Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Document Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40876 |
Entity Registrant Name | IHS Holding Ltd |
Entity Incorporation, State or Country Code | E9 |
Entity Address, Address Line One | 1 Cathedral Piazza |
Entity Address, Adress Line Two | 123 Victoria Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1E 5BP |
Entity Address, Country | GB |
Title of 12(b) Security | Ordinary shares, par value $0.30 per share |
Trading Symbol | IHS |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 331,920,002 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Firm ID | 876 |
Auditor Location | London, United Kingdom |
Entity Central Index Key | 0001876183 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Business Contact | |
Document Information [Line Items] | |
Contact Personnel Name | Sam Darwish |
City Area Code | 44 |
Local Phone Number | 20 8106 1600 |
Entity Address, Address Line One | 1 Cathedral Piazza |
Entity Address, Adress Line Two | 123 Victoria Street |
Entity Address, City or Town | London |
Entity Address, Postal Zip Code | SW1E 5BP |
Entity Address, Country | GB |
CONSOLIDATED STATEMENT OF LOSS
CONSOLIDATED STATEMENT OF LOSS AND OTHER COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
CONSOLIDATED STATEMENT OF LOSS AND OTHER COMPREHENSIVE INCOME | ||||
Revenue | $ 1,961,299 | $ 1,579,730 | $ 1,403,149 | |
Cost of sales | (1,156,892) | (907,388) | (838,423) | |
Administrative expenses | (501,175) | (336,511) | (236,112) | |
Reversal of loss allowance/(loss allowance) on trade receivables | 4,446 | 34,031 | (13,081) | |
Other income | 4,676 | 18,509 | 16,412 | |
Operating profit/(loss) | 312,354 | 388,371 | 331,945 | |
Finance income | 15,825 | 25,522 | 148,968 | |
Finance costs | (872,029) | (422,034) | (633,766) | |
Loss before income tax | (543,850) | (8,141) | (152,853) | |
Income tax benefit/(expense) | 73,453 | (17,980) | (169,829) | |
Loss for the year | (470,397) | (26,121) | (322,682) | |
Loss attributable to: | ||||
Owners of the Company | (460,438) | (25,832) | (321,994) | |
Non-controlling interests | (9,959) | (289) | (688) | |
Loss for the year | $ (470,397) | $ (26,121) | $ (322,682) | |
Loss per share-basic | $ (1.39) | $ (0.09) | $ (1.09) | |
Loss per share-diluted | $ (1.39) | $ (0.09) | $ (1.09) | |
Items that may be reclassified to profit or loss | ||||
Fair value gain through other comprehensive income | $ 3 | |||
Exchange differences on translation of foreign operations | $ 72,510 | (28,313) | [1] | $ 94,411 |
Other comprehensive (loss)/ income for the year, net of taxes | 72,510 | (28,310) | 94,411 | |
Total comprehensive loss for the year | (397,887) | (54,431) | (228,271) | |
Total comprehensive loss for the year attributable to: | ||||
Owners of the Company | (401,068) | (48,389) | (227,560) | |
Non-controlling interests | 3,181 | (6,042) | [1] | (711) |
Total comprehensive loss for the year | $ (397,887) | $ (54,431) | $ (228,271) | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | [1] |
Non-current assets | |||
Property, plant and equipment | $ 2,075,441 | $ 1,714,261 | |
Right of use assets | 963,993 | 520,651 | |
Goodwill | 760,328 | 779,896 | |
Other intangible assets | 1,053,296 | 845,729 | |
Fair value through other comprehensive income financial assets | 10 | 11 | |
Deferred income tax assets | 78,394 | 11,064 | |
Derivative financial instrument assets | 6,121 | 165,100 | |
Trade and other receivables | 130,347 | 75,054 | |
Non-current assets | 5,067,930 | 4,111,766 | |
Current assets | |||
Inventories | 74,216 | 42,021 | |
Income tax receivable | 1,174 | 128 | |
Trade and other receivables | 663,467 | 471,753 | |
Cash and cash equivalents | 514,078 | 916,488 | |
Current assets | 1,252,935 | 1,430,390 | |
Total assets | 6,320,865 | 5,542,156 | |
Current liabilities | |||
Trade and other payables | 669,149 | 499,432 | |
Provisions for other liabilities and charges | 483 | 343 | |
Derivative financial instrument liabilities | 1,393 | 3,771 | |
Income tax payable | 70,008 | 68,834 | |
Borrowings | 438,114 | 207,619 | |
Lease liabilities | 87,240 | 50,560 | |
Current liabilities | 1,266,387 | 830,559 | |
Non-current liabilities | |||
Trade and other payables | 1,459 | 312 | |
Borrowings | 2,906,288 | 2,401,471 | |
Lease liabilities | 517,289 | 325,541 | |
Provisions for other liabilities and charges | 84,533 | 71,598 | |
Deferred income tax liabilities | 186,261 | 169,119 | |
Non-current liabilities | 3,695,830 | 2,968,041 | |
Total liabilities | 4,962,217 | 3,798,600 | |
EQUITY | |||
Stated capital | 5,311,953 | 5,223,484 | |
Accumulated losses | (3,319,083) | (2,860,205) | |
Other reserves | (861,422) | (842,911) | |
Equity attributable to owners of the Company | 1,131,448 | 1,520,368 | |
Non-controlling interest | 227,200 | 223,188 | |
