures Ope rati ng free cash ow Op erat ing free cash ow increas ed by 40.5% to $1,655m, as high er unde rl ying EB IT DA more than os et increase d capit al expe nditu re. Cap it al expend iture in the prior year was s light ly lower due to l ogis ti cal chall eng es as a result of the pandemi c. Strategic in vestment and a sset monetis ation We re cei ved a minori ty inves tme nt of $550 m from four inves tor s in Air tel Mob ile Comm erc e B. V . Th e Rise Fund invest ed $200m , Mas terc ard $ 100m , Qatar Hol ding LLC (QIA) $200 m and $50 m fro m Chimera Inves tme nt LLC. Ta x Description Uni t of measure Y ea r end ed Ma rc h 2022 Y e ar e nd ed M ar ch 2 021 Pro t bef or e taxation In co me t ax expense % Pro t bef ore taxation In com e tax expense % Re po r t ed e ec t iv e tax rat e $m 1 , 2 24 469 38 . 3% 697 282 40 . 5% Adjus ted for : E xcept ional items $m (60) 2 (14) 36 Fore ign exchange rate movem ent s for non - DT A operating companies an d hol ding companies $m 50 – 42 – One - o adjust ment and tax on permanent dierence $m (1 2) (2) (5) E e c ti ve tax ra te $m 1 ,202 469 39. 0 % 7 25 313 4 3. 2% 77 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Financial review co ntinu ed Addi tio nally, t he sale of tower s in T anz ania, Malaw i and M adagas car resul ted in total gross pro cee ds of $284m, out of which $2 40m has be en recei ved so far f rom the rs t closin g of towe r sales . W e also cont inue to pursue fur ther poten tial sales of our tower asset s in Chad and Gabon . Leverag e and bala nce she et measure s Levera ge ( ne t debt to und er lyin g EBIT DA) improved to 1.3x at 3 1Ma rch 202 2, from 2.0x at 3 1 Marc h 2 021, la rgel y driven by incr eased cash gen erat ion , expansion in under lyi ng EBI TDA and rec eipt s of $550m fro m mobile mone y minori ty inves tm ent s. Our balan ce sheet cont inu ed to b e de- r isked throu gh a re duc ti on of Hol dC o debt ( now $1 b n, down from $2.4bn in the pri or year ) and incr eased loc alis atio n of ou r debt into the OpC os , such that our gross Op Co debt of $ 2,92 1m (includ ing lease obligat ions) is now signi c antl y higher than our Hold Co debt of $1,00 0 m. Description Ma rc h 2022 March 2 021 $m Underlying EB IT DA $m Underlying EBITD A Foreign currenc y 1 ,6 57 0.7x 2 , 870 1. 6x Holdco 1,000 0. 4x 2,38 8 1. 3x OpCos 657 0. 3x 4 82 0 . 3x Lo ca l curr en c y 604 0. 3x 4 52 0. 3x OpCos 604 0. 3x 4 52 0. 3x Le ss : cas h and cash equivalents 980 0 .4x 1, 0 69 0 . 6x Ne t deb t , exc lu di ng lease ob ligations 1 , 281 0.6x 2 , 25 3 1. 3x Lease obliga tio ns 1,66 0 0 .7x 1 , 27 7 0 .7 x Ne t deb t , inc lu di ng lease ob ligations 2 , 9 41 1 . 3x 3, 530 2.0 x Net cash generat e d from operating activities Part iculars Ma rc h 2022 $m Mar ch 2021 $m Change $m Underlying EBI TDA 2 , 311 1,7 92 519 Ot her non - c ash items (38) (7) (31 ) Op er at in g cas h ow befo re changes in working capi tal 2, 27 3 1, 785 488 Chang e in wo rki ng capit al 31 76 (4 5) Ne t cas h gen er at ed fro m op er at io ns bef ore ta x 2, 30 4 1,86 1 443 Inc ome tax paid (2 9 3) (19 5 ) (9 8) Ne t cas h gen er at ed fro m operating activities 2 , 0 11 1,666 345 Net debt bridge Part iculars Ma rc h 2022 $m Mar ch 2021 $m Ne t cas h gen er at ed fro m operating activities 2, 011 1,666 Cash cap ex ( ta ngibl e ) ( 7 17 ) (6 4 5) Cash capex (intangib le ) ( 22) (27 0) Cash interes t (3 51) (3 0 2) Repay ment of lease liabilit ies (2 51) (20 8) Div ide nd paid to no n- cont rolli ng interes t s (4 8) (9) Subtotal ( a) 622 232 Div ide nd to A ir te l Afric a plc sharehol der s (16 9) (169 ) Acqu isiti on of n on - co ntro lling interes t (16 4) (7) Inc rease in mobile money wall et balance (6 4) (13 9) Proc ee ds from sale of to wer asset s 2 51 – Proc ee ds from sale of s hares to non- c ontrolling interests 550 – Others (13) (1 2) Subtotal (b ) 391 (32 7 ) Part iculars Ma rc h 2022 $m Mar ch 2021 $m Addi tio n of leas e liabilit ies (6 51) (35 9) Repay ment of lease liabilit ies 251 20 8 Fore ign exchange on borro wings and cashows (24) (37 ) Subtotal ( c) (424 ) (18 8 ) Ne t de bt ( in c rea se)/ de cr ea se d= a+b+c 58 9 (28 3) Opening net deb t 3,5 30 3 , 247 Cl os ing ne t debt 2 , 9 41 3, 530 Purchase of int angibl e assets Purchas e of in tang ible asset s of $2 2m includ es $ 10m payment for an addi tio nal licen ce in Kenya. Previous year amount of $270m m ainly incl ude s licenc e renewals in Nigeria for $ 18 2m and $6 5m in Uganda . Dividend paid to shareholders Dur ing the year , the Boa rd approved an upgra de to t he progre ssive div iden d polic y , aimin g to grow the divi den d annually by a mid- to high -si ngle - d igit perc ent age fro m a new base of 5 ce nt s per share for F Y ’22. Fina l divide nd payment of 2.5 cent s per ordina r y share for yea r ended 3 1 March 202 1 was p aid durin g the year an d an in teri m divide nd paym ent of 2 cent s per ordina r y share. The Bo ard reco mmen ded a nal div iden d of 3 cent s per share for yea r ende d 3 1 March 20 22. Proce eds f rom sal e of shares to n on - cont roll ing inte rest s In line with the Gro up’s p ursu it of s t rateg ic invest ment in our mobile mone y business , we re ce ived a minori t y investm ent of $550 m from four inves tors in Air tel Mob ile Comm erc e B. V . – refer to Note 5(g) of cons olida ted st ateme nt of na ncial posi tio n as set out on page 1 78 for detai ls. Proce eds f rom sal e of tower asset s Wi th the focus on an ass et-ligh t business mode l and o n its core subsc rib er-facing op erat ions , the Group has receive d proce eds of $2 5 1m f rom the sale of tower assets in T anzan ia, Malawi , Madagasc ar and Rwan da. Refer to Notes 5( c ) to 5(f ) of co nsoli dated st atem ent of nanc ial posit ion as set out on page 1 77 - 1 78 for details . Acquisition of non - controlling interest Dur ing the year Air tel Net wor k s Limite d ( ‘ Air tel Niger ia’), a subsidiar y of Air tel Afr ica plc , comp lete d the buy- back of 8.22% n on - co ntro lling interes t ( ou t of an exis ting 8. 26% ) fro m minori ty shareh old ers for a consi dera tio n of $1 63m (inclu ding direc t ly att rib uta ble trans ac tio n cos t s ). Refer to N ote 5(h ) of c onso lidate d state ment of nancial posi tio n on p age 1 78 for d etai ls. Forei gn exchange on b orr owing s and cash ows Fore ign exchange on borro wings and cash ows prim aril y represe nt s loss on accou nt of res t ateme nt of EU R bonds due to a ppre ciat ion of euro agains t US d ollar. Financial information by ser vice We p rovid e per for manc e data for our mobil e voice and data ser vic es and Air te l Money in our b usines s review on pages 68-7 1. Financial information by marke t We p rovid e per for manc e data for each of our m arket s in our busines s revie w on p ages 62 - 67 . Strategic report 78 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc ou nt s 2022 Conso lida ted statemen t of nanci al position The cons olid ated st ateme nt of n ancia l positio n is se t out on p age 1 63 . Details on the major movemen ts of our asset s and liabili ties in the year are s et out on this page . Asse ts Proper ty , plant and equipment Prop er t y, pla nt and equi pme nt (includ ing capi tal wor k in pr ogres s ) incr eased by $ 1 7 1m to $2,403m . This was du e to c apit al expen ditu re of $646m l inked to continu ed inves tme nt in ne tw ork asset s , which was par tial ly ose t by $4 18m of de pre ciati on and sale of t he tower asset s . Right o f use asset s Right of use as set s increas ed by $ 3 10m to $1,1 09m . The increase of $53 9 m was du e to th e capit alis atio n of th e present value of tele com munic ati on towers taken on long -te rm lease (inclu ding addi tio nal sale and lease back in fo ur market s ), par t ially os et by $2 11m of depre ciat ion . Defer red t ax asse ts (net) Defe rre d tax asset s decreas ed by $92 m mainly due to ut ilisa tio n of deferre d tax asset s in A ir te l Niger ia on a cco unt of i mprove d taxable prots. Balance held under mobi le money trust The balan ce held unde r mobile mone y trus t represent s the funds of mobi le money cus tomer s which are not availab le for use by the Gro up, and thes e have inc rease d by $73m . T otal equit y and liabilities T otal equit y T ot al equi ty inc reased by $2 9 6m to $3 ,649m . This was lin ked to t he $755m pro t for the peri od , par tiall y oset by $ 1 69m divide nd to shareh old ers of Air tel Afr ica , the $ 164m im pac t of t he buy- ba ck of an 8. 22% no n- cont rollin g interes t in A ir tel Nig eria and $7 6m divid end to mino rit y shareh olde rs in subsidiari es . Borrowings Gros s borro wings (incl udin g shor t-ter m borrow ings) re duce d by $684m to $ 3,932m. This was larg ely due to repay ment of a $91 5m bon d which was due in May 202 1 and p repay ment of $505m b onds one year earlier than the ir March 2 023 re demp tion date, os et by an incr ease in l ease liabili ti es by $38 3m and the drawd own of an ex ter nal loan . Net debt of t he Group as of 3 1 March 2 022 was $2, 94 1m. Non- cur rent liabilities Non - c urre nt liabilit ies ( exclu ding bor row ings ) increase d by $592 m. This was largely due to t he reco rding of a pu t optio n liabilit y at the pres ent value of t he expe cte d buy- bac k amount relatin g to inves tme nt s by t he Rise Fund and Maste rcar d into A MC B.V . Current liabilities Cur rent liabili tie s ( excl udin g borrow ings) in crease d by $1 68 m to $1,964m. This was la rgel y due to a $64m increas e in m obil e money walle t balance , consiste nt with the grow t h in mo bile mon ey cash as desc rib ed above and a $ 4 7m increase in current tax liabil iti es ( ne t). Fur t her deta ils of t he Group’s liquidi ty posi tio n and g oing con cer n asses sment are shown on page 1 66, Note 2.2 of th e nancial statements. Dividends The Bo ard has rec omme nde d a na l divide nd of 3 cent s per ordinar y share for the year e nde d 3 1 March 2 022. The propos ed nal divid end will be paid on 22 J uly 202 2 to all o rdinar y sharehold er s who are on the regis ter of member s at t he close of business on 2 4 June 202 2. We w ill announ ce more detai ls in du e course . W e paid an interim div iden d of 2 cent s per ordinar y s hare in D ec emb er 202 1. Non -nancial information s tatement We ar e pleased to set o ut belo w where you can nd infor matio n relating to non- nan cial matte rs in our st rateg ic repor t, as require d under sec t ions 4 1 4CA and 4 1 4C B of t he Compa nies Act 2006 . P a g e (s) Bu si ne ss mod el Strate gic repo r t 1- 8 8 Busin ess mode l and KPIs 2 4, 1 7 Prin cip al risks and mitiga tio n 83 -86 Environmental matters Our 202 1/22 susta inabil it y state gy update 43 -58 Prin cip al risks and mitiga tio n: complian ce to leg al requirem ent s , KYC an d qualit y of se r vi ce, non- compliance, internal con trols and compliance 83 -86 Ou r peop le Prin cip al risks and mitiga tio n: leader ship succ essio n planning , internal con trols and comp lianc e 83- 86 Chair ’s statem ent ; compa ny vision and values 12, 2 4 Dire cto rs’ repo r t 123 - 127 Stak eholder engagement: ‘Our people’ 27 Social matters Prin cip al risks and mitiga tio n: Covid - 19 83 Dire cto rs’ repo r t 123 - 127 Infor mat ion abou t our a ppro ach to tax can be f ound on our website: ww w.air tel .afr ica Re sp ec t for human right s Prin cip al risks and mitiga tio n: supply chain 84 Our Co de of C ond uc t can be fo und on our websi te: ww w.air tel. afric a Anti - corruption and anti- briber y matters , hea lt h and safe t y Dire cto rs’ repo r t , moder n slaver y act , anti - co rr upt ion and anti- b rib er y matt ers 123 - 127 , 111 Our Co de of C ond uc t and ot her relate d polic ies can be found on o ur website: ww w.air tel .af rica 79 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Managing our risk Managing our risk s We o per ate in 1 4 market s acros s Afric a. Our market s oer both lon g- ter m growt h oppo r tuni tie s and a dive rse rang e of r isks and unc er t aint ies . Managing thes e risks is an es sent ial par t of d elive rin g our st rateg y . It m eans we c an cont inue to create v alue for our busine ss and sharehol der s, and for the millions of pe opl e whose lives we help trans for m. Identi f ying and managing risk The dire cto rs have car ri ed out a r obus t assessm ent of t he comp any ’s pri ncip al and emerging risk s to c omp ly with Provisi on 2 8 of the Gove rnan ce Cod e. We have designe d our risk manageme nt fra mewo rk to g ive us a consis ten t means of ide nti f yin g, miti gatin g and monito rin g risk across all 1 4 of o ur opera ting com panie s and Gro up entit ies . It prov ides seni or manageme nt and our B oa rd wit h oversight over our princ ipal risk s , and p romote s a bo tto m- up appr oach to identi f yi ng and managing risks acro ss the Group . Risk management go vernance The Air tel Afric a plc Boar d has over all responsi bili ty for the Grou p’s risk manage ment fra mewo rk and proces ses . Throu gh the Audit and Risk Commi t tee , the Board overs ees the Grou p’s r isk manageme nt fra mewo rk and regular ly revie ws its pri ncip al risks as well as eme rging risk s that may im pac t the Group. Wi thin that overarc hing fram ewor k , the gover nanc e of r isk manageme nt has b ee n cascad ed to vari ous levels acros s the organisat ion to allow ee ct ive managem ent of the Gro up’s r isk s. The fra mewo rk cover s the interplay bet we en risk s impa ct ing Air te l Afric a as a whol e and risk s ident ie d at e ith er the ope rati ng company ( O p Co ) level (ge og raphy - relate d) or the func ti onal level (busine ss func ti on -re lated). Our Group E xecu tive Risk Commi t tee (ERC) eva luates and prior it ises the pri ncip al risks wit h the potentia l to unde rmi ne our strate gy, busi ness mod el and solven cy, in line wit h our overal l risk appeti te. The commi t tee also review s on an ong oing basis the ex terna l business enviro nment to identi f y emergi ng risks whi ch coul d potentia lly have an impac t on t he Grou p’s busi ness in the future . Gro up func tio nal teams ide ntif y fun ct iona l risks cut ti ng across our Op Cos to create a consiste nt Group - wi de risk mitigat ion st rate gy for similar risk s . W e ope rate a si milar risk managem ent gover nance st ru ctu re at G roup level and wit hin our OpCo s, wit h both having an Exec ut ive Risk Manageme nt Commi tt ee, and wit h overall risk manage ment resp onsibi lit y rest ing wit h the respec ti ve boards. Eac h Op Co ident i es risk s within thei r business enviro nmen t and t akes appr opr iate mitigat ion ac tio ns. The gover nanc e of r isk manageme nt at each Op Co rest s wit h the OpC o Exec uti ve Risk Com mit te e ( E RC) an d the Op Co Boa rd, whic h is res ponsi ble for risk manageme nt proces ses and overse es the OpC o’s p rin cip al risks and the eec ti venes s of it s mitiga tion actions. W e proactively manage ou r risk f rame work , bec ause asses sing and managing r isk underpins day-to - day working acros s A ir tel Africa, as well as suppor t ing our key operating and nancial decisions . Ravi Rajagopal Chair, Aud it and Risk Commi t tee Under s t anding and managing our r isk environ ment to sup p o r t the Gr ou p’ s objec tives Strategic report 80 A ir tel A fr i ca p lc A nn ua l Rep or t and A cc ou nt s 2022 Boar d – Audi t and Risk Committee The Bo ard has overal l resp onsibi lit y for the Group’s risk man agement processes. Thro ugh the Audi t and R isk Co mmit te e (ARC ), the Boa rd overs ees the Gro up risk management framework, appr oves the Group’s risk app eti te, and regular ly review s our prin cipa l and e merg ing risk s. The Bo ard maintai ns oversight on the ee ct iven ess of t he Grou p’s risk man agement processes thro ugh regula r reviews of the Gro up’s p rin cipa l and e merg ing risk s . This year , the ARC car ri ed out sever al detail ed thema tic risk revie ws across a number of fun ct ions wit hin the busines s. Group Executive Risk Committee The E xecu ti ve Risk C omm it tee (ERC) is respons ible for the impl emen tat ion of the risk management framework across the Gro up. The ERC review s our signi c ant risk s and t he progre ss and eec ti venes s of mi tigat ion ac tio ns ensuring that the Grou p ope rates wit hin it s dened risk appetite. The ERC meet s quar te rl y and car ri es out robust revi ews of the Gro up’s si gni ca nt risks cut ti ng acros s its ope ratin g market s and fun ct ions . It also re vie ws and discus ses emerg ing risk trends wit h potentia l impact on the Gro up’s b usines s. Functional Risk Management Committees The Gro up execut ive func ti onal heads are responsib le for iden tif ying and mitigat ing risk s acros s the Group wit hin their fun ct ional area . They are resp onsibl e for e mbe ddi ng risk manage ment wit hin oper ati onal busine ss proce sses . The Grou p’s risk regis ter is created from risk s iden ti ed eit her by the Group fun ct ional heads or the OpC o E xecu tive Risk Comm it tee s. The Gro up func ti onal heads car r y out ongoi ng risk review s as par t of t heir oper ati onal fun ct ional pro cess es . These risk revie ws addres s risks wit hin their fun ct ions acros s the Gro up’s o per atin g footpr int . OpCo Executiv e Risk C ommi tte e and OpCo B oard The Op Co E xecu tive Risk Co mmit te e ( ERC) p er fo rms a similar role to the Group ERC . It is resp onsibl e for i mple ment ing the risk management framewor k in our subsidiar ies . It identi es risk s wit hin the loc al environ ment and mit igati on ac ti ons to manag e thos e risks . Each OpC o Boar d has overall responsi bili ty for the risk manage ment proc ess wit hin that OpC o. The Op Co ERC meet s on a quar te rl y basis w hile the Op Co Bo ards review the Op Co’s pri ncip al and emerging risk s at leas t on a semi - annual basis . Risk ident ic ati on process Our r isk app eti te fr amewor k Air tel Africa’s principal risks Risk s impac ting the Gro up’s s t rateg y , busine ss model and solve nc y Emerging risks Ong oing revie w ofthe ex terna l environment and potent ial risk s IDENTIFY OpCo Function Risk s are i dent i ed by analysing external and internal contex t bot h at anop erat ing subsidiar y and ataGro up func tio nal level RISK ANAL YSIS As sess each risk Likelihood Impact Impact / consequence Likelihood of occurrence RANK Sco re and pr ior itis e each risk Eac h risk is then assigne d a risk rating based on the likelihood of o ccurrence and the possib le impac t / consequence Risk rating Disc uss and validate each risk Ide nti e d risks are assesse d on Dur ing the year , the Boa rd approved the Gro up’s r isk appet ite fram ewo rk and state ment . The risk app eti te framewo rk forma lises the Gro up’s r isk appet ite , toleran ce limit s and governan ce oversigh t proces ses to e nsure that risks acro ss the Group are managed wit hin acc ept able limi ts . Air te l Afric a adopt s a fo ur - p oint scal e for risk app eti te, descr ibe d below. Open We s tr ongl y accept the se risks as they are i ncid ent al to t he achi eveme nt of ou r business obje c tive s. Thes e risks provi de goo d risk /reward trad e - o, and inter nal comp etenc ies exist to manage or ex plo it thes e risk s eec ti vely. Flexible We ar e open to ac ce pting the se risk s on a jus ti abl e basis. W e will consi der availabl e options and sel ec t the option that provid es goo d returns wit h an ac ce ptab le level of risk in t he pursui t of our obje ct ives . Cau tio us We w ill acce pt these risk s only if esse ntial , with limi ted potent ial for a n egat ive outc ome. We prefe r to avoid the se risks and whe re these risk s are a cce pted , the risk s are care full y measured and monito red . Av er se We ar e stron gly opp osed to the se risks and prefer to avoid the m. We are not open to any risk / r etur n trade - o and will alway s accept the lowes t risk opti on for these risk s. 81 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Almos t cer tain Likely Possible Unlikely Minor Moderate IMP ACT LIKELIHOOD Significa nt Ex treme 1 2 11 4 5 6 7 8 9 10 3 3 Risk heat m ap ( re sidual r isk s ) Managing our risk continu e d Strategi c risk s Operational risk s Financial risk s Governance and compliance risk s Description Category Philosophy / approach Reference in heat map The se are risks arising fro m chang es in our exte rnal busine ss envir onme nt such as mac ro - ec onom ic condi tio ns or ma rket / competitiv e dyna mics Risk s aect ing our abilit y to ee ct ivel y operate our busines s mod el across a variet y of fun ct ional a reas Risk s impac ting our liquid it y or sol venc y , nancial repo r ti ng, or ca pital structur e Risk s aect ing our abilit y to comp ly wit h our l ega l, regulato r y and gover nance obl igati ons We o per ate in 1 4 cou ntr ies across Afr ic a with signi ca nt market oppor tunities a rising from low penetration of telecommunications and bankin g ser vic es . The Group is bull ish on t he oppo r tun iti es that Afr ic a present s and is ge nera lly open to taking incr eased levels of risk s to c apture the se market oppo r tuni tie s. 1 2 3 Del iver ing on the Group’s strate gic obje c tive s requires an eect ive ope rati ng model , execut ion excell enc e and ope rati onal rig our , wit h a fo cus on custome r satis fac tio n across the organisat ion . This ope rati onal excell enc e will ensure that the Grou p can continu e to deliver incre ment al revenue grow t h at min imal marginal cos t s resul ting in a p osit ive ow- thr ough to prot abili t y . 4 5 6 7 8 9 The Gro up is c ommi t ted to p ru dent nanc ial managem ent built on a ro bus t sys tem of c ont rols and eec tive busine ss par tn eri ng. The Gro up is exib le in i t s risk-tak ing appro ach to nancial manage ment to suppor t the Gro up’s s t rateg ic grow th obje ct ives but avers e towards any for m of v iola tio n of it s sys tem of key nanc ial and internal cont rols . 10 Air tel Afric a is c ommi tte d to c omp lyin g with laws and regulati ons in the juris dic tio ns where it operate s and ave rse to violati ons of i t s legal or regulato r y obligat ions . 11 How we cl assif y our risks We c lassif y our risk s using the cate gor isat ion meth odo log y shown bel ow. O ur risk classi cat ion allo ws for a consiste nt approa ch for risk iden ti ca tio n and c ommu nica tio n across the Group . Strategi c risk 1 Ad ver se co mpe ti ti on and marke t disru pt ion 2 Digitalisation and innovation 3 C ovi d - 19 (FY ’ 22) 3 C ovi d - 19 (FY ’ 21 ) Oper ational risk 4 T echnology obsole scence 5 C yb er and info rm ati on sec ur it y thre at s 6 Inc reas e in co st s t ru c ture 7 Leadership succession planning 8 In ter na l contr ols and co mpl ian ce 9 N et wor k resil ie nce and bus ine ss cont in uit y Financ ial risk 10 E xc hang e rate uc tua ti ons and avail abi li ty of foreign currenc y for repatr iation Governance and compliance risk 11 N on - co mp lian ce to lega l and regul ato r y requi rem en ts Cur re ntl y, a ll the pr inc ip al risk s are wit hin ou r risk app et ite . Strategic report 82 Ai r t el Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Principal risk s and mitigat ion RISK RISK RISK Adverse competition and market disruption C o v i d -1 9 Digitalisation and innovation Description of risk H ow we miti gat e this ris k Risk appetite Risk owners We o per ate in an inc reasingl y compet it ive envir onme nt across our market s and s egm ent s , par t icu larl y with respe c t to pr ici ng and market share. Aggres sive comp eti tio n by ex ist ing player s or the entr y of a ne w player could put a d ownwa rd press ure on pri ces , adver sel y aect ing our revenue and margins , as we ll as ou r prot abili t y and lon g- ter m surv ival . The nature and level of the comp et iti on we f ace vari es for each of our m arket s , pro duc t s and s er v ices . Cov id - 19 co ntin ues to b e both a h ealt hc are crisis and a ma jor disru ptor in t he lives of pe opl e and t he ec onom ic acti vi ties of business es and gover nme nt s acros s the world . The pandem ic has un der lin ed how cri ti cal tele coms are to t he count rie s in wh ich we ope rate, and throu ghou t the crisis we have maint aine d our ser vice s as well as suppor ting communities , including by coordinating medical relie f with respe ct ive gover nment s . While the pand emic has shown the conti nue d resilienc e of ou r ope rati ng model , we cont inue to monitor the evolu tio n of t he pandem ic to p revent any negati ve adve rse impac t on the Group’s abilit y to op era te its busine ss eec ti vely. Failure to i nnovate thro ugh simpli f yi ng the custom er expe rie nce and devel opin g adequate digi tal touc hpoi nt s in li ne with chang ing custo mer nee ds and the comp eti tive landsc ap e could lead to l oss of cus tome rs and market share. W e nee d to cont inual ly innovate to simpl if y our user exper ien ce, make our b usine ss proces ses more agile , and devel op more digit al touchp oint s to r each our cus tome rs and meet their changi ng needs . Strat egic risks Open Cau tio us Open Sales an d dist ribut ion dire cto r and h ead of market ing and home broadband Chief execu ti ve ocer Chief infor mati on ocer 1 Ongoi ng monito rin g of co mpet it ive landsc ape and competit or activities 2 Driv ing pen etra tion of bundle oer ings to loc k in cus tome rs , increase aorda bili ty and reduc e churn 3 The conti nue d grow th of o ur Air tel Mo ney busine ss and the increase d penet rati on of o ur GS M custome rs using Air tel Mo ney ser v ices help s to increase custo mer ‘st ick ines s’ on o ur netwo rk 4 Simpli f yin g custom er exper ien ce throu gh self- ca re and other apps , inclu ding custo mer touc hpoi nt s 1 The Group’s business cont inui t y plans ensure minimal disr uptio n in o ur abilit ies to provi de crit ic al telecom ser vices 2 The Exe cut ive Comm it tee maint ains oversigh t of the Gro up OpC o crisis manageme nt teams 3 The Group’s opera tio ns continu e to ad opt a exible work-from-home policy 4 Digit al self- c are channe ls through whic h cus tome rs can acces s the company ’s produc t s and ser v ices and resol ve basic custome r querie s 1 Rollou t of di git al apps and self- care chann els to simpl if y cus tomer exp eri enc e 2 Focus of Air tel Afri ca Digi tal Lab s on d evelo ping cut t ing edge digi tal solu ti ons to ad dres s custome r nee ds and solve compl ex proble ms using t he late st t echnologies 3 Simpli f yin g our core IT sys tems and integr atio n cap abili tie s to all ow for faster depl oyme nt of new prod uc ts and ser v ices and integr atio n with third- par t y applications RISK T echnology obsolescence An inabili t y to ee c tive ly and ecien tly inves t in and upgra de our netwo rk and IT infras tr uc ture woul d aect our abilit y to compete eec t ivel y in the market . While we conti nually inves t in i mprov ing and maintai ning our netw ork s and IT sys tems to addre ss curre nt levels of vol ume and capac it y grow t h, we need to continu e to co mmit subs tan tial cap it al to kee p pace with rapi d changes in tech nol ogy and the comp eti tive landsc ap e. Flexible Chief technology oc er and chief infor mati on oce r 1 Refresh ing our IT infras tr uc ture with a focus on cloud technology 2 Net wor k moder nisat ion proje ct invol ving upgr ade s to our core ( mob ile swi tchin g) and pac ket (mobile data) ne tw ork s 3 Reduc ing the cos t of net wo rk ope rati ons by ado pting radi o agnos tic tech nolo gy, sin gle RA N , whic h allows easy swi tchi ng of n et work reso urces and spec t rum bet we en 2 G , 3G an d 4G ne tw ork s at minimal mar ginal cost s Key to our strategic pillars Win w it h ne tw or k Win with d istribution Win w it h dat a W in w it h mob il e mon ey W in wi th c os t W in w it h pe op le 1 2 3 4 83 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Principal risk s and mitigat ion co ntinu ed RISK RISK RISK RISK Internal controls and compliance Cyber and information s e curity threats Inc re ase in c os t st r uc tu re Leadership s uccession planning Description of risk Ho w we mi ti gate th is risk Risk appetite Risk owners Gaps in our internal cont rol and complia nce envir onme nt could aec t our reputa tio n and l ead to nanc ial losses . Our nancia l repor t ing is s ubje ct to the risk that cont rols may b ec ome inade quate due to changes in internal or exter nal condi ti ons , new acc ount ing requir ement s , or delays or inac cura cies in rep or t ing . We conti nue to imp lem ent inte rnal r isk manage ment and repor ting pro ced ures at the Gro up and OpC o levels to p rotec t agains t risks of internal cont rol weakne sses and inade quate cont rol over nancial r epor t ing. Cy ber se cur it y threat s throug h internal or exter nal sab otag e or s ys tem vuln erab ilit ies coul d potentia lly resul t in cus tom er data breach es and/ or ser vi ce down time s. Like any othe r business , we a re incr easingl y expose d to th e risk that third par tie s or malic ious insider s may at te mpt to use cy ber-c rim e tech niqu es, incl udin g distr ibu ted denial of ser vi ce at tac ks , to d isrup t the availabilit y, c on dent ialit y and integ ri ty of our I T sys tems . This could disru pt our key ope rati ons , make i t dicul t to re cove r criti cal ser vice s and damage our asset s. Adver se chang es in o ur exter nal busines s environm ent and / or supp ly chain proce sses cou ld lead to a signi c ant increas e in ou r operat ing cos t str uc ture and negat ivel y impact pro ta bili ty. O ur oper atin g cos t s are su bje ct to supp ly chain risks , inclu ding uc tuat ions in global comm odi ty pri ces , market unc er t aint y , energy cos t s ( suc h as die sel and ele ct ri cit y) , and the cos t of obt aini ng and maintainin g lice nce s, spe ct ru m and ot her regu lator y requ ireme nt s. Prevail ing macro eco nomi c condi tio ns and a vari et y of other facto rs beyon d our cont rol , such as r ising glob al inatio n and the impa ct of the war in Ukr aine on the pri ces of commod iti es , also c ont rib ute to t his risk . We n ee d to co ntinu ally re - evalua te our o per atin g mod el and cost st ruc ture to identi f y innovat ive ways to optimise our cost s and improve pro tab ilit y. We ne e d to continua lly ident if y and develo p succes sor s for key l eade rshi p positi ons across our organisat ion to ensure minimal disru ptio n to th e execut ion of our cor po rate str ateg y . Our abili t y to exec ute our business st rate gies dep ends in large par t on t he eor t s of our key peopl e. In some of t he count rie s in wh ich we ope rate, the re’s a shor tag e of ski lle d tele com munic ati ons profe ssio nals. A ny fail ure to succ ess f ully recr ui t , train, integ rate, reta in and moti vate key skilled emp loyee s could have a material adver se ee ct on our business , the result s of ou r operat ions , nanc ial condi tio n and prosp ec t s. Operational r isks Av er se Av er se Flexible Cau tio us Chief nanc ial oce r Chief infor mati on ocer Chief supp ly chain ocer Chief human resources ocer 1 Ongoi ng review and stre ngt hen ing of t he Gro up’s i ntern al contro ls over nancia l repo r t ing and complia nce proc ess es 2 Review pro cess for addres sing and mitigat ing ndi ngs from interna l audit , with oversi ght from the Audi t and R isk Commi t tee 3 A ro bus t sys tem for assessing and moni tor ing key c ont rols across the Gro up, and indep end ent assuran ce test ing of the se contro ls 1 Ongoi ng review and imple ment atio n of sec uri t y contro ls to mit igate possi ble sys tem vulnerabilit ies 2 Awareness camp aign and traini ng of empl oyee s on I T and cyber se cur it y risks and cont rol measures 3 Cont inuin g to ide nti f y risk and assess vulnerabilit y 1 Cont inuous revi ew of o ur operat ing mod el and suppl y chain proces ses to i dent if y c os t optimisa tion oppor tunities 2 Rolling out vari ous initiat ives to optimise our ope rati ng str uc ture to improve business per formance 3 Long -ter m planning and buyi ng str ategi es mit igati ng the eec ts of shor t-ter m disrupt ions wit hin our supply chain 1 Den ed func ti onal and leader ship devel opm ent plans for criti cal role s 2 Ongoi ng identi c ati on of h igh -p otent ial empl oyee s for t ale nt develop ment 3 Long -ter m incent ive arran gem ent s to enc oura ge employe e retentio n and align ment to long- ter m company obje c tive s Key to our strategic pillars Win w it h ne tw or k Win with d istribution Win w it h dat a W in w it h mob il e mon ey W in wi th c os t W in w it h pe op le 5 6 7 8 Strategic report 84 Air tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 RISK Network resilience and business continuity Description of risk H ow we miti gat e this ris k Risk appetite Risk owners Our abili t y to prov ide unpar alle led quali t y of se r vi ce to our c us tomer s and meet qualit y of s er v ice ( Q oS) requ ireme nt s depends on the robus tne ss and resili enc e of our net wor k and IT infr ast ru ct ure and our abilit y to re spo nd approp riate ly to a ny disru ptio ns. Our tele com munic ati ons netwo rk s are subjec t to r isk s of te chni cal failur es, agin g infr ast ru ct ure, human error, wi llf ul act s of des tr uc ti on or natura l disaster s. This can incl ude equi pme nt failures , energy or fuel shor tag es, sof t war e errors , damage to bres, lack of redu ndanc y plans and inadequa te disaster rec over y plans . Operationa l r isks cont inue d Cau tio us Chi ef technology oc er and chief infor mati on oce r 1 Implementing geographic ally- redundant di s aster rec over y sites to prov ide back up for o ur netwo rk s and IT infras tr uc ture acros s our Op Cos 2 Regular tes tin g of fal lbac k plans for net wor k and IT sys tems to ensure reliabili ty of switc h over fro m active to redundan t nodes in the event of a dis aste r RISK RISK E xch ang e rate uc tu at io ns and avail ab ili t y of forei gn cur re nc y for repa tr iat io n Non- compliance to legal and regulatory requirements Description of risk Description of risk Ho w we mi ti gate th is risk Ho w we mi ti gate th is risk Risk appetite Risk appetite Risk owners Risk owners Our mu lti natio nal foo tpr int mea ns we are co nst ant ly expo sed to the risk of ad vers e curren cy uc tuati ons and the macro eco nomi c condi tio ns in t he market s whe re we op era te. W e der ive revenue and incur cos t s in l oc al curren cies whe re we op era te, but we also incur cos t s in fo reign cur renci es , mainly from buy ing equip ment and ser v ices fro m manufac ture rs and techn olo gy ser v ice provi der s. That means adve rse moveme nt s in exc hange rates bet wee n the cur renc ies in our OpC os and the US d ollar cou ld have a ne gati ve eec t on o ur liquidi ty and nancia l con dit ion . In s ome market s , we f ace inst anc es of limi ted suppl y of fore ign curre nc y within the loc al mone tar y sy ste m. This cons tra ins our abilit y to f ully ben et at Group level from st ron g cash gen erat ion by those OpC os . We o per ate in di ver se legal and regulato r y environment s. Estab lishing and maintaining ade quate proc edur es, sy ste ms and c ont rols enabl es us to comp ly wit h our o bli gatio ns for t he ser vice s we pro vide to our cus tome rs in all the juris dic tio ns where we ope rate. We ar e required to comp ly wit h Know Y ou r Custome r , anti - mone y laund eri ng, anti - br ibe r y and corr upti on , sanct ions , data pri vac y , quali t y of se r vi ce and other laws and regulat ions . A f ailure to comply cou ld lead to unant icip ated regula tor y penal tie s and sanc ti ons or tax levie s, as well as damage to ou r reputa tio n. Fina ncial r isk s Governance and compliance risks Flexible Av er se- cau tio us Chief nanc ial oce r Chief leg al ocer and chief regula tor y ocer 1 Reneg otiat ing Forex- de nomi nated cont rac t s to local currency contracts 2 Hedg ing foreign cur renc y denomi nated payabl es and loans , and matchi ng asset s and l iabili ti es, whe re possibl e 3 Adequate fun ding arr ange ment s to m iti gate any shor t-ter m liquidi ty cons t raint s cause d by uc tuat ions in Forex supply 4 Geo grap hic al diversi c ati on enable s access to liqui dit y across our footp rint 5 Ongoi ng review of asset monetis atio n opp or t unit ies for the reduc tio n of fo reign curre nc y den ominate d loans at t he Hold Co 1 Inst itu ting var ious poli cies acros s the Group to comp ly wit h legal require ment s in jurisdic t ions whe re we op era te 2 Cont inuin g engagem ent with regu lators and indus tr y bodies on key p olic y matte rs 3 Implementing a regular compliance t racking pro cess , ident if y ing root causes for cases of non - co mpli ance and takin g corre ct ive act ions 4 Implemen ting an escalation process for repor ting signi c ant matter s to t he Grou p oce 5 Commu nica ting wit h and training empl oyee s on relevant company policies Key to our strategic pillars Win w it h ne tw or k Win with d istribution Win w it h dat a W in w it h mob il e mon ey W in wi th c os t W in w it h pe op le 9 10 11 85 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Principal risk s and mitigat ion co ntinu ed Ke y de velo pment in principal and emerging r isks within the nancial ye ar Bas ed on risk reviews cond uc ted durin g the nancial year , the follow ing chang es occur re d in t he Group’s emergin g risks from the last nanc ialyear : Risk Changes Post-B rexit regulator y environment T his was removed as a n emerging risk af ter our review of the situatio n followi ng Brexi t , given the fact that the Grou p’s op era ting subsidi arie s are l oc ated out sid e the UK a nd EU. W e will cont inue to moni tor this risk . C o v i d -19 The pote ntial impac t / cons equ enc e of t his princ ipal risk was assesse d as re duci ng from signicant to moderate ( se e the ‘heat map’ o n page 8 2 ), since the comp any has d evelo pe d capabil iti es to ee ct ivel y manage and adapt it s operat ions to cope with disr upti ons attr ibu ted to the pandemi c. E xch an ge rat e uc t uat io ns and availability of funds for repatriation On 4 F ebr uar y 2022, Air tel Afric a announ ced that it s 1 00 % owne d subsidiar y, B har t i Air tel Inter nati onal (Net her lands) B . V., had elec ted to redee m all of it s 5.1 25% gua rante ed senio r notes due in 2 023 (No tes ), aggre gatin g to $504 ,9 1 5,0 0 0, on 4 Ma rch 202 2 (Rede mpti on date ), ahead of its matur it y in M arch 202 3 . In a ddit ion to the outs t andi ng princ ipal , the redemp tio n price will incl ude set tl eme nt of all out s ta ndin g accru ed interes t up to th e redempt ion date, plus the applic abl e make -w hol e premium in a cc ordan ce with the terms of the Notes. This earl y redempt ion aligns wit h the cont inuat ion of our p ursu it of a redu c tion of exter nal foreign cur renc y debt at t he Group level . Adverse competition and market disruption On 4 N ovem ber 202 1, Air tel Afr ic a’s subsi diar y Smar tc ash Paymen t Ser vic e Bank Limite d ( S mar tc ash) was grante d approval in princ ipl e to op erate a payment ser v ice bank (PSB) busine ss in Nige ria . On 1 4 Novemb er 202 1, Air tel Afr ica’s subsidiar y Air tel Mobile Co mmerc e Niger ia Ltd was grante d approval in prin cipl e by th e Centr al Bank of N ige ria to ope rate as a supe r - age nt in N ige ria . The supe r - age nt licen ce is d ist inc t from the PSB licen ce. Und er the super-agent lice nce , we are abl e to create an agent net wor k that c an ser v ice the cus tomer s of l ice nsed Nige rian bank s , payment ser vice bank s and license d mobile mone y operato rs in Nigeria . Final approv al of t he super-agent lice nce is subjec t to t he Group satis f y ing cer tain st andar d condit ions . Digitalisat ion and innovation T o fur ther st reng the n our digi tal isati on drive and provid e seamless solu tio ns to ou r custome rs , the Air tel Afric a Digit al Labs team was f ur t her expan ded wit h the launch of Air tel Afric a Digit al Labs in Nige ria duri ng the year . The Air tel Afr ic a Digit al Labs team is our d edi cate d techno lo gy arm focuse d on buildi ng and scaling tec hnol ogy plat for ms and digita l produc t s that impact cus tomer s’ lives and fun damen tall y trans for m the way we oper ate. The team is fo cuse d on s olv ing comp lex probl ems using lates t technol ogi es throug h innovative new prod uc t develop ment spanni ng analy t ics , plat for ms , digital cons umer prod uc ts and enter pris e produc t engine er ing . This allows us to impr ove pro duc tiv it y as a n organisati on , while providi ng a mo re seamles s digita l experi enc e to our cus tome rs . For more infor matio n about Digi tal Lab s, see page 73. Leadership succession planning A ir te l Afric a plc opene d a n ew oce in Dubai, addi ng to i t s existin g adminis trat ive oce lo cat ions in Nairo bi, Lond on, Ams terda m and D elh i. The E xecu ti ve Commit te e will operate out of the new oce which provi des for signi cant ly improve d conn ec ti vit y and enhanc ed coo per atio n with our 1 4 ope rati ng market s across Afri ca and with our othe r adminis trat ive oce s. This new oce loc ati on not only provide s the Group with acc ess to an expan de d pool of g lob al talent s cut ti ng across Europe , the Middle Eas t and A fr ica but also provid es exi bili ty in our talent acqu isiti on and retentio ns proces ses . Emerging risks Climate change: w e continu e to eva luate the potentia l impact of climate change on our busine ss opera tio ns and o n the ec onom ies in whic h we o per ate. W e’re c ommi t ted to a naly sing our climate - relat ed risk s and re adine ss and to wor kin g towards the discl osure reco mmen dati ons of t he T ask Force for Climate - rel ated Finan cial Disc losures ( TCFD) , as descr ibe d on pages 5 2-58 . Our ambi tio n i