Helios Towers is poised for significant revenue growth over the next five years, largely fueled by the expansion of 5G and AI technologies across Africa.

The declining cost of 4G-enabled smartphones, now averaging around $30, has greatly increased accessibility for consumers in Africa, thereby driving demand for mobile data services.

IHS Towers, a key competitor in the market, operates nearly 40,000 towers and stresses the necessity for expanded infrastructure to support connectivity and accommodate rising data usage.

Listed in London, Helios Towers operates in eight African countries and reported a 14% increase in adjusted EBITDA, reaching $421 million for the year 2024.

The company provides tower leasing services to mobile operators, servicing 150 million customers and managing 14,000 towers across nations including the DR Congo, Ghana, and Tanzania.

In 2024, Helios Towers experienced a 9% year-on-year increase in the number of tenancies at its sites, totaling 29,406, which enhances its revenue potential.

CEO Tom Greenwood emphasized that the surge in data consumption is driving the need for more antennas to meet user demand, which in turn translates into increased revenues for the company.

The GSMA forecasts that mobile data traffic in sub-Saharan Africa will quadruple by 2029, with mobile internet penetration expected to rise from 27% in 2023 to 37% by 2030.

Angela Wamola from GSMA pointed out that only 1% of Africans currently use 5G, mainly in business contexts, and warned that the high costs of handsets may limit consumer access to this technology.

5G technology is anticipated to contribute $10 billion to the Sub-Saharan African economy by 2030, accounting for 6% of the overall economic impact of mobile devices.

Despite the optimism surrounding 5G and AI, there are concerns regarding the continent's inadequate digital infrastructure, which could impede the widespread adoption of these technologies.