Total equity | 1,358,648 | 1,743,556 | |
Total liabilities and equity | $ 6,320,865 | $ 5,542,156 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY - USD ($) $ in Thousands | Equity attributable to owners of parent | Stated capital | Accumulated losses | Other reserves | Non-controlling interests | Total | |
Beginning balance, Equity at Dec. 31, 2019 | $ 1,430,319 | $ 4,530,870 | $ (2,513,396) | $ (587,155) | $ 1,430,319 | ||
NCI arising on business combination | $ 14,927 | 14,927 | |||||
Share-based payment expense | 7,216 | 7,216 | 7,216 | ||||
Total transactions with owners of the Company | 7,216 | 7,216 | 14,927 | 22,143 | |||
Loss for the year | (321,994) | (321,994) | (688) | (322,682) | |||
Other comprehensive income/(loss) | 94,434 | 94,434 | (23) | 94,411 | |||
Total comprehensive (loss)/income | (227,560) | (321,994) | 94,434 | (711) | (228,271) | ||
Ending balance, Equity at Dec. 31, 2020 | 1,209,975 | 4,530,870 | (2,835,390) | (485,505) | 14,216 | 1,224,191 | |
NCI arising on business combination | 215,014 | 215,014 | |||||
Issue of shares net of transaction costs | 349,846 | 349,846 | 349,846 | ||||
Share-based payment expense | 13,003 | 13,003 | 13,003 | ||||
Options converted to shares | 342,768 | (342,768) | |||||
Other reclassifications related to share based payment | (4,067) | 1,017 | (5,084) | (4,067) | |||
Total transactions with owners of the Company | 358,782 | 692,614 | 1,017 | (334,849) | 215,014 | 573,796 | |
Loss for the year | (25,832) | (25,832) | (289) | (26,121) | |||
Other comprehensive income/(loss) | (22,557) | (22,557) | (5,753) | (28,310) | |||
Total comprehensive (loss)/income | (48,389) | (25,832) | (22,557) | (6,042) | (54,431) | ||
Ending balance, Equity at Dec. 31, 2021 | 1,520,368 | 5,223,484 | (2,860,205) | (842,911) | 223,188 | 1,743,556 | [1] |
NCI arising on business combination | 831 | 831 | |||||
Share-based payment expense | 13,423 | 13,423 | 13,423 | ||||
Options converted to shares | 88,469 | (88,469) | |||||
Other reclassifications related to share based payment | (1,275) | 1,560 | (2,835) | (1,275) | |||
Total transactions with owners of the Company | 12,148 | 88,469 | 1,560 | (77,881) | 831 | 12,979 | |
Loss for the year | (460,438) | (460,438) | (9,959) | (470,397) | |||
Other comprehensive income/(loss) | 59,370 | 59,370 | 13,140 | 72,510 | |||
Total comprehensive (loss)/income | (401,068) | (460,438) | 59,370 | 3,181 | (397,887) | ||
Ending balance, Equity at Dec. 31, 2022 | $ 1,131,448 | $ 5,311,953 | $ (3,319,083) | $ (861,422) | $ 227,200 | $ 1,358,648 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Cash flows from operating activities | |||||
Cash from operations | $ 966,874 | $ 788,073 | $ 656,699 | ||
Income taxes paid | (51,245) | (29,147) | (14,540) | ||
Payment for rent | (7,983) | (8,506) | (6,838) | ||
Payment for tower and tower equipment decommissioning | (343) | (231) | (65) | ||
Net cash generated from operating activities | 907,303 | 750,189 | 635,256 | ||
Cash flow from investing activities | |||||
Purchase of property, plant and equipment | (378,521) | (238,145) | (94,800) | ||
Payment in advance for property, plant and equipment | (165,154) | (159,276) | (131,935) | ||
Purchase of software and licenses | (15,695) | (5,054) | (2,464) | ||
Consideration paid on business combinations, net of cash acquired | (735,740) | (401,039) | (542,905) | ||
Proceeds from disposal of property, plant and equipment | 1,826 | 4,742 | 2,227 | ||
Insurance claims received | 2,100 | 16,672 | 6,264 | ||
Interest income received | 15,170 | 7,798 | 5,101 | ||
Deposit of short term deposits | (512,105) | (103,647) | |||
Refund of short term deposits | 270,831 | ||||
Net cash used in investing activities | (1,517,288) | (877,949) | (758,512) | ||
Cash flows from financing activities | |||||
Capital raised | 378,000 | ||||
Transactions with non-controlling interest | 11 | ||||
Cost of capital raised | (28,154) | ||||
Bank loans and bond proceeds received (net of transaction costs) | 1,263,272 | 1,076,063 | 232,219 | ||
Bank loans and bonds repaid | (506,504) | (653,504) | (99,903) | ||
Fees on loans and derivative instruments | (19,911) | (20,426) | (9,403) | ||
Interest paid | (234,567) | (168,285) | (167,938) | ||
Costs paid on early loan settlement | (18,171) | ||||
Payment for the principal of lease liabilities | (76,629) | (63,324) | (39,153) | ||
Interest paid for lease liabilities | (36,178) | (32,923) | (19,239) | ||
Initial margin received on foreign exchange swaps/non-deliverable forwards | 12,854 | 36,714 | 5,066 | ||
Initial margin deposited on non-deliverable forwards | (19,436) | (33,846) | |||
Premium paid on interest rate cap instrument | (910) | ||||
(Losses settled)/profits received on non-deliverable forwards | (3,197) | 37,711 | 4,061 | ||
Net cash generated from/(used in) financing activities | 398,241 | 524,265 | (128,136) | ||