s to ac hieve net zero GH G emissions ahead of the 2050 d eadl ine set out in t he Paris Agreem ent as p ar t of our sust ainabi lit y str ateg y , desc ri bed on pages 43 -58 . Our risk man agement framew or k give s our Board and Executive Committee a clear line of sight over risks and uncer tainties and enable s informed decision mak ing. Peter Odedina Chief com plian ce oc er Strategic report 86 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Our long - ter m viabilit y s tateme nt Viabilit y st atement of Air tel Afr ica plc In ac cord ance w it h prov ision 31 of the 20 18 UK Co rp orate Gove rnan ce C ode , th e Bo ard asse sse d our lo ng -te rm s tr ategi c prosp ec t s, as w ell as t he abil it y of th e Gro up to me et fu ture commitme nts and liabilities as they fall due wit hin the assessment period. The G ro up prep ares a ten - year s trate gic b usines s plan w hich is us ed for long- term forecas ting purp oses and impairment testing (inclu ding st rate gic de cisi ons suc h as cap it al inves tm ent) and is al igne d wi th the ave rage l ife of ou r regu lator y l ice nces a nd net wo rk ass et s and the potenti al oppor tunities in the under - penetrated emerging Af rican telecom sector . For t he pur po se of our l ong -te rm v iabil it y asses smen t , the B oar d pri mari ly foc uses o n liqui dit y and as sess es th e Gro up’s long -te rm viabi lit y ass essme nt over a t hree - year p eri od for t he fo llow ing reaso ns: • ou r thre e -year l iquid it y plan mat ches t he cu rren t visibi lit y of th e tenure of our nanc ing arran gem ent s • t he desi gn and payo ut of t he manag eme nt inc enti ve plan . Whil e the B oar d bel ieves t he G roup wi ll be v iable o ver a lon ger p er iod , given t he in heren t est imat ion un cer taint y invo lve d in fore cas t ing liqui dit y assu mptio ns over a lo nge r per io d, t he B oard c oncl ude d that a three -ye ar perio d provid es a reas onabl e degre e of co nd enc e whil e st ill ret aini ng a lon ger-term p er spe ct ive. A lt hou gh our l ong -te rm viabi lit y ass essme nt is pe r for me d over a th ree - year pe rio d whi ch matche s the current tenure of our nanc ing arran gem ent s as a matte r of prude nce , the Group also assess ed viabili t y on a ve -ye ar time hor izon . Given the maturi ties of our exis tin g nancing arr ange ment whic h are mater iall y wit hin t he th ree - year pe rio d, t he ass essme nt on this ve -yea r perio d did n ot result in mater ial changes in concl usion as comp ared to t he t hree - year ass essm ent pe rio d. F or go od will impai rme nt tes t , the G rou p has used a t en -year p eri od , tak ing into acc ount t he nature o f market s in w hich t he G roup o per ates , the per io d of it s lic enc es , etc . as agains t th e thre e -yea r per iod f or viab ilit y asses sment w hic h focus ses o n Gro up’s liquidi ty p lan an d desig n/ payou t of manag ement i nce nti ve plan b eing t he co re ele ment s of long-term viability assessment. In ass essin g the G roup’s pros pe ct s , the d irec tor s co nsidere d 5G cell ular ne two rk p otent ial in th e market s w here t he G roup o per ates . The Gro up’s rs t endeavo r is to secur e spec tru m for 5 G launch and roll out 5G n et wor k in key market s . G iven t he relat ivel y low 4G c us tomer pen etr atio n in the c ount ri es whe re it o per ates , the G rou p will c onti nue to focus i t s st rate gy to ex pand i ts d ata se r vi ce an d incre ase dat a customer penetration by lev eraging and expanding its leading 4G networ k . This as sess ment is pr epare d base d on o ur st rate gy, and adeq uate sensi tiv it y and s t ress tes t s have be en c ondu cte d th rough v ari ous sce nari os, b oth in div idual ly and c oll ec tive ly, based on o ur overa ll risk assessment framework. Our c ommun iti es co ntinu ed to fa ce he alt h and ec ono mic c halle nges linked to C ovi d- 19 and the omi cron v arian t . Ove r the pas t t wo year s of the pandemi c, the Gro up has d evelo pe d capabil iti es to e ec ti vely The preparation of this long-term viabilit y st atement involved the Board review ing the G roup’ s lo ng- term prospec ts and abi lit y to meet fu ture commitment s and liabiliti es as they fall due over the thre e -year review period, including scenario analysis on liquidit y events t hrough st ress and sensitivi ty tes t to asses s t he resilience and strength of our forecasts . Board ’s assessment Asse ssment period The v iabi lit y asse ssme nt is base d on our c urr ent busine ss mo del (see pa ges 2 4 - 2 5 of this re por t), a three -year prospec t hor izon , and ou r st rate gy ( see p ages 31 -42 ). As sess ment of headroo m based on fore cas t cash ows and sensi tiv it ies to ass ess ou r abili t y to mee t fut ure co mmit ment s and liab ilit ies as t hey fa ll due ove r the n ex t thre e year s. Long- term prospec ts and headroom analysis Our t hree - year pl an has be en pre pare d consi der ing organic growt h potential in the g eo grap hies w here we operate. Principal risk assessment Our risk evaluation is described on pages 80 -86. While each principal r isk has be en ca refu lly evaluated, both individuall y and co lle ct ivel y , and an adequate monit oring and mit igati on pla n has be en den ed , we have also consi dere d sensi ti vit y analy ses an d st ress te st s on th e thre e -yea r projections. Scenario analysis We have quant ie d the impa ct of s ensit ivi tie s on cash and liquidity headroom availability, both individually and colle cti vely , in reaso nable w ors t- case sce nari o. In ass essin g the impa ct of s ensit ivi tie s on cash and liquidity headr oom , we have consi dere d var ious mitiga ting actions which coul d be un der taken to ensure su cient liqui dit y. manage a nd adap t it s op erat ions to c ope w it h var yi ng leve ls of disru ptio ns at tr ibut ed to th e vir us. T he C ovi d- 19 pand emic ma de cl ear that mo bil e tech nol ogy, and mobi le mon ey in pa r ti cular, has a huge role to play i n k eep ing peo ple conn ec ted , delive rin g vital nanc ial supp or t a nd prov idin g safe, n o - co ntac t ways to p ay for fo od , ele ct ri cit y and ot her li fe ess entia ls. Des pite the signi c ant challen ges the busines s faced duri ng the cour se of t he pan demi c, o ur op erat ing mo de l prove d to be resil ient to the s ocia l and e con omic im pac t bro ught by C ovid - 19. Howe ver , we have continu ed to give s pe ci c conside rati on to t he impac t of C ovi d- 19 on our cash ows with sensi tiv iti es per fo rme d , includi ng possibl e incremental revenue dec line, an unanticipated increase in cost s, including addit ional tax and regulator y levies , currenc y devaluation and avail abili t y of foreig n cur renc y for re patr iat ion to th e Gr oup. Fur t her , not wi ths tan ding t he p ossibl e impa ct s of C ovid - 19, the G roup will cont inue to bene t from popul atio n grow th and the need for incr eased con nec ti vi ty and nancia l inclusion in the medium to lon g term i n the c ount rie s whe re we ope rate. The com pany ende d the year in a stro ng nancial posi tio n. Net cash gen erate d fro m ope rati ng ac ti vit ies in crease d by 20. 7 % in th e las t 12 months to $2bn , and ou r net de bt to EB IT DA rati o cont inue d to improve to 1.3x at the end of this nancial year . Our cash balance s, in conj unc tio n wi th $587m of commit te d undr awn fa cili ties at t he date of approval of these nancia l statem ent s , ensure we c an contin ue to mee t our nanc ial obligat ions . Durin g the year , we rep aid approx . $1.4bn of bonds . EU R750m ($9 1 5 m ) b ond w as repai d whe n due in May 202 1, an d in Marc h 2022 we repaid $505m US D bon d one yea r earl ier t han it s Mar ch 2023 redempt ion date . We were abl e to make the se repay men ts b ec ause of o ur inc rease d cash g ener atio n, a nd by using t he pro ce eds f rom A ir tel M on ey mino rit y inve st men ts a nd tower s ales . Pos t the se rep ayme nt s, o nly $1bn of long -te rm b onds wi ll remain o ut s tan ding fo r the G rou p, wit h matur it y fal ling in M ay 202 4 . 87 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Strategic report Our long - ter m viabilit y s tateme nt co ntinu ed The key r isk s cons idere d in t he s tres s tes ts , kee ping i n mind t he de mogr aphi cal an d se cto ral dy namic s alo ng wi th t heir p otenti al neg ative impact s, are detail ed here: Stre ss te s ts d on e Link to principal risks and uncer tainties Description Slowdow n in revenue grow th • Ad vers e comp et iti on and market disruption • T echnology obsolescence • N et work resili enc e and busine ss co ntinu it y • Digi talisation and innovation • C yb er and i nfor matio n secu rit y threat s Revenu e is proj ec ted o n a numb er of assum ptio ns such as su bscr ib er base , rates an d chang e in aver age reve nue p er user. A change in any o f the ass umpti ons due to a dver se comp et iti on and market disrupti on may a ec t overall revenue grow t h. In most cases , chang es in on e suc h assumpt ion (e.g., i n rates) are compe nsate d eit her f ully o r margin ally by a cor resp ond ing cha nge in ot her va riab les ( e.g ., su bscr ibe r base) . C hange s not fu lly comp ens ated le ad to a red uc tio n in the r ate of reven ue grow th. We have mo dell ed s tre ss tes t sce nari os for var ious l evels of sl owdow n acr oss se gme nts a nd reven ue s treams . Increase in operating expenses • In creas e in cos t s tr uc ture • Digi talisation and innovation Wi th oper atio ns spread across 1 4 markets and each count r y having a d ie rent eco nomi c and busi ness e nviro nment , t here is a lways a r isk of op era ting c os ts i ncreas ing be yond proj ec ted l evels . Unanticipated regulator y and tax levies • N on - com plian ce to l ega l and regulato r y requi rement s • In terna l cont rols an d compliance As w e wor k in dive rse a nd dy namic le gal e nviro nment s , it ’s nec ess ar y to es t ablish a nd maint ain ade quate p roc edu res, s ys tems a nd co ntro ls to ensure we c omp ly wi th ou r obli gatio ns in all t he jur isdi ct ions in w hic h we ope rate. T he re will a lways b e a risk of unant icip ated regula tor y and tax levie s aect ing our prot abil it y and, there fore, addi ti onal ta x and re gulator y levi es have be en co nside red in t he s tre ss tes t s. Exchange rate uctuat ion • E xcha nge rate uctua tio n and availability of foreign cur renc y for re patr iati on to the G rou p We are const ant ly exp osed to th e r isk of a dver se curren cy uctu atio ns, given our op erat ions in 14 d ie rent markets with diere nt f un ct ional curre ncie s. Fur the rmo re, we cou ld fac e l ow availab ilit y of foreig n c urre nc y i n so me of our markets cons tra ining our ab ilit y to ful ly ben et at the G rou p level f rom t he s tro ng cas h gene rat ion of ou r loc al busi ness es . We have stre ss tes ted t he pl an for var ious l evels of c urre nc y deval uatio n acros s op erat ing enti ti es, i nclu ding t he r isk of availab ili ty of fo reign exc hange , lead ing to rep atr iati on of cas h fro m ope rati ng ent iti es to th e Gro up hol ding c omp anies an d the re sult ing im pac t on c ash ow s and l iquid it y headroo m at t he Group level . C o v i d -19 impact • Un cer taint ies ar ising o ut of Covid- 19 pa ndemic Cov id - 19 continu es to be a h ealt hc are cr isis and a maj or disr uptor i n the li ves of p eop le and the economic activities of bus inesses and governmen ts across the world. The pandem ic has unde rli ned h ow cr it ica l tele coms a re to the c ount rie s in whi ch we op era te, and thro ugho ut t he cr isis we have maint aine d our s er v ice s whil e supp or t ing c ommuni ti es, including by coordinating me dical relief with respe cti ve governments . T e le com o per ators have , th erefore , co ntinu ed to en joy re cog nit ion as es sent ial ser vic e provi der s. T his he lpe d us keep o ur net wo rk s op en and p eo ple an d ser vice p rovid er s connect ed. We have car ri ed out extens ive scenar io analysis loo king at the possibl e negati ve eec t of the o utb reak on t he bus iness v ia a pos sibl e redu ct ion in r evenue g row t h and a p ossibl e incr ease in op era ting ex pe nses . As p ar t of o ur asse ssme nt , in cons ider ing t he ab ove sensi ti vit ies we have also fa cto red in p ossib le mi tigat ions a gains t suc h sensi tiv it ies . Non e of t he sensit ivi tie s ( net of possible mit igati ons ) impact our ope ning h eadro om by mo re than 10% . Conclusion The r esult s of s t ress- tes tin g our fo rec ast s ove r the t hre e -year p eri od for th e above s ensit iv iti es , incl udin g the p ossib le imp ac t of Cov id - 19, demo ns trate t hat th e Gro up wil l be ab le to wi ths ta nd th ese imp ac ts over the peri od of it s nancial fore cas t s. Th e Board has a reasonabl e expe c tat ion t hat no sin gle or p lausib le co mbinat ion of eve nt s woul d aec t long -te rm viabi lit y , even u nde r the severe stres s test s, and the Gro up woul d be ab le to co ntin ue op erat ing an d mee t it s liabi lit ies over the th ree-year period. In ord er to reac h this c onc lusion , th e B oard has c onside red : • Poss ible a ct ions to mi tig ate the i mpac t of ris ks in t he se vere s tres s test s, inclu ding limiting or delaying discretionar y capi tal expendi ture withou t compromising on networ k quality, optimis ing operating expenditure and reducing or stopping dividend pa y ments • Acces sing a dditional funding, including nancing fac ilities and acc ess to t he deb t capi ta l market s in o rder to re pay de bt whic h matures ove r the t hre e -year p eri od w hile mai ntain ing ad equat e liquidit y headroom • T he inte rnal an d ex ter nal envi ronme nt , cur rent an d lon g- ter m prosp ec t s, a nd th e st rate gic in tent s and di rec tio ns ado pted by management • T he ris k fra mewo rk , pote ntial s ensi tiv it ies arou nd th e pr incip al ris ks and mi tigat ing f acto rs . The B o ard has co nclu de d that t he G roup wo uld be i n a posi tio n to acc ess debt capi tal market s and meet our nancin g needs as and when re quire d. Bas ed on t his asse ssme nt and in a cco rdan ce wi th re quire ment s of provis ion 31 of the 20 18 UK Co rp orate G over nan ce C ode , the B oa rd has con clu ded t hat we have t he abil it y to co ntinu e our o per atio ns and be a ble to m eet o ur com mit ment s an d liabil iti es over t he assessment period. The s t rate gic rep or t was approve d by th e Bo ard of dir ec tor s on 1 0May 2022 and signe d on it s behalf by : Olusegun Ogunsanya Chief execu ti ve ocer 1 0 May 2022 Strategic report 88 Air tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 In t his sec ti on 90 Our B oar d of dire cto rs 94 Our E xe cut ive C ommi t tee 96 Chair’s introduction 98 Our l eade rship 1 03 Board evaluation 1 04 Au dit an d Risk C ommi tt ee rep or t 1 14 N ominat ions C omm it tee re por t 1 19 O ur co mplian ce wi th t he UK C or por ate Go verna nce C od e 12 3 D irec tor s’ rep or t 12 7 D irec tor s’ resp onsibi lit ies s tate ment 12 8 D irec tor s’ remun erat ion re por t G o v er n ance r epor t Ai r te l Af r ic a pl c Ann ual R ep or t and A cc ou nt s 2022 89 Our Board of direc tor s Ke y to c om mi t te e s AR Aud it an d Risk C om mit te e N Nominations C ommittee R Remuneration Committee M Market Disclosure C ommittee S Sustainabilit y Commit tee Commit tee chair Dat e ap po in te d to B oa rd : J u l y 2 018 Independent: no Ag e: 64 Nationality: Indian Skills, expert ise and contr ibution Sun il is t he fo und er a nd ch air pe rs on of B ha r ti E nte rp ris es , on e of In dia’s fo rem os t r st- ge ne rat io n cor po rat io ns wit h intere s ts in tel ec oms , nan cia l ser v ice s , proc ess ed foo d , real est ate and hos pi ta lit y. Bhar ti Air t el , the agsh ip com pan y of B ha r t i Ente rp ri ses , is a g lob al tel ec omm uni ca tio ns com pan y oper at ing in 1 7 co unt ri es acr oss So ut h Asia an d Afri ca and ra nki ng amo ng the top thr ee mo bil e oper ato rs glo ba lly. Air te l is one of Ind ia’s large st int eg rate d tele co ms prov id er s and the sec on d larg es t mob ile op er ator in Afr ic a , ser v ing over hal f a bil lio n cus tom er s. Sun il is the pion ee ri ng forc e behi nd th e mobil e revol ut io n in In dia – he revo lu ti onis ed th e busin ess mo del at Bha r ti Ai r te l to m ake aor dab le voi ce and dat a ser v ice s avai lab le to all. Ai r tel has tr ans fo rme d the qua li ty of live s of m ill io ns of pe op le glo bal ly, providing connectivi ty and digit al e mpowerment . As chair of the Board, his leadership has bro ugh t immen se valu e to Air tel Afr ic a thro ug h his futu ris t ic visi on , vast kno wl ed ge and ind us tr y exp er tis e. Sun il is a re ci pie nt of the Padm a Bhush an , one of India’s high es t civ ilia n hono ur s. Ex ternal commitments • Fo un der a nd c hair p er son o f Bh ar t i Ente rp ri ses a nd B har ti Ai r te l • Ch air pe rs on of O neWeb Hol din g Limit ed • M emb er of t he I nte rn ati ona l Bus ine ss C ou nci l, Wo rl d Ec ono mic F or um ( W EF ) • M emb er of t he Glo ba l B o ard of A dv iso rs , Coun cil of Fo reig n Relat ion s (CF R) • Commissioner of the B roadband Commiss ion • T r us te e at the Carn eg ie Endo wme nt for Inter nat io nal Peace (CEIP) • M emb er of t he B o ard of Q at ar Fo und ati on E ndo wm ent (QF E) • M emb er of t he Indi a- US, Ind ia - UK and Indi a- Ja pan and Indi a- Swe de n CE O F or ums • C o - cha ir of t he Indi a- Af ri ca Bus ine ss Coun ci l Previous roles Sun il has s er v ed o n th e boa rds of s eve ra l inte rn ati ona l bo die s. H e wa s the cha irp er so n of t he In ter nat io nal C hamb er o f Co mme rc e (IC C) fro m Jun e 201 6 to Jun e 2018 and the c hai rp er so n of GS M A ss oc iat ion (GS MA ) fro m Jan uar y 20 1 7 to De ce mb er 2018. He wa s th e pre sid ent o f the C o nfe der at ion o f Ind ian I nd ust r y (CI I) fro m 2007 to 2008 . Suni l is a sso cia te d with sp ear hea di ng Indi an indu st r y ’s glob al tr ade , coll ab ora ti on and pol ic y – h e has ser ve d on the Pri me Min ist er of India ’s Council on T rade and Industry. Sun il has also ser v ed on the bo ards of seve ral mul t inat io nal com pa nie s inclu di ng Unilever , Standard Char tered Bank and Soft Bank Corp. Sun il is a no min ee o f Bh ar t i Ai r te l. Dat e ap po in te d to B oa rd : O c t o b e r 2 021 Independent: no Ag e: 55 Nationality: Nigeria n Skills, expert ise and contr ibution Se gun has joi ne d the Boa rd af te r 1 0 year s as mana gin g dire ct or and CEO of our Nig er ia ope rat io ns , wit h respo nsi bil it y for our larg es t marke t in Afri ca . He bri ngs to th e Boar d a d ept h of know le dge ab ou t Afri ca n marke t s and more tha n 2 5 year s of busin es s manage me nt exp er ien ce in bank ing , con sum er goo ds and tel ec oms . Se gun at ten ds all Bo ard me eti ngs , Audi t and Risk Co mmi t te e meet ing s and chair s th e Sus ta ina bil it y C omm it te e. H e is inv it ed to a tt end t he R emu ne rat io n and No mina ti ons Co mmi t tee me et ings . Other commitments Bo ard m em ber o f Bh ar t i Ai r te l Inte rn ati ona l (N eth er lan ds) B.V . , Bha r t i Air tel Af r ic a B . V. and Ai r tel Ne t wor k s Limi ted – all subsi diar ie s of th e Grou p. Previous roles Be for e joini ng Air tel in 20 13, Se gun he ld lea der sh ip role s at Coc a- Col a’s bott li ng op era ti ons in Ghan a, Ken ya and Nig er ia ( as CE O). H e has also bee n the mana gin g dir ec tor of Nig er ian Bo tt li ng Com pan y Ltd ( C oc a - C ola He lle ni c owne d) and head of ret ail ban kin g ope rat io ns at Ecoba nk T ra nsna tio nal In c, co ver ing 28 count ri es in Afr ic a . Segu n is a char t ere d acc oun tan t and an engin ee r. H e was awarde d Afr ic an Bus ine ss Lead er of the Y ea r in Septe mbe r 202 1 . Du rin g the rep or t in g per iod , Se gun par tic ipa ted in a targ ete d mento ri ng pro gra mme to en han ce his U K li st ed p lc ex pe ri enc e. Dat e ap po in te d to B oa rd : J u n e 2 0 21 Independent: no Ag e: 60 Nationality: Indian Skills, expert ise and contr ibution Jai de ep bri ngs mo re than 30 year s of l ea der shi p and nan cia l expe ri enc e to our Bo ard , w it h 18 of the se in t he te le co ms in dus t r y. He cha ir s our F ina nc e Co mmi t tee and at ten ds all Bo ard me eti ngs , Audi t and Risk Co mmi t te e and Sust ai nabi li ty Commit tee meetings. Other commitments Bo ard m em ber o f Bh ar t i Ai r te l Inte rn ati ona l (N eth er lan ds) B.V . , Bha r t i Air tel Af r ic a B . V. and Ai r tel Ne t wor k s Limi ted – all subsi diar ie s of th e Grou p. Previous roles Be for e bec om ing our chief na nc ial o ce r in 201 4, Jai de ep was CF O at Ai r te l Nige ria , Fair t ra de LLC Musc at and Bh ar t i Reta il . He has als o held na nci al role s at Mumba i Cir cle an d Bhar t i Air tel Del hi Circ le , as w ell as seni or rol es at HCL , T els t ra V- Co m and Ca ltex . Jai de ep st ar ted his care er at Pri ce wate rh ous e and is a qu ali e d char tere d account ant. Segun Ogunsanya Managing director and CEO M S Jaidee p Paul Chief nanci al ocer S Sunil B har t i Mit t al Chair N M Governance report 90 A ir tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 Dat e ap po in te d to B oa rd : A p r i l 2 019 Independent: yes Ag e: 66 Nationality: British Skills, expert ise and contr ibution An dy bri ngs many yea rs of glob al nan cia l and st rate gi c expe ri en ce to the Boa rd . Th rou gh his wor k with a numb er of mult ina tio nal org anis at ion s, he ca n draw on a wid e know le dg e of diver se issu es and out co mes to prov id e cons tr uc t ive cha lle ng e and r obu st s cr ut iny o f mat te rs t hat c ome b ef ore t he B oa rd . Ex ternal commitments • G rou p cha ir of Si mo n M id co Limi te d (th e holdi ng comp any of L owe ll Grou p ) • Ch air at G en tr ac k G ro up Limi te d ( NZ X / A SK) • N on - exe cu ti ve direc to r at Link Admin ist ra ti on Hold ing s Lim ite d (ASX ) • C omm issi on er at t he N ati ona l Inf ra st r uc tur e Co mmis sio n • T r us te e of WWF UK and Disas ter s Emerg en cy Com mi tt ee • Ch air of Wat er Ai d UK Previous roles An dy wa s pre vio usl y se nio r ind ep en den t dir ec tor o f Avant i C omm uni cat io ns pl c an d AR M Hol din gs plc and cha irp er so n of the Digi ta l Cat apu lt and IG Gr oup pl c. He was chi ef exec ut ive o ce r of L og ic a plc unti l its sa le in 20 12. His pr io r roles in clu de th ose at BT Grou p plc , inc lud ing CE O of BT Op enw or ld , CEO of BT Glob al Ser vic es and CE O of Gro up Stra teg y and Ope rat io ns and var iou s roles at She ll and Del oi t te. An dy has hel d a num ber of non - exe cu ti ve dire c tor shi ps in the US , Hong Kon g , Ger many and th e UK . Dat e ap po in te d to B oa rd : A p r i l 2 019 Independent: yes Ag e: 63 Nationality: Nigeria n Skills, expert ise and contr ibution Awun eb a is a cha r te red a cc ou nta nt w it h bro ad ex pe ri en ce in as sur an ce , ta xat io n, na nc e and advis or y ser vic es acr oss sev era l indus t ri es . Her exp er t ise as an assu ran ce an d nanc e spe cia lis t , garn ere d at leadi ng prof ess ion al ser v ic es rm s and in the Ni ger ia n market , make her ins t ru men ta l to B o ard de cisi on - mak ing . Ex ternal commitments • E xe cu ti ve dir ec tor at Mult is tre am Energ y Limit ed • B oar d cha ir at C AP P lc • G ove rni ng coun ci l c hai r at G ran ge Scho ol , Lag os • B oar d me mbe r of U nive rs it y of I bad an Re sea rch F ou ndat io n • M emb er of t he Fina nc e Commi t te e o f th e M usi ca l So cie t y o f Nig er ia (MUS ON) • C oun ci l m em ber Nig er ia Bri tis h Chamb er of C omm er ce Previous roles Awun eb a was a b oar d memb er at UAC o f Nige ria Pl c (UACN) from 20 09 to 2 01 9. Du rin g her tenu re, she cha ire d the Risk Ma nag eme nt Co mmi t tee and was a memb er of th e Sta tu tor y A udi t C omm it te e. Pr io r to t his , she d eve lo pe d he r ca ree r at Pea t Mar wic k , De loi t te an d Acc en ture . Awu neb a was a lso a b oar d me mbe r at U PD C Plc , and h as he ld ad vi sor y and im pl eme nt ati on ro le s wi th a nu mb er of n ati ona l dev elo pm ent pro je c ts in Nig er ia. Dat e ap po in te d to B oa rd : A p r i l 2 019 Independent: yes Ag e: 66 Nationality: British Skills, expert ise and contr ibution Do ug bri ngs vas t lead er shi p expe ri en ce in both pr iv ate and pub lic se c tor s to th e Bo ard an d his rol e as th e chair of the Rem une rat io n Com mit te e. His ba ckgr oun d in div er se le ade rs hip r ole s an d huma n res our ce s is par tic ula rl y use fu l to th e B oar d wh en cons ide ri ng the Ai r te l Afri ca cu ltu re, emp lo yee man age me nt , execu ti ve rem une rat io n and othe r empl oye e - rela ted ac ti vi ti es . Ex ternal commitments • V ic e chai rp er so n of th e Mas te r Ca rd Fo un dat ion • D ire ct or of t he Lever hul me T rus t • N on - exe cu ti ve direc to r of the Huhta mak i Gr oup Previous roles Do ug spe nt 38 years at Unil eve r , wher e his roles inc lu de d presi den t of Wes ter n Euro pe i n th e Net he rl and s unt il 201 1, Gr oup v ic e pr esid en t of So ut h A sia , CE O Hin dus t an Un il ever i n In dia un ti l 200 8 , Gro up v ic e pre sid ent A fr ic a an d the M id dle Eas t fro m 2004 unt il 200 6, and chi ef HR oc er fro m 20 11 unti l 20 16. Dat e ap po in te d to B oa rd : A p r i l 2 019 Independent: yes Ag e: 71 Nationality: American Skills, expert ise and contr ibution Jo hn has held exe cu ti ve lead er shi p roles in inte rn ati ona l busin ess and gov er nme nt for sev era l dec ad es . As a g lo bal bus ine ss lea der and dis t ing uish ed dip lo mat , he has ex ten sive exp er ie nc e in regio nal and int er nat ion al tra de - rel ate d issue s. T o Air tel Afr ic a , he brin gs skil ls in build ing int er nat ion al par t ne rsh ips and ad voc ac y wi th po lic ym aker s , forei gn dign it ar ies an d busine ss lea de rs , and prov ide s cons t ru ct iv e cha lle ng e and robus t scr u tin y of m at ter s that co me befo re the B oar d. Ex ternal commitments • B oar d and c ou nc il me mb er at t he H ar va rd Ch an Sc ho ol of P ub lic H eal th , t he C ent er for Stra teg ic Inter na tio nal Stud ies ( CS IS) and C hat ham Hou se (UK) • M emb er of t he Cou nc il on F ore ign Rela tio ns (New Y or k) and a n elec te d mem be r of the American Academy of Diplomacy Previous roles From 20 09 -2021, J oh n ser ve d on the boa rd of direc to rs of d’Amico In ter nat io nal Shi ppi ng . He was Sec ret ar y Ge ne ral of the Int er nat ion al Chamb er of Com me rce (IC C) in Pari s from 201 4 to 201 8 and CE O of the Mill enn ium Cha lle ng e Cor po rat io n in Washing to n from 200 5 to 20 0 9. He has been th e US ambass ad or to Bra zil and to Co s ta R ic a. W hil e on t he b oar d of th e Pana ma C anal C o mmis sio n, h e ac te d as cha irp er so n of t he C omm issi on’s T r ans it ion C om mi tt ee p ri or to t he ha nd over o f th e ca nal by the US to Pana ma . In his d is ti ngu ish ed car ee r , he also playe d a s ign i ca nt rol e in the Cent ra l Amer ic an Fre e T rad e Agre eme nt (CAF T A). Andre w Gre en C BE Senior non- executive director N AR M Awuneba Ajumogobia ( né e Iketubosin ) No n - exec ut ive direc tor R AR Douglas Baillie No n - exec ut ive direc tor N R M John Danilovich No n - exec ut ive direc tor AR 91 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Our Board of direc tor s co ntinu ed Dat e ap po in te d to B oa rd : O c t o b e r 2 021 Independent: yes Ag e: 52 Nationality: Ethio pia n Skills, expert ise and contr ibution T es ga bri ngs de ep nan cia l ser v ic es and com mer cia l expe ri enc e to the Boa rd gain ed fr om glo bal se nio r execu ti ve and non - ex ec ut ive rol es in the nan cia l ser vic es , inter na tio nal bus ine ss , merg er s and acqu isi tio ns , mobi le co mme rce and te chn ol og y sec tor s . Ex ternal commitments • B oar d membe r of Lo ndo n Stock Exc han ge Grou p • Pa r tn er at S at ya Capi t al Limi ted Previous roles T se ga for mer ly se r ve d as vic e - ch air and cha ir of the Finance Committee of SES SA . She sp en t seven yea rs at Cel tel Int er nat ion al (re- br and ed Za in Gro up), a lea din g mob il e tele co mmun ic at ion s provi de r in t he Mi ddl e Eas t and Nor t h Afr ic a. Du ri ng her tim e at Celt el , T s ega he ld var iou s senio r role s incl udi ng sen ior gro up adv ise r, Z ain Afr ic a BV, c hief s tr ate gy and dev elo pm ent o ce r , ch ief busi nes s deve lop me nt and mer ge rs & acqui sit io ns oc er, a nd dire c tor of Mob ile Co mme rc e and New Pro duc t De vel opm en t . From 1 996 to 200 0, T s eg a was found ing par tne r at New Afr ic a Op po r tu nit y Fund LL P . In add it ion to her sen io r execu ti ve posi ti ons , T se ga has ser ve d as a no n - exe cu tiv e dir ec tor of Cel te l Inter nat io nal BV, H yge ia Nig eri a Limi ted , ISO N Gro up and Son ae SA . She has also be en a trus te e of the glo bal cha ri t y Save the Chil dre n. Dat e ap po in te d to B oa rd : A p r i l 2 019 Independent: yes Ag e: 66 Nationality: British Skills, expert ise and contr ibution Wi th ex pe ri en ce in d ive rs e in dus tr ie s suc h as he alt hc ar e and c ons ume r br and s, as wel l as i n chair in g othe r audi t comm it te es , Ravi br ings a weal th of rece nt nan cia l exp er ie nc e and cult ura l insigh t to o ur Bo ard an d Audit an d Risk Com mit te e. Ex ternal commitments • Ch air pe rs on of F or t is Heal th ca re Limi ted , India • T r us te e of th e Sc ie nce M us eum F oun dat io n, U K • V ic e C hai rma n, Peab od y Ho usin g Ltd Previous roles Rav i was p rev iou sly i nde pe nd ent d ire c tor an d ch air of t he A udi t Co mm it te e of Vedant a Res our ces Li mit ed , UK and chai rp er so n of J M Fin anc ial , Sing ap ore P te Ltd. He hel d nan cia l leade rs hip rol es at Diag eo unt il ret ir ing in 20 15, inclu di ng grou p co ntr oll er in the UK wi th resp on sib ili ty fo r the spir it s busi ne ss acro ss sub - Sah ara n Afr ic a and glo bal hea d of m erg er s and acqui sit io ns . Star t ing in 1 979, Ravi hel d vario us rol es at ITC India , inc lud ing a sec on dme nt to W es t Afr ic a wit h Bhar t i Air t el T e lecoms. He has hel d numer ous pos it io ns on vario us joi nt ventu re boa rds and Di age o’s Indi a adv is or y bo ard , and was non - exe cu ti ve dire ct or of Unite d Spir i ts in Ind ia. Dat e ap po in te d to B oa rd : Oc to b er 2020 Independent: no Ag e: 45 Nationality: Australian Skills, expert ise and contr ibution Kel ly bri ngs to the Bo ard a uniqu e ble nd of techn ol og y, c omm er cial an d manag eme nt exp er tise fr om a care er span nin g nanc ial se r vi ce s, mana ge men t consu lt in g, th e Sil ico n Valley tec h sec to r and tele co ms. Sh e also bri ngs a valuab le ac ume n in lea de rsh ip, ban kin g , risk manag em ent , re gula ted mar ket s and inn ovat io n at scal e. Kel ly has an impre ssi ve tra ck rec ord of del ive ri ng resul t s , growi ng and op era tin g large glo ba l busine ss es . She is known for he r expe r ti se in lever ag ing tec hn ol og y , data and anal y t ic s to d eve lo p leadi ng cus tom er se r vi ces an d expe ri enc e. In 2021, Ke ll y was named on e of th e top 3 te ch CE Os in Aus tra lia and top 10 g lob al 5G Lead er s. She has also be en nam ed on e of t he T op 25 Wome n in Asia Paci c Fi nan ce , the Top 1 0 B usi ne ss wom en i n Aus tr ali a, a nd 50 M os t Pow er f ul Wom en in Aus tra lia n Busin es s. Kel ly is a n omi ne e of Sin gte l to our B oar d. Ex ternal commitments • C EO at Si ng tel Optu s P t y Limi te d and mem ber of th e S in gte l Man age me nt Commi tte e • N on - exe cu ti ve direc to r at REA Gro up Ltd (AS X) • M emb er of C hie f E xec ut ive Wo me n • El ec te d as a Fell ow of th e Aust ral ian Aca dem y for T ec hno lo gy, S ci enc e and Engineering (A TSE) Previous experience Kel ly has held a vari et y of execu ti ve role s, in clu din g Gro up Exe cu ti ve , Inst it ut ion al Ba nki ng and Mar ket s on the exec ut iv e team of th e Comm onw eal th Ba nk of Aust ral ia . He r care er be gan in Sili co n V a lle y wit h both st ar t-ups and es t abl ish ed sof t w are co mpa nie s work ing in pro du ct dev elo pm ent , busi ne ss deve lo pme nt , mar keti ng , M& A and s tra te gy. Af te r a s t int as a mana ge men t consu lt ant wi th th e Bos ton Co nsul ti ng Gr oup , Kelly joi ne d Com mon weal t h Bank in 2004 and he ld a varie t y of sen io r roles ac ros s the Ins ti tu tio nal and B usin ess Ba nki ng div isi ons , befo re bei ng app oi nte d to th e ba nk ’s exec ut ive i n 201 3 . Kel ly has p rev io usl y be en a b oar d me mbe r at O pe nPay, th e Fo otb all F ed er ati on of Aust ra lia (FFA) and ser v ed on the Uni ver si t y of N ew So ut h Wales Engi ne er ing Facu lt y Ad vis or y Boa rd , th e Aus tr ali an G ove rnm en t’s F in Tech Ad vis or y G ro up an d NS W Gove rnm en t Digi ta l Advis or y Pan el . Kel ly is a n omi ne e of Sin gte l. Dat e ap po in te d to B oa rd : A p r i l 2 019 Independent: yes Ag e: 51 Nationality: Finnish Skills, expert ise and contr ibution Ann ik a’s wid e - ran gin g expe ri en ce in audi t and regu lato r y eng age me nt s cont ri bu tes to he r pe r fo rma nc e as a me mbe r of t he B oar d and A ud it an d Ris k Co mmi t tee . Wi th her le gal ba ckgr oun d and dee p know le dg e of a ud it ing , acc oun ti ng and nan cia l rep or ting , she br ing s a ke en sc ru tin y to all gove rn anc e and reg ulat or y mat te rs . Annika is our Board sustainability champion and is a member of t he Sustainabilit y Commi tte e. Ex ternal commitments • Wor ki ng chair of t he Cou nc il for S wed ish Fina nc ial Repo r t ing Sup er v isio n • M emb er of t he S wed ish Au di t Ac ade my • M emb er of t he Nasd aq Helsi nki Lis ti ng Comm it te e • B oar d membe r of th e Carp e Diem Fou ndat io n, whi ch runs the top - ran ked Swed ish elementary school, Fredrikshovs Slott Skola • Director of T ruecaller • Ad vis or y Bo ard memb er of U nze r Group Gm bH Previous roles Ann ik a has be en a b oa rd an d aud it c om mit te e me mb er of l ist ed c omp ani es e Q Ab p, Ho is t Fin anc e A B , Safe ro ad A S ( d el is ted i n Se ptem be r 201 8) and S wed ban k AB , a s wel l as i ndu st r y adv is or to str ate gic co mmu nic at ion s rm JK L Grou p. She ad vis ed th e Swedis h gover nm ent on th e natio nal imp le men tat io n of the refor me d EU marke t abu se regi me and was hea d of m ar ket sur ve ill anc e Nord ic s at Nasdaq and he ad of unit , pro sp ec tus es , exchan ge s and clea rin g hous es at the Swed ish Fin anc ial Sup er v is or y Au t hor it y. She w as als o an as so ciat e in t he C api ta l Mar ket s G ro up at Lin kla ter s Lond on and has be en a pr ac tis ing so lic ito r in both the UK an d Finl and . T sega Gebreyes No n - exec ut ive direc tor Ravi R ajago pal No n - exec ut ive direc tor AR N M Kelly B ayer Ros marin No n - exec ut ive direc tor Annika Poutiai nen No n - exec ut ive direc tor AR S Governance report 92 Ai r t el Af r ic a pl c A nnu al R ep or t and A cc ou nt s 2022 Ke y to c om mi t te e s AR Aud it an d Risk C om mit te e N Nominations C ommittee R Remuneration Committee M Market Disclosure C ommittee S Sustainabilit y Commit tee Commit tee chair Board age (y ears ) 20 –39 8% 40 – 49 8% 50 – 59 23% 60 – 69 54% 70 –79 8% Board nationalit y Finnish 8% Nigerian 16% American 8% Australian 8% Indian 23% Bri tish 30% Ethiopian 8% Board gender ratio Women 31% Men 69% Dat e ap po in te d to B oa rd : O c t o b e r 2 018 Independent: no Ag e: 66 Nationality: Indian Skills, expert ise and contr ibution Ak hil br ings vas t nan cia l, s tr ate gic and tel ec om s expe r tis e to our Boar d and is inv ite d to atte nd our Aud it and Risk Co mmi t te e meet in gs. He has play ed a pivot al rol e in the Bh ar t i Gr oup ’s phen om en al grow th in the tel e co ms se ct or, b ot h orga ni ca ll y and th rou gh var iou s acqui sit io ns . His innova ti ve tho ugh t lead er ship has hel pe d Bh ar t i Air te l achi eve hea lt hy margi ns whil e oer in g some of the low es t tar i s in the world. Ex ternal commitments • Vice chairperson of Bharti Enterprises • Ch air pe rs on of D igi t al Infr as tr uc tur e pro vid er s Ass oci ati on (DIPA) • Pr esid en t of T e le co m Se cto r Sk ill C ou nc il ( TS SC) • B oar d membe r of O neWeb Hold ing s Lim ite d Previous roles Ak hil l ed t he fo rm ati on of v ar iou s par tne rsh ips f or B har ti wi th o pe rat or s like B r it ish T el ec om , T el ec om It alia , Sing ap ore T el ec om and Vodaf one , as well as wi th na nci al inve st or s such as Warbur g Pinc us , T e mas ek , KKR , Qat ar Fou nda ti on End owm ent , AI F and S e quo ia . He wa s be hin d the s ep ara ti on of p assi ve mo bi le in fr as tr uc tur e and th e forma ti on of one of the large s t tower com pan ies in the wo rl d, In dus T owe rs Ltd – a n ota bl e examp le of coll ab ora ti ng at the back en d whil e comp et ing at the fro nt end . He also exec ut ed the ac qui sit io n of Zai n Gro up’s mobi le ope ra tio ns in 15coun tr ies ac ross Af ri ca , the se co nd larg es t out bo und dea l by an Ind ian com pan y. Ak hil is a n omi ne e of B har ti Ai r te l. Dat e ap po in te d to B oa rd : O c t o b e r 2 018 Independent: no Ag e: 34 Nationality: British Skills, expert ise and contr ibution As th e entr epr en eur ial fou nd er of a to p - pe r fo rmi ng glo bal te chn ol og y inves tm ent r m, Shr avi n brin gs dive rs e view s and exp er t ise in the te ch sec to r to our dis cus sio ns and dec isio n -m aki ng , and is invite d to atte nd our Rem une rat io n Commit tee meetings. Ex ternal commitments • Fo un der of Unb ou nd , a lon g -te rm inves t me nt rm aiming to bui ld and back technology companies • Ma nag ing dire c tor of B ha r ti Gl oba l Lim ite d • B oar d membe r of O new eb Hol din gs Limit ed • B oar d membe r of te ch nol og y compa nie s mPhar ma , C ar s24, Sy f e, Paack and FreightHub Previous roles Shr avi n was previ ous ly at Sof t Ba nk Visi on Fund , a $ 100 bn fu nd inve st in g in tec hn olo gy co mpa nie s , and assis ta nt dire c tor at Bet te r Capi t al, a pri vate eq ui ty r m in Lond on wh ere he tur ne d aroun d dist res se d reta il and manu fa ct uri ng busi nes se s. Be for e thi s, h e was i nvol ve d in th e lau nc h of 3G at A ir t el I ndia a nd o n th e sen ior mana ge men t team at Air te l Afri ca , whe re he spea rh ead ed th e pos t-ac quis it ion inte gr ati on of Zain . Be fore Ai r te l, he wor ked wi th J. P . Mor gan inve st me nt bank cov er ing tec hn olo gy, medi a and tele co ms. Shr avi n is a no min ee o f Bha r t i Air tel . Akhil G upta No n - exec ut ive direc tor Shrav in Bhar ti Mi tt al No n - exec ut ive direc tor 93 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Regional directors Ian Ferra o Regiona l dir ector – East A f rica Ian is resp ons ibl e for manag ing our na nc ial pe r fo rma nc e and acce le rat in g pro ta ble gro w th in Eas t Af ri ca . H e wor k s wi th l oc al M Ds in e ach m ar ket to dev elo p st rate gy an d execu ti on plan s, he lps dev elo p local leadership teams and improves the coordination bet w ee n Grou p level and tea ms in loca l ope rat ing uni t s . Ian has spe nt the las t 1 6 year s lead in g tele com s org anis at ion s in A fr ic a , both as an entre pre ne ur and a co rp or ate CEO. He jo ine d Air t el Afr ic a and the E xC o in 2019 to lead o ur Eas t A fr ic a op era ti ons i n Keny a, T anz an ia, Ug anda , Rw and a, Za mbia an d Malaw i. Be for e Air tel Afr ic a , Ian was the CEO for Vodac om T anz an ia, wh ere h e le d th e com pan y’s I PO o nto t he DS E . He ’s als o ser ve d as CE O of Vodac om Les oth o, CCO for V odacom Business Afric a and commercial director and sha reh ol der of Afr iC on ne ct Za mbi a. Michae l Foley Regiona l dir ector , Fr ancophone Africa Mic ha el has bee n an ExC o memb er sin ce joi nin g Air te l Afr ic a in 2020. He is r esp ons ibl e for manag ing na nc ial pe r fo rma nc e and acce le rat in g pro ta ble gro w th in our Francophone Africa operations. Mich ael works with lo ca l MDs in each mar ket to devel op st rat eg y and execution pl ans, helps dev elop local le adership t eams and improves the coordination between Group level and lo ca l oper at ing team s. Ov er th e las t 35 yea rs , M ich ael h as le d tel ec om s, co nsum er goo ds , nte ch and gam ing busi ne sse s in th e US , A sia an d Af ri ca , as we ll as i n his nat iv e Ca nada . His m os t re cen t rol e was as C EO o f T el en or ’s op era ti ons in Pakis t an , Bul gar ia and Ban gla des h. C Surendran Managing director and CEO, Air tel Nigeria As man agi ng dire c tor and CE O of Air tel Nig er ia , Sur end ran is resp ons ibl e for ope rat io ns in our large st mar ket in Afr i ca . He dri ves th e exec ut io n of our str ate g y in Nig er ia in line wit h Gro up - le vel fun c tio nal tea ms. Sur end ran w as ap po inte d in M ay 2021, whe n he als o joine d the E xC o, fro m Bhar ti Air tel. T her e he co ntr ib ute d im men sel y ove r 18 year s to cus to me r exp er ie nc e, sa le s and b usin es s ope ra tio ns . In hi s mos t rec en t role as CEO of Kar nat aka , the lar ges t busi nes s in Ai r te l In dia w it h over $1bn i n reve nue , he d eli ve red exce pt ion al per for man ce and a signi c ant in crea se in reve nu e mar ket sh are ov er th e las t fe w year s . He h as over 3 0 year s of b usin es s exp er ien ce . Busin ess heads Vimal Ku mar Ambat CEO, A ir tel M oney Vi mal joi ne d Air te l Afr ic a in 2021. H e lead s our Air te l Mo ney bus ine ss – managi ng it s nan cial pe r fo rm anc e, st ra teg ic dire