The FTSE 100 has had a quietly brilliant five years. Since May 2021, the UK’s flagship index has delivered a total return of 76.8%, roughly the same as a 12.1% annualised return.
That’s comfortably ahead of its long-run historical average of 8%. And for a passive investor who put £1,000 into a low-cost index tracker fund back in May 2021, is now sitting on roughly £1,768.
Such strong gains deserve to be celebrated. But this performance still pales in comparison to the enormous gains some individual FTSE 100 stocks have achieved over the same period.
So how much money have stock pickers made?
When stock picking changes everything
Over the last five years, Airtel Africa (LSE:AAF) has stood out as a leading winner.
The Sub-Saharan telecoms and mobile money group has delivered a staggering 371.1% return, including dividends, since May 2021. Just to put this into perspective, that’s the equivalent of an average of 36.3% a year, enough to transform a £1,000 initial investment into £4,711!
What’s behind this phenomenal run? The main catalyst behind Airtel’s success ultimately boils down to explosive structural growth. Smartphone penetration across the African markets was low, and the unbanked population was enormous.
But with household income rising across the region, demand for mobile data and digital payment solutions has surged. And with Airtel having already embedded itself at the heart of Africa’s telecommunications infrastructure, the company was seemingly perfectly positioned to capitalise on this tailwind.
The result? In its latest 2026 fiscal year (ending in March), revenue jumped 29.5%, operating profits charged ahead by 45.1%, and earnings per share (EPS) skyrocketed by 212.2%!
With that in mind, it’s no wonder that the FTSE 100 stock took off. But now the question is, can it do it again?
What does the next five years look like?
Even with such impressive growth already under its belt, the bull case remains structurally compelling.
Mobile money transaction values are still accelerating, with annualised volumes now reaching $145bn across its platform. And with its core telecoms business steadily expanding, institutional forecasts show EPS potentially almost doubling from 18.6 cents to as high as 36 cents by March 2028.
That’s obviously exciting. But there are some important risk factors to consider. Currency depreciation of African countries continues to be a challenge, particularly in Nigeria, where adverse shifts are eroding revenues despite strong underlying operational performance.
Rising energy costs are also applying unwanted pressure to profit margins, and geopolitical instability across several of its target markets is also proving tricky to navigate.
These aren’t trivial risks. But for investors with a long-time horizon and an appetite for emerging market exposure, Airtel Africa seems to be a rare gem.
It benefits from both a genuinely large addressable market and an early-mover infrastructure advantage. And with a proven management team at the helm, the next five years look quite promising, in my eyes. That’s why I think this FTSE 100 enterprise deserves a closer look.
Should you invest £5,000 in Airtel Africa Plc right now?
When investing expert Mark Rogers and his team have a stock tip, it can pay to listen. After all, the flagship Twelfth Magpie Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.
And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Airtel Africa Plc made the list?
Zaven Boyrazian does not hold any positions in the companies mentioned.
