The company is prioritising core operations in Nigeria, South Africa, and Brazil, while exiting less profitable markets through major asset sales.

The group spent $89.9 million on new tower projects in H1, a 15.8% drop from the $106.8 million invested a year earlier. The slowdown was felt across both quarters: Q1 capital expenditure fell 17.8% to $43.6 million, and Q2 slipped 13.8% to $46.3 million. 

Cuts were most pronounced in Latin America, where new site builds and fibre rollouts were scaled back, while Nigeria saw investment fall by 5.5% in Q1 and 10.4% in Q2 due to reduced maintenance, fibre deployment, and site upgrades.

This reallocation is closely tied to a deliberate reshaping of IHS’s portfolio. In December 2024, the company sold 1,672 towers in Kuwait, and in May 2025 it announced the $274.5 million sale of its Rwanda operations—including 1,465 sites—to Paradigm Tower Ventures at a valuation multiple of 8.3x adjusted EBITDA, well above the group’s average. 

These divestments are intended to streamline operations and focus on markets offering long-term tenancy agreements and stronger co-location potential.

Debt reduction has become a clear priority. Proceeds from disposals have been channelled into paying down high-interest loans in Nigeria and Brazil, cutting the net leverage ratio from 3.9x in 2024 to 3.4x in Q1 2025. Full-year capex guidance has also been revised down to $240–$270 million from $260–$290 million. 

Nigeria’s “Project Green,” launched in 2022 to cut diesel dependence through solar deployment, battery storage integration, and improved grid connectivity, has reduced upgrade requirements and is projected to generate $77 million in annual free cash flow savings by year-end.

However, the biggest operational pressure has come from tenant churn in Nigeria. MTN Nigeria, the company’s largest client, renewed 13,500 tenancies through to 2032 but opted not to extend 1,050 sites, awarding those to American Tower Corporation. 

This resulted in a net loss of 420 tenants in Q1 and 688 by Q2 on a year-on-year basis. Despite the setback, IHS Towers maintained a colocation rate of 1.52x in Nigeria—on par with emerging market norms—and has sought to backfill churned sites with other customers.

MTN’s decision shows a push to diversify its infrastructure partners and manage cost and operational risk. Its contracts with both IHS and ATC include clauses linking pricing to inflation and diesel costs, alongside mixed naira-dollar payment structures to mitigate currency volatility.

Financially, the company’s performance has been resilient. H1 revenue reached $872.9 million, with Q1 rising 5.2% year-on-year to $439.6 million on the back of 25.6% organic growth, while Q2 slipped marginally by 0.5% to $433.3 million but still beat market expectations. 

Adjusted EBITDA stood at $252.6 million in Q1 and $248.5 million in Q2, while net income rose to $30.7 million and $32.3 million, reversing losses recorded last year. Operating cash flow jumped 68.1% to $254.8 million.

Commenting on the results, Sam Darwish, CEO of IHS Towers, said: “Our improved outlook reflects what we believe are the benefits of the solid commercial progress we have made as well as our strong focus on financial discipline, which is delivering sustained improvements in our profitability and cash flow generation.”

IHS expects 5G rollouts to drive further lease amendments, new site demand, and higher colocation rates across Africa. 

With the naira recording only a 0.3% devaluation in Q2, management is optimistic that foreign exchange conditions will support its full-year revenue guidance. The challenge for H2 will be balancing reduced investment with maintaining growth momentum in its largest and most competitive markets.

This collaboration aims to enhance energy access in underserved communities across Nigeria, while contributing to IHS’ broader efforts to reduce the environmental footprint of their operations. 

The partnership is a testament to both companies’ commitment to sustainability and innovation, highlighting their shared vision of providing essential services to underserved communities.

Jaza Energy, known for its innovative approach to clean energy access, will install solar-powered hubs, known as Jaza Hubs, at 250 IHS Nigeria sites in Nigeria. These hubs not only provide clean energy to help power the towers, but also offer a more sustainable energy source for local communities. 