c ti on and pr ior it ie s, br and st re ng th and gro w th in cus tom er s. T o Air t el Afr ic a , he brin gs over 27 ye ar s of l ea der shi p exp er ie nc e at l ead in g bank s in A sia , the Mid dle Eas t and Af ri ca . Imme dia tel y befo re join ing Ai r te l Afri ca , Vi mal wa s th e chi ef exe cu ti ve of Re ta il an d Bu sin ess Ba nki ng and chi ef digi ta l oc er for the Abs a Gro up Re gio nal Op er ati ons in nine co unt ri es . Luc Ser viant Group enterprise director Luc lea ds our ente rp ri se busi nes s str ate gy. This inc lu des he lpi ng SM Es , cor po rat e and gover nm ent cus to mer s acro ss Afr ic a ado pt xed an d mobil e net wo rk so lu tio ns to acce le rat e their gro w th , dig it al transfor mation and business productivit y. Luc has mor e than 26 ye ar s’ inter nat io nal exp er ie nc e in marke ti ng and imp lem en tin g core net w or k and ICT sol ut io ns for t he e nte rp ri se se c tor. He has h el d var iou s rol es at Oran ge Bus ine ss Ser vic es – from hea d of glo ba l ser vi ce s in Swit zer la nd to head of consu lt ing and so lut io ns inte gra ti on APAC i n Singa po re, and mos t re ce nt ly as v ic e pre sid ent M id dle E as t and A fr ic a , bas ed i n Dub ai . He ha s als o hel d a var ie ty o f po sit io ns at SIT A (Socié té Int er nationale de T élécommunications Aéronautique s ), Global One T elec ommunication s and Alcatel- Lucent. Luc has be en an Ex Co mem be r sinc e joini ng Air tel Afr ic a in 2019. Our E xecutive Committee Ch ie f exe c ut i ve o ce r C hi ef n an ci al o c er Regional directors Business heads Functional heads Segun Ogunsanya Jaideep Paul C Surendran MD a nd C EO N ig er i a Ian F errao Regional Director – East Afric a Michael Foley Regional Director – Francophone Africa Vimal Kumar Ambat CEO, Airtel Money Luc Serviant Group enterprise director Ramakrishna Lella Ch ie f supp ly ch ai n oc er Daddy Mukadi Ch ie f regu la to r y oc er Stephen Nthenge He ad of i nt er na l au di t an dri ska ssu ra nc e Olubayo Adekanmbi Chief strategy , partner ship an d sus ta in ab il it y o ce r Rogany Ramiah Chief human resources ocer Neelesh Sin gh Chief information ocer Razvan Ungureanu Chief technology ocer Ch ie f leg a l oc er – vac an t Ch ie f com me rc i al o ce r – vacant Governance report 94 A ir tel A fr i ca p lc A nn ua l Rep or t an d Acc ou nt s 2022 Olubayo Adekanmbi Chief strategy , par t nership s and sust ainabilit y ocer Bay o is t he ne wes t mem ber of our E xC o, havi ng join ed in De cem be r 202 1. He ’s respo nsib le for lea din g strategi c b usiness-wide initiatives including innovation , st ra teg ic inve st me nt , ope rat io nal e cie nc ies and par tne rs hips . He’s also res po nsib le for del ive ri ng our sustainabilit y strategy. Bay o’s car ee r inc lu des 20 y ear s in th e tel e com s ind us tr y, wher e he hel d seve ral se nio r role s in N ig er ia and So ut h Afr ic a leadi ng on st rate gy, glob al marke ti ng and bu siness int elligence. Ramakr ishna Le lla Chief supply chain ocer Rama o ver se es t he p roc ure me nt of o ur ne tw or k eq uip men t and IT . He also manag es our towe r companies and bandwidth , sales and distribution , sup pl y chain for mar ket ing and HR se r vi ce s, and ware ho use op era ti ons and lo gis ti cs . And he lea ds on ou r co st r edu c ti on in it iat ive s. Rama kr ish na has s pen t mo re th an 30 ye ars i n th e tel ec oms i ndu st r y, wit h mo re th an ha lf of t his t ime a t Air tel . Befo re be co ming ou r chief sup pl y chain o ce r in 20 16, he led th e team set ti ng up vari ous t yp es of net wo rk s (in clu din g mobi le , NLD/ IL D, Ente rp ris e and DT H) an d was t he di rec to r of su ppl y ch ain mana ge men t for Air te l Nige ri a. He has also he ld telecoms r oles in resea rch and development, manu fa ct ur ing (Al ca tel and In dia n telep ho ne ind us tr ies) and s er v ic e pro vi der s (A ir te l an d Reliance Jio ). Daddy Mukadi Chief regula tor y ocer Dad dy is resp onsi bl e for our regu lato r y and gove rn me nt relat io ns st rate g y in a ll 1 4 op era ti ons . Th is incl ud es obt aini ng all ne ces sa r y reso urc es (li ce nce , spe ct r um), ensu ri ng ful l comp lia nc e and ac ti vel y help ing to shap e the pol ic y and regu lat or y landscape toward best pract ice. Be for e bec omi ng our chi ef regu lato r y oc er in 201 5, Dad dy hel d seve ral le gal and re gula tor y lea de rsh ip rol es ac ros s Af ri ca . Hi s mos t re ce nt ro le wa s as exec ut iv e head of inter nat io nal reg ula tor y a air s and exec ut iv e head of inter nat io nal com me rcia l lega l aai rs at Vodac om G ro up. Wi th a maste r ’s degre e in comm uni cat io ns law (tele co ms, br oad ca st in g, me dia and spa ce & satel lit e law) and as au t hor o f sev era l vol ume s of a han db oo k for me dia law pra ct it io ne rs , Dadd y bri ngs a broad und er s tan din g of legal an d regul ato r y aai rs to his rol e at A ir te l Af ri ca . Stephen Nthenge Head of inter nal audit and risk assur anc e Step he n is res po nsib le fo r ou r Int er nal Au di t dep ar t me nt , whi ch prov id es ind epe nd ent aud it in g and ad vic e on our risk mana ge me nt , gover na nce and c on tro l pro ce ss es in l ine w it h th e pu rp ose , ro le and responsibilities in the Audit Charter. H e also over se es th e integ ri t y and relia bil it y of our nan cial and op er ati ona l infor mat io n, th e safeg uar din g of th e company’s assets, and our compliance with laws, reg ula tio ns , pol ici es and pro ce du res . Step he n has mo re t han 25 year s’ ex pe ri enc e in a udi t , ente rp r ise ris k and infor mat io n secu ri t y manag eme nt , havi ng wor ke d for Deut s ch e Bank AG , JP Mor gan Chas e and KPM G in senio r manag em ent rol es in Aus tr ali a, Sin gap ore , Lond on and Ne w Y or k . In addi tio n to lead ing re gio nal and glo ba l audi t teams , he helpe d to est ab lish ri sk and gove rna nc e fram ew or ks for new pr odu c ts an d ser vi ce s as wel l as r eg ulat or y gove rn anc e fra mew or ks . He has also le d str ate gic ris k miti gat io n and trans fo rm ati on al prog ra mme s. Step he n is a ce r ti ed info rm ati on sy st ems aud ito r. Step he n has been an Ex Co me mbe r sinc e joini ng Air tel Af r ic a in 2019. Rogany Ramiah Chief huma n resou rces ocer Rog any is resp onsi bl e for leadi ng and dev elo pi ng our pe op le st ra teg y to suppo r t our over all s tr ate gic dir ec ti on . He r mai n area s of fo cus ar e suc ce ssi on an d talent planning, change and performanc e management and enh anc in g our overa ll empl oye e exp er ien ce . Rog any sit s on the Sus t aina bi lit y Co mmi t tee . Rog any has 25 ye ars ’ expe ri enc e in retai l, me dia and co nsul ti ng , incl udi ng as seni or dire c tor wi th Walmar t’s Int er nat ion al Pe op le D ivi sio n and a s an exe cu ti ve in Mas smar t ( a d iv isio n of Walm ar t). T o her r ol e as CH RO , she br ing s glob al exp er t ise in supp or tin g busin ess es on st rat eg y, c ult ura l tran sf or mat ion , busi nes s proc es s re - en gin ee ri ng and org anis ati on al rede sig n. She als o has exp er ien ce in tal ent ac qui sit io n, ta len t plann ing , rem une rat io n str ate gy, and devel op ing and lea di ng HR tra nsfo rmati ons. Rog any has be en an ExC o mem be r since jo inin g Air tel Af r ic a in 2019. Neelesh Sing h Chief inform ation ocer Ne el esh de ne s and impl eme nt s the IT s tra te gy acro ss our bus ine ss in 1 4 coun tr ie s. He spe ci alis es in lead ing large engineer ing teams, building scalable sof tware pla tf or ms , revamp in g oper ati ng mo del s, exe cut in g co mpl ex busin es s trans fo rm ati ons , set t ing up gre en el d ope rat io ns , build in g dist ri bu ted pr iva te clo ud s and simpl if y in g enter pr ise arc hi tec tu re. T o Air t el Afr ic a , he brin gs 22 ye ars of inte rna ti ona l exp er ie nc e in e ng ine er in g and infor mat io n tech no lo gy – havin g worke d in rang e of e nte rp ris es in the public sector , independent so f t ware v endor s and co mmun ic at ion s ser vi ce pro vid er s . Befo re join ing Ai r te l Afr ic a in 201 7 , h e hel d a se nio r IT l ea der sh ip ro le at t he T el en or grou p, hand lin g vari ous asp ec t s of IT acros s its op era ti ons in S c and inav ia , Ce nt ral a nd Ea st er n Euro pe and Asia . Raz van Ungureanu Chief technology ocer Raz va n leads on our tec hn ol og y str ate gy and th e del ive r y of t his to t he n et wo rk l ead er shi p in ea ch of our 1 4 mar ket s . He focu ses on st ra teg ic net wo rk thi nki ng , desi gn , rollo ut and th e quali t y of our on goi ng technical opera t ions. Raz va n has 2 9 years’ ex per ie nc e in telec om s and has wor ke d in Rom ania , Be lgi um , Luxem bo urg and th e Do min ic an Repu bl ic . Befo re joi nin g Air te l Afr ic a in 2016, he was chie f tech nol og y and info rma ti on oc er for Di gic el , wit h respo nsi bil it y for 29 c ou ntr ie s in the Caribb ean and Central America . Functional heads 95 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Chair ’s introduc tion On be half of t he B oard , I’m please d to prese nt our Corporate Governance Stat ement. A s a Board, we remain c ommi t ted to app lyi ng the h ighes t st and ards of corporate go vernance, recogni sing that robust governance and culture underpin business succes s . In thi s yearl y st atemen t , we give inves tor s and oth er stakeholders an insight into the go vernance activities of our B oard and i t s comm it tees . This yea r , we we re pleas ed to we lco me a new C EO to A ir te l Afr ic a, as well as t wo ot her ne w mem ber s to the B oa rd. We app ointe d T s ega Ge breyes as a n inde pen dent n on - execu ti ve dire cto r ; and our c hief nanc e ocer, Jai de ep Paul, joine d the Board . T sega and Jaide ep bri ng co nsider abl e ope rati onal ex per ien ce to th e B oard , whic h wil l ser ve us well as we wor k to bui ld a resi lient b usines s and c apit alis e on signi can t market oppor tunit ies in Afr ic a. Please see the Nom inati ons Co mmit te e rep or t fo r more d etai ls on pag es 11 4 - 11 8 . Purpos e, value s and st rat eg y , and alignment wit h culture The B o ard kept ab reast of : • Pro jec t s during the year to a cce lera te talent acqu isiti on (inclu ding st rate gies in o ur Di git al La b busine ss to mit igate t he ac cel erat ion of the wa r for t alent i n the te ch mar ket) • Steps t aken in re spo nse to our e mploye e en gage ment sur vey ( t hrou gh trans for mati on and technol og y projec t s like o ur new Gro up -w ide a pp - base d emp loye e assis tan ce pro gram me to enhance our peop le’s wellbeing) • T he rol lou t of lear ning an d devel opm ent pr ogra mmes fo r key comp eten cy areas such as c oac hing , mentor ing , and p roje c t management T o mee t their 2 02 1 /22 o bje ct ives of execu tin g our p urp ose , values and gen eral st rate gy and objec ti ves, asses sing and monito rin g our c ultu re, and pr omot ing th e align ment of c ultu re wit h pur pos e, val ues and strategy , our Board: • Sup po r ted t he ro llou t of a Gr oup - wid e Cov id - 19 vaccinat ion su ppo r t to all our people and their families , addressing the challenges face d in cer t ain regions (p ar t icula rly aroun d uptake ) • Rev iewe d our s t rate gy for B oar d and exec ut ive - leve l succ essio n plann ing and p ut into p lac e plans fo r achi eving t his . For m ore, pleas e see o ur No minat ions C ommi t tee rep or t on pag es 1 1 4 - 1 18 • M onito red p rogre ss agai nst o ur gen der di ver sit y tar get s at th e levels of E xecu ti ve Com mit tee , cou ntr y managing d irec tor an d lead ers hip. The B o ard reinfo rce d it s co mmit ment to a m ore ge nde r - ba lanc ed wor kfo rce whic h is re ec ted in our hiring poli cy. N earl y 2 5% of ne w app oint ment s in t he rep or t ing p er iod we re wome n • Supp or ted our learning and developm ent teams ’ capacit y- building eor ts acros s the Group, as well as new i nit iati ves around healt h, wellb eing a nd rec ogn iti on , such as a yea r - lo ng Di git al La b programme to improve physical and mental health • C onti nue d to for m st rate gic pa r tn ers hips whi ch sup por t our ambi tio n to tr ans for m lives through greater nanc ial inclusio n and empowerment acro ss Africa Whil e our B oard is d iver se, an d inc lusivi t y is one of o ur valu es, w e know we have more to d o to emb ed ou r diver sit y an d incl usion p roc esse s at all leve ls of th e organis atio n. The B o ard co ntinu ed to ens ure that o ur reso urcin g – inc ludin g cap it al, nanc e and pe opl e – is suc ient to achi eve our st rate gy while continuously improving p er formance and diver sity. Our robust governance mechan ism ha s built resilience int o our busin ess and has uniq uely shaped u s to capit alise on mar ket oppor tunities. Sunil Bhar ti Mitt al Chair A c ting w ith purpo se , under pinned by st rong gov ernance Governance report 96 Ai r te l Af r ic a pl c An nu al R ep or t and Ac co un t s 2022 Remuneration We’ re submit tin g our revis ed Remune rati on Polic y for a pprov al at t he AGM a year e arli er tha n expe c ted . This is a p rud ent me asure, an d the proposed cha nges include the introduction of pen sion arrange ments ( spe ci c ally, to make provis ion for the legac y bene t s of t he CEO ), bonus defe rra l ( o ne -t hird for two years ) and p os t-em ploy ment hol dings ( reta in require d amount for two years ). I b elie ve the new measures are non - co ntent ious an d repre sent g oo d house keep ing an d will fo rmal ly inc orp orat e the b es t pra ct ice feat ures int rodu ce d in th e last t wo yea rs . This als o give s us the o ppo r tuni t y to make sensi ble ad aptat ions to ree c t the appoint ment of a ne w CEO and C FO and to a ddres s the issues raise d by I SS regardi ng RSU and per for manc e share awards , whic h is ful ly exp laine d in ou r dire ctor s’ remu nerat ion r epo r t on p ages 12 8 - 150. The Board ful ly suppo r t s and end ors es the work of t he Remun erat ion C ommi t tee to at t rac t and re tain t he r ight t alent . In Novemb er 202 1, the chair of our Remun erat ion Com mit te e consu lte d wit h our to p 20 investo rs an d prox y agen cie s to give backgr ound an d det ails of t he reti reme nt exit te rms of t he CE O, Raghu nath Ma ndava on 30 S epte mber 2021 and the ap poin tme nt of Segun Oguns anya , who took oc e on 1 Oc tob er 20 2 1. In Febr uar y 202 2, the Remun erat ion Co mmit te e wrote to our to p 20 investo rs o n behal f of th e Bo ard to prov ide d eta ils of prop ose d chang es to our re mune rati on po lic y. The com mit tee i ntends to p ut th e pol icy to a b indi ng share hol der vote at o ur 2022 A GM , to get her wi th more d etai ls of how ou r remun erat ion p olic y was ap plie d in 202 1 /22. The B o ard also a ckno wle dg ed th e inc reasing g overna nce expe c tat ions of Re mune rati on C ommi tte es an d the va lue of co nti nuing to buil d an und ers t andin g of broa der re mune rati on po lici es and pra ct ices b eyon d our exe cut ive dir ec tors a nd E xec uti ve Co mmit te e. I’m also pleased to see that the commit te e has fu lly embr ace d our new su s tainability strategy and embedde d appropria te incentivisation within the remu neration policy . An eect ive and impro ving Boa rd At the ha lf year, we took the o pp or tu nit y to revi ew our B oa rd and comm it tee p roc esse s to buil d on ac ti ons int rodu ce d follo wing t he annual evaluation exercise. Coordinated by the company secretar y and le d by mys elf, we co nside red fe edb ack f rom B oar d memb ers to res tr uc ture th e age nda and c reate a ne w templa te for pap er s. We’ve sinc e found that mee tings are run more ecie ntl y , wit h more time for s tra tegi c and busi ness dis cussi ons . We’ll cont inue to im prove ou r ec ienc y by intro duc ing a proc ess to approve suitab le pape rs ‘by dee me d cons ent ’ befo re eac h mee ting . Our third inde pen dent Bo ard evaluati on con rme d that our B oa rd fun ct ions eec t ivel y . It ’s w ell balanc ed and divers e, wit h a s tron g mix of relev ant skil ls and exp er ien ce. T his eval uatio n onc e again to ok p lace in th e contex t of a p ande mic , wi th inte rnat ional t ravel r est ri ct ions meanin g Board memb ers were unabl e to me et in p er son . It was goo d to se e posi tive r atin gs aroun d the re lati onships a nd dy namic s of the B oa rd. I’m gratefu l to all the memb ers of the Board for their indiv idua l cont ri but ions , and p ar t icula rl y to the c hairs of e ach c ommi tte e for est ablishing and steerin g their commit tees during the year . The Audi t and Risk , R emune rati on and N omi natio ns Co mmit te e chair s have provi de d thei r own re por ts o n thei r com mit tee s’ act iv iti es . In conclusion I’m cond ent that your Board is workin g eect ive and is ge ared to addre ssing t he c ompany ’s ne eds . We have the ri ght bal ance of skills , exp er tise and p rofess ional ism to cont inu e to deli ver s tro ng gover nanc e, wh ile all owin g the C EO an d CF O to impl emen t and deli ver our stra tegy. W hile I ’m pl ease d with the Boa rd’s acti vit ies and appr oach w hen i t co mes to co rp orate g over nance , we co ntinu ally loo k for way s to lear n and imp rove. I very muc h look for ward to meetin g with shareho lde rs at the AGM on T ues day 2 8 June 202 2, whic h will be live - st reame d from Londo n. Alo ng with all your direc tors at tendi ng the AGM, I ’m avai lable to resp ond to yo ur ques tio ns, con cer ns and sugges tio ns at any tim e. Sunil Bhar ti Mitt al Chair 1 0 May 2022 Gove rnan ce hig hligh ts fo r the ye ar end ed 31 March 202 2 In ou r an nua l st ra teg y me et ing , we w or ked to ge th er to i nte gra te our sustainability ambition into strategy and go vernance struc tures. After publishing our s ustainabilit y strategy in October 202 1 , we’ll relea se our rs t sus ta ina bil it y rep or t late r this year. Asum mar y of our prog res s to da te, inc lu din g our enga gem en t wi th t he C ar bo n T ru st a nd o ur pa r t ner sh ip w it h UN IC EF , is o n pages 43-58. We welc om ed a ne w CE O, as wel l as o ur CF O an d T s ega Ge bre yes to o ur B oar d. We’ve im pro ved a nd f ur the r ap pli ed o ur bu sin ess m od el to del iv er our st rate gi c ambi ti on to tran sf or m lives thr ou gh nan cia l inclusion and empowerment across the African continent by rol li ng out a r el iab le net wo rk , pro vi din g aord ab le dat a and ser vin g ou r cus to mer s – se e pa ge 24 for our b usi nes s mod el a nd see p ag e 3 1 fo r ou r st ra teg y. One asp ec t o f thi s is t he o ngo in g separation of Air tel Money . We cont in ue d to en han ce ou r st r ateg y fo r im prov in g di ver si t y and i nc lus ion a t all l eve ls of o ur b usi ness a nd f or de vel opi ng our succes sion and contingency planning processes – see p a g e s 114 - 11 8 . We conduc ted a comprehensive, externally facilitated Board eva lua ti on – se e pag e 103. We m ade our r s t T C FD dis cl osur e and set out our roadm ap for ac hie vin g ful l T C FD com pl ian ce by th e end of t he ca len da r year – see p ag e 54. We continued working to fully compl y with the requir ements of th e UK C or po ra te Go ver na nce C od e ap pl yi ng to A ir tel Af ri ca for 2022/23. We ar e in f ull c om pl ian ce ba rr in g t wo pr ovi sio ns: provision 9 ( the independence of the c hair ) and pro vision 4 1 ( engaging with the w orkforce on executive remuneration) . 97 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Our leader ship Board Execut ive Committee (ExC o ) Adv ise s and su pp or t s o ur CE O on t he op er ati on of our busi ness. He lps our CE O ful l his respo nsib ili ti es by , for examp le , deve lo pin g and impl eme nti ng our st ra teg y, mo ni tor ing our op era tin g and nan cial pe r fo rma nc e, asse ssin g ris k, all oc at ing res our ces and day -to - day oper ati ona l management. Th e commi t te e meet s for t ni ght ly. Our E xec ut ive Co mmi tt ee is suppo r te d by a numbe r of operational committees: • T he Ope rat ing Co mpa ny ( O pC o) Fun c tio nal Rev iew Co mmi tt ee – led by Gr oup fun c tio nal head s for their teams • T he OpC o Busi nes s Revie w Comm it te e – l ed by regio nal dire c tor s, wi th par tici pan ts als o inclu din g func ti ona l heads and Op Co mana gin g direc to r teams • T he Regi ona l Busin ess Rev iew Co mmi tt ee – led by our CE O with reg ion al dire cto rs and fun c tio nal hea ds par ticipating • T rea sur y Co mmi tt ee and the E xec ut ive Risk Co mmi t tee Audit and Risk Committee Mo nito rs th e integ ri t y of our na nci al repo r t ing and hel ps the Bo ard rev iew th e eec ti ven ess of our inte rna l cont rols an d risk management. Me et s at leas t four time s a year . Remuneration Commit tee Rev iew s the per for man ce of our exec ut ive dir ec tor s and sen ior mana ge men t team. Det er mine s the over all and specic remuneration for exec ut ive dir ec tor s , oce rs and s enior management, as well as the Bo ard chai r ’s and no n- executive directors’ fees. Me et s at leas t four time s a year . Nominations Committee Adv ise s on appoi ntm ent s , retirements and resi gnat ion s from th e Bo ard and it s co mmi tt ees and rev iew s succ ess ion planning and talent deve lo pme nt for our Bo ard and s enior management. Me et s at leas t twi ce a year . Market Disclosure Commit tee Ove rs ee s our discl osu re of infor mat io n to m ee t our obligation s under the Mar ket Abu se Reg ulat ion s (MA R) by dete rm inin g whe th er info rmat io n is insi der info rm ati on , or whe n and how it nee ds to be discl ose d . Monitors compliance wi th our MA R discl osu re, con tro ls , and proc ed ures , as well as the rel ease of info rma tio n unde r the Info rm ati on Flo w Protoc ols and S er vices Agreement wi th Bha r t i Air te l. Me et s as nece ssa r y. Sust ainability Committe e Reviews, challenges and oversees the approval and imp lem ent at ion of our su s tainabilit y strategy, including internal rep or ting and bal anc ing of non - nan cia l targ et s and our com mit me nt s to delive ri ng value for shareholders and other stakeholders. Als o overs ee s diver si ty and inc lusi on mat ter s and th e work of the Hea lt h and Safe ty C ommi t te e. Me et ing mon thl y unti l our r st rep or t is p ubl ishe d in late 2022 – then at leas t thr ee tim es a year . Chair: Ravi Ra jago pal Members: An dy Gre en Annika Poutiainen Awuneba Ajumogobia Ak hil Gup ta also at te nds as an ap poi nte d obs er ve r on behalf of Bharti Airtel Chair: Doug Baillie Members: Awuneba Ajumogobia John Danilovich Shravin Bhar ti Mit tal also at ten ds asan appo inte d obs er ve r on b eha lf of Bh ar t i Air te l Limi ted Chair: Sunil Bhar ti Mitt al Members: Doug Baillie An dy Gre en Ravi Ra jago pal Chair: An dy Gre en Members: Doug Baillie Se gun Og unsa nya – CEO Ravi Ra jago pal Chair: Se gun Og unsa nya – CEO Members: Ann ika Pou tia ine n – Bo ard sustainabilit y champion Jaid ee p Paul – CFO Ot h er me mb er s ( exo ci o ) : Olu bayo Ade ka nmbi – Chi ef st rate gy, par tn er ship s and su s tainabilit y ocer Rog any Ramia h – Chi ef HR oc er Pie r Falcio ne – depu t y CFO Pete r Ode dina – Chi ef comp lia nce o ce r Sim on O’ Har a – Co mpa ny sec ret ar y Mo re det ai ls on t he E xC ocan be fou nd on pag e 94 Our govern ance str uctures Our Bo ard of di rec tor s is th e primar y d ec ision - makin g group at Ai r tel Afr ic a. It s member s guide our operat iona l and nancia l per for manc e, set our str ateg y and ma ke s ure we ma nage risk eec ti vely. S ee page s 90 - 93 for detai ls of our Bo ard membe rs . The re is a clear divis ion of respo nsibil iti es bet ween our chair , who leads the Bo ard, and our CEO, who leads the business . Y o u can read m ore abou t the responsi bili ties of our Board , chair , CEO, senio r indepe nde nt dire cto r and c ompa ny secret ar y on our website at w ww.a ir tel .a fr ica . Board co mmit tees In addit ion to the formal sche dule of matter s the Board consid er s, it dele gates key as pe ct s of g over nanc e to it s commi t tees . We have ve main governan ce commi t tees : Audit and Risk, Remun erat ion , Nom inati ons , Sustai nabili t y and M arket Disc losure . Each commit te e has writ ten terms of referenc e which are available on our w ebsite : ww w.a ir tel.afri ca See Sustainability Co mmi tt ee rep or t on pag e 43 Se e Audit and Ris k Co mmi tt ee rep or t on pa ge 10 4 See Rem uneration Co mmi tt ee rep or t on pa ge 128 Se e Nomin ati ons Co mmi tt ee rep or t on page 90 Governance commit tees Governance report 98 Ai r t el Af ri ca pl c Annu al Re po r t and Acc ou nt s 2022 Finance Committee Approves funding and other nan cia l matt ers in lin e with our delegat e d authorities or as requ es ted by the B oar d. Ini tia tes and mana ges key pol ici es and majo r operational decisions rela tin g to treasur y and direct taxes. Chair: Jaid ee p Paul – CFO Members: Ravi Ra jago pal – independent NED Ann ika Pou tia ine n – independent NED Se gun Og unsa nya – CEO Pie r Falcio ne – depu t y CFO and treasurer Atte ndee: Ak hil Gup ta at ten ds to represent the interest s of Bh ar t i Air tel in p rop ose d treasur y tra nsac tions (such as bond re nan cin g) ae ct in g our paren t group and to conve y act io ns of Bh ar t i Air te l whic h may ae ct Ai r te l Afri ca Share Scheme Commit tee Admi nis ter s our share schemes. Co mpo se d of any tw o dire c tor s, in clu din g at least one no n- e xec ut ive dire c tor. Ot her commi t tees The Bo ard also deleg ates cer t ain responsi bili tie s to our Fina nce Co mmit te e and S hare Schem e Commi tte e. Other committees Air tel Africa plc – Board of director s Sust ainability Committe e Executive Committee ( E x C o) Health and Safety Commit tee Ch ie f exe cu t iv e oc er Segun Ogunsanya Sust ainability champion Annika Poutiainen Board dir ector, sustainability cham pio n , m emb er of t he Sustainabilit y C ommitte e CE O, Bo ard dire cto r , C hair of t he Sustainabilit y C ommitte e Chief strategy , par tnerships and sustainabili ty ocer Olubayo Ade kanmbi Sust ainability governance Our sustainabilit y strategy Nine dedicated workstreams Dat a secu ri t y Co mmi tm en t to our peop le Acc es s to e duc at io n Se r vi ce qual it y Di git al inc lus ion Re duc t io n o f GHG emis sio ns Supply chain Financial inclusion Environmental stewardship Pil la r 1 – Our business Pil la r 2 – Our people Pil la r 3 – Our communit y Pil la r 4 – Our environment 99 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Our leadership co ntinu ed Complia nce with the U K C orporat e Gov ernance Code Se e pages 1 19- 122 f or how we co mpl y with the UK Cor por ate Gover nance Co de ( t he Code) . Here we ex plain the two prov isions we haven’t yet met. Code provision Explanation Prov is io n 9: t he c ha ir should be independent on appointment when assessed against the circumst ances set out in provision 10 The Bo ard has con clud ed that our chair , Sunil Bhar ti Mit tal , did not m eet the inde pen denc e crite ria of the Co de due to his inte res t s in t he company. H oweve r , in view of his exte nsive involve ment wit h the company and the Bhar ti Air tel Gro up over many years , the Board consid ers that he has mad e a maj or contr ibu ti on to o ur grow th and succes s and unanim ously agre es that his c onti nue d involveme nt is cr uc ial to t he ongoin g succes s of Ai r tel Afr ic a. The Bo ard has put sever al safeguar ds in pl ace to ensure robus t corp or ate governan ce durin g his tenu re as cha ir . The se inclu de appoi ntin g Andy Gree n as se nior inde pen dent dire cto r to ac t as a sound ing board for the chair and as an interme diar y for other direc tor s and sharehol der s. We als o review the chair ’s p er forman ce as p ar t of the annual Bo ard evaluati on exercise. In line with the Co de, the chair sit s on t he Nomin atio ns Commit te e, whic h he als o chairs . The Bo ard belie ves Sunil Bhar t i Mit tal cont inue s to ee c tive ly overse e our leader ship and maintain a balance d shareholder agenda. We’ll c ont inue to repor t agains t this provisio n while Bhar t i Air tel remains a majorit y shareh old er or until the chair cho oses to retire, when thes e arrang eme nt s will be revie wed . Provision 4 1: engagement with the workforce to explain how e xecutive remuneration aligns with wider company pay policy Dur ing the year , the Remune rati on Commi t tee did not engage sys temat ic ally wit h our pe opl e to exp lain how execu ti ve remunerat ion aligns wit h wider comp any pay p oli cies . Copi es of o ur Annual Repo r t detai ling the execu tive dire cto rs’ remuner atio n are w ide ly shared and available for emplo yees to se e on ou r website. Dur ing our annual str ateg y meetin g and Q3 Board and Commi tt ee meet ings in Dubai, the Bo ard was a ble to mee t bot h formally and infor mally wit h our wider managem ent team and ot her col leagu es enablin g quest ions to be asked . A simi lar oppor tunit y is oere d to eve r y employe e atten ding the Q& A sessi on follow ing each quar ter ly Gro up -w ide town hall meet ing. The Remu nerat ion Co mmit te e has b een taske d with ident if y ing and recom mend ing to t he Boa rd a pat hway to comp lian ce which will be embe dde d and ee ct ive in tim e for n ex t year’s annual repo r t disclo sures . Compliance with LR9.8.6 R ( 8) Compliance with LR9. 8.6R (8 ) requiring companies to include a cl ea r st a te me nt of TCFD compliance Se e page 54 for our disclo sures consis tent wit h the four the mati c themes and 8 of the 1 1 spe ci c disclo sure rec omme ndati ons , an ex planat ion of why w e’re n ot disclosin g our t arg et s and m etr ic s in t his repor t , and a desc rip tio n of our path way and t ime fram e to f ull compl ianc e. The B oard’ s focus in 2 0 2 1/2 2 As well as quar terl y sche dule d meeti ngs and the AGM , durin g the 202 1/22 repor ting per iod the Bo ard met an ad dit iona l three times to consider our full year nancial st atem ent s and Annual Repor t appr ovals proce ss and to app rove our sustai nabili t y strate gy. We’ve con clu ded that quar te rly mee tings are approp riate for the time bein g. As well as extra Bo ard meet ings when nec ess ar y, we have p roc ess es in place for approvi ng one - o trans act ions and other mat ters arisi ng bet we en meet ings – t his occu rre d four time s during the year . Strate gy and ex ecu tio n • Rev iewe d our stra tegi c plan a nd worked to make sure our st rate gy st ays robus t in t he light of fore cas t market and econo mic change s • C onsid ered the ar t icula tio n of our cor po rate purp ose – buil ding on our st rong vision and values as state d in o ur business mod el • Un der took dee p dives into: – O ur Air tel Mon ey business – includ ing the grant of t he payme nt ser vice bank lice nce and super-agent lic enc e in Ni ger ia – O ur bre business es • C onti nue d to sup por t new m oney tra nsfe r par tn ersh ips , such as wit h leading Afr ic an payment s comp any Flut ter w ave, to ex pand Air tel Money to busine sses acros s Afric a • E st abl ishe d a sep arate gover nanc e str uc ture for Air tel Mon ey , incl udin g a B oard , Audit and Risk Commit te e, and Remuner atio n and Nomina tio ns Commit te e to over se e its ope rati onal separ atio n • O pen ed a n ew adminis tr ative oc e in D ubai for our ExC o, signi c antl y improvin g conne ct ivi t y and e nhanc ing coo per atio n acros s our 1 4 operat ing market s in Afric a • C onti nue d to lo ok at st rate gic asset monet isat ion and invest ment oppor tunities including: – T rans ac tio ns to se ll our tele co mmunic ati ons tower asset s, such as in T anza nia, Malawi and Madagas car, wh ere proc ee ds have be en par t ly used to reduce ext erna l debt and inves t in ne two rk and sale s infras tr uc ture – St rateg ic invest ment s in our mobi le money busine ss by T PG , Mas terc ard, Qata r Holdin g LLC and Chime ra Inves tme nt LLC, aiming to explore the poten tial list ing of the mob ile money busine ss withi n four years of the March 2 02 1 deal annou nce ment • C onti nue d to lo ok at our subsidiar y com panie s’ mino rit y shareh oldi ng str uc ture , culminati ng in t he comp leti on of t he Air te l Nige ria minor it y buyou t oer ( Oc tob er 20 2 1) • L aunc hed an ambit ious sust ainabi lit y str ateg y coverin g ever y aspe ct of our busine ss act ivi ties and showi ng the Board ’s comm itm ent to d evel opin g infras tr uc ture and ser vi ces to dri ve bot h digital and nanc ial inclusio n for p eo ple acros s Afric a • Sup po r ted our ve -yea r pan- Afr ic an par tn ersh ip with UN IC EF to rol l out digi tal lear ning throu gh conne ct ing sch ools and ensurin g free acc ess to lear ning plat for ms in 13 countr ies Governance report 10 0 Air tel Af ri c a plc Ann ua l Repo r t an d Acco un ts 2022 Financial • A pprove d the full year resul ts and nanc ial state ment s and the Annua l Repor t a nd nancial st atem ent s for the 202 1 nancia l year and acco mpany ing RNS annou nce ment s • A pprove d the half year re sult s st ateme nt and quar t erl y state ment s for the 202 2 nanc ial year a nd accom panyi ng RNS announ cem ent s • A pprove d the payment of the interim divi dend for the nancia l half-ye ar 2 022 and recomm ende d a nal divide nd for the nancial year 20 2 1 • A pprove d an u pgr ade to the prog ressi ve divide nd polic y as a result of continu ed st rong busine ss per fo rman ce and signi cant pro gress made in reduci ng cost s • C onti nue d to fo cus on st reng th ening our balanc e sheet • A pprove d the Group’s tax str ateg y ( se e ww w.air tel. afr ic a) • A pprove d the annual opera ting plan for the year e ndin g 3 1 March 202 2 • Re gular ly revie wed our nancia l per for manc e and forecas t s • Re cei ved infor matio n on ma rket dynami cs and expe ct atio ns from our brok ers • Agre ed to the early bond red empti on of t he Guar antee d Senior Notes due in 2 023 in li ne with Bo ard polic y to c ont inue to redu ce ex terna l foreign curren cy debt at Group level • Ma de conside rab le progres s in o ur stra tegy to delever age by redu cing the EB IT DA to net debt rati o • C onti nuall y monitore d capex expe ndi ture agains t pandemi c related supp ly chain issues Leader ship and employees • A pprove d the appoin tme nt of a new CEO and made several other Bo ard appoi ntme nt s and c hang es. Th ese inclu de d the app oint ment of T sega Geb reyes as an in dep ende nt non- execut ive direc tor and the eleva tio n of our Chief nan ce oce r , Jaide ep Paul, to t he Boa rd • Worke d to make sure our remun erat ion poli cy remains appr opr iate and we are able to i nce ntiv ise our execut ive team whil e being able to adapt to each year ’s d evelo pme nt s and s t rate gy • A pprove d the submissio n of a revise d remunera tio n polic y to shareh old ers one year early at our 202 2 AGM • En dor sed the Chief execu ti ve’s ap poi ntme nt of O lubayo Adek anmbi as Chief strate gy, pa r tn er ships and susta inabil it y ocer in De cem ber 202 1 • C onsid ered the impa ct of the pand emic on the safet y and w ellb eing of our pe opl e, as pa r t of t he CEO’s repor t to each meetin g • D iscuss ed our str ategi c and ope rati onal pande mic respo nse and revie wed manag ement ’s mitigat ion plans to redu ce it s impact • Rev iewe d our peop le agenda and the robus tne ss of o ur succ essi on plans for improv ing diver sit y, ta lent manage ment and benc h stren gt h • Sup po r ted our CEO in his me ntor ing progr amme Inter nal control and risk managemen t • C onsid ered and agree d the Group’s risk appeti te and princi pal and emerging risks • Agre ed the viab ilit y st ateme nt disclose d in the 202 1 Annual Repo r t • A pprove d the adopt ion of g oing con cer n basis of accou nting in prep arin g the half and f ull year result s • Agre ed the Mo der n Slaver y Act Stateme nt ( availab le at ww w.a ir tel.afri ca) Governance and stakeholders • O ur corp orate lega l adviser s Her ber t S mit h Freehills LLP provi de d trai ning on the polit ic al environm ent , gover nance refor m, liabi lit y to inves tor s and t he focus on direc tors’ dut ies . The subsequ ent Boa rd discus sion focus ed on audit , diver sit y , market abuse and sec ti on 1 72 • C onsid ered the out pu t and re co mmen datio ns from the Board and comm it tee s eect iven ess revie w and h ow to im ple ment thes e • Rev iewe d and approved the dire cto rs’ regis ter of i nteres t s • Rev iewe d our complia nce wit h the UK Corp orate Gove rnan ce Cod e and wide r statu tor y and regulato r y require ment s • Rev iewe d our T ask Force on Climate -re lated Fin ancial Disc losur es and ident i ed climate - rela ted risk s and o pp or tu niti es – an d more wid ely, co ntin ued to overse e and su ppo r t the imple ment ati on of o ur sustainabilit y strategy • M onito red and review ed the eec ti venes s of th e informat ion shari ng and separ atio n protoco ls betwe en Air te l Afric a and Bhar t i Air tel • Re cei ved update d trainin g on a ppl ying the se protoco ls from our cor po rate legal adv iser s and c omp any secret ar y • M onito red and consid ered st akeho lde r feedb ack and contin ued to ac tive ly promote wide r engage ment • Ha d a joi nt present ati on and discussio n with our corp orate broker s on our share p ri ce per fo rma nce since IP O, investor pro le, ESG pro le and divide nd yield 101 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Our leadership co ntinu ed Board attendance Dire cto rs make ever y eor t to at te nd all Bo ard and commit te e meeti ngs. Th ere was o ne non -at ten danc e at a Boar d and c ommi t tee meet ing this year due to a close famil y member ’s funer al. Ot her wise, all Board and commi t tee meet ings had full atten danc e during the repo r ti ng peri od. If a dire cto r is unab le to at te nd a me et ing , they recei ve the papers in advanc e and give thei r comment s to the chair to communic ate at t he meet ing . He also follows up with the m afte r the meetin g about dec isions taken . Due to pandemi c- rel ated loc kdown and travel rest ri ct ions , we held all but one meet ing over video confe renc ing wit h some UK-bas ed Boa rd memb er s occasio nall y attendi ng in p er son . Dire cto rs’ other signi c ant commi tme nt s are dis clo sed to the Board durin g the proces s of t heir appo intm ent , and they must notif y the Bo ard of any subsequ ent change s. We have revie wed the availab ilit y of t he chair and the non- execut ive direc tor s to p er fo rm thei r duties and conside r that each of them can and does devote the necess ar y amoun t of ti me to A ir te l Afric a. Boar d and commit te e meeting at tendanc e Board members during 202 1 /22 Scheduled Board meetings Number o f additional Board meetings attended 1 Audit and Risk Commit tee Remuneratio n Commit tee Nominations Commit tee Market Disclosure Commit tee 5 Sunil Bhar ti Mitt al 2 (c h a i r ) 6 ( 6 ) 3 ( 3 ) 3 (3) Segun Ogunsanya 4 (C E O) 3 (3) 1 ( 1 ) 2 ( 2 ) Jaideep Paul 3 (C F O) 5 ( 5) 2 ( 2) An dre w G re en (in dep end ent non - execu ti ve directo r ) 6 (6 ) 3 (3) 11 ( 11 ) 3 (3) 2 ( 2) Awuneba Ajumogobia (indepe nden t non- exe cut ive direc tor) 6 ( 6 ) 3 (3) 11 (11) 5 ( 5) Douglas Baillie (indep end ent non - execu ti ve directo r ) 6 ( 6 ) 3 (3) 5 (5 ) 3 (3) 2 (2 ) John Danilovich (indep ende nt non- exe cu tive dire cto r ) 6 ( 6) 3 (3) 5 (5 ) T sega Gebreyes 4 (indepe nde nt non- exe cu tive direc tor) 3 (3) 1 (1 ) Annika Poutiainen (ind epe nde nt non- exe cu tive dire cto r ) 6 ( 6) 3 ( 3 ) 1 1 ( 1 1) Ra vi R aja go pa l (inde pen dent non - exec ut ive direc tor) 5 ( 6 ) 6 3 (3) 10 (1 1 ) 3 (3) 2 ( 2) Akhil Gupta 2 ( non - exe cut ive direc tor) 6 ( 6 ) 3 (3) Kelly Bayer Rosmarin 2 ( non - exe cut ive direc tor) 6 ( 6 ) 3 (3) Shravin Bhar ti Mitt al 2 ( non - exe cut ive direc tor) 6 ( 6 ) 3 (3) 1 Ad dit io nal uns che du le d Boa rd mee tin gs took pl ace in con ne ct io n wit h the app rova l of th e Annua l Repo r t and rela te d matte rs and ap pro val of our sust ai nab ili t y str ate gy 2 Ap po inte d in line wi th the Re lat ion ship Agr ee me nt 3 Ap po inte d Jun e 202 1 4 Ap po inte d Oc tob er 2021 5 Co mmu nic ate s mont hl y in wr it ing be for e releas ing inf or mat ion in lin e wit h the Info rma ti on Proto co ls and Ser vic e Agre eme nt wit h Bha r ti Ai r te l 6 Rav i was atte ndi ng a close fa mil y memb er ’s fune ra l in Ind ia in July. He provi de d his inpu t to th e Boar d thro ugh th e comp any se cre ta r y and to the Audi t and Risk Co mmi tt ee thr ou gh the CF O and Anni ka Pou tia ine n, wh o sto od in as chair Governance report 10 2 Air t el Afr i ca pl c Annu al Rep o r t and Acc ou nt s 2022 Board evaluation Board p er formance This year ’s ex te rnall y facili tate d evaluati on of t he Boar d and i t s comm it tee s, by indepe nde nt advisor y rm Lints to ck , took the form of an online ques ti onnaire tai lore d to ou r speci c act iv iti es and concer ns . The Bo ard , each of it s comm it tees and all of t he direc tor s took par t in the revie w. T he ques tio nnaire sou ght input on Board comp osi tion , st akeho lde r oversight , Bo ard dynami cs , manageme nt and focus of mee tings , Boa rd suppor t, Bo ard commi tte es and progres s against the prev ious year’s act ions . The evaluati on also probe d the Board ’s oversi ght of w ide r strate gy, r isk managem ent and internal cont rols , succ essi on plannin g, and peop le oversig ht and p ri ori tie s for c hang e. Arepo r t was prepared on the compl eted ques t ionna ires . The result s were discuss ed in detail by the Board and each commit te e. From the anonym ised sur vey respo nses and inter v iew feed back , Lint s toc k identi e d focus areas and reco mmen datio ns for the Bo ard and it s commit te es. Th e result s of th e self-as sessm ent elem ent of the sur vey were shared wit h the chair and discus sed at one -to - o ne mee tings bet we en the chair and directo rs . The result s of t he chair ’s revie w were shared with the senio r indepe nde nt direc tor , who the n discusse d the chair ’s p er fo rman ce wit h the non - exe cut ive dire cto rs only. 20 2 1 /2 2 evaluatio n result s The chair and comp any secret ar y pres ented the rep or t s to t he Boa rd for discussi on and review. In monito rin g progress agains t the previ ous year’s acti ons , the evaluat ion deter min ed that Segun Ogu nsanya’s succ essi on to t he Gro up CEO role had be en succe ss full y compl eted . The qualit y of Bo ard and commit te e paper s had im prove d; and the Board st rateg y mee ting had bene te d from being held in perso n and invol ving senior management. Rec ognisi ng its st reng ths and areas to deve lop , the Board and its pri ncip al commi tte es agree d acti ons for the coming year : 20 21 / 2 2 evaluation Outcome Key themes and areas for focus Ac tion Board Stakeholder oversi ght Cus tomer s and suppliers Our Bo ard and managemen t team w ill alloc ate more time this year to consi der ing our vari ous sta kehol der s with a par t icu lar focus on the custome r persp ec ti ve, engagi ng and managing relat ionsh ips with our suppli ers , and monitor ing empl oyee sent imen t and culture. Workforce engagement The Bo ard will ident if y and create more oppor tunit ies to engage direc tl y with our wid er work forc e. W e will look to ap po int three regio nal designate d direc tor s for empl oyee engag eme nt , ensure represent ati on at all - emp loyee quar terly town hall mee tings and arra nge infor mal meeti ngs for vari ous employe e groups around Bo ard mee tings and other gath eri ngs. Our Chief HR oce r will also at tend Boa rd meeti ngs tw ice each year to re por t on wo rk forc e engagem ent and cultur al change, as well as provi ding update pap ers for all other regular ly sche dul ed meet ings . Governance and compliance Board agenda We’ll introdu ce with imme diate eec t a ‘ma naging by deeme d consen t’ pro ced ure for st anda rd Board pape rs , to f ree more time for discussi on and debate during mee tings . We’ll f ur ther embe d the rollou t of t he Boar d and c ommi t tee pape r template across all mee tings to facili tate shor ter Board pack s and earlier circ ulati on of p aper s . For prog ress on improveme nt s to B oard proc ess es during the repo r ti ng peri od see the sec ti on ‘ An eec ti ve and improv ing Bo ard’ in the chair ’s s t atemen t on p age 96. The revi ew also identi e d topics to be adde d to t he rolling for wa rd agenda , includ ing sco pe to i mprove the Bo ard’s under st and ing of d igit al and data develop ment s , poten tial techn olo gy disrup tors and risk managem ent ‘ de ep dive’ focus areas. Dire cto rs will loo k to eng age wit h stakeh old ers in more ways dur ing the year . Sust ainability strategy Ensur ing tha t our sustainabilit y agenda is centra l to th e Bo ard’s discussio ns and decisi ons , and the comp any ’s business practices and proc esse s The Bo ard has eleva ted the Sust ainab ilit y Comm it tee to a fu ll commit te e of t he Boar d – under the stewa rdship of the Bo ard sust ainabi lit y champio n, Anni ka Poutiai nen and our CEO – to enhan ce it s monitor ing of progress on our sustai nabili t y agenda and ESG matte rs . Conclusions The 202 1/22 evaluati on has sh own that the Board has the appro pr iate balan ce of s kills , exper ien ce, inde pen den ce and knowle dg e to pe r for m Bo ard and commit te e responsib ilit ies eec t ivel y . Resp onde nt s unanim ously agre ed that the Boar d had p er fo rm ed well over the year and was ope rat ing eec ti vely. The chair con rm ed that indiv idual direc tor s conti nue d to pe r for m ee ct ivel y and s how commi tme nt to t he role. The Bo ard concl ude d that all direc tors cont inu e to give su cie nt time to t heir Bo ard dutie s and making valuab le contr ibu tio ns. In light of t his , the Board prop ose d the ele ct ion and re- e le ct ions set out in t he 202 2 Not ice of Annual Gener al Meetin g. The com mit te es also discus sed the resul ts of their respe ct ive evaluat ion repo r t s and agreed ac tio ns where approp riate . The senior inde pen dent dire cto r met w it h the chair privatel y to dis cuss the anony mise d result s of t he chair ’s re view se ct ion of the sur vey and the outc ome s of his discussi on with non - exe cut ive direc tor s. The overa ll ee ct iven ess of t he chair was seen as exc elle nt , reec tin g a ge nuin e focus on the bes t outcom es for the comp any in all aspec t s of his role . The chair, assis te d by t he company se cret ar y, dre w up a list of actio n poin ts base d on t he evaluat ion and alloc ated resp onsibi lit y for comp let ing the act ions . The Boa rd and e ach commi t tee will revie w prog ress agains t these at each meetin g. Re - elec tion of directors In line with the Co de, all direc tors will be put ti ng themse lves for war d for re- e le ct ion at our AG M on 28 Ju ne 20 22. F ollo wing the for mal per forma nce evaluat ion desc rib ed here and takin g into a cco unt each dire cto r’s skills and exper ienc e ( set out on pages 90 - 93 ), the Board bel ieves that the re- e lec t ion of all direc tor s is in the bes t interes ts of Airtel Africa. 