Net (decrease)/increase in cash and cash equivalents | (211,744) | 396,505 | (251,392) | ||
Cash and cash equivalents at beginning of year | 916,488 | [1] | 585,416 | 898,802 | |
Effect of movements in exchange rates on cash | (190,666) | (65,433) | (61,994) | ||
Cash and cash equivalents at end of year | $ 514,078 | $ 916,488 | [1] | $ 585,416 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
General Information
General Information | 12 Months Ended |
Dec. 31, 2022 | |
General Information | |
General Information | 1. These consolidated financial statements are the financial statements of IHS Holding Limited (‘the Company’) and its subsidiaries (together hereafter referred to as ‘the Group’ or ‘IHS’). IHS Holding Limited is incorporated in the Cayman Islands under the Companies Act (as amended) as an exempted company with limited liability. The Company is domiciled in the Cayman Islands and the address of its registered office is 190 Elgin Avenue, George Town, Grand Cayman KY1-9008, Cayman Islands. IHS is principally involved in providing infrastructure for the telecommunications industry. The consolidated financial statements are presented in US Dollars ($) and all values are rounded to the nearest thousands, except where otherwise indicated. These consolidated financial statements have been authorized for issue on March 27, 2023 by the Board of Directors. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated. 2.1 The consolidated financial statements of IHS have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared under the historical cost convention, as modified by financial assets and liabilities (including derivative financial instruments) which are recognized at fair value. 2.1.1 (a) The Group has applied the following standards and amendments for the first time for its annual reporting period commencing January 1, 2022: ● Annual Improvements to IFRS: 2018-2020 Cycle ● Conceptual Framework for Financial Reporting (Amendments to IFRS 3) ● Onerous contracts – Cost of Fulfilling a Contract – Amendments to IAS 37 ● Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 The amendments to standards listed above did not have any material impact on the Group’s financial statements. (b) Certain new accounting standards, interpretations and amendments have been published that are not effective for December 31, 2022 reporting period and have not been early adopted by the Group. They are: ● IFRS 17 Insurance Contracts ● Classification of Liabilities as Current or Noncurrent – Amendments to IAS 1 ● Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 ● Definition of Accounting Estimates – Amendments to IAS 8 ● Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12 ● Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10 and IAS 28 ● Lease Liability in a Sale and Leaseback Amendments to IFRS 16 ● Non-current Liabilities with Covenants Amendments to IAS 1 The Company is in the process of analysing the impact of the amendments to IAS 12 which are expected to impact the gross values of deferred tax assets and deferred tax liabilities disclosed in the notes to the financial st atements with no material impact on the net assets of the Group. Other than this, n one of the above amendments to standards are expected to have a material effect on the Group’s financial statements. 2.2. (a) The consolidated financial statements include the financial information and results of the Company and those entities in which it has a controlling interest. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are all entities (including structured entities) over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date the control ceases. All intercompany balances and transactions have been eliminated. (b) For acquisitions that meet the definition of a business combination, the Group applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition, and the results of operations are included with those of the Group from the dates of the respective acquisitions. Any excess of the purchase price paid by the Group over the amounts recognized for assets acquired and liabilities assumed is recorded as goodwill and any acquisition related costs are expensed as incurred. The Group recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The consideration transferred for the acquisition comprises the fair value of the assets transferred, liabilities incurred, equity interests issued by the Group and any contingent consideration. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. If the Group gains control in a business combination in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognized in profit or loss. Where the group acquires a portfolio of tower assets and associated revenue contracts judgement is required in the determining whether the transaction meets the definition of a business combination. The Group makes this judgement on a case by case basis taking into account the specific facts and circumstances of each transaction including the substance of other elements of the transactions such as transferred systems, processes, workforce and novated supplier contracts. The Group has considered whether any of its business combinations represent a sale and leaseback transaction from a lessor perspective. It has been determined that since the space on towers and associated assets are able to be leased to multiple tenants without restriction, that no such arrangement of the entire tower site portfolio acquired exists. (c) The Group treats transactions with non-controlling interests as transactions with equity owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. 2.3 Operating segments are components of IHS’ business activities about which separate financial statements are available and reported internally to the chief operating decision maker. The Group’s Executive Committee has been identified as the chief operating decision maker, responsible for allocating resources and assessing performance of the operating segments. The Group’s Executive Committee currently consists of the Chief Executive Officer (“CEO”), the Chief Operating Officer (“COO”), the Chief Financial Officer (“CFO”), the General Counsel, the IHS Nigeria CEO, the Chief Strategy Officer, the Chief Human Resource Officer and the Executive Vice President of Communications. Where operating segments share similar characteristics, they have been aggregated into reportable segments, of which the Group has identified four: Nigeria, Sub Saharan Africa (“SSA”), Middle East and North Africa (“MENA”) and Latin America (“Latam”). 2.4 (a) Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in US Dollars. (b) During the year ended December 31, 2017, the Central Bank of Nigeria introduced a new foreign exchange window, which includes the NAFEX (Nigerian Autonomous Foreign Exchange Fixing). This resulted in a situation where there are several different official exchange rates in the market, thereby requiring the Company to monitor and evaluate which exchange rate is most appropriate to apply in translating foreign currency transactions in its Nigeria businesses and in translating Naira amounts for Group reporting purposes. Where multiple official exchange rates exist, the Group assesses the appropriate rate to use and takes into account relevant factors. In the case of translating foreign operations or foreign transactions, such factors include access to those rates in the future to meet payments or dividends. In determining whether it is appropriate to move from one official rate to another, the Group considers the available rates in official markets for settlement of transactions. Refer to note 3 for further information. (c) Foreign currency transactions are translated into the functional currency of each entity using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of income and other comprehensive income within “finance income” or “finance cost.” Foreign exchange gains and losses that relate to other monetary items are presented in the statement of income and other comprehensive income within “cost of sales,” “administrative expense” and “other income” as appropriate. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities designated as fair value through other comprehensive income are recognized in other comprehensive income. The subsidiaries based in Nigeria translated their foreign currency transactions into the functional currency, Nigerian Naira, at the Nigerian Autonomous Foreign Exchange Fixing (“NAFEX”) prevailing rate at the date of the transaction. Monetary items and liabilities denominated in foreign currencies were also translated at the NAFEX rate. The NAFEX rate was between 416.00 and 461.50 during 2022 (2021: 394.13 and 435, 2020: 363.2 and 410.25) and at December 31, 2022 was 461.506 (December 31,2021: 435.00, December 31, 2020: 410.25). Both years experienced a spike in the month of December of that year, with the average rate for December 2022 being 451.01 (2021: 415.6, 2020: 394.3). Refer to note 3 for further information on foreign exchange rate assessment. The results and financial position of all the Group entities (none of which has the currency of a hyper inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ● assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position, ● income and expenses for each statement of income and other comprehensive income are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and ● all resulting exchange differences are recognized in other comprehensive income. On consolidation, exchange differences arising from the translation of the net investment in foreign operations and of borrowings are taken to other comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehensive income. The results of the subsidiaries based in Nigeria were translated into US Dollars at the NAFEX monthly average exchange rate for income and expenses and the assets and liabilities at the NAFEX closing rate at the date of the statement of financial position with rates as noted above. Refer to note 3 for further information. 