The excess power generated by the solar panels on these hubs will be used to charge battery packs for local households and businesses, reducing reliance on diesel generators.

Closely aligned with this partnership’s sentiment is IHS Towers’ Project Green initiative. The initiative involves an investment of over $200 million between 2022 and 2024, as part of IHS Towers’ Carbon Reduction Roadmap and target to reduce kilowatt-hour emissions intensity by approximately 50% by 2030.

“Sustainability is a core value at IHS Towers. Project Green is part of our commitment to reducing our environmental footprint. This partnership with Jaza Energy complements this initiative, as we seek to integrate more solar solutions on our sites, and simultaneously help support local communities. In this case, by helping Jaza Energy provide more local households with access to battery packs for domestic use, as substitutes for diesel-powered generators.” stated Mohamad Darwish, CEO of IHS Nigeria.

The impact of the Jaza Hubs extends beyond providing power. Each hub acts as a one-stop energy shop, offering a vital service to communities that have traditionally lacked access to reliable electricity.

Jaza Energy’s unique model helps foster community development by employing local women to operate the hubs. This approach not only provides job opportunities, but also helps empower women within these communities, fostering local economic growth and social inclusion.

To date, Jaza Energy has delivered over 3 million solar battery swaps and reached more than 100,000 people in Tanzania and Nigeria with its clean energy solutions.

The company’s expansion into Nigeria, supported by its partnership with IHS Nigeria, is expected to reach approximately 200,000 more people by the end of 2025, bringing clean, renewable energy to some of the most underserved areas in Nigeria.

“By partnering with IHS Nigeria, Jaza will extend the reach of clean energy even further, building upon IHS Nigeria’s foundational role in connecting the nation. We are thrilled to collaborate with a company dedicated to sustainability, and we look forward to aiding IHS Nigeria’s journey towards a greener future.” said Jeff Schnurr, CEO of Jaza Energy.

IHS Towers has a track record of promoting sustainable energy solutions. The company’s efforts go beyond its current Project Green and comprehensive approach to reducing its carbon footprint.

Prior to Project Green, IHS Nigeria had already deployed hybrid power systems on over 9,000 sites across Nigeria between 2016-2018. By integrating solar power with traditional energy sources, these systems have helped reduce reliance on non-renewable energy sources. 

Beyond Jaza, as part of its commitment to community support, IHS Nigeria has implemented various initiatives to provide reliable power to local communities and essential services.

For instance, in 2022, the company donated 106 units of solar-powered streetlights across three Nigerian states, benefiting approximately 510,000 residents. 

The company also takes an active role in environmental stewardship and education. Through its Clean Air Campaign, launched in 2022, IHS Nigeria collaborated with external stakeholders to help address emissions.

Through media channels, IHS Nigeria sought to raise awareness about the importance of reducing air pollution and the role of sustainable energy solutions in achieving this goal.

IHS Nigeria also established an Energy Hub in Alimosho, Lagos State, a well-equipped space for entrepreneurs to develop innovative ideas and solutions that seek to contribute to the nation’s energy efficiency goals.

This hub serves as a focal point for energy-related innovation, providing a platform for collaboration and knowledge sharing among industry experts, entrepreneurs, and the broader community. 

The partnership between IHS Nigeria and Jaza Energy is more than just a business collaboration; it is a shared commitment to creating a sustainable and inclusive future.

By prioritising energy efficiency and embracing renewable sources such as solar power, both companies are helping pave the way for a brighter and more sustainable future.

The projected emissions reduction of approximately 32,600 – 33,000 tonnes of CO2e over the seven-year agreement, from the 250 hubs, is a step towards achieving Nigeria’s environmental goals.

In an era where access to reliable and clean energy is crucial for development, the IHS Nigeria and Jaza Energy partnership represents a model for how private sector collaboration can drive positive change.