10 3 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Audit and Risk Commit tee repor t Chair’s statement I’m pl eased to p rese nt the w ork of o ur co mmit te e dur ing th e year . Our m embe rs are u ncha nge d – we’re a team of inde pen dent non - exec ut ive direc tor s with the nancia l experi enc e, comme rcial acum en and indust r y knowl ed ge to f ul l our resp onsibi lit ies . We’ve cont inue d to fac e pand emic - relate d chal leng es for mu ch of t he nanc ial year , includ ing work ing and internat ional trave l restr ic ti ons. Howe ver , I’m please d to rep or t t hat our exter nal audito rs were able to mee t sele c ted au dit tea ms and manag eme nt in pe rso n to pe r for m th e year - end au dit . I ’m also pl ease d that ou r com mit tee w as able to m eet in pe rso n in Feb rua r y in D ubai an d made go od us e of tec hnol og y to hol d robus t and m eanin gfu l vir tual me etin gs thro ugho ut th e year . Key areas of foc us We conti nue d to loo k in dept h at ce r t ain aspe c t s of the c ont rol envir onme nt , par tic ular ly the presume d risk of ma nagem ent overr ide of contro ls includi ng fraud , IT secur it y and cybe r risk. Th e ndings of our inte rnal a udi t revie ws dur ing t he year in e ach of t hese a reas were share d wit h our c ommi tt ee. We reviewe d th e pro cess fo r ide nti f yin g and mi tigat ing p rin cipa l and emer ging risk s, chall engi ng managem ent act ions where app ropr iate. We adopte d a new r isk app eti te s tate ment lay ing ou t our r isk app eti te, tolera nce limit s and governa nce oversi ght proc esses to make sure ris ks a cross t he G roup s t ay wit hin an a cce ptab le and manageable range. The re are t wo chang es to o ur princ ipal and emergi ng risks for the year end ed 31 March 2022: the pos t-B rexi t reg ulator y enviro nment is no lo nger c onsid ere d an eme rging r isk and C ovi d- 19 is now a lowe r princi pal risk . The prin cipal and emerg ing risk s and si gni ca nt judg eme nt s made in c onn ec tio n wit h th ese r isks a re set ou t on pa ge 83 . We als o examine d the interplay bet we en the mandator y T ask Force on Climate - relate d Financ ial Disclo sures (TCF D ) and our sustai nabili t y repo r t ing. We’ve ass ess ed t he risk s an d opp or tu nit ies lin ked to climate c hang e and ho w thes e shou ld be r epo r ted . We set ou t in our sust aina bili ty s t rateg y our c ommi tme nt to pub lishing i n mid -2 022 detaile d plans for meaningful carbon redu ctio n throughout our entire value chain ahead of our rs t sust ainab ilit y repor t . W e have conduc ted a T C FD gap analysis and set o ut a roadm ap for a chie ving ful l T C FD compliance. O ur committee i s comfor table with the appr oach adopt e d. For our TCFD disclosure s see page 54 of the st rateg ic repor t. As w ell as ou r usual revi ew of ac cou ntin g judg eme nts a nd disc losure s on key a cco unti ng matter s, we reviewe d the treatm ent of si gni ca nt tra nsac tio ns during the year . The se includ ed the sale of the tower por tfo lio and subsequ ent leasing arr ange ment s , various renan cing arrangements and strategic investments in our mobile money busine ss , and t he cont rols and proces ses involve d in s epar atin g this busines s. We c onti nue d to mo nitor the integ ri ty of our nanc ial st atem ent s and the ee ct iven ess of t he inter nal and exter nal audit processes . We m eet regula rl y , inde pen dent ly of ma nage ment , wit h both exter nal and interna l auditor s, and are satis ed that neit her is being unduly inu enc ed by manage ment . I also h old regu lar meet ings with our CFO and ot her me mbe rs of mana geme nt to bet te r unde rs ta nd th e issues that ne e d discus sion at c ommi tte e me eti ngs. A nd I re gular ly e ngage wit h key s ta kehol der s, inc ludin g Group Inter nal Assu ranc e, senio r manage ment and our exter nal audito r , on commit te e work . We c onti nue to ope rate with ope nnes s and trans paren cy, an d a sp iri t of robust chall eng e when neces sar y, to make sure o ur sharehol der s and other stakeholders are pro tec ted. In the coming year , we’ll condu ct a nance tale nt review, spend more time revi ewin g risk and f rau d, and overse e the nancial and cont rol consi dera tio ns connec te d to th e separat ion of the bre and A ir te l money bus inesses. I’d like to thank t he mana gem ent team at A ir te l Afr ic a and eac h of the c ommi t tee me mbe rs for t heir s upp or t an d cont ri but ion du rin g the yea r . I welc ome q ues tio ns fro m shareh old ers o n this c ommi t tee’s act iv iti es . T o discus s any asp ec t of t his repor t pleas e conta ct me through our compa ny secret ar y, Si mon O’H ara ( s ee page 2 40 for contac t det ails ). I’ll also be atten ding the 202 2 AGM and look for war d to th e opp or t unit y to me et and s peak to yo u the re. Ravi Rajagopal Chair, Aud it and Risk Commi t tee 1 0 May 2022 Attendance Meetings atte nded Ravi Rajago pal Chair 1 0 ( 11 ) And y Gre en 1 1 ( 11 ) Annika Poutiainen 1 1 ( 11 ) Awuneba Ajumogobia 1 1 ( 11 ) Ravi Rajagopal Chair, Aud it and Risk Commi t tee Par t 1 Governance report 10 4 Air t el Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Commit tee governance Responsibil ities Our comm it tee overs ees nanc ial repor ting , interna l controls and risk manage ment , Gro up Assur anc e and A udit , and our relatio nship wit h the ex te rnal au dito r . For more deta il, pleas e see the commit te e’s te rms of refere nce at ww w.a ir tel.afri ca /inv estors/ gov ernance. Composition This comm it tee consis t s of fo ur indep end ent non - execu ti ve dire cto rs: Ravi Rajago pal ( chai r ), Andy Gre en , Annika Pout iaine n and Awuneba A jumogobia. Provisi on 2 4 of the Code says : i. At least one . C omp osit ion This commit te e consist s of four independent non-executive dire cto rs: Ravi Rajago pal ( chai r ), Andy Gre en , Annika Pout iaine n and Awuneb a Ajumog obia . Provision 2 4 of t he Code says : i. At leas t one c ommi t tee me mbe r shou ld have re cent an d rele vant nanc ial exper ien ce. The Bo ard is s atis e d that Ravi Rajagopa l mee ts this requi remen t . Ravi h eld nanc ial leader ship role s at Diag eo until retir ing in 2 0 1 5, inclu ding group cont roll er in t he UK and globa l head of merger s and acqu isiti ons . His s kills in nance, and co ntro l and r isk have be en de velo ped o ver a ca reer wor king in senior st rate gy and manageme nt roles . As a qual i ed char tered acco unt ant , Ravi has le c tured at Oxfo rd Univer sit y and Imperial C ollege. ii. The commit te e, as a who le, shall have compete nce releva nt to t he sec tor in which the comp any operate s. As a colle ct ive, we have a tho roug h unders t andin g of t he telec oms sec tor , incl udin g recent and relevan t nancial expe rie nce and exper tise gaine d through vari ous co rp orate an d profes siona l app ointm ent s over t he year s. For more abou t Ravi, Andy, A nnik a and Aw uneb a, see the direc tor s’ bio grap hies on p ages 9 0 - 93. Our c ompa ny sec ret ar y is se cret ar y to the c ommi t tee. Meetings during the year Our s che dule d quar terl y mee tings t ake pla ce sh or t ly be fore B oard mee tings . We usually m eet b efor ehand fo r a pre - me etin g to focus on inte rnal au dit a nd disc uss any issu es ne edi ng more t ime . We held ve sche dule d meet ings and ve com bine d Interna l Assura nce and pre - me etin gs duri ng th e year . At ten danc e dur ing th e year is set o ut on pag e 1 02. We als o met tw ice bet we en the end of t he nancia l year an d the signin g of th is Annual Repor t. Our meet ings are also attend ed by the CEO, CF O, deput y CFO, head of internal audi t and C hief comp lianc e and risk oc er , alon g with inter nal audit par t ner s (ANB and EY ) and other senior execu ti ves. Repr esent ati ves of o ur exter nal audito r , Del oit te, were invite d and at tende d all meetin gs, except for one meeti ng on 29 Ma rch , 2 022. Akhi l Gup ta als o atte nds our c ommi t tee m eet ings as an ap poi nted obse r ver o n behal f of B har t i Air tel. Ot her seni or nance and Exe cut ive Comm it tee lead ers som etim es at tend an d prese nt to our c ommi t tee i f spe cialis t kn owl edg e is require d. The com mit te e chair mee ts pr ivatel y with each of the CF O, head of inter nal audit and risk assuranc e, Chief comp lianc e ocer and our ex terna l auditor to ensure the eec t ive ow of mate rial infor mati on bet we en th e com mit tee a nd manag eme nt . We also regu larl y make time f or disc ussio n at the e nd of me etin gs wit hou t manag eme nt being present . Eectiveness The ex ter nal Board evaluat ion revie wed the com mit tee’s eec tive nes s and so ught fe ed back f rom i t s memb ers a nd th e ex terna l adv iser. We dis cuss ed the outp ut , whic h conclu de d that w e had o per ated ee ct ivel y through out the year . We als o conr med our areas of fo cus for th e year ahe ad. We re view our terms of reference yearl y – an d this ye ar , we revised the m to bri ng cl earer al ignme nt wi th C ode p rovisio ns and up date d FRC guidan ce. This incl ude d our resp onsibi lit ies related to: • T he consis tenc y of o ur narrat ive repor ting ( C od e provision 25 and FRC guidan ce 37 and Co de Princ ipal N and p rovisi on 2 7) • Rev iew ing and approvi ng the stat ement s in the Annual Repo r t aroun d internal cont rol , risk manageme nt and t he viabil it y state ment ( C od e provisio n 2 8 and FRC Gui danc e paragra ph 44 ) The se terms of r eferen ce are available on our websi te ww w.a ir tel.afri ca. For d etai ls of the B oa rd evaluat ion s ee p age . Fo r det ails of t he B oard evaluat ion s ee p age 103. Par t 1 10 5 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Audit and Risk Commit tee repor t cont inue d Our work during t he year At each quar terl y meeti ng , we rev iew summar y repo r t s from inter nal assuranc e, as w ell as nanc ial result s and det ails of a ct ion taken or prop ose d plans . We also re ceive s ummar y r epo r t s fro m our ex ter nal au dito rs at t he half ye ar and year e nd. O ur c ommi tte e chai r the n repo r t s to the Bo ard on our act ivi ti es, rec omme ndat ions , and other relevant mat ters . The commit tee’ s focus in 20 2 1/2 2 Strategic focus for risk management and internal control 2021/22 com mit t ee o bje c ti ves Actio ns taken Cross- reference Looking clo sely at the robustness of our sys tems for risk repo r ti ng , assessment and control and ensur ing t hat we f ocus o n th e areas of greatest risk As par t of our key is sues rep or t , we review ed our quali ty of ser vi ce repo r t s , condu cte d desig n and comp lian ce revi ews , and ensure d that learni ngs were appli ed acros s the busine ss . In addi tio n to q uant it ati ve data, we reque st ed more quali tat ive asse ssme nt and infor mati on to enab le me mbe rs to exe rcis e goo d ju dge ment . Se e page 1 11 Rev iew ing our risk manage men t framewor k and conduct ing the mati c ris k revi ews to e nsure r isk remains within our agreed appeti te and is m oni tore d and re vie wed as ne ede d to r ee c t exter nal and internal changes Af te r a se ri es of w ork sh ops hel d around the busin ess , we a do pted the upd ated Risk App et ite State men t ( R AS) frame wor k and an e xcept io n- bas ed risk rep or t ing app roac h. We w ill revi ew the key risk indicators and tolerance limit s yearly . We m ade sever al improv emen t s to t he fram ewor k and plan, and con duc te d the follow ing thematic reviews: (i) H R r is k re vie w : we noted tha t the HR score car d was e sca late d to t he CEO mont hly and that the four top HR risk s were talen t acquisi ti on, suc ces sion pla nning , occ upat io nal healt h and safet y and work lo cat ion (future ris k). We d iscus se d mitiga tin g acti ons and KPIs for HR risks . (i) S upply chain management risk rev iew: we disc uss ed ho w risk s fo r supp ly c hain manag eme nt are identi e d. Fou r major risk s were ident i ed relat ing to the increasi ng st ru ct ure an d vend or go vern anc e – alo ng wi th mi tig atin g ac ti ons . (ii) Financing and foreign c urrency risk : we discussed: – E xchange rate volatility and devaluation risk – L iqui dit y and renan cin g risk – D epth of market/produc ts and banking landscape and treasur y governance – Re late d intern al contr ols and comp lianc e A s mo st of A ir tel Afr ic a’s oper ati ons are i n cur ren cies w hic h have an d are exp ec te d to dev alue again st the USD in the medi um/ lo ng term , we disc usse d miti gati on str ate gies . Thes e inclu de reba lanc ing d ebt f rom G roup l evel t o Op Co l evel an d int rod ucin g a gove rna nce s ys te m dur ing the ye ar to mo nito r and im prove O p Co t reasur y act iv it y. W e a lso s tre ngt he ned t he ab ili t y of loc al tea ms to mana ge ad dit ion al co mpl exit y an d s trat egi c proj ec t s . (iii) E nterprise business risk review: this l oo ked at to p enter pr ise r isk s and o ur pro ce sses f or reg iste rin g, pro ces sing , moni tor ing and impl eme ntin g all obs er vat io ns ident i ed by Interna l Assurance. (iv) Air te l M oney: we reviewe d the regis ter of signi ca nt risk s and assesse d regul ator y - relate d impl ic atio ns of a bre ach . We also re vie wed b ack- en d co ntro ls and su pp or te d ac ti ons to st ren gt hen Kno w Y ou r Custo mer and minimis e commis sion arb it rag e. ( v) I T se c ur it y r is k : we revie wed the ris k of te chn olo gy obso les cen ce , examine d our netw or k resil ien ce and busines s conti nui ty plans , con duc te d cybe r and informat io n secur it y revie ws inc ludi ng a d ark web analy sis , and concl ude d addi tio nal IT secu ri ty che ck s . ( v i) Ne tw or k : w e review ed the risks o f technology obsolescence an d our d igitisation and innovatio n plans. (v i i ) Reg ulatory : we re vie wed risk s relate d to K now Y our Cus tom er and qualit y of ser vi ce non - c omp lian ce, lic enc es fees and tele coms ta xes , and other top risks . We reco mme nde d tha t pos t-B rex it r isk be d rop pe d as an em ergi ng ris k. We a dv ised th e Board that our risk manag eme nt and interna l contr ol sys tems were ee ct ive . Fol low ing it s own review of the repor ts subm it te d to i t, th e Board agre ed that our sy ste m of inter nal con tro l contin ues to be ee ct ive in ident if y ing , asses sing , and rankin g the vario us risks we face as a busi nes s, as well as i n monito rin g and repor t ing pro gres s in mi ti gati ng the poten tial impa ct of t he se ris ks . Se e page 83 Par t 1 Governance report 10 6 Air t el Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 2021/22 com mit t ee o bje c ti ves Actio ns taken Cross- reference Clar if ying p roc ess es and c ont rols to help peo ple ide nti f y, mo nito r and mitigate risk earlier and more ee ct ive ly Rev iew ing the assur anc e processes suppor t ing cer tain aspe c ts of the TCFD and sustainabilit y sec tions in the 202 1 /22 Annual Repo r t We revie wed t he r isk s and o ppo r tu nit ies re sult ing f rom o ur ass essm ent of c limat e chan ge and how t hes e shou ld b e repo r te d. We conc lud ed t hat th e assu ranc e pro ce sse s supp or t ing t he na rra tiv e repo r t ing in t he A nnua l Rep or t in the areas are satis fac tor y . Se e page 86 f or our climate change risk disclos ures Rep rio ri tisi ng the audi t scope to foc us on area s wit h pot enti al business impact We r oll ed out key nancia l contro ls across th e diere nt func ti ons . This sta r te d with a self- asse ssme nt exerc ise fo llo wed by a n Inte rnal A udi t vali dati on exer cise of t he se lf- asse ssme nt . We r evie we d the eec ti venes s of o ur inter nal nanc ial cont rols fra mewo rk (IC OF R proce ss ) and intro du ce d a key cont rols fr amew or k across all 1 4 OpC os , as we ll as a quali t y assuran ce improvement programme. Se e page 1 12 Ongoing nanci al r epor ting act ivities We re view ed the integr it y of t he quar ter ly, ha lf year and full year nancial st atem ent s. We als o examine d other sta temen ts cont aini ng nancial infor mati on, inc ludin g tradin g updates and investor pres enta tio ns and p ack s , and re co mmen ded the ir approval to the Board . At eac h of ou r mee tings , we reviewe d and c ons tr uc ti vely chall enge d the accou ntin g method olo gies , judg emen ts and disclo sures set out in t he paper s prepare d by manageme nt – de term ining the appro pr iatene ss of t hese wit h input from the ex terna l auditor. Key trans ac tions , judg emen ts and est imates in relat ion to t his year’s nancial st atem ent s are lis ted on page 1 09. W e also revie wed our exist ing and emergin g litigat ion risk s. 2021/22 com mit t ee o bje c ti ves Actio ns taken Cross- reference Reviewing nancial rep or ting controls and cons idering issues and ndi ngs raise d by t he Inter nal Audit team Th e commit te e was satis e d that managem ent had resol ved or was in t he proc ess of resol vin g any open issu es or conce rns in relati on to m at ters ide nti e d by I nter nal Audi t teams. Se e page 1 12 Consid erin g managem ent ’s signi c ant acc oun tin g judge ment s , the po lici es appl ied to quar ter ly, half year and full year nanc ial st atem ent s , and how the stat uto r y audi t co ntr ibu ted t o the i nteg ri ty of our year-en d nancia l repor ting We assessed: (i) Th e qualit y, ap pro pr iaten ess and comp lete nes s of t he signi c ant acco unt ing pol ici es and pra ct ic es and a ny chan ges to t hes e (ii) Th e reliabi lit y and integr it y of our nancial rep or t ing , incl udin g key ju dg eme nt s and whe the r to s uppor t or ch allenge m anagement’ s judgements (iii) T he ex ter nal audi t ndings , incl udin g their revi ew of ke y judge ment s and the level of misst atement s (iv) T he CFO ’s rep or t s , which set out the rat iona le for the acco unt ing treat men t and dis- c losu res rega rdin g judge ment s and est imate s. Del oi tt e UK share d their vie ws on the treat ment of signi c ant half year and full year matt ers , summar isin g each issue and assessi ng the appropriateness of management’s judgement s or estimat es. In considering whether there was evide nc e of bi as, our com mit te e examine d the overal l level of r easo nabl enes s appli ed dur ing t he year to t he se jud ge ment s . We challenged manageme nt on some judgements an d sought explanations of the conclusion s draw n, makin g reco mmen dati ons to the Board for the app roval of the half and full year acco unt s and nan cial st atem ent s . Rev iew ing the prop ose d audit st rate gy fo r th e year ’s st atu tor y audi t , inclu din g the level of materiality appli ed We moni tore d the s t atu tor y au di t team’s prog ress a gains t t he agr ee d plan a nd co nsid ere d issue s as the y aros e. Rev iew ing the basis of prep arat io n of nancia l stat eme nt s as a goi ng co nce rn as s et ou t in our accounting policies We made re com men dati ons to t he B oard t o supp or t the go ing c onc er n st ate ment w hic h was prep are d on a n appro pri ate basis and con r ms that the Group remai ns a g oing con ce rn . Se e page 1 66 for ou r accounting policies Rev iew ing the long - ter m viabili t y st atement propos ed by managemen t and reason s for retaining a 3-year repor tin g period We d iscus se d the lengt h of the viab ili ty pe rio d with manag em ent and the exte rna l audito rs , chal len ging manag eme nt to j ust if y a 3 -year rat her than 5 -yea r peri od . Management recomme nded adopting a 1 0 -year plan for internal forecast s and impairment tes tin g. Th ey noted that the emer ging mar ket s in w hic h Air tel Afr ic a oper ates are und erp en etr ated com pare d to d evel op ed market s . In such market s , shor t-te rm plans ( 3 years) a re not in dic ati ve of our l ong - ter m pros pe ct s an d pe r for man ce. O t her c onsid er atio ns are t he li fe of our regu lator y lic enc es and netw or k asset s, whi ch averag e 1 0 years , and potenti al oppo r tun it ies in th e eme rgin g Afr ic an tel ec oms se c tor (mos tly a 2-3 p layer ma rket w it h lowe r smar tph one penetration ). How ever, t he 3-y ear liquid it y plan matche s the curre nt visibil it y of t he tenure of our nanci ng arr ang eme nt s ( main ly incl udin g $ 1bn of long -te rm bon ds, due for repay ment in a 3 - year per io d) and t he de sign an d payo ut of t he mana gem ent . On t his basis w e agre ed to a dop t a 3- year p er iod fo r th e pur pos e of our v iabi lit y s t ateme nt . Se e page 87 10 7 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Audit and Risk Commit tee repor t cont inue d 2021/22 com mit t ee o bje c ti ves Actio ns taken Cross- reference Rev iew ing the resul t s of t he com mit te e’s asses sme nt of th e ee ct ive ness of the 202 1/ 22 au di t Th e commit te e conc lud ed that the aud it was eec tiv e. The Boa rd will reco mme nd the reapp oin tme nt of D elo it te as ex ter nal a udi tor fo r the ye ar end ing 31 March 2023 at the AG M . Se e page 1 12 Rev iew ing whet her th e company ’s posi ti on and p rosp ec t s as pres ente d in t he 2022 Annual Rep or t and nan cial st atem ent s were fair, ba lanc ed and understandable We assessed: (i) Th e compl eten ess and consis te nc y of dis cl osures in the Annua l Repor t, inte rim rep or t s , our business mo del and strategy (ii) Th e interna l veri c atio n of t he non - nan cial fac tual st atem ent s , key p er form anc e indica tor s and d esc ript io ns wit hin t he nar rat ive (iii) F ee dba ck from ex ter nal par t ies ( co rp or ate repor ting spe cia lis t s, remun era tio n advise rs , ex ter nal audit ors) t o enhance th e qualit y of our repo r t ing (iv) T he FRC ’s guidan ce on clear and conc ise repo r ti ng in this repor t , as well as c omp lian ce wit h nan cial rep or t ing st and ards and other rep or t ing req uirem ent s We r ec omme nde d to t he Bo ard that the 2022 An nual Rep or t and nan cial st atem ent s prese nte d a fair , balan ce d and under st and abl e assessm ent of Air tel Afr ic a’s p osi tio n and prospe c ts . Se e page 12 7 Rev iew ing the non -a udi t ser vi ces and re late d fees a nd th e po lic y for non - audi t ser vic es pro vid ed by t he audi tor fo r th e year We appro ved t he no n- aud it se r v ice s and re lated f ees p rovi de d by De loi t te for 2021/22 and con clu de d that n o chan ges w ere re quire d to t he po lic y for n on -a udi t fee s prov ide d by th e aud itor. Se e page 1 13 Negotiatin g and agreeing the st atu tor y a udi t fee fo r th e year Th e 2 020/21 s t atut or y audi t fee was p aid and the comm it te e approve d the fees for the 202 1 /22 audi t . Se e page 1 8 6 Governance 2021/22 com mit t ee o bje c ti ves Actio ns taken Cross- reference Regulator y refo rm We su bmi t ted a resp ons e to t he BEI S consult at ion , “Re sto ri ng trus t in audit and cor por ate gove rnan ce” – coveri ng the King man, CM A and Br ydo n review s (UK SOX). We will c ont inue to m oni tor p rop osals fo r aud it an d cor po rate g over nanc e refo rm to e nsure Air tel Af ric a is we ll pla ce d to add ress t hem . Europ ean Singl e Elec tr onic For mat regulator y technical s tandard (ES EF ) We p aid spe cial at tent ion to the prepar ati on of our c ons oli dated nan cial s tate ment s in digit al for m under the Europ ean Singl e Elec tr onic For mat regu lator y tec hnic al st and ard (ESEF ). As this was the rs t repor t in t his forma t, we made sure the nec essa r y proc ed ures had bee n compl eted by all par tie s, inc lud ing our techn ic al acco unti ng team, a speci alis t IT provid er and our exter nal a u d i t o r. Se e back page Rev iew ing the comm it te e’s te rms of referenc e We revise d our t erm s of refer enc e to br ing c leare r alig nme nt wi th C ode p rov isions a nd up date d FRC guid anc e. This incl ude d consis ten cy bet we en narr ati ve repor ting in die rent sec t ions ( Co de prov ision 25 an d FRC guidan ce 37 an d Code Pri ncip al N a nd provis ion 27) an d review ing and app rovi ng Annual Rep or t s tate ment s on inter nal cont rol , risk manage ment and the viab ili ty st atem ent ( Co de provi sion 28 an d FRC Guida nce para gra ph 44 ). Thes e terms of refer enc e are available at w w w.air tel .af ric a. Rev iew ing the con clusi ons of the commit tee’s annual evaluati on We r evie we d the result s and set out an a ct io n plan to d eliv er its rec omm end atio ns . The Boar d cons ide red the resul t s of t he revie w and conside red th e commit te e to b e eec ti ve. Se e page 1 03 Mon ito rin g fra ud re por ting a nd compliance wit h the Brib er y Act We r evie we d our anti - fra ud poli cie s and allege d incid ent s of fraud , as w ell as compli anc e with our anti- brib er y programme. Revi ewing the 20 2 2 Annual R epor t At the reques t of t he Boar d, we reviewe d this A nnual Rep or t to consi der whet her, ta ken as a whol e, it was fa ir , balanc ed and unde rs ta ndabl e. We have robus t gove rna nce p roc esses i n plac e to supp or t the year - end revie w of t he Annual Repo r t , inclu ding ensur ing that ever yo ne involve d unders t ands the ‘f air , balan ce d and understandable’ r equiremen ts. Our consideration s included: Fairness a nd balan ce • Is t he rep or t o pen a nd ho nes t? Are w e repo r ti ng on ou r weakn esse s, di cul ties and challe nges alo ngside our succ esse s and opportunities? • D o we cl ear ly explain our KPIs and is t here st rong linka ge bet wee n our KPIs and our strate gy ? • Is t here a f air bala nce b et wee n alter nat ive pe r for manc e measur es (APMs) an d repor te d gures? • D o we show o ur pro gress o ver tim e and is t here c onsis tenc y in ou r metrics and measu rements? Understandable • D o we ex plain our busines s model , strate gy and acco unti ng polic ies simpl y , using prec ise and clear language? • D o we br eak up l eng thy narrat ive wit h quotes, tab les , case stud ies and graphics? • D o we have a consis ten t tone acros s the Annual Repor t? • A re we clea rl y ‘signp ost ing ’ to wher e more inf ormat ion c an b e found? Iter atio ns of t he draf t Annual Repo r t were provid ed to c ommi t tee members t hroughout the pro ductio n process . Following our formal revie w in m eet ings on 2 9 Apr il and 5 May, we con rm ed to the Bo ard that this Annual Repo r t is f air and balance d and provides eno ugh clar it y for sharehol der s to und ers t and our business mod el , strate gy, posi tio n and p er forman ce. Th e directo rs then made thei r assessme nt foll owing t he B oar d’s revie w of the d ocu ment at i t s mee tin gs on 29March , 6 and 1 0 May 2 022. Par t 1 Governance report 10 8 Air t el Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Key transac tio ns, judg ement s and es timates and our resp onse We c onsid ered the foll owin g k e y transac ti ons , judgem ent s and estima tes in t he contex t of t he nanc ial state ment s , discusse d them wit h our ex terna l auditor, and have found the response to each approp riate and accep tab le. Key area Actions and conclu sions Going concern assessment The com mit te e receive d a de tail ed pape r from managem ent and reviewe d and c hall enge d the assumpti ons made in reach ing the conc lusion that the nanci al state ment s shoul d be p repa red on a go ing conc er n basis. This included: • C ash ows under base and reasonabl e wors t-c ase scenar ios ( cap turi ng princ ipal risk s and uncer t aint ies desc rib ed on page 87 • T he sensit ivi tie s consider ed in response to these risk s and t he outp ut of stress tes tin g per for me d • O ur sol venc y and l iquid it y posi tio ns • Our bo rrowing facilit ies including undrawn commi tted facili ties • Se nsit ivi tie s reec tin g the potential impa ct of Covid - 19 • T he disclos ures in the annual repo r t ( ref er to pa ge 1 66) The com mit te e were s atis e d with the robus t ness of the review and recomm end ed to t he Boa rd the approp riaten ess of the g oing c onc er n assumpt ion an d the r elate d discl osures . Fo r more in forma tio n on th e goin g con cer n asse ssme nt refer to note 2.2 of th e nancial st atem ent s. Viability stateme nt As t he c ommi tte e prov ide s adv ice to t he B oard o n the fo rm an d basis of co ncl usion un der lyi ng th e lon g- ter m viabi lit y st atem ent as s et out on p age 87 , it per for me d a de tail ed revie w of th e long -ter m viabili t y assessme nt includi ng consi dera tio n of Gro up’s str ateg y and busi ness m ode l. Our re view c overe d: • T he Group’s prospe ct s • T he peri od under consi der atio n • Pr inc ipal risk s ( refer to pages 80 - 86) • Lon ger-term cash ow forec as t s • T he sensit ivi tie s consider ed in managemen t’s stre ss- tes t to resp ond to the potentia l princi pal risk s reference above , including the potential impac t of Covid- 19 We challen ge d the r atio nale of usin g a thre e -yea r per io d for th e pur pos e of our via bili ty as sess ment c ompa rin g wit h a lon ger per iod for impair ment pur pose s. We dis cuss ed the just i cat ion wit h the managemen t which was t hen cover ed by updat ing the discl osure on the Board ’s as sess ment of L T VS as we ll as t he impair ment discl osure . W e also reviewe d the enhan ce d disclosure s by th e Group on providin g fur th er disclo sures to q uanti f y the impac t of s ensit ivi ti es in li ne with FRC rec omme ndati ons and were satis ed wit h the disclosu res adopte d. T ak ing into account pote ntial miti gatin g acti ons , we wer e satis ed wit h the concl usion and disclosu re on t he Grou p’s long -term viabilit y . Our 202 1/22 long -ter m viabili t y state ment and more details on the assessm ent is s et out on p age 87 . Accounting imp ac t o f towe r sale transactions consummated during the year As out line d on note 5 of the nancial st ateme nt s, the Gro up entered into tower sales transa ct ions in T anzan ia, Malawi , Madag asca r and R wan da. The com mit te e reviewe d the account ing for these sale s and d eter mine d that the conclus ions reache d on sale and lease back a cc ount ing and t he in com e st atem ent gains re co rde d were ap prop riate . Fur t her , the commit te e challen ged the basis of ar ri vin g at t he lease back perce nta ge and recogn ising the conse quen t upfro nt gains as exc epti onal i tems co nclu de d that t he ac coun ting t reat ment an d asso ciate d discl osures we re app ropr iate and in li ne wi th t he excep tio nal items p oli cy of t he G roup gi ven t hat this was p ar t of t he G roup’s st rate gic ass et mone tisat ion p rogr amme a nd abo ve the G roup t hresh old fo r rep or t ing exc epti onal it ems. Conclusion of the Air tel money stake sale including the recognition of put option liability As out line d on note 5 (g) of the nancial st ateme nt s, the Gro up entered into share sale agreeme nt s in o ne of t he Group’s subsidia rie s, Air tel Mobile Co mmerc e BV (A MC BV) by way of a secon dar y sale of AMC BV ’s sha res. Th e Group recei ved total consi dera tio n of $550m on these sales . The Gro up conc lude d that it doe s not c ont rol the shares place d in es crow and henc e record ed thes e shares as par t of t he Group’s non- controlling interes ts . Fur t her more , as se t out in mo re detail on note 5 (g) of th e nancial st atem ent s, the Gro up reco gnise d a na ncial liabil it y for The Rise Fund and M ast erca rd’s option to sell their shares in A MC BV to A ir te l Afric a or i t s aliates at f air market value in the event that the re is no Init ial Publi c Oer ing of s hares in AMC BV w it hin four years. The Gro up has d eter mine d that succ ess f ully execu tin g the IPO is not wit hin the comp lete cont rol of t he Grou p and h as therefor e recorde d a nanci al liabil it y at t he presen t value of th e expec te d buy- back amou nt which is a lso the maximum amou nt . Subsequ ent re- measure ment of this l iabili t y has b een rec ognis ed as a nan ce cost . The com mit te e reviewe d the account ing for the transa ct ion and satis e d its elf that the conc lusio ns reached were appropriat e. Par t 2 10 9 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Audit and Risk Commit tee repor t cont inue d Key area Actions and conclu sions Goodwill impairment We recei ved a de tail ed man agem ent pa per o n impair me nt and ch allen ge d the ap pro pria tenes s of the as sumpt ions an d judg eme nt s adop ted for t he an nual imp airm ent tes ti ng exercis e in De ce mbe r 202 1 inc ludi ng th e use of a 1 0 -ye ar plan whic h the commit te e was s atis e d as ap pro priate . This was bas ed on the Afric an tele com market s which are unde rp enet rate d when compar ed to d evel ope d market s. In formin g this v iew, we a lso reviewe d the sensit ivi tie s per for me d by manageme nt on key assumpt ions such as the discount rate, grow t h rates and o n the headroo m if a ve - year plan had been adopted with appropriat e long- term gr owt h rat es . We als o reviewe d manageme nt ’s c onsid erat ion of the impa ct of climate change. Base d on the analy sis conduc te d so f ar , we were satis ed that any related cost s are adequate ly covere d as par t of th e impairm ent sensit iv iti es and therefore no impairment would arise. For more infor matio n on t he Grou p’s go od will impai rme nt assessm ent refer to note 15 of the nancial st atem ent s . Analys is of alternative per formance measures (APMs) As char it y and donatio ns are n ot related to t he tradi ng per fo rman ce of t he Grou p, these were adjus ted to arr ive at unde rl ying EB IT DA and margin in previous per iods . Wit h the launch of o ur susta inabil it y stra tegy in the curren t year , whe rein ‘ acc ess to edu cat ional goal ’ is o ne of o ur key g oals , the Group revisite d the deni tio n to inc lud e the CSR expense as par t of un der lyi ng EBI TDA , margin and oper atin g free cash ow. Dur ing the year , the Grou p removed free cash ows as an A PM since the Grou p’s di vide nds are no lo nge r linked to su ch metr ic . In additi on , restat ed EPS was als o removed as an APM as th ere has be en no signi c ant change in the number of shares issue d betwe en the curr ent and previous nanc ial repor ting per iods . The com mit te e per for me d a det ail ed review on the use and d iscl osures of APMs wit hin the annual repo r t (inclu ding rec onc iliati ons disclos ed) and concl ude d that the balance and equal promin enc e of A PMs (in comp aris on to G A AP measures) was app ropr iate. The comm it tee chall eng ed managem ent on changes to APMs and s atis e d its elf that the changes were a ppropriate. For more infor matio n on A PMs refer to p age 1 75 of th e annual repor t . Share buy- back in Airtel Nigeria On 1 D e cemb er 202 1, Air tel Nige ria comp lete d the buy- bac k of 8 .22% n on - co ntro lling intere st ( ou t of exis t ing 8.26% ) from it s non- cont rolli ng sharehol der s at a total cos t of N GN 67 .6 billio n ( approx imatel y $ 1 63m) inc lud ing direc tl y attr ibu tab le tra nsac tio n cos t s. The com mit te e reviewe d and c halle nge d the accou ntin g for t his transa ct ion and were satis ed wit h the cost of the buy- back including tr ansactio n cost s being taken through equit y. Review of e ec t iv e tax rat e The com mit te e reviewe d and c halle nge d manageme nt ’s c alc ulati on of t he eec ti ve tax rate ever y quar ter and found this to be sat is fac tor y. Re vi ew of tax / legal/regulatory matters The com mit te e reviewe d the k e y develop ment s in material tax , legal and regulato r y cases duri ng the peri od , manage ment ’s esti mate of key tax , legal and regula tor y dispute s, and how these were rated by manag ement as probabl e, poss ible or remote and as sat is e d with the acco untin g conclus ions reache d by t he managem ent . E xce pt io nal it em s We reviewe d all exc epti onal items duri ng the year a nd conside red whet her the items met the deni tio n as an excepti onal item unde r Group poli cy and FRC guidanc e and w ere satis e d with manage ment ’s positi on and conclusi ons . W e revie wed the G rou p’s exceptio nal ite m thres hol d at the b egi nning of t he year a nd agre ed to ma nage ment ’s prop osal to in creas e the thres hol d in lin e with the size and p er