Since June 2025, the share price of Airtel Africa (LSE:AAF), the FTSE 100 telecoms group, has risen 95%. Despite being relatively unknown, it’s done better than some of the world’s largest listed companies, including six of the Magnificent 7.
Is it time for investors to look closer to home when considering their next stock to buy? Let’s see.
| Stock | Share price performance (%) |
|---|---|
| Alphabet | +95 |
| Airtel Africa | +93 |
| Apple | +41 |
| Nvidia | +23 |
| Tesla | +17 |
| Amazon | +9 |
| Meta Platforms | -23 |
| Microsoft | -24 |
What’s going on?
Airtel Africa has been growing rapidly. It now has 183.5m customers across 14 countries. In 13 of these, it’s either the largest or second-largest operator.
The demographics of the continent are perfect for the telecommunications group. Over 70% of Sub-Saharan Africa’s people are aged under 30. And the region’s population is expected to grow by 1bn by 2050. More immediately, the group estimates that its addressable population (aged 15+) will increase by 78m by 2031.
But there are challenges. Africa can be economically and politically unstable. Some of its currencies are extremely volatile. With the group reporting its numbers in dollars, it means it can experience large foreign currency movements.
Also, building telecoms infrastructure is expensive.
On the up
But for now, the group’s going in the right direction. During the year ended 31 March 2026 (FY26), revenue increased 24% and EBITDA was up 30% (both on a constant currency basis) compared to FY25.
Investors will know more later this month, when the group issues its next trading update. Recent history shows there’s often a significant share price movement (up and down) when the company reports its quarterly performance:
- 24 July 2025: +7.3% (Q1 FY26)
- 28 October 2025: +16.4% (half-year FY26)
- 30 January 2026: −6.6% (Q3 FY26)
- 8 May 2026: +0.8% (FY26)
Indeed, the stock has a five-year beta of 1.5. This means it’s 50% more volatile than the wider market. But experienced investors know that it’s the long-term that really matters. And because it’s supplying an essential service to a market that look set to grow for decades to come, I own the stock.
Although higher borrowing costs could be an issue, with approximately 40% of its debt carrying a fixed rate of interest, it has some protection. Also, relative to earnings (1.8 times EBITDA), its lower geared than its two FTSE 100 peers, Vodafone and BT.
I particularly like its mobile money business. It helps promote financial inclusion enabling users to send and receive money via their mobile phones, including those who don’t have a bank account. The group intends to spin-off the division but its IPO has been delayed due to the Iran war.
My verdict
Overall, I remain a fan of the group. In fact, I reckon it’s a bit of a hidden gem, often overlooked in favour of more instantly-recognisable names.
In my opinion, it’s providing a modern-day essential service in a part of the world whose population is growing rapidly. It’s also using the satellites of Starlink (part of Space Exploration Technologies) to give people access to voice, message, and data services, in areas without terrestrial mobile coverage.
That’s why I have it in my Stocks and Shares ISA. In fact, I reckon it’s one of many exciting UK stocks that others could consider adding to their own portfolios.
Should you invest £5,000 in Airtel Africa Plc right now?
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James Beard owns shares in Airtel Africa plc and Space Exploration Technologies Corp.
