Following the announcement of renewed infrastructure agreements in Nigeria, IHS Holding Limited (NYSE: IHS) (“IHS Towers”) and MTN Group (JSE: MTN) confirmed on Tuesday that they have finalized the renewal of all communications infrastructure contracts across their shared African markets. With commercial terms now secured until the next decade, the two companies said they will focus on resolving previously raised governance issues.
On 7 August 2024, IHS Towers and MTN announced the renewal and extension of all Nigerian tower Master Lease Agreements through to December 2032. The new contracts include revised financial structures that balance local and foreign currency exposure, providing what the companies describe as a “more sustainable footing” for operations.
The latest deal cements the renewal of approximately 26,000 MTN tenancies on IHS Towers infrastructure across six key African markets: Nigeria, Rwanda, Côte d’Ivoire, Cameroon, Zambia, and South Africa.
MTN Group, which holds a 26% stake in IHS Towers, said the long-term renewals will support its strategy to ensure resilient, data-ready networks.
“The renewal of the various contracts across our markets into the next decade put MTN operations in the respective markets onto a more sustainable footing,” said Ralph Mupita, MTN Group President and CEO. “We remain focused on ensuring our networks are well invested, have high availability and have the headroom to meet the growing and structural demand for data going into the future. These renewals are key to those priorities. We look forward to working constructively with IHS on the outstanding governance issues now that commercial arrangements have been concluded.”
For IHS Towers, the move provides long-term stability and strengthens its largest commercial relationship.
“As our largest customer and longest serving partner, we are proud to have completed the renewal of all tenancies with MTN Group in our African markets,” said Sam Darwish, Chairman & CEO, IHS Towers. “Today, we reinforce our strategic relationship and commit to increased operational stability, by securing our revenue streams into the next decade, and leveraging our shared innovation to deliver critical connectivity and support digital inclusion across the African continent.”
The partnership builds on more than 20 years of collaboration, with both companies leveraging operational excellence and engineering expertise to deliver critical digital infrastructure. Together, they have consistently navigated complex operating environments to expand connectivity, a key driver of economic growth and digital inclusion across Africa.