forman ce of t he Grou p. W e will continu e to rev iew the releva nce of the Group’s except iona l item polic y with respe ct to applic abil it y and thres hol ds ever y year in line wit h FRC guidanc e and t he prac ti ces ado pted by othe r FT SE compa nies . For more infor matio n on exc ept ional items refer to n ote 1 1 of t he nancia l state ment s . Par t 2 Governance report 110 Ai r t el Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Par t 3 Risk management and in ternal controls Our ap proac h to ris k As highl ighte d in t he str ateg y and r isk sec tio ns of t he str ategi c repor t , risk man agem ent is inh erent to o ur manag eme nt thin king an d busine ss- pla nning pro cess es . The Board has overall responsib ili ty for estab lishing and maintaining our risk m anagement and internal cont rol s ys tems . For m ore info rmat ion o n our r isks an d mit igat ion an d our ris k manage ment fra mewo rk , see the risk repor t on pages 80 - 86 . The Bo ard also approve d the statem ent of the pri ncip al risks and unc er t aint ies set out on p ages 83 - 86. Progress i n 202 1 /22 Eac h quar ter , our CEO and CFO provid e a co mplia nce cer ti cate conn ec ted to the preparat ion of our nanc ial result s . This includ es the p oli cies an d pro ce dures fo r areas of th e busine ss und er th eir resp onsibi lit y and conr ms the existen ce of a deq uate internal cont rol sy ste ms thro ugho ut t he year . O ur c ommi tte e rev iews a ny except ions noted i n this exer cise. Working to mi nimise t he ri sk of fr aud, b ri ber y and corruption Minim ising th e risk of f rau d is one of t he key pr ior it ies fo r Inter nal Audi t , and w e take a rang e of ac t ions to d o this. The se includ e asses sing the qualit y of balance shee t reconc iliat ions , key ju dge ment mat ters , tender s and quotati ons , and cont rols over payment s and asso ciate d appl ica tions . We conti nue to fo cus on li miti ng our p otent ial exp osure to b rib er y and cor rupt ion risk s , for ex ampl e by p rovidi ng mandator y tra ining , revie win g nancial reco rds and developi ng our polici es and pro ced ures . Our c ont rac t manag emen t sy ste m incl udes m andator y cer ti cat ion to our C od e of C ond uc t and a nti - bri ber y a nd corr upt ion pol icy. Each year , ever y empl oyee mus t take p ar t in compu ter -b ased trai ning o n anti - br iber y and co rr upti on and o ur Co de of C ond uc t . Our Internal Audit team reviews our anti- brib er y compliance progr amme to assess its cont inu ed eec ti venes s. We w ill conti nue to as sess bri ber y risk s in o ur market s to re ne and improve our anti- br ibe r y compliance progr amme. Our c ommi t tee als o moni tors a nd over se es pro ced ures aro und alle gati ons of imp rop er be haviou r and em ploye e co mplain ts . Whistleblowing procedures Our whis tl eblo wing pro gramm e is a con dent ial channel thro ugh which emplo yees can repor t unethi cal practices or wron gdoing. We have an indep end ent w hist leb low ing pro ce ss manag ed by an ex terna l profession al ser vi ces rm from thei r Centre of Excel len ce in Sou th Afr ica . Throu ghou t the repor t ing per io d, we rec eive d updates on the volume of repo r t s , key th eme s emerging fro m these repor ts and th e resul t s of relate d inves tig atio ns. We asse ss th e repo r t s for t he cate gor y and leve l of con cer n and c onsid er th ese in l ine wi th a p rotoc ol for review, invest igat ion , acti on, closu re and fee dbac k . This is do ne inde pen dent of manageme nt where nece ssar y , but involv ing senio r busine ss unit or HR manage ment as app ropr iate. We co nti nue to moni tor the volume , geogr aphi c distr ibu tio n and r ange of repor t s made to the hotl ine to u nde rs tan d key t heme s, the result s of inves tig atio ns under t aken , signic ant regio nal compl ianc e conce rns , and wh eth er ac cess to t his fac ili ty is l ess un der sto od o r publ icise d in some countries . Dur ing the 12 mo nths endin g 3 1 Marc h 2 022, we inve st igate d 7 4in cide nt s receive d throu gh various cus tomer touc h point s and our for mal whist leb lowi ng channels . Thes e were of var ying magni tude , wit h t wo above t he E xec ut ive C ommi tte e th resho ld. O ne was inves tig ated by an exter nal par t ner , and o ver 90% of t he cases have been close d. Th e very small numbe r of re por ts that cont aine d alle gati ons of a brea ch of ou r Co de of C ondu ct we re th orou ghly inves tig ated an d discip linar y act ion w as taken w here a ppro pri ate. The majo rit y of repor t s rece ived dur ing the peri od were human resou rces is sues w hich i ndic ated n o com plian ce co nce rns o r ser ious breac hes of o ur Co de of C ondu ct . Our c ommi t tee cha ir rep or t s to t he B oard at ea ch of it s me et ings on the ope rati on of o ur Code of Condu ct , anti - br iber y and c or rupt ion and whis tle blow ing proc edu res . This repo r t cont ains enou gh detail to enabl e the B o ard to over see t hes e areas and m ake sure ar rang ement s are in pla ce fo r a prop or t iona te and ind ep ende nt inves ti gatio n of relate d mat ters a nd for fo llow - up ac tio n. Inter nal Audi t Dur ing the repo r ti ng peri od , we en hance d our internal audi t risk asses sment p roc ess by s t andard ising ou r appr oach to r isk asses sment . This allow s regular reasses smen t of ris k areas to make sure new and eme rging risk s are a ddre sse d as ne ed ed , as wel l as more d ynami c audi t plan ning . Our I nter nal Audi t team co nside rs comp lian ce with inter nal polic ies , regulato r y obligat ions and frau d risk mit igati on as p ar t of the ir indepe nde nt testi ng and evaluatio n. The team is g overn ed by the internal audit char ter , as a pprove d by t he Audi t and R isk Commi t tee, and is h eade d by o ur Chief internal audi tor , who repo r t s to t he commi tte e and the CEO. The commit te e chair regu larl y mee ts w it h the C hief inte rna l audi tor to disc uss th e team’s ac tiv it y and any sig ni can t i ssue s arising from their wor k . Our comm it tee appr oves the annual audit plan in t he rs t meet ing of each nanc ial year . W e the n receive quar terly upd ates on ac tiv iti es , prog ress agains t the plan, the issues arisin g from audit s and acti on plans to addr ess conc erns . This year , we r evie wed and approve d the det aile d audi t plan as d ynam ic and e nsurin g that I nter nal Audi t ’s areas of focus r emain ap prop riate . 111 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Audit and Risk Commit tee repor t cont inue d Our I nter nal Audi t team imp lem ente d vari ous ini tiat ives dur ing t he year to help a chie ve thei r mandate an d s trate gic o bje ct ives . Pro ac t ive ly m ana gi ng t he r is k of f rau d : A frau d risk as ses sment exercise was rolle d out across all Op Cos and HQ oces to identi f y, regis ter, mo nito r and ma nage frau d risks wit hin our operat ions . Ther e are plans to a utomate t his exerc ise to supp or t cont inuo us moni tori ng of the risks ident i ed and maintain an up- to - date frau d risk registe r . We als o revised our anti -f raud pol ic y during the year . This is n ow incl ude d in t he annual mandator y anti -f rau d cer ti c ati on under taken by all e mpl oyees each year . From the next nanc ial year , this online anti -f rau d tra ining w ill be ex te nde d to key par tner s and sup pli ers . Key controls: We introdu ced a key c ont rols f rame wor k acros s all 1 4Op Co s. The se contro ls are an ex tensio n of ou r internal nanci al cont rols fram ewor k (ICO FR) which inclu de non- ICO FR proc esses and cont rols . These incl ude comp lianc e with cri tic al intern al polici es and proc edur es, com plian ce with loc al regula tor y requi remen ts and maintai ning eec ti ve IT secur it y and operat ional pro cess es . The y’re in plac e to s tre ngt hen our interna l contro l environm ent through regular monitor ing of k ey internal risks. The re are 76 key co ntro ls which cut across Air tel Afric a func tio ns. OurI nter nal Audit team also v alidate s monthly manag emen t sel f-asse ssme nt s repor t s result s to the Audi t and R isk Commit tee quar terl y . Ove r the next nancia l year , we’ll ex te nd these key controls to cover head oc e review proc edure s. We’ r e also p lannin g to au tomate the validat ion o f cer tain key co ntro ls to prov ide c onti nuous m onito rin g and lea d to a st ron ger c ontr ol env ironm ent . Governance, risk and compliance ( GR C): W e ide nti e d a comp rehe nsive and update d GRC sys tem which we’ll brin g on b oard to manage GRC centr ally in line with indus tr y a nd govern ment regu latio ns acro ss all areas o f Air tel Afr ica . We’ll ful ly imp lem ent th e new sys tem dur ing the next nan cial year , follow ing audit and case manage ment s olu tio ns goin g live in A pr il 2022. We also intend to e xpan d our dat a anal y tic s ca pabil iti es by fu lly emb edd ing analy t ics wit hin our audit work ow to id ent if y red ags, analy se trends , cover compl ete data sets and improve the accu rac y of audi t tes tin g. Quality assurance improvement programme: We also implemented a qualit y assurance improvement programme during the year . Our Quali t y Assura nce team identi e d key a ct ivi tie s to pr ior it ise for the rs t phase, with an initia l focus on s tr engt hen ing our proce ss for assessing and managing internal risks and executing audit s. We updated our int e rnal audit policies and pro cedures accordin gly . We also be gan to sen d inter nal au dit cl ient s atis fac ti on sur veys to key st akeho lde rs af ter enga geme nt s to unde rs ta nd how w ell aud itor s are achieving their goals and objec tives . E x ter nal au ditor s Engaging our auditor Our c ommi t tee mana ges ou r relat ionshi p wit h the ex te rnal a udi tor . Eac h year , we assess their per form ance , eec tive ness and independ ence and recomme nd their reappointment or removal to the B oa rd. Our exte rna l auditor is Del oit te LLP (UK). The lead par t ner is Mar k Go od ey , who has been in post since Oc tob er 2 0 18 and will retir e at the end of Del oit te LLP ’s nancial year af ter the Air tel Afr ic a 3 1 Marc h 202 2 audit . He will be su cc ee ded as lead audit par tn er by Rya n Du y. Rya n has b een a par tne r in D elo it te’s I nter nati onal Audit Gro up and cur rent ly leads the Afric a Ser v ices Gro up. Wit h over 20 years’ expe rie nce ser ving audi t client s across a b road rang e of se c tors , geo gra phies and regulato r y enviro nment s , Ryan relo cate d to t he UK fro m Del oit te in J ohan nesb urg wh ere he wo rked as a n audi t and adv isor y par t ner to se veral mu lti natio nal lis ted c lien ts . His p revi ously hel d leader ship posit ions at Deloi tte in Sout h Afric a require d him to trave l through out Afr ic a, provid ing per spe ct ive of the cont ine nt and its oppor tunities. Rya n was ap poi nted follo wing an inter vi ew and selec ti on proce ss led by our c ommi tte e chai r and ou r CFO J aide ep Paul . A s well as b eing invi ted to at ten d all co mmit te e and re levant m eet ings si nce O cto ber 202 1, Ryan has met w it h our c ommi t tee chair , CFO and senior nanc e leader s and shadowed Mar k Good ey as h e comple ted his year - end au dit . Eec ti veness of t he exter nal audit process Af ter re vie wing a nd chal leng ing th e wor k don e by De loit te d urin g the year , we approved De loit te’s terms of e ngage ment and are fully satis ed wit h their per fo rman ce , objec tiv it y, qual it y of c halle nge and independence. We re co mmen ded to the Board , which in turn will recomm end to shareh old ers at our 202 2 A GM , that Delo it te shoul d continu e as our exte rnal audi tor and be r eapp ointe d for t he 202 3 nanc ial year . Wi th the appoi ntme nt of R yan Du y , we believe the inde pen denc e and ob jec ti vi ty of t he ex ter nal au ditor a re safe guard ed . Our n ext c omp eti ti ve tende r is plan ned fo r the 2029 year - e nd au dit in line with curre nt regulat ion . This timeta ble is subjec t to annu al asses sment of Deloi t te’s e ec ti venes s and i nde pen denc e. The re are n o contr act ual obligat ions whic h restr ic t our choice of audi tor , nor is there a min imum appo intm ent peri od . W e’ ve complie d wit h th e provisi ons of th e Co mpet it ion an d Mar kets A uth or it y ’s Order for this nancial year relatin g to aud it tender ing and the provisio n of non-audit ser vices. Working w ith o ur audi tor The lead ex terna l audit par tn er and his tea m attend our commi tt ee mee tings to p rovi de insigh t and cha llen ge and to re po r t on t heir re view of the half year res ult s and audit of t he year - e nd nancia l state ment s . T o faci lit ate open dialo gue and assuranc e, we also hold pri vate sessi ons wi th ou r audi tor wi th out man agem ent pre sent . O ur comm it tee c hair re gular ly me et s wi th D elo it te ou tsi de of sc hed ule d commit tee meetin gs. A number of teams are i nvolve d in t he audit , give n the nee d to re por t bot h our o wn nancia l result s and to repo r t to our parent comp any , Bhar ti A ir tel. Par t 3 Par t 4 Governance report 112 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Par t 5 Thro ugh out the year , audit teams delive r : • A n interim review by Deloi t te UK for our half year • T he Air te l Afric a consoli dated nanc ial sta temen ts signe d by Del oit te UK • Lo cal st atuto r y acco unt s audite d by eac h Deloi t te Afric a team, wit h som e wor k per form ed by D elo it te In dia Dur ing it s half year an d full year r esult s repo r ti ng, De loi tte found no signi c ant dec ienc ies in controls or issues wit h our a cco unti ng judg eme nt s and es ti mates in th e areas in w hich t hey a dopt a c ont rols relia nce approach. Our c ommi t tee re cei ves a det aile d aud it pla n from D el oit te id enti f y ing key risk s and a reas of foc us. We revi ew and c halle nge t his ex ter nal audi t plan, inclu ding audi t scope and materia lit y , to make sure Deloi tt e has identi e d all key risk s and develop ed robus t audit pro ced ures and comm unic atio n plans . We also lo ok at t he qual it y of audi tor s’ repo r t s thro ugho ut the year and c onsid er respons es to a cco unti ng, nan cial cont rol an d audi t issue s as the y arise . Using our auditor for non-audit ser vices We safegua rd audi tor in dep ende nce a nd obj ec ti vit y t hroug h a numb er of c ontr ol measures , includ ing limit ing the nature and value of non -a udi t ser v ice s per form ed by t he ex ter nal aud itor. Whe re we consi der o ur ex ter nal audi tor to have t he mos t ap prop riate skills , exper tise and safegua rds, we may c onsid er using them for cer tain acc epta ble non -au dit ser vice s. Thei r knowle dge of our busine ss may ma ke s uch ser v ice s more cost-e ec ti ve and ensure condent iality. Our n on -au dit se r vi ces p oli cy se ts o ut t he circ ums tan ces in w hic h the ex te rnal au dito r can p er form no n -aud it se r vi ces . It re st ri ct s th e provis ion of n on -au dit ser vice s as pro hibi ted by the FRC Revis ed Ethic al Standard 20 19 and p rovid es a m onet ar y thre shol d for appr oved se r vi ces . Ou r comm it tee re vie ws and p re -ap proves a ny non -a udit s er v ice s wit h fee s above t he th resho ld or n ot st ipul ated by the p oli cy. Und er our polic y on n on -au dit ser v ice s, the CFO has autho rit y to appr ove permi t ted ser v ices up to $50 ,0 0 0, with any amount s above this requiring commit tee approval. Our re view of t he au dito r ’s per for manc e dur ing t he rep or t ing p er iod incl ude d non - audi t ser vice s and th e abil it y of De loi tte to ma inta in it s inde pen den ce while provi ding thes e ser vi ces . The non- aud it ser v ices wor k for t he nancia l year in clu ded half year review wor k for o ur comp any, quar terl y audit s for our parent , Bhar ti Air tel and cont rol at tes tat ion in Zambia and Uganda require d by l oc al regulat ions and ESEF assura nce. Th e value of t his was $1.5m , represent ing appr oximatel y 2 5% of D eloi t te’s tot al remuner atio n as se t out in note 8.1 to the consoli dated nanc ial state ment s on page 1 86 . Finance Commit tee Our F inan ce C ommi tte e is an op erat ion al manag ement c ommi t tee overs ee n by and subsi diar y to o ur co mmit te e. It s t wo in dep ende nt non - exec ut ive dire c tor mem ber s are also m emb ers of t he Au dit an d Risk Commi t tee . Gi ven the compl exit y and impor tanc e of na nce , treasur y and tax pol icy mat ters , the Boa rd has de le gated oversi ght and governan ce to this spe cialis t Finan ce Commi t tee . This has stre ngt hen ed our adhe renc e to the r elati onship a gree ment a nd treasu r y and t ax cont rols . This commit te e frame s our nanc e polici es and proce dures , creat ing r isk fra mewo rk me cha nisms for t reasur y a nd ta x to help achi eve our strate gic nanc ial goals with a balance of initiati ve and risk contr ol. Committee duties • Ensu res our t reasur y a ct ivi ti es are ca rr ied o ut w ithi n an agre ed polic y framework • Ma kes sure ac ti vit ies are w it hin agre ed l evels of r isk and w ill cont ri bute to our nanc ial per for man ce throug h focuse d management • Ma kes sure op erat ions are a ppro pr iately f und ed an d con duc ted in line with polic y • Ensu res the overall treasur y obje c tive and spec i c objec ti ves for each main treasur y ac tiv it y are c onsis tent wit h both nancia l and cor po rate busi ness o bje ct ives • Re com mends the st rate gic tax pol icy for approv al by t he Board • Ensu res adequate liqui dit y to m eet nan cial obligat ions base d on cash ow forec as t s • O ptimis es th e interes t c ost o n gross d ebt wi thi n pru den t risk parameters • D eter mines and approve s the derivat ives pol icy on swaps , foreign exchang e and inte res t rate he dg es • G ene rates reas onab le co mmerc ial retur ns on inve st men ts to prote ct in vest men t cap ita l and ensu re desir ed liq uidi ty • Mi nimises t he ad ver se imp act o f foreig n exchang e movem ent s asso ciate d wit h tra nsac ti ons and o ur op erat ing exp osure i n vari ous cur renc ies du e to mult inati onal o per atio ns • Mai ntai ns diversi e d access to various loc al and global debt and borrowin gs markets • Deter mines and approves our strategic ta x planning policies • A pprove s new debt and the canc ellat ion and modi c atio n of borrowin g and debt facilities Commit tee members Mem ber s were ap poi nted by t he B oard o n the re co mmen dati on of the Nom inatio ns Commi tte e in consu lt atio n with the Audit and Risk Co mmit te e chair . They are Jaidee p Paul, CFO, as c hair ; CEO Segu n Oguns anya; depu t y CFO Pier F alci one; and two inde pen dent non - execu ti ve directo rs , Ravi Rajagopa l and A nnik a Poutiain en. We re vie w the c omp osit ion of t he co mmit te e and t he co ntinu ed p ar t icip atio n of inde pen dent n on - exec uti ve dire cto rs eac h year . 113 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Nominations Commi t tee repor t Chair’s statement I’m pl eased to p rese nt the N omi natio ns Co mmit te e repo r t fo r 202 1/22 and to shar e our pla ns for th e com ing year. Chang es to the B oard We c onti nue our eor t s to e nsure that our Board is made up of p eop le wit h th e appro pr iate dri ve, ab ilit ies , exp er ienc e and di ver sit y in it s broa des t sens e to lead A ir te l Afr ic a in del iver ing o n our s tra tegy. Our comm it tee ove rs ees su cce ssio n planni ng for s enio r manage ment to ensure we have a c onsis tent p ipe line of di ver se ta lent in p lac e for prog ressi on to t he Board . The 2021/22 year saw some exc it ing cha nges to t he Ai r tel Af ri ca Bo ard. A s par t of our plan ned succ essi on proce ss , we over saw the appointment of Segun O gunsanya as m anaging director and Chief execu ti ve ocer of Air tel Afric a. Se gun joine d the Board wit h eect fro m 1 Oc tob er 202 1. W e anno unce d that Jaidee p Paul, Chief nancial oc er , woul d join the Board as exe cu tive dire cto r on 1 June 202 1. And we a ppo inte d a new in dep ende nt non - exe cut ive di rec tor , T se ga Ge breyes , in O cto ber 2021. T sega is a nat ive Eth iopia n wit h de ep inves tme nt and o per atin g backgr ound in A fr ica a nd TM T , s ta r ti ng wi th her ro le in bu ildin g Ce ltel I nter natio nal. S he is also t he fou ndin g dire ctor of Sat ya C apit al Li mite d. As par t of our ongo ing review of the Board ’s c urre nt and fu ture nee ds, we reviewe d the tenure of al l directo rs and discusse d future Bo ard rotat ion . W e recogn ise that our l arge Boa rd is not yet gende r balance d, despite including four women . This imbalance should corre ct it self thro ugh ret irem ent and r otat ion over t he n ext fe w years . Board diversit y Air tel Afr ic a is a mult icu ltur al busin ess , and ou r ethni c dive rsi ty is ree c ted in our B oa rd, our leader ship team and our empl oyees mix . We’ re com mit ted to e nsuri ng dive rsi ty i n terms of c ultu re, ag e, ge nder, ethn icit y, lengt h of ser vic e and ed uc atio nal bac kgroun d – and wi ll cont inue to b uild a n inc lusive an d diver se wo rkp lace . We count t his as a core s t reng th of ou r busine ss. We’ re privi leg ed to have a Boar d of dire c tors wit h a br oad diver sit y of skills , ex per ien ce, a ge and na tion alit y to p er fo rm t heir v ita l role . This is invaluable in developing our business strategy and enhancing our governance capabili ties. As yo u can s ee f rom t heir b iogr aphi es on pa ges 9 0 -93, o ur com mit te e chair s and me mbe rs have re cen t and rel evant sk ills , exp eri enc e and expert ise. Commi t tee responsibi liti es • Rev iew s the balance , diversi ty, in dep end enc e and e ec ti vene ss of the Board • Overse es the selecting, interviewing and appointing of new Bo ard membe rs • Rev iew s succes sion and conti ngen cy plann ing for the Board and senior leadership, inclu ding training, develop ment and talent man agement • Ma kes recomme ndat ions to the Bo ard abou t the cont inu ed ser vice of d irec tor s, i nclu ding sus pensi ons and te rmi natio ns of service • Ma kes sure dire cto rs dis clos e the n ature and ex te nt of any ac tual or potential con ic t s of inte res t , monitor s and asses ses the se disclosu res and makes re com mend atio ns to th e Board as appr opr iate • O vers ee s, wit h the chair of th e Board , an a nnual evaluat ion of Bo ard , commit te e, and directo r per for man ce – in par ticul ar , deter min es wit h th e chair w het her t his evalua tio n shoul d be ex terna lly fa cili tate d and , if s o, th e nature an d ex tent of th e ex terna l evaluator ’s c ont ac t with the Boa rd, comm it tee s and individual direc tors • O vers ee s polic y and o bje ct ives on diversi t y and incl usion in light of our s t rate gy , objec ti ves and cul ture, and monito rs the impl emen tat ion of pol icie s and p rogr ess towards objec ti ves at all le vels of our b usines s • Through the committee ch air , engages with sh areholders on subje ct s relev ant to c ommi tte e respons ibili tie s Attendance Meetings atte nded Sunil Bhar ti Mitt al Chair 3 (3) Andy Green Seni or ind epe nde nt non - exe cut ive dir ec tor 3 (3) Ravi Rajago pal Independent non- executive (Audit and Risk Committe e chair ) 3 (3) Doug Baillie Independent non- executive (Remunerati on Commi tte e chair ) 3 (3) Sunil Bhar ti Mitt al Chair, Nominati ons C ommi tte e Governance report 114 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 About t he commit tee Led by the chair of our Bo ard, our commi t tee consis t s of in dep end ent non - exec ut ive dire c tors . Ou r CEO a nd HR d irec tor ar e also inv ite d to at tend c ommi tte e me etin gs and sub mit re por ts . We m et formall y three times dur ing the 20 2 1/22 nancial year . Our p rima r y foc us was on lo nge r - ter m succ essi on pla nning fo r the seni or exec uti ve team , impro ving di ver sit y acr oss our b usines s, and th e indu ct ion of T se ga Ge breye s. Havin g reviewe d the composi ti on and per for manc e of t he Board and it s commi tte es , we b elie ve our B oa rd has t he exper ien ce, expe r t ise and ap pet ite for c halle nge to t ake Air tel Af ric a for ward in lin e wit h our s tr ateg y whil e maint aining g oo d gover nanc e. We will , of co urs e, keep t his und er reg ular rev iew. The c ommi t tee’s work and fo cus in 202 1 /2 2 • Rev iewe d the Boar d’s composi tio n, balanc e, diver sit y, ski ll sets , indi vidua l directo rs’ time comm itm ent and overall eec ti venes s agains t f uture n ee ds • Rev iewe d our s ucc essio n and c onti ngen cy p lannin g acro ss th e busine ss , linki ng this to i ndiv iduals’ p rofessi onal de velo pmen t at senior ma nagement lev el to help senior management demonstrate the ir pote ntial fo r pro gressi on and d evelo p a dive rse p ipel ine of tal ent • A ppo inted T se ga Ge breyes as a n inde pen dent n on - exec uti ve dire cto r and i nvite d her to jo in the Remuner atio n and S ust ainab ili ty Co mmit te es fro m Apr il 2022 • Rev iewe d th e fees p aid to t he Gr oup cha ir – ben chmar kin g data show s thes e fee s are com pet it ive • C onsid ered t he ear ly -s ta ge s trate gy an d plans to c reate a st anda lon e Air tel Mone y entit y and the trajec tor y to listin g – as well as the s t reng th of t alent to ma nage t his new e nti ty o nce s epar ated • Re com mend ed to the Board that each direc tor be propos ed for re - ele c tio n by shareh old ers at t he J uly 202 1 AG M • Rev iewe d and p ut in p lace m entor ing o ppo r tun iti es for t he ne w CEO • Rev iewe d po lici es and p roc esse s to prom ote dive rsit y in o ur ope rati ng count r y Boards and senio r manageme nt teams a nd put in place a development progr amme for suitable internal candidates • Worke d to at tra ct di ver se, hi ghly sk ille d and t ale nted e mploye es by : – T ack ling un cons cio us bias – Maintaining a gend er balance on shor tlis ts for management positio ns – Ensu rin g all re cru iter s have sign ed th e Stan dard Volunta r y Co de of Practice • Worke d to ret ain th e bes t ta lent by : – Promotin g a good work / life balance – Enc ouraging equal oppo r tunities for all • Se t new t arge ts to i ncreas e the n umbe r of wome n in lead er ship posi tio ns by 202 6 an d to ach ieve ge nder-bal ance d sho r t list s . We’ll m ake sure t he spec i cat ion for any n ew senior manag emen t role is e quall y suit ed to ap plic ant s of any g ende r and t hat the re’s no discr imina tio n at any s tag e in th e sele c tio n pro cess b ased o n any applicant charac terist ic. – A ppo inte d thre e wome n to seni or rol es in ou r ope rati ng comp anies – c us tomer ex pe rie nce di rec tor an d enter pr ise dire cto r for Za mbia and e nter pr ise dire cto r for Ni ger ia In 202 1 /22: – 26% of total G roup e mploye es we re wome n – 28% of the E xe cut ive C ommi tt ee wer e wome n ( t arg et 30% b y 2 0 2 3) – 25% of appoint men ts i n the yea r made at t he le vel of gen eral manage r and ab ove were wo men Evaluating our Board As p ar t of o ur cor po rate go verna nce re view e ach year, we examine t he inde pen den ce and diversi ty of our Board and the balance of skills and devel opm ent ne eds of m emb ers . In mapping the skil lset s of o ur Board memb ers agains t our curren t st rate gy and annual operat ing plan , we c onr me d that our n on - execu ti ve directo rs have signi c ant exper ien ce in the areas of st rate gy, risk manage ment an d M& A . In ligh t of a rec ognis ed ne ed to st reng th en our o per atin g backgr ound in A fr ica a nd TM T , we ap po inted T se ga Geb reyes to t he Boa rd. Our c ommi t tee als o moni tors t he su cce ssion p lanni ng for manage ment imme diatel y below the Boa rd. We’ re wor king to suppor t and en cou rage a g rowin g po ol of ta lent a ble to s tep in to top rol es at Air tel Afr ic a. O ur wor k to ide nti f y exec uti ves wi th p otentia l and to enc oura ge their devel opm ent led to s evera l signic ant inter nal prom otio ns in and a cross o ur op erat ing c ompan ies th is year . I welc ome q ues tio ns fro m shareh old ers o n this c ommi t tee’s act iv iti es . If you’d like to discus s any aspe c t of this re por t, p lease c ont ac t me through our company sec retar y , Simon O’ Hara (see page 2 40 for cont ac t det ails) . I w ill , of cou rse , be at ten ding t he 2022 AGM and loo k for w ard to th e opp or t unit y to me et you an d ans wer you r ques ti ons th ere. Sunil Bhar ti Mitt al Chair, Nominati ons C ommi tte e 1 0 May 2022 115 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Nominations Commi t tee repor t c ontinu e d Developing our Board The ong oing devel opm ent of o ur Board memb er s is a prio ri ty. We inform director s about relevant seminars and training and encour age and sup por t thei r at tendan ce. We prov ide re gulato r y up dates at each Bo ard meet ing; and spec ialis t adviser s brief our commi t tees on top ics su ch as cha nges to a cco unti ng pro ce dures an d UK cor po rate governa nce . Our Board under took a series of develop ment acti vities durin g the repor ting p eriod , including training provide d by our c orp orat e lega l adv iser s Her be r t Smi th Fre ehil ls LLP o n the politi cal environment , governance reform , liability to investors and director s’ duties. T sega Ge breyes’ induc tion T se ga G ebre yes was indu c ted th roug h a ser ies of se ssio ns wit h our C EO, CF O and m embe rs of ou r E xecu ti ve Com mit tee a nd repre sent ati ves of De loi t te. Th ese fo cuse d on ou r st rate gy, operat ing and nancia l per for manc e, budg et and forecas t s , human resou rcing , diver sit y ch alle nges an d med ium -ter m pla ns. Specic ac tivities Oc tobe r 20 2 1 Met sepa ratel y with the chair of t he Boa rd, the senio r indep ende nt dire cto r , our C EO, o ur CF O and ou r comp any se cret ar y December 20 2 1 Met w ith e ach of ou r regi onal di rec tor s Januar y 202 2 Met w ith o ur co rp orate law yers fo r onbo ardin g trai ning Met w ith t he c hairs of o ur Aud it and R isk Co mmit te e and Remuneration Comm ittee Had int rod uc tor y m eet ings wi th n on - execu ti ve dire cto rs: t hre e independ ent (Annika, John and Awuneba) and two appointe d (Kelly and Shravin ) Met wit h our Chief HR oc er , head of inter nal audit , risk and assuranc e, and Chief comp lianc e ocer Met w ith o ur ex ter nal aud itor s, D el oit te Employee engagement Our Bo ard engage s with employe es in various ways to un der st and how we c an enha nce o ur pe opl e st rate gy an d cont inue to b rin g our value s to life. T o un der s tand t he bus iness a t all leve ls, d irec tor s are enc oura ged to e ngag e wit h lo cal o per atio ns, e ith er by visi tin g in per son o r thro ugh o nline m eet ings , s trate gy s essio ns and qua r ter ly repo r t s from our HR Commit te e. We ar rang e Board visit s each year to ope rati ons – a nd at l east one Bo ard meet ing is s che dule d to t ake place at a regi onal l oc atio n wit h repr esent ati ves f rom th e busine ss pre sent . This year , our Boar d and c ommi t tee progr amme took plac e in D ubai and was at ten de d by many sen ior c ollea gues . Som e member s of t he Board also met with empl oyees to discuss both profes sional a nd pe rso nal mat ter s – inc ludin g fee dbac k on mov ing o ur head quar te rs to D ubai f rom Na irobi , team c apab ilit ies an d how we c an build an agile high- per for mance culture. The Bo ard also stay s on to p of emp loye e -r elate d issues through: • O ur ope n - doo r pol ic y , w here e mploye es c an co nne ct di rec tl y wit h our C EO or any E x Co di rec tor ab out a ny thi ng • Q uar ter ly C EO -le d town ha lls in Eng lish and Fre nch , wh ere se nior execu ti ves upda te empl oyee s on our b usines s per forma nce , organi sational change s and tak e questions from em ployees • Remuneration Comm ittee updates on remuneration, people, cult ure, con duc t and di ver sit y • Q uar ter ly p rese ntat ions an d one - to - on e mee tings as n ec essa r y fro m our C hief HR oce r • Q uar ter ly re por ts f rom t he H R For um and R emun erat ion Fo ru m chair to t he Re muner atio n Co mmit te e on pe op le, c ultu re and wellbeing • T he resul t s of our e mploye e eng agem ent sur vey and re gular p ulses share d in var ious O pC os and O pC o - le d town hal ls • O ne -to - one me etin gs bet we en our E x Co a nd Op Co M Ds an d othe r lead ers to d iscuss e mplo yee an d per sona l wellb eing , team u pdates and c aree r aspir atio ns • Re gular E x Co mar ket visi t s whe re lead ers i ntera ct w ith tea ms at all levels of t he bus iness Sunil Bhar ti Mit ta l is our desig nated Bo ard direc tor for employe e enga geme nt , give n his regu lar tr avel to our o per atin g comp anies . In th is role , he’s not expe c ted to t ake on th e resp onsibi lit ies of an execu ti ve directo r or t he Chief HR ocer. He’s respo nsibl e for sup por ting t he dir ec tor s’ coll ec ti ve respo nsibil it y to consi der a w ide ra nge of s ta kehol der p ers pe ct ives w hen mak ing Bo ard decisi ons , includi ng: • Un der s tand ing t he co nce rns of t he wor kf orce a nd ar t icu latin g thei r vie ws and concer ns in Bo ard meet ings • Ensu ring that the Bo ard, and par t icula rly the execu ti ve directo rs , take ap prop riate s tep s to evaluate t he imp ac t of prop osa ls and developments on the workforce • Where relev ant and appropriate, pr oviding fee dback t o the wor kfo rce on Board dec isions and direc tio n during the engagement process • Ma king sur e that fe edb ack Is o btai ned f rom al l levels of t he wor kfo rce in va rio us loc ati ons Like o t her initia tives adversely i mpacted by pandem ic -imposed res tr ic tio ns, Su nil has had c halle nges to ove rco me in pe r fo rmin g this role d urin g the re po r tin g per io d. H e met wi th c oll eague s base d in our Nairo bi op erat ing he adqua r ter s to discus s the ir vie ws on t he pro pos ed oc e reloc atio n to Du bai . He t hen share d the opinions and views expre sse d with the proje ct plann ing team who incorp or ated them into pla nning an d execu tin g the m ove. The f ocus fo r 202 2 will b e to ide nti f y and f acil ita te comm unic atio n mec hanisms for eec tive and meanin gfu l dialogu e with the work forc e. For m ore on h ow we enga ge d wit h our p eo ple du ring t he re por ting per io d, se e pag e 27 . Board and committee balance, diversit y , independence and eec tiven ess The chair of the Board is responsib le for making sure i ndep end ent non - exec ut ive dire c tors c an co nst ru ct ive ly chal leng e exec uti ve dire cto rs , whil e supp or t ing t hem to i mple ment t he s tra tegy a nd ru n the busine ss eec tive ly. H e work s with this commit te e to make sure the Bo ard has t he right ble nd of sk ills , indepe nde nce and knowl ed ge. Appointing and re- ele cting direc tors Our ap poin tmen t proc esses The Bo ard has the powe r to app oint add iti onal direc tor s or to ll any vac anc y . Whe n recrui tin g new member s for t he Boa rd, our commi t tee ado pts a f orma l and tr anspa rent pro ce dure w hich c onsid ers t he sk ills , know le dge an d level of e xpe rie nce re quir ed , as well as di vers it y . Governance report 116 A ir t el A fr ic a p lc A nn ual R ep or t and A cc ou nt s 2022 We begin by evalu ating the balance of skills, knowl edge and expe rie nce of exist ing Boar d member s, the diver sit y of the Bo ard , and ong oing re quire ment s an d st rate gic de velo pmen ts of t he bus iness . This e nable s us to focus o ur sea rch pro ces s on ap poin ting s ome one who will comp lem ent and enhance the Bo ard’s eec tive ness and overall per formanc e. We review a l ong lis t of gl obal ly draw n pote ntial c and idates an d shor tlis t candid ates for inter vie w based on the obje c tive cri ter ia set out in the agree d speci c atio n. The se includ e the requirem ent s of t he Gro up, the divers it y of t he Board , and the balance of skills, know le dge and exp er ien ce of cur rent m emb ers . No n - execu ti ve appo inte es mus t be ab le to sho w that t hey have ti me availa ble to d evote to th e role , and before being appointed all candidates must identi f y any potential con ic t s of inte res t . Shor tlis ted c and idates are i nter v iewe d by th e com mit tee c hair , othe r comm it tee m emb ers an d the C EO. T he co mmit te e th en rec omm ends the prefer re d candidate , who is inv ite d to me et other Boa rd member s . Finally , the commit tee takes up detailed ex ternal references before makin g a for mal reco mmen datio n to t he Board for appoi ntme nt . Boar d chang es in 202 1/22 In 202 1 /22, our com mit te e overs aw the p roc ess to id ent if y a n ew CE O to repla ce Ra ghu Man dava on his ret irem ent , as wel l as the o ngoi ng searc h for ano the r woman di rec tor . T o ll the CEO role, we worked wit h speci alis t recrui tm ent agenc y Egon Ze hnde r , w ho abi de by a volu ntar y cod e of con duc t on ge nde r diver sit y. The ag enc y has no ot her c onne ct ion w it h Air tel Afr ic a. Af ter following t he process descr ibed abov e, includi ng cons idering suitable internal candidates, our commit tee rec ommended Se gun Ogunsanya to the Board as new CEO. We recr uite d T se ga G ebre yes as a new i ndep end ent no n - execu ti ve dire cto r witho ut using a sea rch rm . W e rec omme nde d T sega af ter makin g sure she ha d enou gh ti me to devote to t he ro le and ha d no con ic t s of inte res t . Our c ommi t tee mo nitor ed t he inte grat ion an d tho rough i nduc t ion of bot h direc tor s . The onl y directo r to t ake on a signi c ant new appoin tme nt during the year was An nika Po utia inen , wh o beg an a non - exe cut ive ro le at Un zer Gro up GmbH in 2 02 1. Be fore acce ptin g the appoint ment , Anni ka discus sed w it h our ch air and c ompa ny sec ret ar y th e anti cipa ted ti me comm itm ent an d agre ed t hat she wo uld co ntin ue to have ad equate time to give to Ai r tel Afr ica Bo ard duti es. Re- elec tion Ever y d irec tor w ill se ek el ec ti on or re - e le ct ion at ou r annual AG M . All di rec tor s will s t and for r e - ele ct ion at e ach year ’s AGM w hile in oce. Eac h directo r propos ed for re- el ec ti on at o ur AGM has be en unanimous ly recom mend ed by other membe rs of t he Boa rd. More i nfor matio n on ou r app oint ment s pro ces s is on pa ge 11 6 . Eectiveness The ex ter nal Board evaluat ion revie wed our commi t tee’s eect ive ness and so ught fe ed back f rom t he co mmit te e mem ber s. We disc usse d the o utp ut of t he eval uatio n, w hich c on clud ed t hat we co ntinu ed to ope rate eec ti vely thro ugho ut the year , and conr med our intend ed areas of fo cus for t he year ah ead. Eac h direc tor g oes t hrou gh a pe r for manc e revi ew pro ces s as par t of the annual Bo ard eec ti venes s review, whic h conr me d that e ach dire cto r continu es to make an eec tive cont rib ut ion to the Bo ard. Advi ce availab le to th e Boa rd All di rec tor s have acc ess to t he ad vic e and se r vi ces of t he co mpany sec ret ar y. Direc tor s may also t ake inde pen dent p rofessi onal adv ice at our ex pe nse where this is ju dge d nece ssar y to ful l thei r resp onsibi lit ies . During the year , the Bo ard took advic e from: • A lvarez & M ars al thro ugh t he Rem uner atio n Co mmit te e, as expla ine d in more d eta il on pa ge 122 • H erb er t S mit h Free hills LL P , ou r cor po rate le gal ad vise rs , thro ugh the Market Disc losure Com mit te e on t he ident i cat ion of inside r infor mati on • Le gal advise rs Clio rd Chance on share plan and re mune rati on poli cy mat ter s • O ur broke rs on t he se c tor and t he rela tive p er fo rma nce of o ur share pr ice • Eg on Zehn der t hrou gh the N omi natio ns Co mmit te e, as exp laine d in more d eta il on pa ge 11 7 Di vers it y The Bo ard repres ent s a b road range of skills, exp eri enc e, age, ethn icit y, gende r and nat ional it y . O ur you nges t di rec tor is 34 and the g roup is et hnic ally d iver se. M os t have spe nt a cons ider able amou nt of tim e livi ng ou ts ide th e UK , and this r ange of e xpe rie nce is invaluable in developing our business strateg y and enhancing our governance capabili ties. Our p oli cy is to ap poin t and pro mote t he bes t p ers on for e ach ro le wit hou t rega rd to age , ethn ici ty o r disab ilit y – on ly co nside rin g fac tors such as e duc ati onal an d profes siona l backgro unds as ap prop riate f or the posi tio n. This appli es to t he entire busines s, inc ludin g the Board . Our obje ct ive is to build divers it y into o ur appoin tme nt and p rom otio n pro cess es at ever y level . All A ir te l Afr ic a empl oyee s have comp lete d our annual Cod e of C ondu ct tra ining and cer t i cat ion , which cover s our commitme nts on diversit y , inc lusion and anti- discrimination . We believe d iver sit y is fu ndame nta l to the su cce ss ful o per atio n of our Boa rd and to creat ing a balan ce d culture across our busines s. The Bo ard regula rly revi ews it s balance and comp osit ion consid eri ng targ et s and re com mend atio ns for ge nde r diver sit y, as well as the Parker R evie w and i ts re po r t into et hnic d iver sit y. W e’ve g one w ay beyo nd th e Parker R evie w targ et for F TSE 250 boards to have at l eas t one di rec tor f rom an et hnic m inor it y ba ckgroun d by 202 4. We also ful ly endo rs e the F TSE Wome n Leade rs Rev iew ’s appro ach to i ncreasi ng senior leadership diver sity, including its voluntar y targ et of 40% wome n on B oa rd, Exe cu tive Com mit te e and s enio r manageme nt teams . This als o requ ires at le ast o ne woma n as chair o r seni or inde pen dent dire cto r role on t he Boar d or a woman as eit her our Chief execu ti ve ocer or nance direc tor by the end of 2 025. Whil e we haven’ t yet achi eved t hes e tw o gend er-balan ce t arget s at Bo ard level , we are making consi der able pro gress . Regardi ng the rs t targ et , 3 1 % of our B oa rd are w omen ( 4 out of 13 ) represe ntin g 43% of our in dep end ent dire c tors (3 of 7) . O n th e se cond t arg et , we wil l ensure t hat this is an i ntegr al par t of our suc ces sion p lannin g. Ge nder d iver sit y in ou r E xecu ti ve Com mit tee r emains a c halle nge. We’ re wor king to i ncreas e the nu mbe r of wome n at this l evel as wel l as in our s enio r manage ment tea ms ( dire c t repo r t s to th e E xCo) by 2 026. We’ll m ake sure t he spec i cat ion for any n ew senior manag emen t role is e quall y suit ed to ap plic ant s of any g ende r and t hat the re’s no discr imina tio n at any s tag e in th e sele c tio n pro cess b ased o n any applicant charac terist ic. Di versit y and inclusion are, and will continue to be, a key fo cus fo r Air tel Afr ic a. 1 17 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Nominations Commi t tee repor t c ontinu e d Our diver sit y polic y Purp ose The G ro up has a clea r ong oing p urp ose of ‘ T rans fo rmin g Live s’ . Dive rsi ty a nd inc lusion a re a par t of who we are a nd how we do busin ess – in l ine wi th o ur valu es of bei ng ali ve, inc lusive and respect ful . Policy statement We reco gnise t hat a dive rse wo rk forc e is key to del iver ing val ue to our cus tom ers . S o we wor k to create an i nclusi ve envi ronm ent that embr ace s our d ie renc es and help s employee s work to t heir tr ue poten tial . Our p rac ti ces an d pol icie s to fost er this i nclu de gl obal mobi lit y, talent a cquisi tio n and fo cuse d lear ning a nd deve lop ment . We’ re par t icu larl y foc used o n deve lopi ng wom en in mana geme nt and lea der ship ro les an d acros s our bus iness . Init iatives 1. Searc hing fo r and usin g diver se t ale nt po ols for al l manage ment and senior leadership r e cruitment 2. Buildi ng succes sion and leade rshi p develop ment plans that encourage the promotion o f women 3. Fo cuse d men tori ng pro gramm es 4. Facili ti es for ex pe ct ant and n ew mot her s, s uch as res er ve d parking and mothers’ ro oms 5. Women in te ch p rogr amme 6. Women’s ent repre neur ship p rogr amme to in creas e the p erc enta ge of se lf- emp loye d wome n in sal es and distribution roles T raining and awarene ss 1. An on goin g pro gramm e to coun ter unc onsc ious bias 2. Using tow n hall ses sions to d rive aw arene ss and t he r ight ton e fro m the to p 3. Al l empl oyees c omp let ing year ly C od e of Con duc t tr aining a nd cer ti cat ion cover ing our commi tme nt s on di ver sit y , inc lusion and anti- discr imination Monitoring and repor ting 1. Monthl y diversi t y review by o ur Chief HR ocer wit h HR dire cto rs of our re giona l busine sses 2. Quar terl y pro gress re por ts to o ur E xecu ti ve Co mmit te e and Remuneration and Sust ainabilit y Commit tees before being repo r te d to th e Board 3. Qu ar ter ly p rogre ss rep or t s to ou r manag ement H R C ommi tte e Gender balance Categor y Wo m e n (%) M e n ( %) To t a l Gro up Board 4 (31%) 9 (6 9 %) 1 3 (1 0 0 %) Employe es Gro up E xecu ti ve Co mmit te e 2 ( 0 . 