2.5 Our revenue is derived from fees paid by our customers for services from our colocation business and its ancillary managed services. The colocation business involves the lease of space on IHS owned and leased towers and our fixed copper and fibre network infrastructure, which are shared by various operators and data service providers. Revenue is generated on towers either from anchor tenants (original tenants on towers) or colocation tenants (subsequent tenants) when they install equipment on towers and on cable and fibre networks from tenants when they use the fixed network infrastructure to provide connectivity to/from towers or to provide broadband services to their customers. A portion of colocation arrangements for the rental of space on the towers, other assets on tower sites on which the use of space is dependent and the use of fixed copper and fibre network infrastructure dedicated to an individual customer is within the scope of IFRS 16 Leases. A portion of colocation arrangements for the provision of services, energy charges and use of shared fixed copper and fibre network infrastructure is within the scope of IFRS 15 ‘Revenue from contracts with customers’ as a provision of service. The Group also offers ancillary services to manage tenant operations of existing customers on a limited basis. Revenue from such managed services is within the scope of IFRS 15 ‘Revenue from contracts with customers’. In determining the amounts of colocation revenue from our contracts with customers that fall within the scope of IFRS 15 or IFRS 16, the Group considers whether there are separate performance obligations to which a portion of the transaction price needs to be allocated and revenue recognized separately. For colocation services the Group determines the transaction price (including lease and non-lease elements) at contract inception and considers the effects of: ● Variable consideration - The contractual price may be subject to service credits, price indexation, discounts provided on site consolidation and discounts associated with site occupancy. All of these items of variable consideration are considered to relate to individual service periods of series performance obligations, or represent contingent rentals, and are therefore recognized in the future periods in which they arise rather than when estimating the transaction price at contract inception. ● The existence of significant financing components - Financing components are not expected to be significant as services and payments are generally in line over the period of the contract. ● Consideration payable to the customer (if any) - Payments to customers (such as rebates and discounts refunded to the customer and payments for exit fees) are deducted from transaction price unless they are payments for a distinct good or service supplied to the Group in return for the payments. At the date of contract inception, the Group determines the stand-alone selling prices of the performance obligations (including the lease elements of the contract) using a combination of data on observable prices from comparable managed service arrangements, supplemented by the cost plus a margin approach. The Group allocates the transaction price to these non-lease elements of the contract and between performance obligations within the non-lease element of the contract on the basis of relative stand-alone selling price. Revenue is typically invoiced quarterly in advance except where a deferral of invoicing has been agreed with a customer such as where there is an ongoing dispute over pricing in which case revenue is recognized upon satisfaction of performance obligations on the basis of the expected outcome of such disputes. Customer contracts typically require payment within 30 to 60 days. (a) For non-lease revenue, two separate performance obligations have typically been identified, one in respect of the operation of tower infrastructure and one in respect of the provision of maintenance services and power, with each being a series of performance obligations to stand ready to deliver the required services. The identification of these two performance obligations does not change the timing of revenue recognition of the non-lease component as both are typically satisfied over the same time period. In limited cases, contracts may provide the customer with a right to purchase additional services at a significant discount. In these cases, the material right