1% ) 2 0 (0 . 6 %) 22 (0 . 6 %) Op Co E xe cut ive C ommi tt ee 43 ( 1.1 %) 1 2 0 (3 . 2 %) 16 3 (4 . 3 %) Senior and middle manage ment 16 (0 . 4 %) 1 12 (3 . 0 %) 1 28 (3 . 4 %) All ot her e mploye es 9 0 4 (24 % ) 2,540 ( 67 .6% ) 3,44 4 ( 91. 7 % ) T ot al 9 65 (2 6 %) 2 , 7 9 2 ( 74 %) 3 , 7 57 (1 0 0 % ) * Se nio r mana ge men t is all g en er al man age rs a nd ab ove e xclu di ng t he Op C o E xec ut ive C o mmi t tee , and m id dle m anag em ent i nc lud es al l em plo yee s at se nio r man ag er le vel Pay ratio repor ting Quote d co mpani es wi th mo re than 250 UK emp loye es are re quire d to repo r t each year on t he diere nce in pay b et we en their CEO and their UK em ploye es . A s Air tel Afr ic a is out sid e the s cop e of this re qui remen t given i t s small nu mber o f UK em ploye es , we wil l not be dis clo sing ou r pay rat io for t his rep or t ing p eri od . Our ‘ Wi n with’ strate gy aims to dr ive the sust ainab le, pro ta ble grow t h we ne ed to co ntin ue creat ing va lue fo r all our s t akeho lder s . T o f acil ita te this , we aim to b e an emp loyer of c hoi ce wi th a di vers e and in clusi ve wor k envir onme nt that c ont inues to fo ste r a cult ure of high per for mance, wellbeing , skills enhancement, and coa ching. Governance report 118 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Our compliance wi th the U K Corp orate G overnance Cod e 1. Boa rd lea dership a nd comp any purpose A . An eect ive and e ntre prene uria l board Our B oar d is respo nsibl e for Ai r tel Af ri ca’s sys te m of cor po rate gover nanc e. A s suc h, di rec tor s are co mmit te d to devel opin g and maint aining high st andar ds of gove rnan ce that ree ct evolv ing good practic e. The B o ard prov ides s t rate gic and e ntre pren eur ial lead ers hip wi thin a framew ork of stro ng governan ce, ee ct ive cont rols and an o pen and tr anspa rent cu lture . This e nable s opp or t unit ies an d risk s to be asses sed a nd manag ed ap pro priat ely. Our Bo ard als o set s our st rate gic aims and risk appe tite , makes su re we have the nanc ial and huma n resou rces i n plac e to mee t our ob jec ti ves , and mo nito rs our comp lianc e and p er forman ce agains t our target s . And nally , the Bo ard ensures we e ngag e eec tive ly with all our stake hold er s and co nside rs t heir v iews i n set ti ng our s tr ategi c pr ior it ies . Roles and responsibil it ies We have well - doc umen ted ro les and r espo nsibil iti es for di rec tor s, an d a clea r divisi on of key resp onsib ili ties b et wee n our c hair and C EO to help maint ain a s tr ong gover nanc e framewo rk and the eec ti venes s of our Bo ard. Our clear ly den ed poli cies , proc esse s and p roc edu res gover n all areas o f the b usines s. T hes e will c ont inue to b e revie wed and rene d to me et busines s requirem ent s and changing market circumst ances. We re- ex amine b udg et s cons ider ing b usines s fore cas t s thro ugho ut the year to make sure they ’re r obus t enoug h to re ec t the possibl e impa ct of c hangin g ec onom ic co ndit ions a nd circ ums tan ces . We con duc t reg ular rev iews of a ct ual resul t s and f uture p roje ct ions comp ared w it h the b udg et and p rio r year resu lt s, as w ell as wi th vari ous tre asur y rep or ts . We monito r any disp utes t hat cou ld lea d to signic ant liti gati on or cont rac tual claims at each Board mee ting , wit h up dates prov ide d by th e CEO a nd CF O as par t of their re por ts or ta ble d by th e comp any se cret ar y. We have a Boar d- app roved f rame wor k of del egate d aut hor it y to iden tif y and mon itor in div idual re spo nsibili tie s of seni or exec ut ives . B. Purp ose, values and strate gy and alignmen t wi thcu ltur e Our p urp ose is to t rans for m the l ives of p eop le ac ross sub -Sahar an Afr ic a. We do this t hrou gh pro duc t s , ser v ic es and pr ogra mmes that foste r nancial incl usion , drive digit isati on and empower our 12 8 milli on cus tome rs an d the c ommu nit ies in w hich t hey li ve. T o con tinu e to ser ve our visio n of enr ichi ng th e lives of o ur cus tome rs , we have a clea r business obje ct ive: to grow market share prot abl y and c reate supe rio r enter pr ise valu e whi le del iver ing ou r sust aina bili ty s t rateg y . We provid e esse ntial s er v ices t hat are u nloc king t he p otent ial for pe opl e and e con omies to g row. The B oard s et s the s t rate gy for aligni ng wi th ou r pur pose . This ye ar , t he B oard fo rmall y up dated ou r Win w ith s t rate gy mo del to e nsure that s ust ainab ilit y, and work ing to deli ver ou r sust ainab ilit y s tr ateg y , u nder pins e ver y t hing w e do. Our B oar d beli eves t hat a heal thy cu lture , whi ch dr ives t he ri ght behav iour s , prote ct s an d gene rates va lue an d helps e mpl oyees enga ge wi th our v alues , w ill lea d to the su cc ess ful d eli ver y of ou r st rate gy. I t i s responsib le for dening our values and set ting clea r st anda rds fro m the to p. Ou r chair l eads th e way by ensur ing o ur B oard ope rates c orr ec tl y and wi th a cl ear cu lture of i t s own w hich c an be prom oted to ou r wid er op erat ions an d deali ngs wi th all s t akeho lde rs . Our C EO, wi th t he he lp of th e CFO a nd his manag eme nt team , is resp onsibl e for t he cul ture wi thi n our wi der o per atio ns. We’ve continue d to build our people capabili ty throu gh: • Enhancing our online learning plat form for greater access • Enco uraging skills development through shor t-term assignment s and exchanges between op erating companies • Ensu ring a ll emp loye es have mandato r y tr ainin g in co mplian ce areas suc h as our C od e of Con duc t , ant i- br ib er y an d cor rup tio n, and inform ation sec urity As Air tel Africa plc ord inar y shares have been trading on t he ma in m arket of the L o ndon S tock E xchange sin ce 3 July 2 0 19 , we ap ply the princi ples and provisions o f the 2 0 18 U K Corp orate Governance Code ( t he Code ) and exp lain any non - compliance. ( See the C ode at frc .org.uk .) While we have a secondar y lis ting on th e N igerian Stock E xchange (NS E), we’ re p ermit ted by NSE listings requirements t o follow the cor porate governance prac tices of our primar y listing market in L ondon. The UK Financial Repor ting Council (FRC ) promotes high qualit y corpo rate governanc e an d repor t ing through t he Code. A ll companies with a premium listing on the London Stock Exchange must either comply i n f ull or explain why and to what extent they don’t comply . Throughou t the ye ar ended 3 1 March 20 22 , we have applie d al l t he principles and compli ed with the provisions set out in the 20 18 UK Corpo rate Governance Code ex ce pt for in t wo areas : Provision 9, r equirin g t hat t he chair be independent on appointment, and p rovision 4 1, our wor kforce engagement on ex e cutive r emuneration. For our TCFD disclosure pursuant to LR9 . 8.6R ( 8) see p age 5 4 for det ails. Simon O’Hara Group company sec retar y With each year that pass es post listing, the UK Corporat e Gov ernance Code becomes ev en more embedded in how we think and act a t Air tel Afr ica. 119 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Our compliance wi th the U K Corp orate G overnance Cod e cont inue d The B o ard rec eive s regul ar rep or t s th at allow s it to ass ess ou r cul ture to ensur e it co ntinu es to sup por t our s trat egy a nd pur pos e. Our Re mune rati on C ommi tte e he lps our B oar d overs ee ou r cul ture thro ugh i ts fo cus on d iver sit y and i nclus ion , pe opl e and co mmuni t y enga geme nt and ou r pur pos e and valu es . Th e comm it tee t rac ks per forma nce in t hes e areas and r epo r t s to th e Bo ard as app ropr iate. The se rep or ts have le d to B oard dis cussi on on mat te rs ran ging fro m the take- up of Covid - 19 va ccina tio ns to a deep er analysis of our wh ist leb low ing hot line m etr ic s. I n both i nst anc es , the B oa rd rec omme nde d chan ges to be a ble to s atis f y i ts elf t hat po lic y , pra ct ices and be havio urs t hrou ghou t th e busine ss were a ligne d wi th ou r pur pos e, valu es and s tr ateg y . Annika Poutiainen , the Board Sust ainabilit y champion, repor ts to each B oa rd mee ting o n th e work o f the Sus t ainab ilit y C ommi tt ee. This c ommi t tee, w hic h cur rentl y me et s mont hly, also rec eives occ upat iona l healt h and s afet y upd ates at eac h mee ting . Our Chief HR oce r regular ly atten ds Board mee tings and all Remun erat ion C ommi t tee m eet ings to pr ovide u pdate s on HR ma tte rs – includi ng on cul ture, diver sit y and inclusio n, tale nt acquisi tio n and retention and employee engagement. The cha ir of the Remuneration Co mmit te e also in clud es th ese mat ter s in his ow n rep or t to t he B oard . Whil e our lea der ship es t ablis hes ou r cult ure and l eads by exa mple , our cl ear po lic ies and C od e of Co nduc t ensu re that o ur obl igati ons to shareh old ers a nd oth er s takeh old ers a re clea rly u nde rs too d and me t , as descr ibe d in mo re detail on page 2 6 . C. Company per forma nce and r isk managem ent Our C EO mana ges t he Gr oup’s busines s in lin e wit h the s t rate gic pla n and ap prove d risk ap pet ite an d takes re spo nsibili t y for th e op erat ion of the i nter nal con trol f ram ewor k . Our Au dit a nd Risk C ommi t tee overs ees p otent ial r isks an d prov ides t he B oard w it h st rate gic ad vic e on cur rent a nd pote ntial f utu re risk ex posu res. O ur r isk manag emen t fra mewo rk sup por ts i nfor med r isk-t akin g by our busi ness es , set ti ng out t he r isks t hat we’re prep ared to b e exp ose d to and th e risk s tha t we want to avoi d. Mo re info rm ati on on r isk m anag eme nt c an be f oun d on pa ge 80 D. Stakeholder engagement Wi th th e pub lica tio n of our sus ta inabil it y s trate gy an d the o ngo ing devel opm ent of ou r remun erat ion p olic y, our Boar d memb ers a re incr easingl y tak ing a mo re ac tive r ole in e ngagi ng wi th shar ehol der s and wider stakeholders. Our dir ector induction process includes dire cto rs’ dutie s under sec tio n 1 72 of the Co mpanie s Act 2 0 0 6. The B o ard reg ular ly rec eive s fee dbac k on share hol der s enti ment and se ll -sid e analy st s’ v iews of o ur busin ess an d the w ide r indus tr y . Our Inves tor Relati ons team and ma nage ment have freque nt conta ct wit h the 1 1 equit y researc h analys t s who follow Air tel Afr ic a. We considered stakeholder concerns when dev eloping our sust aina bili ty s t rateg y , as a dvis ed by t he G lob al Rep or t ing I nit iative ( G R I) and to s tre ngt hen ou r st rate gy an d repo r ti ng. Our B oar d discus ses t he impa ct of a ll majo r dec isions o n our wo rk forc e befo re draw ing it s c onc lusion . We also co nsider s t akeho lde r impac t in relat ion to m ateria l acquisit ions and str ateg ic expansio n. While we’re wor king to b et ter em bed s t akeho lde r consi derat ions i n Bo ard de cisio n- makin g, we d o fac tor t he ne eds an d con cer ns of our s t akehol der s into Bo ard discussi ons and decisions in acco rdanc e with sec ti on 1 72 o f the Co mpanie s Act 2 0 0 6 ( se e state ment on page 2 6). Sunil B har ti Mi tt al is our d esign ated B oard d irec tor fo r emp loyee enga geme nt , give n his regu lar tr avel to our o per atin g comp anies . A focus for 2022 will be to i dent if y a nd facili tate mec hanisms for more ee ct ive and meaningf ul dialo gue with our peo ple . For m ore o n our i nit iat ive s to imp rove e mpl oye e eng age men t se e pag es 26 and 116 E. W o rk forc e policies and prac tice s We expe ct al l busine sses an d emp loyee s to wor k wit h th e highe st st anda rds of inte gri ty a nd co nduc t at al l time s. O ur Co de of C ond uc t , whic h can b e foun d on our w ebsite , set s ou t our ex pe ct ati ons in de tail . We also have pol icie s focus ed o n anti - br iber y and co rr upti on , whis tl ebl owin g and dat a prote ct ion (GD PR) set ting o ut t he eth ica l fra mewo rk t hat all co mpani es and e mplo yees are e xpe ct ed to fol low. Eac h year , ou r empl oyee s rec eive up - to - date t raini ng on le gislat ive an d regulator y matters . Our man agem ent pr oce sses an d div isions of re spons ibili t y are det aile d in th e follo wing d ocu ment s , whi ch c an be se en o n our web site: • Sc he dule of matter s reser ved for Boa rd decisio ns, incl udin g prot expe c tat ions an d div iden d pol ic y • T er ms of refere nce fo r Audi t and Ris k, N omi natio ns, S ust ainab ilit y and Remuneration Co mmitte es • Policies coverin g operational , compliance, cor porate responsibilit y and s ta kehol der mat ter s , incl udin g ones re lated to t he B ri ber y Act 20 10 an d anti- c or rupt ion – these are updated as nec ess ar y in line with developmen ts in corporate go vernance and legi slation • O ur Ar ticl es of A sso ciat ion Our p oli cies are r epo r ted a gains t to th e Bo ard and / o r Audi t and R isk Co mmit te e by th e head of In terna l Audit , Chief compli ance oc er or company secret ar y . A descr iptio n of ou r whist leb lowi ng proce dures is set out on page 1 11. 2. Division of r espons ibilitie s F . Role of the chair The r oles a nd resp onsib ilit ies of t he chai r and C EO have be en c lear ly den ed , set out in wr it ing and signed by Sunil Bhar t i Mit tal and Segun Ogunsanya. The c hair l eads our B oa rd and is resp onsi ble fo r it s overa ll ee ct iven ess in dire ct ing the compa ny . Our c hair and t he se nior i ndep end ent di rec tor ho ld se parate m eet ings at leas t on ce a year w ith n on - execu ti ve dire cto rs wi th out t he CE O pres ent . Each did this onc e during the 202 1/22 repor ting per iod . Led by t he se nior in dep end ent dire c tor , t he no n- execut ive di rec tor s also me et at le ast o nce du rin g the yea r wit hou t th e chair to ap prais e his per form ance . Th e chair als o mee t s forma lly w ith i ndep end ent non - exec ut ive dire c tors w it hou t our CE O or ot her no n - execu tive dire cto rs pre sent . T hrou gh th ese me et ings , the c hair ensu res we maint ain a fair a nd op en cul ture w here al l Bo ard me mber s ca n make a strong contribution. The B o ard is aware t hat Suni l Bhar ti Mi t tal di d not me et th e inde pen den ce cr ite ria of t he Co de w hen he w as app ointe d due to his interes t s in t he co mpany. Consid er ing his ex tensi ve invol vemen t wit h the B har ti Air tel Gr oup over ma ny years a nd his majo r cont ri but ion to Air tel Afr ic a’s grow th , the B oar d unanim ously a gree s that his c ont inue d invol vement is c ru ciall y imp or t ant to our o ngo ing suc ces s. We have a numb er of safe guards i n plac e to ensure ro bus t cor po rate go verna nce duri ng his tenu re as chair, includ ing An drew G ree n in po siti on as a strong senior independent direc tor . The Bo ard belie ves Sunil Bhar t i Mit tal cont inue s to ee c tive ly overse e our leadership and maintain a balanced shareholde r agenda. Governance report 120 Air tel Af r ic a plc Ann ua l Repo r t an d Acco un ts 2022 G . Composi tion of the B oard and divisio n ofresponsibili ties Our Bo ard consis ts of 1 3 direc tor s: non - exec uti ve chair Sunil Bhar t i Mit t al, w ho is not i nde pen dent , C EO Se gun O gunsa nya, C FO Ja ide ep Paul , seven i ndep end ent no n- execut ive di rec tor s and th ree no n - execu ti ve direc tor s . Andr ew Gr een , CB E , is the s enio r ind epe nden t dire cto r and Sim on O’ Har a is our G roup c ompa ny se cret ar y. For more on our Board comp osit ion , see page 90. The Bo ard has an esta blish ed fram ewor k of d ele gated nanc ial , comm ercia l and o pe rati onal auth ori ti es which den e the sco pe and powe rs of t he CE O and of op era tio nal manag emen t . For m ore o n our B o ard an d exe cut ive r ole s, p ag es 90 -95 H. Role of no n - execu tive direc tor s Our inde pen dent non - exec ut ive direc tor s oer adv ice and guidanc e to the C EO an d CFO, d rawi ng on t heir w ide ex per ien ce in bus iness a nd diver se ba ckgrou nds . The y also pro vide c ons tr uc ti ve chall eng e and hol d manage ment to a cco unt – mo nitor ing t he over all dir ec tio n and st rate gy of t he co mpany, scru tinisi ng the p er forman ce of t he CE O and CFO, and ensurin g the integri t y of th e nancial infor mati on made availab le to th e Bo ard and o ur share hol der s. T hey p lay an imp or t ant par t i n gen eral su cce ssio n planni ng for t he B oard an d oth er exec uti ve and se nior ma nagem ent p osit ions . The s enio r ind epe nden t direc tor a nd th e inde pen dent d irec tor s also play a c ri tic al role in fulll ing the require ment s of the separat ion gover nanc e fr amewo rk an d ensur ing A ir tel A fr ica’s inde pen den ce. Foll owi ng the ir app oint ment , ea ch of ou r non - exec ut ive dire c tors (bot h inde pen dent an d non - ind epe nden t) rece ived a n indu ct ion t hat focus ed o n the c ultur e, op erat iona l st ru ctu re and key cha llen ges of Air tel Afric a. Det ails of this induc ti on are on pa ge 1 16. I. Board proc esses and ro le of t he company secret ar y We have a range of p roc esse s in plac e to make sure ou r Bo ard is full y info rme d in a ti mel y manne r to be abl e to per for m it s dut ies . Dire cto rs re cei ve pap ers b efore e ach B oard a nd co mmit te e mee tin g. This al lows t hem to p repa re for me eti ngs and to s end in t heir v iew s if unabl e to at tend . The C EO s ends up dates to me mbe rs on i mpo r ta nt issue s bet we en mee tings . Memb ers also rece ive a m onth ly repor t on key nancia l and manage ment i nfor matio n, as we ll as reg ular up dates on s hareh old er issues a nd anal ys t s’ notes . This i nfor matio n is dis tri bute d th rough a secure online por tal. All di rec tor s have dire ct a cce ss to th e adv ice an d ser vice s of the c ompa ny se cret ar y. And non - exe cut ive dire c tors c an t ake inde pen dent leg al advic e at ou r expense when ne cess ar y to ful l the ir dut ies to t he co mpany. At the ha lf year, we took the o pp or tu nit y to revi ew our B oa rd and comm it tee p roc esse s to buil d on ac ti ons int rodu ce d follo wing t he annual evaluation exercise. Coordinated by the company secretar y and le d by th e chair, we conside red fe edb ack f rom B oar d memb ers to res tr uc ture th e age nda and c reate a ne w templa te for pap er s. We’ve s ince foun d that m eet ings are run more ecien tly, w ith more time f or s trate gic a nd busin ess dis cussio ns. We’ll c onti nue to imp rove our eci enc y by in tro duci ng a pr oce ss to ap prove suit abl e papers ‘by c onsen t’ b efore e ach me et ing. 3. Comp osition, s uccession and evaluatio n J. Board appoint ment s As par t of our 202 1/22 Board evaluat ion , we re ar med that each of our in dep ende nt non - exe cut ive di rec tor s is inde pen dent i n chara cte r and that there are no re lati onships whi ch could aec t their judg eme nt . The m ain obj ec ti ve of our N ominat ions C ommi t tee is to make su re we have th e bes t pos sibl e lead ers hip team by ove rse eing a f orma l and r igor ous and t ransp arent p roce ss for ap po intin g and rem ovin g dire cto rs to or f rom t he B oard , our c ommi t tees an d othe r seni or rol es . The c ommi t tee als o wor ks to i mprove di ver sit y and d evelo p our succ essi on pla nning p roc esse s. D uri ng the r epo r ti ng pe rio d, T se ga Ge breyes w as app ointe d to the B oar d and ou r CFO, J aide ep Pau l, was app ointe d an exec uti ve dire cto r and co ntin ues to at ten d all B oard a nd Audit and Risk Commit tee meetings . For m ore o n our N om inat io ns Co mmi t tee’s ac t ivi ti es an d pro ce sse s, see page s 90 -93 K . Skills , experi ence and knowled ge of t he Board and it scom mit tees We have an engage d and diver se Boa rd who reec t the cultur al and ethn ic dive rsi ty of t he co unt ries i n whic h we op erate . Our B oar d memb er s bri ng a ran ge of pr act ic al exp eri enc e and de ep ex per tise to our busi ness – a nd at leas t hal f of our di rec tor s, exc ludin g the chair, are indep ende nt non - exe cut ive di rec tor s, in l ine wi th t he Code’s recommendations. The B o ard co nsider s that e ach di rec tor br ings re levan t and comp lem ent ar y sk ills , expe rie nce a nd bac kgroun d to the B oa rd, det ails of w hich are set out in t he biogr aphie s on p ages 90 - 93. L . Boar d evaluat ion As p ar t of g oo d gover nanc e, it ’s imp or t ant to make sure o ur B oard as a who le, i t s commi t tees a nd eac h dire cto r is ope rati ng and p er fo rmi ng ee ct ivel y . Whil e the Code requi res an ex te rnal ly facili tate d evaluati on at leas t ever y thre e years , we have c hosen to d o this i n each of o ur thre e years since list ing to e nabl e us to plan eec tive ly for the future. Se e page 103 for detail s 4. Audit, ris k and internal contro l M. Inde pend ence and eect iven ess of internal and ex terna l audit Eac h year , our Audit and Risk Commi t tee ident i es the key r isks to be revie wed a nd asse sse d by Inte rnal Au dit as p ar t of i ts p rog ramme of wor k to enhan ce our c ont rol env iron ment . We also enhan ce d our inte rnal au dit r isk ass essm ent pro ces s to allo w for be tte r cover age a nd more d ynam ic audi t pla nning . Dur ing 202 1/22, Deloi t te UK per form ed an exter nal stat utor y audi t of the year ended 3 1 March 202 2, and a half- yearl y review. Se e page 1 12 for a d iscussi on of t hei r indepe nden ce and eec tive ness . For m ore o n th e ac ti vi tie s and p ro ces ses of o ur Au di t and R isk C ommi t te e, see page s 1 04 -1 13 121 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Our compliance wi th the U K Corp orate G overnance Cod e cont inue d N. Fair , balanc ed and unde rs tan dabl e assessmen t Pages 1 7- 19, 2 4 -2 5, 3 1 - 42 an d 80 - 86 of t he str ategi c repor t set out our per forma nce , busine ss mo del an d st rate gy, as well as the r isk s and unc er t aint ies rela ting to t he co mpany ’s fu ture pro spe ct s . Whe n taken as a who le, t he dire c tors c onsid er this A nnual R epo r t is fai r , bal ance d and understandable and pro vides information ne cessary for shareh old ers to as sess o ur pe r for manc e, bus iness m ode l and s tr ateg y . O. R isk managemen t , i nter nal control and determin ing pri ncipa l risks As h ighli ghted i n the s tr ateg y and r isk se ct ions of t he s tra tegi c repo r t , risk man agem ent is inh erent to o ur manag eme nt thin king an d busine ss pla nning p roc esses . T he B oard has ove rall re spo nsibili t y for estab lishing and maintaining our risk m anagement and internal cont rol s ys tems . Ou r Audi t and Risk C om mit tee su ppo r t s th e Bo ard in revie win g the eect iven ess of our inter nal contro ls, incl udin g nancial , operatio nal and compliance, and risk management sys tems. For m ore o n th e ac ti vi tie s and p ro ces ses of t his c omm it te e, se e page s 1 0 4-1 13 5. Remuneration P . Remunera tion policies and practices Our p ropo sed p oli cy is in tende d to at tr act , m oti vate and ret ain high - c alibre d irec tor s , to prom ote the l ong -te rm su cce ss of Ai r tel Afr ic a, an d to be in li ne wi th be st p rac ti ce an d the in teres t s of our st akeho lde rs . Th ere are t wo key p rin cipl es of our re mune rati on po lic y. One , the s t ru ctur e of remun erat ion pa cka ges an d the d esign of per formance- based schemes, should be aligned with st akeholders’ interes t s an d supp or t o ur busin ess s tr ategy a nd obj ec ti ves. A nd two, the per formance- based element of remuneration shou ld be appropriately balanced between the achiev ement of short-term obje c tive s and lo nger-ter m obje c tives . Our cur rent Remune rati on Polic y was int rod uce d at t he 202 0 AGM . This was d esign ed to b e app ropr iate for a n ewl y lis ted co mpany in the UK , while taki ng accou nt of ou r very spe ci c circums t anc es: bein g lis ted on t he L SE w ith a s ec ondar y list ing o n the N ige rian Stock E xchang e and o per atin g in 1 4 cou ntr ies in Afr ic a. Provisio n 4 1 e ngage ment wit h the work forc e Dur ing t he year, the Remun erat ion C ommi t tee di d not eng age sy ste matic all y wit h our p eo ple to ex plain h ow exec uti ve remun erat ion aligns w it h wide r com pany pay p oli cies . T he co mmit te e has be en taske d to iden tif y and rec omm end to t he B oard a pa thway to comp lian ce which will be embe dde d and ee ct ive in tim e for n ex t year’s annual report discl osures. Q. Procedure for dev eloping remuneration policy The c ommi t tee re gular ly re vie ws our p oli cy to ensu re that i t ope rates as intend ed , is in lin e wit h be st p rac ti ce and is a ligne d to our b usines s st rate gy. In 202 1 /22, t he commit te e decid ed to change the way t he pol icy is implem ented in two areas: requir ing one - thir d of any bonus paid to exe cut ive di rec tor s to be defe rre d (rather t han any b onus mo re than 1 0 0% of salar y) and intro duc ing a tw o -year pos t-e mploy ment hol ding p eri od . Bot h chan ges we re made to t ake acc ount of c urr ent bes t prac ti ce and are mo re rest ric ti ve than require d by t he approve d pol icy. The c ommi t tee als o consid ere d the p oli cy in t he li ght of th e evolu tio n of our s tr ateg y and ch anges to t he exe cut ive me mbe rship of the B oa rd. T he co mmit te e has de cid ed to pu t th e poli cy to a shareh old er vote at t he AGM la ter this yea r ( on e year ear ly) to formally inc orp orat e the feat ures int rodu ce d in th e last t wo yea rs an d make fur ther sensi ble adapt atio ns to re ec t the appoi ntme nt of t he new CEO a nd th e CFO. R . E xercising independent judgement In the year end ed 3 1 March 202 2, Alvar ez & Mar sal prov ide d remun erat ion advi ce and bench mark ing data and Cliord Chan ce provi de d lega l adv ice in r elati on to share p lan mat ter s and remuneration ad vice to ou r Remunera tion Committee. The c ommi t tee us es it s dis creti on , wit hin t he max imum p olic y limi t s, to consi der t he ta rget b onus t akin g acc ount of mar ket deve lop ment opp or t unit ies , speci c event s and evolvin g roles . While the commit te e has the d iscret ion to c hang e the m etr ics a nd weig hting f or th e bonus plan f rom year to yea r , we no rma lly co nsult w it h major s hareho lde rs befo re making any si gni ca nt changes . See our remu neration report on pag es 128-1 5 0 for more detail LR 9 .8 .6R Climate - related nanc ial disclosures We have made our rs t climate - relate d nancial discl osures consis tent wit h the T C FD rec omme ndati ons in comp lian ce with the requ ireme nt s of LR 9. 8 .6R . Se e page 54 for our disclo sures consis tent wit h the four the mati c the mes and 8 of the 1 1 spe ci c disclosu re recomm endat ions , as w ell as an exp lanati on of why we ’re not discl osing ou r targ et s and me tr ics in this re por t and a de scr ipti on of our p athway a nd tim efr ame to full compliance . Governance report 122 Air tel Af r ic a plc Ann ua l Repo r t an d Acco un ts 2022 Direc tor s’ repor t This section contains the remaining matters not covered elsewhere on which the direc tors are required to repor t each year . Prot and di vidends Statu tor y cons olidate d prot for Air te l Afric a af ter tax for 2 021/22 was $755m (2 020/21: $4 15m ), and for t he compa ny the loss af ter ta x for 202 1/22 was $7m ( 2020/2 1: $6m ). Details of our div iden d distr ibu tio n duri ng the year are set out on p age 204 – note 2 7 .1 to the conso lidate d nancial statements . Subje c t to th e approval of our s hareho lde rs , the direc tors have rec omme nde d a na l divide nd for the nan cial year ended 3 1 March 202 2 of 3 cent s per ordinar y s hare, whic h will be p aid out of dis tri but abl e reser ves . Y o u can nd more abou t the divide nd , includi ng key dates o n our websi te ww w.air tel. af ric a. On 27 Oc tob er 202 1, the Bo ard decla red an interim divi dend of 2 ce nt s per ordinar y share. This was paid on 10 D ec embe r 2 021 to shareh old ers who were on the UK and Niger ian share registe rs on 1 2 Novem ber 202 1. Direc tors The names of our cur rent direc tor s, alo ng with thei r biograp hic al det ails , are s et out on p ages 90 - 93 and are incor por ated into this repo r t by refere nce . Direc tors ser ving durin g the year ar e listed on page 2 1 0 . Det ails of dire cto rs’ interes t s in o ur share cap it al are in our direc tor s’ remun erat ion repo r t on page 1 45. Our Ar t icl es of A ss oci atio n govern the appoi ntme nt , removal and repla cem ent of o ur direc tor s and ex plain the powe rs given to them. A voiding conict s of inter est The Bo ard regula rly revi ews each direc tor ’s interest s out sid e Air tel Afr ic a and c onsid ers how the chair ensures he is ap ply ing obje ct ive judg eme nt in his role , as re quire d by t he UK Corp orate Go verna nce Co de. T o help direc tor s avoid conic t s ( or possibl e coni ct s ) of interes t , the Boa rd must rs t give clea ranc e to any potent ial con ict s , incl udin g directo rsh ips or othe r interes ts in out side comp anies and organisa tio ns. This is r eco rde d in a st atuto r y regis ter kept for this purp ose . If a d irec tor consi der s they are, or mi ght be, interes ted in any c ont rac t or arran geme nt in w hic h the company is o r may b e involved , they must give notic e to t he Boar d in lin e with the Comp anies Ac t 2 0 06 and our Ar t icl es of A s soc iatio n. In this instan ce, unle ss allowe d by t he Ar ti cles , the dire cto r cannot take par t in a ny discussions or decisi ons abou t the cont rac t or arrang emen t . Ar t icl es of Associat ion The Ar ticl es of A ss ocia tio n can be amend ed in line with the Co mpanie s Act 2 0 0 6 through a specia l sharehold er resolu tio n. The infor mati on belo w sets out the provisio ns in t he Ar t icle s of As soc iati on in p lac e at th e date of this repor t . Shar e capital and control We have two class es of s hares: 1. Ordinar y shares of $ 0.50 – ea ch car ries the rig ht to on e vote at our gen eral meet ings and other righ ts and obliga tio ns as set out bel ow. 2. Defe rred shares – t hese car r y no voting right s . Det ails of our share capit al moveme nt during the year are s et out in t he cons olida ted st ateme nt of cha nges in equit y on page 1 64. Ot her relev ant informat ion ( requ ired by List ing Rule 9.8.4 R) is inc orp orat ed by r eferen ce to t he direc tor s’ repor t and appea rs in the Annual Repo r t as fo llow s: Informat ion Pages Det ails of our long -te rm share plans 134 Det ails of whe re a share hol der has agreed to waive fu ture divid ends The ong oing waiver of our EBT a nd divid ends payabl e on shares held in tr ust for use under our employe e share plans 1 24 Relationship Agr eement 125 LR 9.8 .6R Climate related fnan cial discl osures 54 About this repor t The directors of A ir tel Africa present this repor t together with the au dited consolidat ed nancial st atements for t he year ende d 3 1 March 202 2. This repo r t has b ee n prepare d in a cco rdanc e with the requ ireme nt s outlin ed in the Large and Medium - sized Co mpanie s and G ro ups (Accoun ts and Repo r t s ) Regu latio ns 2008 and forms par t of our ma nage ment repo r t as re quir ed unde r Disclosu re Guidan ce and T ransp arenc y Rule (D T R) 4. Cer tain infor mati on that ful ls the requireme nt s of t he direc tors’ repo r t can be found elsewh ere in this docu ment and is re ferre d to below. This infor mati on is in cor po rate d into t his direc tors’ repo r t by refere nce . The dire cto rs’ repor t compr ises pages 90 - 11 9 and 128- 150 of the governan ce repor t, and this repor t on pages 12 3 - 127 . Ot her relev ant informat ion whic h is in cor po rate d by refe renc e can be found in the st rate gic repo r t : • F inanc ial per fo rman ce on pages 7 4-7 9 • B usines s environm ent on page 2 0 • O utl ook and nanc ial manageme nt str ategi es, inc ludin g impo r t ant event s aect ing the comp any since the year end ( w ith subsid iar y under taki ngs inclu ded in consol idated st atem ent s ) on pages 1 - 89 and in note 36 on page 22 4 • T he prin cipal risk s and risk manageme nt framew ork on page s 80 - 86 • O ur engagem ent wit h supplier s , custom ers and other s on page s 2 6 - 30 123 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Direc tor s’ repor t co ntinu ed Rights of members The re are n o restr ic ti ons on the size of a hold ing , the exercise of vot ing rig hts , or the trans fer of s hares . The direc tors are not aware of any agre emen ts bet we en shareho lde rs that might restr ic t the trans fer of shares or voting right s . Shar e pla ns and rights und er the employee share scheme We o per ate an Em ploye e Bene t T r ust (EBT ) for some employe e share plans . The trus te e of th e EBT has all r ight s att ac hed to Air tel Afr ica shares unles s speci c all y restr ic ted in the plan’s gove rnin g docume nt . Und er these plans , we c an satis f y enti tle ment s by acquiri ng exist ing shares held in the EBT . The trus tee purc hases shares in the open market as require d to enab le us to deli ver shares to s atis f y awards that vest . The tr uste e does not regis ter votes in respec t of t hes e shares at our AG Ms and has wa ived the rig ht to re cei ve any di vid ends . At 3 1M arch 202 2, the EBT held 4,932,206 ordinar y Air tel Afri ca shares . Duri ng the year , the EBT tra nsfe rre d 2,509,15 5 shares to satis f y the ves tin g of awards unde r our share - base d incen tive plans . Pur chas e of own s hares The ar t icl es do not prevent Air te l Afric a from purchasi ng its own shares . No one perso n has any right s of contro l over o ur share cap it al and all issued shares are ful ly paid. Major shareholders Majo r sharehol der s have t he same voting right s as o the r sharehold er s. We pu blish infor matio n given to us by substa ntial shareh old ers thro ugh the regu lator y infor mati on ser vi ce and on o ur website w w w.air te l. afr ic a, in line with the FCA ’s Discl osure Guidan ce and T rans paren cy Rules . At 3 1M arch 202 2, we had be en noti ed , in ke epi ng with Rule 5, of t he follow ing holdi ngs of o rdinar y s hare voting right s 2 : Shareholde r Number of v oting rights % of c apital 1 Airtel Africa Mauritius Limited 2 , 10 5 , 10 8 , 8 0 5 56 . 01 Indian Continent Investment Limited 292,4 2 4, 33 0 7.7 8 Singapore T ele com International Pte Ltd 1 48,093, 705 3.94 Warburg Pincus LLC 14 5 , 2 1 2 , 0 6 8 3.86 Qatar Holding LLC 13 4 ,72 6 , 9 6 4 3 .58 Bhar ti Global Limited 1 2 7, 1 4 7, 5 3 1 3.38 1 % inte res t in votin g righ t s att ac hin g to i ssu ed shar es 2 T he com pa ny has not rece ive d any noti c at io ns in acco rdan ce wi th DTR5 fr om 1 Ap ri l 2022 to th e date ofthis Ann ual Rep or t Signicant a greements ( chan geofcontrol ) Air tel Afric a’s b or rowin g and b ank facili ti es contai n the usual p rovisio ns whic h could potent iall y lead to prepaym ent and cance llati on by t he othe r par t y if t here’s a c hange of company cont rol . There are no ot her signi c ant contr ac t s or ag ree ment s that would take eec t , change or com e to an end on a chan ge of c ont rol follow ing a take over bid. All our share plans cont ain provisio ns for a chang e of co ntro l as sum maris ed in the direc tors’ remun erat ion repo r t on pages 1 28 - 1 50. We d o not have ag ree ment s wit h any dire cto r or e mpl oyee that woul dcomp ensa te for loss of o ce or empl oyme nt resulti ng from atake over bid. Air tel Mobile Commerce BV (AMC BV) AM C BV , a wholly own ed subsidiar y of Air tel Afr ica , is c urre ntl y the hol ding comp any for sever al of A ir te l Afric a’s mo bile mon ey operat ions ; and is i ntend ed to o wn and operate the mob ile money busine sses acros s all of Air tel Afric a’s 1 4 operat ing count ri es once the inclusi on of the remaini ng mobile mon ey operat ions unde r AMC BV is comple ted . Air tel Afric a plc has s old minor it y equi ty st akes in AMC BV to four inves tors . Air tel Afric a aims to explore the potent ial list ing of the mobi le money busine ss withi n four years . Under the ter ms of th e transac ti on wit h the four minor it y st akehol der s , and i n very limi ted circums t anc es (in t he event that there is no I nit ial Public Oe rin g of shar es in A MC BV withi n four years of rs t close , or i n the event of changes of control wi tho ut pri or approva l), t he minor it y investo rs would have the option , so as to provi de liquidi t y to th em , to se ll its shares in AMC BV to Air tel Afric a or its aliate s at fa ir market value ( d eter mine d by a mutual ly agree d merc hant bank using an ag ree d internat ional ly acce pted valuati on meth od olo gy – c app ed at 2x in itia l value ). The optio n is subj ec t to a minimu m price equa l to th e consider atio n paid by t he investo r for i t s inves tme nt (less the value of a ll distr ibu ti ons and any pr oce eds of sale of its shares , and wit h no time valu e of mo ney or minimum built in ) and a maximum numbe r of share s in A MC BV . Ow ner ship of A ir te l Mobi le Commer ce BV Ai r t el A fr ic a pl c (United Kingdom ) Air tel Mobile Commerce B. V . (T he Net her lands) Mas terc ard Asia / Paci c PTE L TD Qata r Holdin g LL C The Rise Fund II Aurora , SARL Chime tec Hol dings LLC Th is repre se nt s desir ed sha reh old ing s tr uc tu re on the basis tha t all rest r uc tur in g is comp le ted suc ce ss f ull y by na l closi ng date . Ho weve r act ual shar eho ld ing may di er on acc oun t of cl osin g adjus t men t s and co mpl et ion of ong oin g rest r uc tur in g act iv it ies Bhar ti Air tel International (Nether lands ) B . V . (T he Net her lands) Governance report 1 24 Ai r t el Afr i ca pl c Annu al Re po r t and Acc ou nt s 2022 Relationsh ip agreement In acco rdanc e with the Lis ting Rule s, Air tel Afric a entered into a relat ionshi p agreeme nt with Bhar ti Air te l, Air te l Afric a Mauri tius Limi ted (A AM L), o ur majori t y sharehol der and an i ndire ct subsid iar y of Bhar t i Air tel , and Bha r ti T e le com on 1 7 Jun e 2 01 9. This agre eme nt regu lates the ongoin g relations hip and ensures that transac ti ons and arran gem ent s betw een par t ies are condu cte d at ar m’s l eng th and on normal comm ercia l terms. It also contains the inde pe nden ce unde r t akings and provisi ons require d by t he List ing Rules . Duri ng the nanc ial year , Air tel Afr ic a has co mpli ed wit h the terms and provisi ons of the relations hip agreem ent . Boar d and meeti ng par tic ipat ion As lon g as B har t i Air tel and/or A AM L are a contro lling shareh old er , Bo ard me eti ngs and c er t ain co mmit te e me etin gs mus t incl ude a non - exec ut ive direc tor nominate d by B har ti and/ or A AM L ( subje c t to cer tain exempti ons ) to be valid ( quo rate ). E ach Bo ard and commit te e mee ting mus t includ e three direc tor s includi ng two indep end ent dire cto rs to b e valid. As lon g as B har t i Air tel and/or A AML and their asso ciates hold ( dire c tly or indire ct ly) ord inar y shares in Air tel Afr ica , they are entit led to appoint non - exec ut ive direc tor s to th e Board as follows : • O ne non- execut ive direc tor for 1 0% or more interes t in t he ordinar y sh ares • T wo non- execut ive direc tor s for 1 5% o r more interes t in t he ordinar y sh ares For ever y 1 0 % or m ore interes t ( dire ct ly or indirec tl y ) in the ordinar y shares above 1 5% in aggregate , Bhar t i Air tel and/or A AML can nomi nate one additi onal non - exec uti ve direc tor to t he Boar d, up to a maxi mum of fo ur direc tors . Inde pen dent non - exec ut ive direc tor s must for m the majorit y of the Board . Simila rly, as long as Bhar t i Air tel and/or A AM L and Bhar t i T ele com and the ir associate s have a 1 0% or more interes t in A ir te l Afric a ordinar y shares , each can appoi nt one obse r ver ( w ho must be a dire c tor) to at tend meet ings of the Audi t and Risk Commi t tee and Remune rati on Co mmit te e. This obser ve r can attend and speak at meetin gs but does not count towards quor um or have a r ight to vot e. As such, Akh il Gupta at tends the Audit and Risk Commi tte e meet ings , and Shrav in Bhar t i Mit t al atten ds the Remuner atio n Commit te e meeti ngs. Other provis ions The agre eme nt provide s that Air tel Afric a will not make any mar ket purc hases that would cause Bha r ti or Bhar t i T ele co m to have to make a man dator y oer unde r rule 9 of the T ake over Code , unless Air tel Afric a has t he nece ssar y cons ent s and waivers to preve nt a mandato r y oer obligat ion . Ame ndme nt s can only be ma de to t his relatio nship agree ment in wr iti ng and wit h the recom menda tio n of a majori t y of t he indep ende nt dire cto rs . The relatio nship agree ment will come to an e nd upon the earl ier of: • O rdinar y s hares of Air tel Afric a no lon ger being lis ted on the premi um listi ng segme nt and t rad ed on the London Stock E xchang e (LS E) • B har t i Air tel , A AML and Bhar ti T ele co m, toget her wit h their asso ciates , ceasing to be interes ted ( dir ec tly or indire ct ly in aggre gate ) in at leas t 1 0% of issue d ordinar y shares The relat ionsh ip agreem ent will terminate upo n the shares ceasing to be liste d on t he LSE ’s main mar ket or the princi pal shareho lde rs and the ir associate s ceasing to ho ld at leas t 1 0% of the issue d shares. We b elie ve that the terms of this relat ionshi p agreeme nt enable Air tel Afr ic a to ca rr y out it s business inde pen dent ly of Bhar t i Air tel , AA ML and Bhar ti T ele co m. Ser vices agreement Bha r ti Air tel provides ser vice s to Ai r tel Afr ica and it s subsidiari es incl udin g Bhar t i Air tel Inter natio nal (Neth erla nds ) B . V . (BA IN) under a ser v ices agreement . Provision of information T o prov ide ser v ices to Air tel Afr ica und er the ser vi ces agree ment , Bha r ti Air tel will have ac ces s to info rmat ion relate d to th e Air tel Afr ica Gro up which may include sensi ti ve or c on dent ial informat ion . Bhar ti Air tel will ensure its aliates comp ly wit h the terms of th e informat ion ow protoc ol to t he exte nt that it is leg ally able to do s o. Air tel Afr ic a will provi de Bhar ti Air tel wit h ser vi ce - relate d informat ion nec ess ar y for it to p rovid e ser vi ces unde r the agreeme nt . Future developments The s trate gic repo r t cont ains detai ls of likel y future devel opm ent s wit hin Air te l Afric a. Air tel Money Investme nt s at a glan ce 1st Inves tm ent Agreeme nt signe d with The Rise Fund II Aurora SARL on 1 7 March 20 21 ($ 2 0 0 m) 2nd I nves tm ent Agreeme nt signe d with Mastercard Asia/ Pacic Pte Ltd on 3 1Ma rch 202 1 ($10 0 m) 3rd Invest ment Agreeme nt signe d with Qatar Holdings LLC on 30 J uly 20 21 ($ 2 0 0 m) 4th Invesment Agreeme nt signe d with Chimet ec Holdings LLC on 1 5De cemb er 20 21 ($ 5 0 m) 1st C ompletion conditions precedent met on 30 July 20 2 1 1st C ompletion conditions precedent met on 30 July 20 2 1 1st C ompletion conditions precedent met on 19 Aug ust 202 1 2n d C ompletion conditions precedent met in Novembe r , 20 21 1 2 3 4 5 125 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Direc tor s’ repor t co ntinu ed Group policy compliance Eac h Group polic y is o wne d by a memb er of t he Exe cut ive Comm it tee to ensure clear accoun tabi lit y and the autho rit y to make sure the asso ciate d business risk is a deq uately manag ed . The senior leade rsh ip team membe r responsib le for each Group func ti on has p rima r y acc ount abil it y for ensur ing comp lianc e with all Group poli cies by all o ur market s and entit ies . Our Group comp lianc e team su ppo r t s the polic y owne rs and loca l markets in implem ent ing polic ies and monito ring comp lian ce. All of t he key Gro up polic ies have be en consol idate d into our Cod e of C ondu ct whic h applie s to all empl oyees and thos e who wor k for o r on b ehal f of A ir tel Afr ic a. It sets out the st anda rds of behav iour exp ec ted in relation to areas su ch as inside r dealing , bri ber y , and raising conc erns thro ugh our whist leb low ing proc ess . Direc tors’ indemnities We have agre ed to i nde mnif y d irec tor s for cer tain losse s and l iabil iti es in conne ct ion wit h their duti es , powers and oce . Qualif y ing third - par t y inde mnit y provisio ns ( as dened by sect ion 234 of the Co mpanie s Act 2 0 0 6 ) were in force during the nan cial year ended 3 1Ma rch 202 2. We als o hold liabilit y insuran ce cover ing our direc tors for any leg al acti on agains t them. We to ok legal adv ice on this subjec t . Branch and repres entative oces Air tel Afric a Ser vi ces (UK) Limi ted has an o ce in Dubai, UAE . W e were issue d a co mmerc ial licen ce in Dub ai on 30 Septe mbe r 2 021 wit h number 99099. Bha r ti Air tel Internat iona l ( Net her lands) B . V . has a bran ch oce in Nairo bi, Kenya . It w as issued a c er t i cate of complian ce on 7 O cto ber 20 10 wi th numbe r CF /20 10/33 1 1 7 . Anti - briber y and anti - cor ruption In line with the Br ibe r y Act 20 1 0 , we have wri t ten poli cies on avoiding and not tolerat ing brib er y or corr upt ion . These appl y across all our busine sses and can be found on o ur website. All empl oyees are trai ned in anti -b rib er y and anti - co rr upti on to h elp mitiga te the risk of reput atio nal damage, nanc ial penalt ies and possib le exclusion fro m cer tai n approved par tner ships . Political donations In line with our poli cy, we have not ma de any d onat ions to pol iti cal par t ies duri ng the year . At our n ex t AGM, our direc tor s will be asking for the auth ori t y to make polit ica l donatio ns of no more than £2 5,0 0 0 in to tal . This is to st reng th en our corpo rate gover nanc e by maki ng sure that n eit her Air tel Afric a nor our subsidia rie s inadver te ntl y breach the wide den iti ons in Par t 1 4 of t he Compa nies Act . Emplo ying people with disab ilities It is o ur polic y that peop le with disab ilit ies shoul d be fair ly consid ere d for any job vaca nc y . We ar e commit te d, where ver possibl e, to m aking sure peo ple wit h disab ilit ies are suppor ted and encour age d to ap ply for employ ment and able to wor k success f ully at Air tel Afr ic a. Impor tant events since the e nd of t he nancial y ear Det ails of impo r t ant event s aect ing the Grou p which have o cc urre d sinc e the end o f the nancial year are s et out in t he str ategi c repor t and note 3 6 to th e consol idated nan cial st ateme nts on page 22 4. Our a uditor Del oit te LLP have conr med the ir willing ness to continu e as ou r audi tor . Fol lowi ng our Audit and Risk C omm it tee’s review of the ir ee ct iven ess ( desc rib ed on page 1 12 ), we will prop ose at our AG M that we reappoint De loi tte . Our poli cy is that our audito r will not c ar r y out non -aud it ser v ices , except whe re appropr iate and in l ine with our poli cy for doing such wor k. Our Audi t and R isk Commi t tee also conside rs the ethic al and audi tin g professiona l stan dards related to non- audi t ser vi ces by our ex terna l auditor. De loi t te provide d limited non -a udi t ser vic es durin g the year in l ine wit h our p oli cy as desc ri bed in the Audit and Risk Co mmit te e repor t – see page 1 13. As at the date of this repo r t , so far as ea ch direc tor is aware, there is no relevant audi t informat ion of which our auditor is unaware. Each dire cto r conr ms that they ’ve taken all appro pria te steps to ma ke the msel ves aware of relevant audi t informat ion and to make sure our audi tor is aw are of t hat informat ion . This conr mati on is gi ven and shou ld be interpre ted in accorda nce wit h the provisions of sect ion 4 18 of the Compan ies Act 2006. Audit and Risk Committee recommendations and statements ofcompliance The com mit te e has co mple ted it s review of the eec t ivene ss of inter nal contr ols , includi ng risk manageme nt , during the year and up to the date of t his Annual Repo r t . The review covere d all material contr ols incl udin g nancial , operat ing and compl ianc e. As such, we can provide assura nce to the Board under the 20 18 UK Cor po rate Gover nanc e Co de. This is c overe d in m ore detai l in t he Audit and Risk Commit te e repo r t – s ee page s 1 0 4- 1 13. Air tel Afric a has c ompl ied thro ugho ut the repo r tin g perio d with the provis ions of t he Statu tor y Audit Ser vice s for L arg e Compani es Market Inves ti gatio n (Mandator y Use of C omp eti ti ve T ende r Proces ses and Audi t Commit te e Respons ibili tie s ) order 20 1 4 . Annua l genera l meetin g ( AGM) Our AGM will be live -s tream ed on T uesd ay 2 8 June 202 2 at 1 1am B S T fro m 5 3/54 Grosve nor Stree t , London W 1K 3H U. Det ails of t he busine ss to b e transac te d at t he AGM are in clu ded in our 2 022 notice of the A GM availab le on our w ebsite : ww w.air tel. af ric a. In line with rec ent prac tic e and good govern ance , we’ll c ond uc t all votin g on re solu tio ns at t his year’s A GM by poll. The Bo ard belie ves that this way o f voting gives as many shareh old ers as possibl e the opp or t unit y to have the ir votes c ounte d. The dire cto rs’ repor t has be en approve d by t he Boa rd and is signed on its beha lf by: Sim on O’ Ha ra Gro up compa ny secret ar y 1 0 May 202 2 Governance report 126 A ir tel Af ri ca pl c Ann ual Re po r t and Acc ou nt s 2022 Direc tor s’ responsibili ties s ta tement The directors are responsible for preparing the A nnual Repor t and th e nan ci al st at em en t s in a cc or dan ce wi th app li ca bl e law and regulations. Co mpany law requires the direc tor s to pr epare nanc ial sta temen ts for each nancia l year . Und er that law , the directo rs are require d to prep are our nancial st ateme nt s in ac cor danc e with UK adopte d inter nati onal acco unti ng sta ndards in line with the require ment s of the Co mpanie s Act 2 0 0 6. We have elec te d to pre pare the comp any ’s nanc ial sta temen ts in accor danc e with UK Gene rall y Accepte d Acc ount ing Prac tic e ( G A AP), i nclu ding FRS 1 01 R edu ce d Disclosu re Frame wor k. Und er compan y law , the direc tor s must not approve the acc ount s unles s satis ed that they give a t ru e and fair view of the state of aairs of our c omp any and of our p ro t or l oss for that perio d. In prepar ing our compa ny’s nancial st atem ent s , the directo rs are requ ired to: • Se le ct suit able acc ount ing poli cies and then app ly them consis tent ly • Ma ke j udg emen ts and acco unti ng esti mates that are re asonab le and prudent • Sta te whethe r applic abl e UK Acc ount ing Standards have been foll owed , subjec t to a ny material depar tures disclos ed and explain ed in the nancial st atem ent s • Pre pare the nancia l state ment s on the going conc ern basis unle ss it is inapprop riate to presume that Air tel Afr ic a will continu e in business In prepar ing the Gro up nancial st atem ent s, Inter nat ional Acc ount ing Stand ard 1 re quire s that dire cto rs: • Pro per ly s ele ct a nd app ly ac cou ntin g poli cies • Pre sent infor matio n, incl udin g account ing pol icie s, in a mann er that provi des relevan t , reliable, com parab le and under st anda ble informa tion • Prov ide addi tio nal disclos ures when the spe ci c requirem ent s in IF RSs are insu cie nt to en able user s to und er st and the impac t of par t icu lar transa ct ions , other event s and condit ions on our nancial posi tio n and nanc ial per fo rman ce • Ma ke a n assessme nt of ou r abilit y to c onti nue as a goin g conce rn The dire cto rs are responsib le for k eep ing adeq uate accou ntin g rec ords that show and expla in the company ’s transac ti ons and discl ose wit h reasonabl e accurac y at any time our nancial posi tio n and enable the m to ensu re that the nancial st ateme nt s comply wit h the Com panie s Act 2 0 0 6. They are also responsib le for safeguard ing the asset s of the com pany and for t aki ng reasonabl e steps to preven t and detec t frau d and ot her irre gula rit ies . The dire cto rs are responsib le for the maintenanc e and i ntegr it y of the cor po rate and nancial infor matio n includ ed on our website. UK legis latio n governin g the preparat ion and dissemi natio n of nanc ial sta temen ts may dier from legis latio n in ot her juris dic tio ns. Respon sibilit y s tatement We co n rm tha t to t he be s t of o ur know le dg e: • T he nancia l statem ent s , prepare d in ac co rdanc e with the relev ant nancial repo r t ing fram ewor k , give a true and fair vie w of th e assets , liabili ti es, nan cial posit ion and prot or loss of the company and the under takin gs includ ed in the cons olida tion take n as a whole . • T he str ategi c repor t inc lude s a fai r review of t he develo pme nt and per fo rma nce of the business and the positi on of t he comp any and the under t akin gs includ ed in the consoli datio n taken as a wh ole , togeth er with a descri ptio n of t he princ ipal risk s and uncer t aint ies that they face . • T he Annual Repo r t and nancial st atem ent s , taken as a who le, are fair , balanc ed and under st anda ble and provid e the infor mati on nece ssar y f or sharehol der s to as sess the comp any ’s p osit ion and per fo rman ce , business mode l and st rateg y . This respo nsibil it y state ment was approve d by th e Board of dire cto rs on 1 0 May 202 2 and is sig ned on its beh alf by: Olusegun Ogunsanya Chief execu ti ve ocer 1 0 May 202 2 127 Ai r te l Afr ic a plc An nu al Rep or t and Acco un t s 2022 Governance report Direc tor s’ remuneration re por t Chair’s introduction I’m pl eased to p rese nt the R emun erat ion C ommi t tee’s repo r t for 20 21 / 22 . Board changes Dur ing t he year t here we re a numb er of cha nges to t he B oard , wit h Ragh unath M andava re tir ing on 30 S epte mber 2021. Se gun Og unsanya w as appo inte d as CEO f rom 1 O cto ber 2021. Jaide ep Pau l, o ur CF O, join ed t he B oard on 1 J une 2021. On ap poi ntme nt , Se gun Og unsanya’s base s alar y was s et at $9 15,0 0 0. In s et ting t his sa lar y, our commi t tee to ok ac coun t of Raghu ’s salar y. This was not in crease d in 202 1/22 in light of h is dec ision to re tire , whe reas empl oyee s’ salar ies in crease d by 6% on averag e. T herefo re, S egun’s s tar ting s alar y of $91 5, 0 00 w ould have be en lowe r than o ur ou tgoin g CEO ’s if this had b ee n incr eased i n line wit h oth er emp loye es in 202 1 /22. Segun r ece ives a s ta ndard p acka ge of bene t s in lin e with his expatr iate status and loc atio n in D ubai . He also pa r ti cipate s in a le gac y pensi on sc heme to w hic h the c ompa ny cont ri butes 10% of his sal ar y, in line wit h s tatu tor y re quir emen ts i n his hom e coun tr y of N ige ria and a rra nge ment s for o ur emp loye es the re. His target annual bonus for 20 2 1 /22 w as set a t 7 5% of s alar y ( maxi mum 1 50 % of sa lar y) , wit h one -t hird to be defer red into Air tel Afr ic a shares for two years . Segun’s L TI P awards for 2021/22 and 202 2/23 comp rise a P SP gr ant of 90 % of sal ar y and R SU gr ant of 40% of salar y . Jaide ep’s salar y was set at $583, 0 00 , with bene t s in line wit h his expat riate st atus and locat ion in Dubai . His t arg et annual bonus for 202 1/22 was s et at 70 % of sa lar y ( ma ximu m 1 40 % of sa lar y) , with one - thir d to be defer re d into A ir te l Afric a shares for t wo years . His L TI P awards for 2 02 1 /22 a nd 2 022/23 co mpr ise a P SP grant of 75% of salar y and RSU grant of 35% of s alar y. Le aver terms for Raghu are set ou t be low. Perfor mance outcomes for the year T o re ca p on th e per form ance as d esc rib ed in t he s tr ategi c repo r t , t his year Air tel Afr ic a delivere d a s tr ong per f orma nce , with doubl e - digi t revenu e and u nde rly ing EBI T DA g row t h and a rec ord free cash ow deli ver y. T ot al sharehol der retur n was 81.5% w hic h ranked Air tel Afr ic a at num ber 3 in the MSCI Emergi ng Market s Commun icat ion Ser vice Ind ex. The p and emic has hi ghlig hted t he imp or t anc e of th e ser v ic e we provi de. M ainta ining re silie nt net wor k s in all t he cou ntr ies we o per ate in provide d the plat form for signi ca nt par tne rsh ips in as sist ing gover nme nts w it h deli ver y of e merg enc y fu nds and su ppo r t pa cka ges and the commun icat ion of compre hensi ve Covid - 19 h ealt h messag es. It als o provi ded t he pl at form t hat enab le d key com mercia l par t ner ship s to suppor t nanc ial inclusio n and for educ ati on par tn ers hips to provi de f ree dat a and in tern et co nne ct ivi ty to t hos e mos t in ne ed . Mos t notewor thy is t he ve -year par t ner ship wit h UNI CEF to help acc ele rate the rollou t of di git al learni ng across 1 3 Afric an count rie s. This repor t sets ou t the remuneration policy for our direc tors, w hat they’ve be en paid in the year and how this is link ed to the per formance achieved. There a re three se c tions to th e repor t: Par t 1 An introdu ct ion from t he commit tee chair – this explains our approac h to remuneration , summarises the key decisions made by the commit tee duri ng the year ( also par t of the annual remuneration rep or t), and gives an over view of our 20 22/ 23 approach and policy . Par t 2 The director s’ remuneration policy – this sets out the proposed remuneration policy for our CEO, CFO, chair and non- executi ve directors, which will be put to a binding shareholder v ote at the for thcoming AGM. Par t 3 Our annual repor t on remuneration – t his sets ou t in detail how we applied our current remuneration policy in 20 2 1/2 2, the remuneration received by direc tors for the year and how the p roposed polic y will be appl ied in 20 22/2 3. T his repor t will be put to an advisor y sharehol der vote at the AGM. All amoun ts in this repor t are in U S dollars ( $), un lesss t ated other wise. Doug Baillie Chair , Remune ration C ommit tee Governance report 128 Ai r t el Af r ic a p lc A nnu al R ep or t and A cc ou nt s 2022 Annua l bonuses for 20 2 1 /22 were based on a s core ca rd of me asures : net revenue ( 35% ), under lyi ng EBI TDA ( 35% ), o pe ratin g free cash ow ( 1 0%) and per so nal objec ti ves ( 20%) . Gi ven the Group’s stron g per forma nce w it h 2 4.1 % gro w th in n et reven ue, 31.2% grow th in EB IT DA and 44.4% gr ow th in opera ting fre e cash ow, t he stre tch targ et s for all of t he nanci al objec ti ves were exceede d . Each of ou r thre e execut ive direc tor s in t he year also had role -sp eci c per son al obje c tive s for t he year – se e page 1 40 for detai ls. As a result , bonuses of 1 50% an d 1 40 % of salar y were award ed to o ur new C EO an d our CFO r espe c tive ly, and our outg oing C EO re cei ved a b onus of 150% of his pro -r ated salar y. One - thi rd of t he bonuse s for S egu n and J aide ep will b e defe rre d into share s for t wo year s, b ut Ra ghu’s bonus w ill be paid in c ash in li ne wi th his l eaver ar rang emen ts . T he over all leve l of bonus es sho uld b e se en in th e light of t he bus iness c ont inuin g to ope rate no rmal ly wi th f ull emp loy ment , no g over nmen t supp or t fun ding an d a prop ose d div iden d in lin e wit h cur rent p oli cy fo r our sha reholders. Our CFO was granted an award on I PO, wit h the nal tranch e subjec t to per forma nce m easured to t he en d of 3 1 M arch 2022, vest ing at 1 0 0 % . See p age 1 42 for det ails . Leav er terms for the former CEO In co nside rin g Raghu’s leave r terms , ou r commi t tee n oted t hat he overs aw an ex t rao rdinar ily succ ess f ul peri od for Air tel Afr ica . Durin g his leader ship, Air tel Afric a exper ien ced sust ain ed per f orma nce in be comi ng the fastes t growin g and m os t prota ble tele coms ope rator in Africa. We took this i nto acc ount i n deter minin g how to ap ply t he p olic y and treat his inight share awards on d epar ture. We also consi dere d that over 75 % of the shares under award were not subjec t to l ever age d per forma nce c ondi ti ons on ves t ing , that t he majo ri ty w ere gra nted in conn ec ti on wi th t he IP O, and t hat in vi ew of his p lanne d reti remen t no long -te rm incen tive awards were made in 2021. We the refore exercise d discret ion unde r the polic y to de termi ne that his sha re awards shoul d vest at t he time of his depar t ure, wit h L TI Ps subjec t to pro- ra ting for time and based on our com mit tee’s assessm ent of per forma nce a gains t the p er forman ce c ondi tio ns base d on ou r audi tor review ed half-year acc ount s and relative TSR measure d to 30 Septemb er 20 2 1. We n ote that the outcom e of th e 2 019 nan cial metr ic s aligns with the nal outco mes whic h have be en assess ed for th e CF O in the n or mal tim efr ame, b ut t hat the o utc ome of t he relat ive TS R measure was ve st ing at 50 % as co mpare d to th e cur rent es timate d ves tin g of this e leme nt of 1 0 0 % . No ne of th e shares ves ting o n Ragh u’s depar ture may be so ld for t wo yea rs ( o the r than to sett le any tax due) , and durin g this tim e they remain subjec t to malus and c lawb ack . As a good leaver , Raghu was als o eligibl e to re ceive a bonus for the per io d wor ked in th e year , w it h this ass essm ent mad e at the e nd of the yea r . More i nfor matio n abo ut t hese aw ards and ot her te rms , whi ch are in acc ordan ce wi th t he po lic y , is on pag e 12 4. Considering formulaic outcome s Our c ommi t tee rev iewe d th e form ulaic o utco mes a gains t the b onus and L T IP targ et s and d ec ide d that the se were a fair re ec tio n of t he overal l per for manc e achieve d for s hareh old ers . W e conr m that in asses sing p er fo rman ce aga ins t the t arge ts , no d iscret ion w as appl ied to the o utc ome an d that t he po lic y ope rate d as inten ded . The onl y discreti on exercised in the year was in re latio n to t he treat ment of t he ou tgoi ng CE O’s share awards o n leavi ng th e comp any, as descri be d above. Remuneration policy changes The c urr ent remu nera tio n poli cy re ce ived 93. 55% votes in favour a t our 202 0 AGM . Our commi tte e designe d this polic y to b e approp riate for a ne wly l iste d com pany in t he U K whil e tak ing ac coun t of our ver y spe ci c circums t ance s, given we are l iste d on the Lond on Stock E xchang e ( wit h a se co ndar y l ist ing on the Niger ian Stock Exchan ge ) and oper ate in 1 4 cou ntr ies in Afric a. We regular ly rev iew t he p olic y to ensur e it op erate s as intend ed an d cont inue s to be in li ne wi th b es t prac t ice an d our busi ness s t rateg y. In 202 1, we d ec ide d to chang e the w ay in whi ch th e cur rent p olic y is impleme nted in two spec i c areas: requiri ng one -t hird of any bonus paid to executi ve direc tors to be d efer red ( rath er than only any bonus in excess of 1 00 % of s alar y), and intro duc ing a tw o -year pos t-e mploy men t holding per io d. Bot h of th ese chang es were made to take ac cou nt of cur rent b es t pra ct ice an d were m ore res tr ic ti ve than requ ired by t he cu rren t appro ved p olic y. Dur ing this nancia l year , we f ur t her consid ere d the pol ic y in lig ht of Air tel Afr ica’s evolvin g strate gy and change s to th e Board . Our comm it tee has d ec ide d to put t he p olic y chan ges to a sha reho lde r vote at t he AGM this year , in order to f orma lly inco rp orate the bes t pra ct ice feat ures int rodu ce d in th e last t wo yea rs an d make a few more sensib le poli cy chang es to re ec t the appoi ntme nt of a new CEO a nd our C FO jo ining t he B oard . The foll owin g changes are propos ed: 1. Bo nus d ef er r al : updat ing the poli cy to require one -t hird of any bonus to b e defe rre d into sha res for t wo year s. T his al ready ap pli es to the C FO an d new C EO. 2. Be ne t s and pen sio n: making spe ci c provisio n for the CEO ’s leg acy p ensio n arr ange ment , w hic h is 1 0 % of salar y in line w it h st atu tor y re quire ment s fo r empl oyees i n his hom e coun tr y of Nige ria . In li ne wi th th e app roac h for th e prev ious C EO, th e CF O doe s not re ceive a p ensio n. 3. Share ownership requirements : setting the CF O’s sh are owne rsh ip requ ireme nt at 200 % of sala r y. The cur rent p olic y requ ires execut ive direc tor s to bu ild up and re tain shares wor t h 2 50% of s alar y. This was se t whe n the p revio us CEO w as the o nly execu ti ve member of the Board and it was not e nvisa ge d that o the r execu ti ves might be a ppo inted to the Board duri ng the life of th e pol icy. Foll owin g the ap poi ntme nt of th e CFO to t he B oar d and rec ognisi ng that he re cei ves a l ower L T I award than the CEO, we pro pose to a mend t he p olic y so t hat his share o wne rship requ ireme nt is set at 20 0% of s alar y. The C EO‘s re quirem ent wo uld remain at 2 50% of salar y. T he polic y will also be upda ted to re e ct the pos t-e mploy ment shareh old ing require ment intr odu ced last year . This spe ci es that execut ive direc tor s must hold shares for tw o years af ter leav ing eq ual in val ue to th e lower o f thei r hol ding on date of le aving o r 50% of t heir re qui remen t in emp loym ent . We judg e this as app rop riate given the market s in whic h our ex ecu ti ves are base d and re cr uite d fr om, w here s hare own ers hip re quirem ent s are t ypi call y not op er ated . Co nsiste nt wit h our a ppro ach of re gular ly re view ing t he po lic y to ensure i t remains a ppro pria te, th e com mit tee has c aref ull y consi dere d the other elements of the polic y . We believe these remain appropriat e given Air tel Afric a’s u nique circu mst anc es and are t here fore not prop osing a ny othe r mater ial chan ges to t he po lic y or it s o per atio n. 129 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Direc tor s’ remuneration re por t cont inue d In par ti cula r , we re vie wed the use of a mix of re st ri cte d and per forma nce shares in Air tel Afr ica’s long -ter m incent ive plans in the light of feedba ck recei ved from som e investor s and proxie s when the pol icy was rs t introdu ce d. Att rac tin g and retai ning the right tal ent in the countr ies whe re we op era te is a signi can t challeng e and we bel ieve the curre nt approac h of gr antin g a mi x of pe r for man ce shares wit h dema ndin g per forma nce c ondi tio ns and res t ric te d shares w ith a nancial unde rpi n remains app ropr iate and crit ica l to our tal ent agen da. We als o note t hat the annual award levels are n ot excessive , wit h grant s to th e execut ive direc tor s to date lower than the nor mal maxi mum award level provide d for in the polic y. Board chair fe e Dur ing t he year, our commi tte e rev iewe d th e Bo ard chai r’s fee . This was set at t he po int of ou r IP O in line w it h the b ase dire cto rs’ fe e, wi th a non - c ash bene t of a car plus drive r when in t he UK . We co nside red it time ly to rev iew t hes e arra nge ment s wi th a v iew to mov ing to a m ore market-ali gne d fee st ru ctu re for t he role. A s a resul t , we c onso lidate d the Bo ard chair ’s c ar and driver ben et into the fee and incre ased the fee to £30 0,0 0 0 per year ee ct ive from 1 Novem ber 202 1. This also ree c ts the time com mit ment and responsi bili tie s of th e role, as we ll as comp et iti ve fee l evels for c hair s of comp arab le org anisat ions . Go ing for ward the chair will reimbu rse the com pany the actua l cost of a co mpany - provi ded com pany car out of his fee. App lyi ng the p ropose d pol icy i n 202 2 /2 3 Salar ies fo r the C EO an d the C FO w ill be i ncreas ed by 5% whi ch comp ares to a planned wor kfo rce incre ase of sl ight ly above 7%. Max imum bonus opp or tu nit y is c app ed at 2 0 0 % of bas e salar y under the prop ose d polic y. Th e 2 022/23 target bonus will be set at 75% of base salar y fo r the CEO and 70% of s alar y for the CFO, wit h maximum bonus es of 150% and 1 40 % of sa lar y res pe ct ivel y . I n line w it h the prop ose d po lic y , o ne thi rd of any bo nus wil l be de ferre d into sha res for t wo year s. I t is inten ded t hat met ri cs and w eight ings re main unch ange d from last year , with 80 % based on nan cial metr ics ( net revenu e, under ly ing EBI TDA and operat ing fre e cash ow ) and 2 0 % non - nanc ial. Wi thin the Non - F inanc ial target s an ESG target has be en incl ude d for the rs t time , which is l inked to the Com pany ’s St rate gy and sus ta inabil it y road map whi ch was pu blish ed in N ovemb er 202 1. L T I P grants will consis t of per forma nce shares ( wi th a maximum face value of 90% of s alar y for the CEO and 7 5% of salar y for t he CFO) , and res t ric te d sto ck uni t s ( w it h a face v alue of 40 % of sa lar y for t he CEO and 35 % of sa lar y for the CFO) . We b elieve that a signic ant prop or tion of p ay shoul d be t ied to p er forman ce. We’ll co nti nue to set ro bus t and cha llen ging p er fo rman ce t arget s fo r bot h the b onus and the per fo rma nce shares comp one nt of t he L TI P , wit h vesti ng of res tr ic ted sto ck unit s depen dent on the satis fac tio n of a nanc ial unde rpi n. As in 2 021/22, t hre e per for manc e condi tio ns will apply to the per for manc e shares: relati ve TSR ( 20% ), under ly ing EBI T DA ( 40%) an d revenue ( 40 % ), wit h each measured over three years . The und erl yin g EBIT DA and re venue targ et s will not be disclo sed at grant as t hey ar e cur rentl y cons idere d to be c omme rcial ly se nsiti ve. The y will b e disc lose d wh en this c hang es – no later t han t he rep or t fo r the yea r in whi ch th e awards ves t . T he und er pin app ly ing to th e grant of restr ic ted sto ck unit s will require a positi ve operat ing fre e cash ow over the three nanc ial years ending the year before the unit s vest . Conclusion This pas t year has demo nst rate d the true resilie nce of all of Air tel Afr ic a’s emp loye es. Not only has they delive red an ex cept iona lly st rong nan cial per fo rma nce but in doing so tr uly lived the com pany ’s pur pos e of deli veri ng vi tal s er v ice s and he lping t rans for m th e lives of its stakeholders. I woul d like to than k my fello w comm it tee m emb ers fo r the ir con tinu ed dilig enc e and de dic ati on . We look fo r ward to s eei ng your su ppo r t for the dire cto rs’ remuner atio n repor t at this year’s AGM and, more impo r t antl y , see ing the cont inue d bene t s of our wor k to all our st akeho lde rs ove r the c omin g years . I will be at te ndin g the 2 022 AGM and look for w ard to e ngagi ng with shareh old ers at t he me et ing . In th e meant ime, i f you’d like to discuss any aspe c ts of t his rep or t please c ont ac t me thr ough o ur co mpany sec ret ar y, Sim on O’Ha ra ( se e page 2 4 0 for c ont ac t details) . Doug Baillie Chair , Remune ration C ommit tee 1 0 May 2022 Governance report 130 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 Remuneration Commit tee • Ad vises the Bo ard on remunerat ion for Boar d member s, execu ti ve dire cto rs , the company sec reta r y , the Exec uti ve Commi tte e and other senior employees • Ma kes sure that re mune rati on ar rang eme nt s ident if y and mit igate repu tat iona l and ot her risk s from excessi ve rewards and inapp ropr iate behavi our linked to target-bas ed ince nti ve plans • Ensu res tar get s are ap prop riate , geare d to del iver ing o ur st rate gy and enhancing shareholder value • Ma kes sure re wards for achievi ng or exce edin g agreed targ et s are not excessive • Pro motes the increasi ng alignme nt of exe cut ive, empl oyee and shareholder interest s through approp riate share plan partic ipation and e xecutive shareholding guidelines • Review s employee remuneration and poli cies and the alignment of incent ives wit h culture, par ticul arl y when sett ing the execu tive directors’ r emuneration policy • Through the committee ch air , engages with sh areholders on remuneration-related matters Main ac t ivi ties i n 202 1 /22 Dur ing the nanc ial year , the commit te e: • Agre ed annual salar y increases and review ed senio r ex ecu ti ve remuneration • Im ple mente d and mad e awards u nder o ur share p lans • D eter mine d the l evel of b onus pay ment s fo r the p revi ous nanc ial year • D eter mine d the l eavin g arr ange ment s fo r the fo rme r CEO b ase d on a pe r for man ce asse ssme nt • Se t the s t ar t ing sa lari es and l evels of remu ner atio n for th e new CEO a nd CF O • D raf te d and ag ree d the d irec tor s’ remun erat ion re po r t • Re cei ved train ing in key areas of the UK Cor po rate Gover nanc e Co de and The Invest ment A sso ciati on’s g uidan ce • Re cei ved re gular u pdates o n lates t inves tor t hink ing and e merg ing and futu re remunerat ion tren ds, inc ludin g the expec ted impa ct of ESG tren ds on re muner atio n Shareholder cons ultation We consul ted wi th maj or shar ehol der s and l eadin g repre sent ati ve bo dies on: • Ra ghu Man dava’s leaver ter ms and th e pac kage s for th e new C EO and C FO • Cha nges to t he remu ner atio n pol icy w hic h will b e put to a b indi ng vote at t he for th comi ng AGM The Commi ttee wel comes feedba ck from shareholders and c arefully consi dere d this in d eter minin g the re mune rati on po lic y . Th e major it y of sharehol der s who expresse d a v iew on the propos ed poli cy chang es were b road ly sup por tive. T he fe ed back w e rec eive d help ed to shape our nal prop osals . Engaging with employees The rep or t s on pages 2 6 and 1 16 exp lains our work on diversi ty and the va rio us ways in w hich ma nagem ent en gage d wi th em ploye es duri ng th e year . W hile o ur com mit te e does n’t di rec tl y consu lt empl oyee s on exe cut ive remune rati on , in ou r regular town halls a wid e rang e of topic s were d iscuss ed w ith o ur CE O, inc ludin g empl oyee remun erat ion . From n ex t year , a no n- exe cu tive direc tor will b e invi ted to j oin th ese me et ings . 1 31 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Direc tor s’ remuneration re por t cont inue d F Y2 1/2 2 peformance Annual bonus outcomes Link between re munera t ion and b usi nes s strategy – metrics f or 2 02 2/2 3 Long-term incentive plan Single gure of remuneration Summary of remuneration Net revenue +2 4 . 1% $ 4 , 0 42m Underlying EBITDA +31 . 2 % $2, 293 m Op er ati ng fre e cash ow +4 4 . 