is also identified as a performance obligation. On initial recognition of revenue, the Group assesses the recoverability of revenue taking into account our contractual rights and obligations to consideration, our exposure to our customer’s credit risk and our practice of managing credit risk exposure through the occasional negotiation of price concessions with customers and recognizes the revenue, in respect of satisfied performance obligations, which is expected to be recovered. Recognition of amount not expected to be recovered is considered variable consideration and is contingent upon the receipt of funds from the customer (see note 3.6). The assessment of amounts expected to be recovered are closely aligned with the assumed credit risk of the customer, determined as part of the assessment of expected credit losses made in accordance with the Group’s IFRS 9 expected credit loss policy as described in note 2.16.4. (b) The portion of colocation revenue, for which IHS is the lessor, is treated as a lease. Contracts are assessed at inception to determine whether this element of the colocation services are finance or operating leases. At present all arrangements are assessed to be operating leases with revenue including fixed escalation clauses present in non-cancellable lease agreements recognized on a straight line basis over the current lease term of the related lease agreements, when collectability is reasonably assured. The duration of these lease arrangements is typically between 5 and 10 years. Escalation clauses tied to the Consumer Price Index (“CPI”) or other inflation based indices, are excluded from the straight line calculation, however, any fixed increases are included. Revenue is recognized in the accounting period in which the rental income is earned and services are rendered. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue until the criteria for recognition have been met. (c) Revenue from managed services contracts with customers is recognized when the services are delivered at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. Revenue is recognized in the accounting period in which the services are rendered by reference to the stage of completion based on the terms of each contract. Services revenues are derived under contracts or arrangements with customers that provide for billings either on a fixed price basis or a variable price basis, which includes factors such as time and expenses. Revenues are recognized as services are performed. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue in the accompanying statement of financial position until the criteria for recognition have been met. 2.6 Certain revenue contracts and subsequent amendments include fees that are priced in $ but are invoiced and settled in the relevant local currency of the operation using foreign exchange rates calculated in accordance with the contractual terms. Where the contractual foreign exchange rates are reset at regular intervals in arrears, management evaluates and determines at the date of inception, or at the date of material modification, of the contracts whether the reset features are closely related to the host contracts or not. For existing contracts in making the evaluation, management assessed that the $ is a commonly used currency in the local operation, and that the reset interval is sufficiently frequent to approximate the local currency spot exchange rate given economic conditions at that time. Management also considers whether, at the time of inception or material modification, contract rates reference a liquid market exchange rate. If reference rates are assessed as liquid the embedded derivative is assessed as closely related and no accounting bifurcation is made. Where such fees that are priced in $ are translated to local currency at the time of billing using a fixed, pre-determined exchange rate or an exchange rate which is not referenced to a liquid market exchange rate, this results in an embedded derivative which is not closely related to the host contract and is thus bifurcated, fair valued and disclosed separately. The fair values of these embedded derivatives are determined by reference to the discounted forecast billings under the contractual rates compared to those under the forecast liquid market rates. Upon initial recognition of a revenue embedded derivative asset or liability, the Group recognizes a contract liability or asset, respectively. The contract liability or asset is released to revenue over the shorter of the term of the contract or the term over which the conditions that result in the embedded derivative expire. The release to revenue is recognized on the same basis that those contractual conditions materialize, to match the release of the contract liability or asset to the recognition of revenue from the underlying contract. 