4% $1, 6 37m Bo nus o utc om es as % o f max im um Segu n Ogunsay a Jaideep Paul 10 0 % 10 0 % Segu n Ogunsay a $1, 4 0 4 Jaideep Paul $1, 5 8 9 All am oun ts are in $mil lio n Weighting Threshol d T arg et Maximum Outcome Net revenue 35% 3, 823 3 , 9 21 3 , 9 21 35 % Underlying EBITDA 35% 2 , 1 21 2 , 187 2 , 25 8 35% Op er ati ng fre e cash ow 10 % 1 , 421 1 ,4 87 1, 55 8 35% Non - nan cials CEO Deta ils on pa ge 14 0 20 % 20 % Non - nan cials CFO Deta ils on pa ge 14 0 20 % 20% Bot h our n ew CE O and C FO joi ned t he B oar d duri ng th e year , w ith a leg acy aw ard ves ti ng to the C FO. Se e pages 1 42 a nd 1 4 3 for d etai ls of th eir lega cy L T IP awards and arrangeme nts for the retirin g CEO. Re ec t s the pe ri od fro m join ing th e Boa rd Annual bonus Measure W eighting Why chosen Net re venue 35% Key indicator of our growt h, market pen etr atio n and cus tom er reten tio n Underlying EBI TDA 35% M easure of our p ro tab ilit y and cash - ge ner atin g abilit y from year to year Operating free cash ow 10 % M easure of t he under ly ing pro tabi lit y fro m our op erat ions , as we ll as our abili t y to ser vice d ebt and ot her capit al commitment s Non -nancials 20 % In dic ator of t he pe r for manc e of th e organis atio n in key non - nanc ial areas . For 2 022, the non- nan cial measures relate to ESG and regu lator y o bje ct ives Long-term incentive plan Measure W eighting Why chosen TSR , re lati ve to a pe er grou p of competi tors 1 20 % M easure s the tot al retu rns to ou r share holders, providing close alignment with shareholde rs interest Net re venue 40% A key indicato r of lo ng -ter m grow th in the market, highlighting the impor t ance of sustained p er formance Underlying EBI TDA 40% Measu re of t he under lyi ng prot abil it y fro m our op erat ions , as we ll as our abili t y to ser vice d ebt and ot her c api ta l commitme nts , highlighting the impor t ance of sustained p er formance Operating free cash ow RSU underpin Measur e of th e under lyin g prot abili t y fro m our op erat ions , as we ll as our abili t y to ser vice d ebt and ot her capit al commitment s 1 Fo r gra nt s in 2022, we i nte nd to us e a pe er g rou p of in ter nat io nal em er gin g mar ket c omm uni cat io n se r vi ce s org anis ati ons ( MSC I Em erg ing M ar ket s C omm uni cat io n Se r vi ces In dex co ns ti tue nt s). Governance report 132 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Proposed rem uneration st ruc ture for 20 2 2 /2 3 Component Purpose and link to s trategy 22 /23 2 3 / 24 24 / 2 5 25/ 26 26/27 2 7/ 2 8 Propose d policy changes Proposed im plementation fo r 2022 Base salar y Benet s (including p e n s i o n) Annual bonus Long-term incentive plan – PSU s Long-term incentive plan – RSUs Shareholding requirement T o re cr uit a nd rewa rd execu ti ve directo rs of a suitable calibr e for the role T o p rovid e mar ket comp et iti ve bene t s T o i nce ntiv ise an d reward annual per formance achi eveme nt s. T o also provide sustaine d alignment with sharehold ers through a component def er red in shares T o i nce ntiv ise an d reward t he deli ver y of t he c ompany ’s st rate gic ob jec t ives an d provide fur t her alignment with sharehold ers through the us e of shares T o f ur t her a lign t he inte res ts of executi ve direc tors wit h those of shareholders No change Mino r upd ates to ree c t CEO pensi on Defe rra l of rd of any bo nus No change CFO – 20 0% of salar y ( C EO remains unchanged ) Post - cessation shareholding require ment s formalised CEO : $960, 750 CFO : $6 12,1 50 Be ne t s in lin e with polic y CEO : 1 4 0% of salar y maximu m CFO : 1 50 % of sa lar y maximu m: Metr ics 1 : Net revenue, unde rl ying EB IT DA , Op erat ing f ree c ash ow, non -nanc ial rd deferre d CEO grant : 90 % of salar y in PSP and 40% of salar y in RSUs CFO grant : 75% of salar y in PSP a nd 35% of salar y in RSUs Met ri cs: TSR relat ive to a pe er grou p of competi tors, N et Revenue, underl ying EBITD A RSU unde rpi n: Op erat ing free cash ow CEO : 2 50 % ofsalar y CFO : 200% ofsalar y 1 T he t arg et ra nge s are c ons ide re d by th e co mmi t te e to be c omm er cial ly s ens it ive a nd wi ll b e dis clo se d in t he 2022/23 di re cto rs ’ rem une rat io n rep or t Deferral peri od Ho ldi ng per io d Summary of remuneration 133 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Direc tor s’ remuneration re por t cont inue d Direc tors’ remuneration policy This s et s out t he pro pos ed p olic y wh ich w ill be su bmit te d for ap prova l in a bi ndin g vote at the 202 2 AGM to b e held on T uesday 28 Ju ne 202 2. The polic y approve d at t he 2 020 AG M can be found on our web site: www.a irtel.africa. We develo pe d the p ropo sed p oli cy t akin g into ac coun t the p rin cipl es of the UK Co rpo rate Gove rnan ce Cod e and t he view s of our major shareh old ers . T he po lic y is inten ded to a tt rac t , mot ivate an d reta in high - c alibre dire cto rs , to p romote the long - term succ ess of Air tel Afr ic a, and to b e in li ne with goo d prac tic e and the interes t s of o ur shareholders. The pro pose d polic y dier s from the curre nt sharehol der approve d pol icy in the follow ing key a reas: • T he annu al bon us defer ral m ech anism has be en s tr eng the ned s o that one - third of any b onus must be defer red in shares (in line with current pract ice ). • T he bene t s wording is updated to make speci c provisi ons for the leg acy p ensio n arr ange ment of t he C EO, wh ich is 10% of salar y in line w ith s t atuto r y re quirem ent s for e mplo yees in h is home c ount r y of Nige ria. • Fo llow ing t he app oint men t of the C FO to t he B oard an d rec ognisi ng that he receive s a lo wer L T I award t han the CEO, his share owne rsh ip requ ireme nt is set at 20 0% of his s alar y . • T he wording of the polic y now reec t s the post-c ess atio n shareholding requirement introdu ced last year . The re are ot her min or wor ding c hange s to make sure th e pol ic y is clear and easil y und ers to od. Key principles o f our remuneration policy Our comm it tee took into accou nt the UK Corp orate Gove rnan ce Co de’s six facto rs in Provision 40 in d eter mining the prop ose d remun erat ion poli cy. We believe the pol ic y addresse s these fac tors : • Clari ty : t he s tr uc ture of re muner atio n is desi gne d to supp or t o ur comp any str ateg y , aligni ng the interes t s of our execu ti ve directo rs with those of our shar eholder s. • Simplic ity : W e o per ate a simpl e remun erat ion f ram ewor k , comp risi ng xed pay , shor t- and lon g- ter m incent ives . The use of bot h per for manc e and res tr ic ted shares may a dd a l it tl e complex it y , but t his is app ropr iate an d cri ti cal to ou r tal ent ag enda fo r the market s in w hich w e ope rate. • Propor tionalit y: remuner atio n is set at c ompe tit ive l evels to ensu re our ab ilit y to at tr ac t and ret ain p remium t ale nt . Th ere is a dire ct l ink bet we en th e suc cess of t he s tr ateg y and th e value r ece ived b y execu ti ve directo rs . • Alignme nt to culture: the remunera t ion appro ach support s our st rate gy obje ct ives and reec t s the diversi t y of ou r business . The s tru ct ure of t he packa ge, and bene t s in p ar t icul ar , ree ct s loc al pr ac tic es and e mplo ymen t con dit ions in t he co untr ies i n whic h execut ive direc tor s are bas ed and/or rec rui ted from . • Predic tabilit y: a sig ni can t propor tion of executi ve direc tors’ remun erat ion shoul d be per forma nce - bas ed . The polic y sets out the possi ble fut ure value of re mune rati on execut ive direc tor s can re cei ve. • R is k : The p ackage is appropriately bal anced bet ween the achi eveme nt of sh or t-ter m and longer-term obje c tive s and d oes not reward po or per fo rman ce or encour age inapp ropr iate risk-t aking . Par t 2 Executi ve directors’ r emuneration policy table Purpose and link tos tr ate gy How we assess pe r fo rm anc e Maximum oppor tunity Base salar y T o re cr uit an d reward execu ti ve directo rs of a suitable calibre for th e role a nd duties required Normally revie wed annually by committe e, taking account of company and individual per for mance, changes in responsibilit y and le vels of inc rease fo r the b road er emp loye e pop ulati on. Refere nce is a lso made to ma rket le vels in co mpan ies of simi lar size and complexity. We conside r the i mpac t of any bas e sala r y inc rease o n the tot al remuneration package. Salar ies ( an d other eleme nt s of th e remunera tion pac kage) may be p aid in dierent cur renc ies as a ppro pri ate to re ec t the geographic location. The re is no pr escr ibe d maxi mum salar y or annual increa se. Howe ver , incre ases will gen erall y be gu ide d by increa ses for the broader employee population. Inc reases ab ove th is level may be m ade in speci c situat ions to re co gnise development in the role, changes responsibilit y , mater ial chan ges to t he busine ss or except iona l company per for mance. Be ne t s and pension T o p rovid es mar ket comp et iti ve bene t s Be ne t s for exe cut ive direc tor s will typ ica lly ree ct thei r countr y of residen ce. Whe re an exe cut ive direc tor rece ives an expatri ate packag e, addi tio nal cash bene t s may b e provide d. E xpat riate ben et s may include housing allowance, e ducation allowan ce and home leave tickets . Car allowances , life and medical insurance may also be provi de d. Statuto r y bene t s as re quire d under loc al law o f the hos t cou ntr y w ill als o be pa id. Pensio ns may be pro vide d wh ere th is is in line w ith t he wo rk forc e provis ion and statu tor y re qui remen ts in the execut ive’s hom e location. We may also equalis e for d oub le taxat ion bet we en the require d wor k locat ion and the execut ive’s countr y of residenc e, if require d. Max imum values are determined by reference to market p rac ti ce, avoidin g payi ng more than is n ece ssar y . W here pensi on is o ere d, this will be in li ne wi th s tat utor y requirement s in the execu ti ve’s ho me loc atio n and in li ne wi th t he wider workforce f or that loc atio n. Governance report 134 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 Purpose and link tos tr ate gy How we assess pe r fo rm anc e Maximum oppor tunity Bonus plan T o in cen tiv ise and reward annual per formance achievements. T o a lso prov ide sustaine d alignment with shareholders through a compon ent deferred in shares Awards are b ase d on an nual per fo rman ce agains t a s core ca rd of metr ic s align ed w ith o ur s trat egy, KPIs and ot her ye arl y goals . Fina ncial m easures have t he hig hes t weig htin g. Per forma nce agains t str ateg ic nancial and non - nancia l objec ti ves may als o be used , bu t will n ot nor mall y acc ount fo r more t han 20% of t he tot al. The p oli cy g ives t he co mmit te e the au th ori t y to sel ec t suit abl e per forma nce m etr ics a ligne d to our s t rateg y and sh areho lde rs’ interes t s , and to ass ess t he pe r for man ce ou tcom e. One - thi rd of any bon us i s normall y deliver ed in shares defer re d for a fur th er two years . Any div iden d equival ent s accr uing on shares bet we en th e date wh en th e awards wer e grante d and w hen t he awards ves t wi ll nor mall y be de live red in sh ares . Malus and clawba ck provisio ns apply to b oth the cash and share - base d ele ment of awa rds for a p eri od of t wo year s fro m the d ate of paym ent ( cash) o r date of releas e ( shares) i f there is: • Misst atement of company’ s account s • A n error in cal culat ion per forma nce • G ross misco nduc t result ing in dismissal • Material failure in risk management • Repu tational damage • Mate rial dow nturn in nancia l per for manc e • A ny other event or e vent s that the commit te e consider s to b e bot h exception al and su cien tly adve rse to the interest s of the company The max imum annual bonus is 20 0% of base s alar y. The c ommi t tee w ill use it s discretion within the se limi t s to consi der the maxi mum bonus oppor tunity each y ear , taking account of marke t developme nt oppor tunities, speci c event s and rol e e xpansi on. For 2022/23, the C EO’s maxi mum bonus opp or t unit y wi ll be s et at 1 50% of his b ase sala r y and th e CF O’s will b e 1 40 % of his base s alar y. Threshold performance resul ts i n a paym ent of 30% of maximum . Dividend or dividend equi vale nt s may be earn ed on the def erred bonus componen t . Long- term incentive plan (L TIP) T o i nce ntiv ise an d reward the delivery of the c omp any ’s st rate gic ob jec t ives and pr ovide f ur ther alignment with shareholders thro ugh the us e of shares Awards may c ompr ise per forman ce shares (PSP) an d/or res t ric te d sto ck unit s (RSUs ). Indiv iduals are conside red each year for a n award of shares that norm ally vest af ter thre e years to t he exten t that any p er forman ce co ndi tio ns are met an d in lin e wit h the t erms of the sharehol der-appro ved plan. PSP aw ards are mad e subje c t to cont inue d emp loy ment an d the satisfaction of stret ching performance conditions normally measure d over t hree yea rs se t by the c ommi t tee b efore ea ch gra nt . The c ommi t tee w ill have dis cret ion to cha nge t he met ri cs and weight ing f rom year to ye ar . Ma jor sha rehol der s wil l nor mall y be consu lte d before any si gni ca nt changes . Awards of R SUs depen d on c ont inue d employ ment and a nanci al unde rpi n set by the commit te e before each grant . Awards g rante d in 2 022 w ill require posi tive ope rati ng free cash ow over three nanc ial years . The L TI P vestin g outcom e can be r edu ced , if neces sar y, to ree ct the unde rl ying or gener al per fo rman ce of A ir te l Afric a. A two -yea r post-ves tin g holding per io d also n or mally appl ies to L T I P awards t hat vest ( n et of t ax) af ter the adopt ion of this poli cy. Any divid end equi vale nt s will normall y be deli vere d at t he end of the ve st ing p eri od in sha res base d on t he pro po r ti on of th e award that ves t s . Malus an d claw back p rovisi ons app ly to awar ds made fo r thre e years from the date on whic h the award vest when there has been: • A misst atem ent of t he comp any ’s ac cou nt s • A n error in cal culat ing per forman ce • G ross misco nduc t result ing in dismissal • Material failure in risk management • Repu tational damage • Mate rial dow nturn in nancia l per for manc e • A ny other event or e vent s that the commit te e consider s to b e bot h exception al and su cien tly adve rse to the interest s of the company The max imum annual grant l imit is 20 0% of base s alar y (face va lue of shares at grant), of whic h nor mall y not more t han 50% of annual salary may be gr anted as R SUs to any one p er son in a single year . PSP aw ards wi th a fa ce value of 100% o f salar y and RS Us wit h a fac e value of 5 0% of sa lar y may nor mall y be awar ded . A maximum of 2 5% of the PSP aw ard is availa ble fo r threshold per formance, risin g to 1 0 0 % of the grant for per formance at the s t retch l evel . In ac cord ance w it h the L T I P plan r ul es, div iden d or dividend equi valents may be ear ne d on ves ted sha res. Par t 2 135 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Direc tor s’ remuneration re por t cont inue d Purpose and link tos tr ate gy How we assess pe r fo rm anc e Maximum oppor tunity Share ownership policy T o f ur t her a lign t he interes t s of execu tive dire cto rs wi th t hose ofsharehol der s In- employment The CEO is ex pe cte d to bu ild up an d retain shares wor th 2 50 % of base s alar y wit hin ve years of b ein g a ppo inte d to the Boa rd. Ot her execu tive direc tor s are ex pe cte d to buil d up an d r etai n shares wor t h 200 % of base s alar y with in the s ame t imes cal e. Post- employment E xecu tive dire ctor s are re quire d to ret ain shares equal in val ue to the l ower of t heir h old ing on t he date of c essat ion o r 50% of t hei r in - empl oyme nt requirem ent for tw o years . Only shares acquire d from L T I P a nd deferre d bonus awards g rante d afte r the ir appoint ment to the B oa rd will c ount to wards th is requi reme nt . Not applicable Discretion in operating the incen t ive plans T o make sure t hes e plans are opera ted and adminis tere d ecient ly, the c ommi t tee has dis cret ion in re lati on to a numb er of areas . Co nsiste nt with the market plac e, these inc lude (but are not limi ted to ): • Sel ect ing the par ticipant s • T he ti ming of gr ant and / o r paym ent • T he size of gr ant s and / o r payme nt s ( w it hin th e limit s s et out i n the policy table ) • T he exten t and t imin g of ves ti ng based on the assessme nt of per fo rman ce • D eter mining a ‘good leaver ’ and, where rele vant , the extent of ves ting for share - base d plans • T reatm ent in exception al circums tan ces such as change of c ont rol , whe n the c ommi t tee wou ld ac t in t he bes t in teres t s of our b usines s and its sharehol ders • Ma king t he adj ust ment s re quire d in c er t ain cir cums ta nces ( such as r ight is sues , co rp orate re st ru ctu rin g, var iati on of c apit al and spec ial divid ends) • T he for m of set t lem ent of awards i n acc ordan ce w ith t he dis cret ions set ou t in th e plan r ule s • T he annu al revi ew of pe r for manc e measur es, w eight ings an d targ et s for t he disc reti onar y i nce ntive p lans f rom year to yea r • T he inte rpre tat ion an d ope rat ion of re quire ment s rel ated to t he hol ding of shares in Air tel Afr ic a The c ommi t tee has t he r ight to am end or su bst itu te any p er fo rman ce con dit ions i f some thin g occ urs t hat wou ld s top th e con dit ion f rom achi evin g its orig inal purp ose. Any amend ed cond iti on would not be mater ially easi er to sat is f y in th e circ ums tan ces . Choic e of per for mance mea sures and ap proa ch to tar getset t ing T arg et s for each year ’s an nual incen tive and long -te rm ince nti ve award are d eter mine d by th e comm it tee , tak ing a ra nge of fa cto rs into account . Financial goals include the annual budget , the relevant thre e -year st rate gic plan , analys t s’ consensus fac tors , wide r econo mic fac t s and a orda bili ty for the busines s. Non - nanc ial goals reec t the pri or iti es of our b usines s and resp onsib ili ties of t he ro le. The a nnual b onus is bas ed on p er forman ce ag ains t a st retch ing comb inati on of nanc ial and non- nanc ial per fo rman ce measures align ed wit h our K PIs and oper atio nal goals for the year . As such , they ty pic all y includ e measures of reve nue, pro ta bili ty and cash ow, w hic h ree c t our fo cus on prot abl e grow th , cash gen erat ion and satis f yi ng our de bt and ot her c api tal c ommi tme nt s. F or 2022/23 these wi ll comp ris e net r evenue ( 40%), und er lyin g EBIT DA ( 40 % ) and non - nanc ial objec t ives ( 20%)as key indic ator s of ou r grow th , prot abili t y and nancia l health . Exec ut ive direc tor s and m emb ers of our s enio r manage ment te am are also as sess ed o n per sona l obje c tive s, as agre ed by ou r com mit tee a t the s t ar t of ea ch year . The c ommi t tee revie ws and adapts the obje c tive s each year as appro pr iate to re ec t the p rio ri tie s for th e busine ss in t he year ah ead. The com mit te e sets a s lidin g scale of target s for each nancial measure to e nco urag e cont inuo us impr ovemen t and to s tret ch per forma nce . The p oli cy gi ves th e com mit te e the au th ori t y to sel ec t suit abl e per form ance m etr ics a lign ed to our s t rate gy and shareholder intere st . The p er forman ce c ondi tio ns for t he PS P in 2022/2 3 a re base d on relat ive TS R agains t th e MSC I Emer ging Ma rket s C ommuni cat ion Ser vice s Index ( 20% ), net revenue ( 40%) an d underl yin g EBIT DA ( 40%) . The under pin for grant s of RS Us will be b ased on oper atin g fre e cash ow. T hese measure s are key indic ator s of ou r grow th , nanc ial healt h and a re aligned wit h our sharehol der s’ interest s . The commit tee set s a sliding scale of challenging per for mance targ et s for ea ch measur e for th e PSP – fo r more o n the se ta rget s , see p age 1 4 1. T he c ommi t tee rev iew s the c hoic e of pe r for manc e measures a nd th e app ropr iatene ss of th e per form ance t arg et s and TSR pe er group before each PSP grant . While die rent per fo rma nce measures a nd/or weight ings may b e appl ied fo r fu ture awar ds, t he comm it tee w ill c onsul t wit h majo r shareh old ers b efore ma king any signicant changes. Legacy arrangements Air tel Afric a has t he auth ori t y to ho nour any commit ment s entere d into wi th cu rren t or for mer d irec tor s befo re this p oli cy is ap prove d or befo re the ir app oint ment to t he B oard . De tails of a ny such p ayme nt s will b e set o ut in t he remu nerat ion r epo r t for t he rel evant yea r . Executi ve directors’ e xisting ser vice contract s Our execu tive dire cto rs have e ntere d into a gree ment s wit h an inde nit e term that may be te rmi nated by either par t y on six months’ wr it ten not ice i n the c ase of S egu n, an d on thr ee mo nths’ w rit te n noti ce in the case of Jaidee p. At t he commi t tee’s discreti on, we may make a paym ent in li eu of not ice – t his is ca lcula ted rel ative to base salar y a nd bene t s only , paid on a p hase d basis an d subjec t to m itigation. Enti tle ment to both annual bonus and L TI P awards will typi call y lapse on cessat ion . In good leaver circums t ance s pro- ra ta bonuse s may be paid and L TI P awards may ves t in l ine wit h our p oli cy and the plan rul es. I f a dire c tor co mmit s an a ct of gr oss misc ondu ct o r simila r , th ey may be dism isse d wit hou t not ice an d wit hou t fu r th er pay ment o r comp ens atio n, except for sums a ccr ue d up to the leavi ng date. Name of dire ctor Date of ser vice contract Unexpired term Segun Ogunsanya 1 Oc tob er 202 1 Rolling contrac t Jaidee p Paul 1 Jun e 202 1 Rolling contrac t Par t 2 Governance report 136 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 Approach to rem uneration for new e xecut ive directors The remun erat ion pack age for a n ewl y appointe d execut ive direc tor will b e set in l ine wi th t he remu ner atio n pol icy i n forc e at the t ime. V aria ble re muner atio n wil l be dete rmi ned i n the s ame way as fo r exis tin g ex ecu ti ve direc tors , and is sub jec t to t he maximu m limit s on var iabl e pay refer red to i n the p oli cy t abl e on pag e 13 5. The c ommi t tee may als o buy o ut any re mune rati on and c ont rac t features that an executi ve direc tor may b e giving up in o rder to join Air tel Afric a. Suc h buyout s would take into account the nature of awards for fei ted and would ree ct ( as far as p ossib le ) per forma nce con dit ions , th e value fo reg one an d the t ime ove r whic h the y woul d have ves ted or b ee n paid . Whe re shares a re use d, t hese aw ards may be made under the terms of the L TI P or u nder a separate arr ange ment as permi tt ed under UK Lis ting Rule s. The com mit te e may agre e that cer t ain reloc ati on, le gal, tax equa lisat ion and other incid ent al expense s will be m et as ap pro priate . For an i nter nal app oint ment , a ny lega cy a rra ngem ent s relate d to th e prev ious rol e wil l be all owed to p ay out as p er t heir o rigi nal ter ms, e ven if these are in con ic t with the poli cy in place at the time . Ser vice contr ac ts for new exe cut ive direc tor s and p olic y on loss of oce Co ntra ct s for new ex ecu ti ve direc tors will nor mally inc lude up to si x months’ notic e by ei the r par ty. This tab le summaris es how the main eleme nt s of pay wil l nor mall y be tre ated . Go od le aver Other leavers Dism iss al fo r cau se Base salar y Payabl e for u nexp ired por tion of notice per io d or s et tle d by mak ing a cash paym ent in li eu Nil Be ne t s and pen si on C ont inu es to b e provide d for u nexp ired por tion of notice per io d or s et tle d in cash Nil Annual bonus Paid for p er iod wo rke d and sub jec t to th e nor mal pe r for man ce co ndi tions Paid fol lowi ng th e relev ant year en d in cas h Normally lapse Lapse Deferred bo nus a wards T yp ica lly vest on norma l timeta ble wit hou t pro- ra ting for time Normally lapse L apse Share - based awards T ypi cal ly ves t ac cord ing to no rmal s che dul e subje ct to p er forman ce con dit ions (if applic abl e ) and usually pro - rated for time Normally lapse Lapse The com mit te e would tr y to mi tigate any payment s in lieu of not ic e by , for exampl e, making payme nt s in ins t alme nt s that c an be reduc ed or ende d if t he fo rme r dire cto r want s to be gin al ter native e mpl oyme nt dur ing th e paym ent pe rio d. We wil l pay as ne ces sar y a ny st atuto r y enti tl emen ts o r sums to set t le or c omp romise c laims in c onne c tio n wit h a ter minati on (in clud ing , at the d iscre tion o f the c ommi tt ee, reimb urse ment for legal adv ice and provisio n of ou tp lace ment ser v ic es ). On a c hang e of co ntro l of A ir tel Afr ic a, out s tan ding awards will norm ally vest earl y to t he exten t that t he per forman ce cond iti ons have b ee n satis ed . Awards wo uld nor mally be reduc ed pro - rat a to re ec t the time bet wee n the grant date an d the date of the cor po rate event . If there is a de merg er , spe cial divi dend or other event the commi t tee think s may a ec t the curren t or f utur e value of share s, they may decid e that awards wi ll ves t on t he sam e basis as on a c hange of c ont rol . If th ere is an int erna l cor po rate re organis atio n, awa rds wil l be rep lace d by eq uival ent new awa rds over shar es in a new h old ing co mpany, unless t he co mmit te e de cide s that awa rds shou ld ves t on t he sa me basis on a c hang e of control. Remuneration scenarios at dierent per formance le vels The se char t s illus trate the total poten tial remune rati on for the CEO and C FO atthre e per fo rman ce levels . Remuneration scen arios ( $00 0 ) Chi ef Exe cu t ive Offi ce r $1 , 41 1 Minimum T arget Maximum Fi xe d pa y Ma x wi t h 50 % share price gr ow t h fo r LTI 10 0 % $2, 992 47 % 24% 29% $ 4, 101 31% 35% 34% $ 4,7 26 40% 30% 30% Chi ef Fin anc ia l Offic er $76 9 Minimum T arget Maximum M ax w i th 5 0% share price gr ow t h fo r LTI 10 0 % $1,664 46% 26% 28% $2, 299 30% 37% 33% $2,636 38% 33% 29% Annual bonus Long-term incentives 1 As sumptions : Minimum = xed p ay on ly (sal ar y + b en e ts + p en sio n) On -targ et = 50% ve st in g of ma xim um b onus a nd 55% fo r PS P awar ds an d100%fo r RS Us Maximum = 100 % ve st in g of max im um bo nus a nd L T I P awar ds 2 S alar y levels ( on whi ch oth er ele me nt s of t he pa cka ge are ca lcu late d) areba se don tho se app ly ing on 1 Apr il 2022 3 B en e t value s exclu de the co st s of busin es s trave l and acc omm oda ti on 4 T o re e ct th e impac t of a s hare pr ic e incr eas e bet wee n award and ves t ing , the L T IP val ue in the max imu m colu mn has bee n incre ase d by 50% in the Max wit h 50% shar e price grow th column Par t 2 137 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Direc tor s’ remuneration re por t cont inue d Remuneration policy for non-executive directors Element Purp ose and link t o strategy O perat ion Maximum oppor tunity Non- executive Bo ard c ha ir fe e s T o at tra ct and retain high - ca libre chair s wi th th e ne cess ar y expe rie nce and skills . T o provid e fees that ree ct the time commitme nt and responsibilities of the ro le. The c hair re cei ves an ann ual fee , plus a fe e for cha irin g the N omin atio ns Com mit te e. We may also pay fees reec tin g additi onal time c ommi tm ent s or t ime re quire d to trave l to Bo ard me eti ngs. The c hair may als o be pr ovid ed wi th a comp any ca r as lon g as he me et s the f ull cos t of t his bene t out of his fee. The c ommi t tee re view s chair ’s fee perio dically. Whil e there is n o maximum fee level, we set fe es by refe renc e to market data fo r com panie s of similar si ze and complexity. Other non - executive fees T o at tra ct and retain high - ca libre non - exec ut ive direc tor s with the nec ess ar y exper ien ce and skills . T o prov ide fees that reec t the t ime c ommi tme nt and resp onsibi lit ies of th e role . Non - exe cut ive direc tor s are p aid a b asic fee. We may also pay additi onal fees to ree c t ex tra respo nsibil iti es or tim e commit ment s , for exampl e, for Board commi t tee chair s, senior in dependent dir e ctors or des ignat e d non - exec ut ive direc tor s, or time require d to trave l to Bo ard me eti ngs. Non - exe cut ive direc tor s’ fees are reviewed per iodicall y by the chair and execu ti ve directo rs . Whil e there is n o maximum fee level, fees a re set by refe renc e to mar ket data fo r com panie s of similar si ze and complexity. We may reimbu rse the reasona ble expe nses of dire cto rs that relate to the ir duties for Air te l Afric a (includ ing tax if applic abl e ). W e may also provi de advi ce and assista nce wit h direc tors’ ta x returns where thes e are aec ted by the ir duties on our behalf. All non - exec uti ve direc tors have lette rs of app oint ment for an i nit ial per io d of th ree years . In ke epi ng with bes t prac tic e, non - exec uti ve dire cto rs are subjec t to re - el ec ti on each year a t our AG M . The chair ’s app oint ment may be te rmina ted be eithe r par ty wi th six months’ noti ce, and the appo intm ent s of t he other non - exec uti ve direc tors may be ter minate d by ei the r par t y w ith o ne mo nth’s notic e. Ei the r app oint ment c an also b e ter minate d at any tim e if t he dire cto r is remove d by re solu tio n at an AGM or pursuant to the Ar tic les . Dire cto rs’ l et ters of a ppo intm ent are avai labl e for insp ec ti on dur ing nor mal business hour s at o ur regis tered oc e and also at our yearl y AGM . All direc tor s have be en appo inted for a xed term endi ng on the date of o ur 2 022 AGM and w ill be renewe d for a fur the r three years , wit h the exceptio n of Kel ly Bayer Rosmar in and T se ga Geb reyes who have letter of appoin tme nt end dates of 27 Octo ber 202 3 and 12Octo ber 202 4 respe c tive ly ree ct ing their date of ap po intm ent to the B oa rd. Shareholder cont ext The committee considers the views of shareholders when r eviewing the remun erat ion of execu ti ve directo rs and other senio r execut ives . We consul t direc t ly wi th maj or share hol der s abo ut any mate rial chang es to th e pol ic y and wor k wi th sha reho lder s to und ers t and any conce rns . For example , the commit te e consulte d on major changes during the development of this pr oposed policy . Broader employee context The com mit te e consider s execut ive remuner atio n in t he contex t of our wid er employe e populat ion . Remune rati on for ex ecu ti ve directo rs is more we ighte d towards va riab le pay t han for ot her e mploye es so t hat more of t heir p ay is con dit ional o n the s ucc ess fu l deli ver y of b usines s st rate gy. Our aim is to create a c lear l ink be twe en t he valu e create d for shareh old ers and the remune rati on of o ur execut ive direc tor s. Gi ven the divers e spread of g eo graph ica l locat ions in which Air te l Afr ic a operates , emplo yees are not d irec t ly consul ted on directo rs’ remun erat ion . However, emp loye es do have the oppor tunit y throu gh empl oyee sur vey s and ot her for ms of en gage ment to expre ss their vie ws on rem uner atio n arr ange ment s – an d the se are sha red wi th seni or manag eme nt and t he B oard as ap prop riate . Th e chair als o at tends t he annua l Con clave me et ing and j oins tow n halls w hen visit ing ope rati ons across the Air t el Afric a geo graph y . The Bo ard also has t he op por tunit y to inte rac t wi th em ploye es th rough v isit s to coun tr ies as par t of the B oar d mee ting p rogr amme . Par t 2 Governance report 138 Ai r te l Af r ic a pl c An nu al Re po r t a nd A cc oun t s 2022 Par t 3 Annual Repor t on Remuneration This repo r t has b ee n prepare d by t he commit te e and approved by our Bo ard. A s stipu lated by UK regu latio ns, Del oit te LLP have indep ende ntl y audi ted thes e items: • E xec ut ive direc tor s’ and non - exec uti ve direc tors’ remun erat ion and associa ted footn otes on page 1 44 • T he tabl e of share awards grante d to exe cut ive direc tor s and as soc iated foot notes on page 1 4 1 • T he sta temen t of dire c tors’ shareh oldi ngs and share i nteres t s on page 1 4 7 20 2 1 /2 2 remuneration of directors ( audited) This tab le sets out the total remun erat ion for the execut ive direc tor s for t he year ended 3 1 March 202 2. All am oun ts are in $’ 00 0 Base salar y Benet s 4 Pension contribution 5 Annual bonus LT I P 6 Other 7 T ot al xe d To t a l variable To t a l Segun Ogunsanya 1 20 21 / 22 $ 458 $21 4 $46 $686 – – $718 $686 $1 , 4 0 4 2020/21 N /A N /A N /A N /A N /A N /A N /A N /A N /A Jaidee p Paul 2 20 21 / 22 $4 86 $165 – $68 0 $258 – $651 $938 $1 , 58 9 2020/21 N /A N /A N /A N /A N /A N /A N /A N /A N /A Raghunath Ma ndava 3 20 21 / 22 $ 450 $89 – $675 $ 975 $1 , 29 6 $5 39 $2, 946 $3,484 2020/21 $ 888 $ 16 8 – $ 1 , 3 17 $59 4 $ 675 $1 , 0 5 6 $2, 586 $3,64 2 Notes 1 From t he d ate of j oin ing t he B o ard o n 1 Oc to ber 2021 2 From t he d ate of j oin ing t he B o ard o n 1 Jun e 2021 3 Unt il t he da te of s tep pi ng do wn f ro m the B o ard o n 30 Se pte mb er 2021 4 Se gun ’s be ne t s incl ud ed exp atr ia te bene t s of : housi ng of $1 23 , car ben e t value of $5 1, on e - o rel oc ati on cos t s of $35 and insura nc e cos ts of $5 Jai de ep Paul ’s bene t s inc lu de d expat ri ate ben e t s of: hou sin g of $ 54, car of $49, one - o rel oc at io n cos ts of $35, hom e leave ti cket s ent it le men t of $22 and insur anc e cos t s of $5 Rag hu Mand ava’s ben e t s inclu de d expa tr iate be ne t s of : housin g allo wan ce of $30 ( 2020/21: $ 62 ), ho me leave ti cke ts ent i tle me nt of $ 12 (2020/2 1: $0), edu cat io n all owa nc e of $1 7 (2020/2 1: $35) and car all owan ce of $29 ( 2020/21: $56 ). Th e ben e ts pro vi de d are in a cc or dan ce wit h con tra c tual en ti tle me nt s whic h are in line wit h local market practic e 5 On ly Se gun Og unsa nya rec ei ves a pensi on con tr ib ut ion of 1 0% of his salar y – this is in acc or dan ce wi th his leg ac y arra nge me nt s whic h ree c t sta tut or y re qui rem ent s for emp loy ee s in his h om e lo cat io n of Ni ge ria 6 Fo r Jaide ep Pau l, th e TSR ele men t of th e 20 19 L T I P will not be na lise d unt il Jul y 202 2. An est ima te of this vest in g level as bee n incl ud ed and wi ll be reins t ate d for the nal ou tco me nex t year. I n line wi th th e regul ati ons , the 2021/22 L T I P valu e for Jaide ep Pau l has been es ti mate d base d on the aver age pr ic e of Air tel Afr ic a share s bet we en 1Jan uar y 2022 and 3 1 Marc h 2022. Th is will be res ta ted bas ed on th e actu al valu e at ves ti ng in Jul y 2022 in th e 2022/23 a cc ou nt s. Fo r 202 1 /22, the tot al valu e es ti mate d at tr ib ut ab le to s hare p ri ce a pp rec iat io n is $12 4 Th e L T I P show n for Raghu Ma ndav a for 202 1 /22 ree c ts th e 20 19 and 2020 L T IP awa rds whi ch ves te d on date of c es sat io n. Th e total val ue at tr ibu t abl e to shar e pri ce app re cia tio n for all award s show n is $ 355. See pa ge 1 43 fo r more det ails of the awa rds . Ragh u also had share opt io ns conn e cte d to the IPO wi th th e nal tra nc he pro - r ate d to d ate of cess at ion . The re gul ati ons do not req uire de ta ils of thes e awards to be incl ud ed on ves ti ng . For info rma tio n , the gain of the nal pro -ra te d tran che , had it be en exerc ise d on date of depar ture , woul d have been $19 1. Th e 2020/2 1 L T I P value has be en res ta ted fo r the ves tin g of the repla ce me nt sto ck awar ds PSU - T SR ele me nt whi ch ves ted at 50% of maxi mum at a value of $ 13. Det ails of this tr anc he ca n be found on pag e 1 42. Th e total val ue sho wn in last yea r’s rep or t was ca lc ulat ed wi th an assum ed sha re pri ce of $ 1.0 9. The ac tua l share pr ice at ves ti ng was $1.1 3 , and the ta bl e has be en upd ate d to re ec t this cha ng e. The es t imate d valu e of the awar d was $565; th e actu al valu e was $594 (i nc reas e of $29) . The tota l valu e of t his awa rd att ri bu ta bl e to s hare pr ic e appr ec iat ion was $62 7 Fo r Raghu Man dav a 2020/2 1 ‘O th er ’ rela tes to the nal tr an che of the on e - o defe rr ed cas h plan of up to $75 0 whic h was in p lac e befo re our IP O and disc los ed in the pro spe c tus . T wo -t hi rds of the defe rr ed cas h plan was dep end en t on relati ve TSR ove r one year ( 3 0% of this ele me nt), 2020/21 ne t reven ue ( 35%) and unde rl yin g EBI T DA (3 5% ), and one -t hi rd was dep end ent on se r vi ce con di ti ons . The TS R per fo rm anc e con dit io n was measur ed at the end of May 202 1. Per fo rm anc e again st th is measu re and th e value of that el eme nt of the awar d veste d at 50% of maxim um ( $ 75). D et ail s of t he ta rge t s can be found on pag e 1 43 . The 2020/21 gu re is res t ate d from $60 0 to $675 t o ree ct th is vest in g. ‘O th er ’ for 2021/22 inclu de s the paym ent of the se co nd tra nc he of the exce pti ona l turna rou nd bo nus , whic h was put in plac e prio r to the IP O an d disc lo se d in th e Pro sp ec tus a nd t he 2019 /20 ann ual re po r t T he va lu e of th is se co nd t ran ch e is $1m. Th is was p aid i n May 2021, in li ne w it h th e nor ma l ves ti ng date of the awar d. He was also pa id $296 for unta ken hol iday sin ce his app oin tm ent as CEO Annual bonus In a c halle ngin g year A ir te l Afric a delivere d an e xcept ional per forma nce , exceedi ng all k e y nancial metr ic s. Revenu e grow th in b oth cons t ant and curre nt curren cy grew doubl e digit , reco rding the highe st grow t h across the last ve years. Und erl yin g EBIT DA grew by 3 1.2% , expandi ng the margin by 2 9 0 bps a nd opera tio nal free cash ow grew by 44 .4%. The per f orma nce was broad -b ased acro ss voice, data and Air te l Money. Per fo rman ce was equally st rong acros s all t he key ope rati onal KPIs . Our custom er number s increase d by 8 . 7% this year , contr ibut ing to an incr ease of 2 4.1 % in our u nder ly ing revenue . W e are contin uing to see the suc cess of the rollou t of our mod ern ised 4G netwo rk s , with a 34 .6% incr ease in dat a revenu es for t he year a nd our fo cus on i ncreasi ng our d ist rib ut ion an d market ing ne two rk an d the a ppl icat ion of o ur mob ile mone y ser vi ces throu gh internat iona l par tne rshi ps has resu lte d in a 34.9% increase in Air tel Mon ey revenues . Our Exec ut ive direc tor s have led our succ ess in maintainin g resilient ser v ice s to sup por t cus tome rs throu gh the Covid - 19 p ande mic , in a year were we have focus ed on our comm unit ies , cus tom ers an d emp loyee s. I n Oc tob er 202 1 t he sus tai nabili t y st rate gy was su cce ss ful ly laun che d, w hich is a n impo r t ant and key ste p for ward in our b usines s. The Chief execu ti ve ocer s drove o ur key nancia l and o per atio nal targe ts whils t ensuri ng that we wo rk wit h our st akeho lde rs to t rans for m lives , inve st i n the f utur e of our co mmuni tie s, in clu ding t hrou gh our e duc ati on par tner ship w it h UN IC EF . Th e Chief nanc ial oce r played a key role in the success f ul transit ion of our head quar t ers to Dubai, whic h was d elive red on time and in bu dge t . 139 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Direc tor s’ remuneration re por t cont inue d It is i n this c ontex t that we have assesse d the per fo rman ce achieve d agains t the incent ive target s . The str ong in- year per fo rman ce resulte d in the st retch tar get s for the nanc ial obje ct ives being exce ede d, wit h the pers onal obje ct ives also being achi eved in full. As a result , a b onus at the maxi mum level have b ee n awarded . For Segun and Jaidee p, one -t hird will be deferre d into shares for two years . In l ine wit h his leave r terms out line d on pa ge 129, Raghu’s bonus w ill be d eli vered f ull y in cas h. 202 1 /22 bonus outc omes ( a udite d) Bonus pe r formanc e measures Net revenue Underlying EBITD A Operating fre e cas h ow ( OFCF) Personal To t a l Weighted to t al 35% 35% 10 % 20 % 10 0 % Ou tcom es ( weight ed % of maxi mum) 35% 35% 10 % Se gun Ogunsan ya ( weighte d % of maxi mum) 20 % 10 0 % Jaide ep Paul ( weig hted % of maximum) 20 % 10 0 % Raghu nath Mandava ( we ighte d % of maximu m ) 20 % 10 0 % Financial objectives Fina ncial per forma nce was assesse d agains t the unde rl ying net revenue , under lyin g EBI TDA and operat ing free cash ow ( O FCF ) range s set fo r 20 21 / 22 . All am oun ts are in $mil lio n Weighting (%) Threshold (3 0 %) T arg et (5 0 %) Maximum (10 0 %) Ac tual Net re venue 40% 3, 823 3 , 9 21 4 , 019 4 , 0 42 EBITD A 40% 2 , 121 2 ,18 7 2, 25 8 2 , 293 OFCF 20 % 1 , 421 1, 487 1, 558 1, 6 37 All targ et s and a chie vemen ts are in c ons ta nt curren cy as at 3 1 March 2 02 1. Personal objectives Pers onal obje ct ives for the execut ive direc tor s during the year are as foll ows : Air tel Mon ey amo unt s are in $mil lio n Weighting ( %) T arg et Per formance achi eved Outcome (weight ed % of maximum ) Segun Ogunsanya Del iver y of A A Sust ainab ilit y and ESG str ateg y road map 10 % B oard a pprov al of st rate gy androa dmap and judgem ent onim plementation Exceeded e xpectation s through st rong front line leadership , mobili sation and execut ion . Recei ved full endorsement of Bo ard 10 % Complianc e 10 % Thres hold : 66 T arg et : 70 Max imum: 7 4 7 7. 5 10 % Jaidee p Paul Inte rnal audi t score for nance 10 % Thre shol d: 66 T arg et : 70 Max imum: 7 4 86.9 10 % Proje c t Airbo rne – moving our head quar te rs to D ubai 10 % Relo cate within B udget and timeframes E xecu ted ahead of plan wit hin bu dge t wit h no loss of b usines s. Stakeholders expecta tion s e xceed ed 10 % Raghunath Mandava Del iver y of A A Sust ainab ilit y and ESG str ateg y road map 10 % B oar d sign o and p ubli cat ion of theE SG str ateg y and r oadmap Exceeded e xpectation s – strong leadersh ip, in dev elopment, engagement and deli ver y. Rece ived f ull endorsement of Board 10 % Complianc e 10 % T hresh old : 66 T arg et : 70 Max imum: 7 4 7 7. 5 10 % All targ et s and a chie vemen ts are in c ons ta nt curren cy as at 3 1 March 2 02 1. Par t 3 Governance report 14 0 A ir tel Af r ic a pl c A nnu al R ep or t and A cc oun t s 2022 Annual bonus awarded Name Awarded in cash Awarded in shares To t a l Segun Ogunsanya $ 4 5 7, 5 0 0 $22 8,7 50 $686,250 Jaidee p Paul $453,444 $226 ,722 $ 6 8 0 , 16 7 Raghunath Ma ndava 1 $6 7 5,000 Nil $6 7 5,000 1 In ac co rda nc e wi th t he p oli c y as ou tli ne d on p age 146, Ra ghu M and ava’s bo nus i s paya bl e who ll y in c ash Long-term incentive plan (L TI P ) ( audited) L TI P awards g ranted i n 202 1 /22 Dur ing the year , Segu n Ogunsanya and Jaide ep Paul were grante d the follow ing L T IP awards . T yp e of aw ard Maximum number of shares Sha re pr ic e use d to determi ne lev el of aw ard 1 Face value Face v alu e as a % of sa lar y Threshold vest ing End o f th e per formance period Segun Ogunsanya 202 1 L T IP – PSU 73 5 , 26 8 $1. 12 $ 823 , 50 0 90% 25 % 31 M a r c h 2 0 24 202 1 L T IP – RSU 32 6 ,78 6 $1 .12 $366,000 40% 10 0 % n /a Jaidee p Paul 202 1 L T IP – PSU 390 , 40 2 $1 .12 $ 4 3 7, 2 5 0 75% 25 % 31 M a r c h 2 0 24 202 1 L T IP – RSU 182 ,18 8 $1 .12 $ 2 0 4 , 0 51 35% 10 0 % n /a 1 Aver age cl osin g share pr ic e and FX rate for th e thre e deal ing days imm ed iate ly pr io r to g ran t RSUs may not ves t unles s operat ing free cash ow is posi tive over the three nan cial years ending the year before the RSUs vest . The per for mance con dit ions for the PSUs are bas ed on three per forma nce measures – net r evenue grow t h ( 40 % ), under ly ing EBI TDA margin ( 40%) an d relative TSR ( 20%) . Per forma nce is measured over a th ree - year peri od , and t his combi natio n of measu res helps to a lign the oper atio n of the L TI P with shareh old ers’ interes t s and our b usines s stra tegy. N et revenue grow t h provide s a key indic ator of l ong - term grow t h achieve d in the market . Unde rl ying EB IT DA margin is a key indic ator of long - ter m growt h in p ro tab ilit y from our oper atio ns. Relat ive TSR measures the total returns to our shareholders providing close alignment wit h shareholder interest s. Air tel Afric a opera tes only in A fr ica . W e have th ree main compe tito rs , none of w hom discl ose targ et s in t heir annual remune rat ion repor ts . For comp et iti ve and c omme rcial reas ons , the B oa rd doe s not be lieve i t woul d be in t he inte res ts o f our share hol der s to disc lose o ur net reve nue an d unde rl ying EB IT DA L T I P target s . The target s will be disclos ed when they ’re no l ong er conside red comm ercia lly sensit ive . This will be no later t han the year in w hic h the awards ve st . Our targ et s are bas ed on the 2 02 1 /22 t hre e -year plan and will require comp eti ti ve market-leadi ng grow th in net revenue at target wit h a 10% s t retch up and dow n to thr esho ld and maximum . The under lyin g EBIT fro m an al ready high comp eti tive base will b e equ ally s tr etchin g, an d bot h tar get s wil l be fu lly dis clos ed o n ves ting . On T SR aga ins t the M SCI Em ergin g Mar kets C om munic ati ons Ser vice Ind ex , threshol d will vest at t he 50t h percen tile wit h the maximum at the 7 5t h percent ile . T arget s ap ply ing to t he 202 1 per forma nce shar e plan (PS P ) awards Metric Weighting Th resh ol d ( 25%) T a rge t ( 5 0%) Ma xi mum ( 100%) Net revenu e ( CAG R % ) 40% 3 -year plan minus 10% Bas ed on 3- year plan 3- year plan plus 10% Underl ying EBITDA margin 40% Commercially sensi tive Bas ed on 3- year plan Commercially sensi tive Relat ive tot al share hold er retu rn aga ins t MSC I Emerg ing Market s Comm unic atio ns Ser vi ce Index 20 % 50t h percent ile – 75th perc enti le Par t 3 141 Ai r te l Af r ic a pl c An nu al Re p or t a nd A cc ou nt s 2022 Governance report Direc tor s’ remuneration re por t cont inue d Share awa rds vest ing i n relat ion to 202 1/22 The CF O was gr anted an award on I PO, wit h the nal tranch e subjec t to p er fo rman ce measure d to th e end of 3 1 March 2 022 against the following conditions: All am oun ts are in US$ mil lio n Metric Weighting by tranche Below threshold (0 %) Threshold (25 %) T arg et (5 0 %) Maximum (10 0 %) Actual % achievement ( o f maxi mum) 20 19 L T I P awards – PSP- nancial Net re venue 50% <3 , 823 3 , 823 3 , 9 21 4 , 019 4 , 0 42 10 0 % Underlying EBI TDA 50% < 2 , 1 21 2 , 121 2 , 187 2 , 258 2 , 293 10 0 % 20 19 L T I P awards – PSP- TSR Relat ive TSR ( es timate d) 1 10 0 %
Building tools?
Free accounts include 100 API calls/year for testing.
Have a question? We'll get back to you promptly.