2.7 The Group is a lessee of various assets, comprising land and building, towers, equipment and motor vehicles. The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The following sets out the Group’s lease accounting policy for all leases with the exception of leases with low-value (i.e. < $5,000) and short term of less than 12 months for which the Group has taken the exemption under the standard and are expensed to profit or loss as incurred. (a) The Group recognizes right of use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use under the contract). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date (which do not form part of the lease liability value at the commencement date). Right of use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term. The right-of-use assets are tested for impairment in accordance with IAS 36 “Impairment of Assets”. (b) At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of all remaining lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments where the contracts specify fixed or minimum uplifts) and variable lease payments that depend on an index or a rate. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers the payment occurs. Due to the nature of our leased assets the interest rate implicit in the lease is usually not readily determinable, the Group therefore uses the incremental borrowing rate in calculating the present value of lease payments at the lease commencement date. The incremental borrowing rate is calculated using a series of inputs, including: a local currency cost of debt for each country based on local borrowing (or where not available, an inflation adjusted US$ cost of debt which encompasses the country specific adjustment), an adjustment for the duration of the referenced borrowings to arrive at an interest rate for a one-year facility, and an adjustment for the lease term based on local government, US or Eurozone bond yields, as appropriate in the context of each country’s debt markets. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or a change in the in-substance fixed lease payments. The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised and any periods covered by an option to terminate the lease, if it is reasonably certain that the termination options will not be exercised. The Group has the option under some of its leases to lease the assets for additional periods of up to 10 years. The Group applies judgement in evaluating whether it has a unilateral option to renew the lease for a further period and is reasonably certain to exercise the option to renew (note 3). That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew. 2.8 Cost of sales is mainly comprised of power generation costs, depreciation, tower repairs and maintenance costs, operational staff and costs and site rental costs. 2.9 Administrative expenses are costs not directly related to provision of services to customers, but which support our business as a whole. These overhead expenses primarily consist of administrative staff costs (including key management compensation), office rent and related property expenses, insurance, travel costs, professional fees, depreciation and amortization of administrative assets, net (gain)/loss on disposal of property, plant and equipment and other sundry costs. Administrative expenses also includes other corporate overhead expenses related to the Group’s acquisition efforts and costs associated with new business initiatives. 2.10 Other income includes proceeds from insurance claims and the remeasurement of contingent consideration arising from acquisitions. 2.11 Interest income is recognized in profit or loss and is calculated using the effective interest method as set out in IFRS 9. 2.12 These are mainly towers and towers equipment, fiber telecommunications network cables and equipment, land and buildings, furniture and office equipment, motor vehicles and capital work in progress that are used directly by the Group in the provision of services to customers, or for administrative purposes. The assets are carried at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets including amounts related to the cost of future decommissioning and site restoration obligations. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the asset will flow to the Group and the cost can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Freehold land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows: Towers and tower equipment • Base station equipment (including civil costs and overheads) 10 - 20 years • Base station equipment (other equipment) 15 years • Base station equipment (rectifier and solar power) 10 years • Base station equipment (alarm and battery) 3 - 5 years • Base station equipment (generator & generator overhaul) 1 - 3 years • Base station equipment (base transmission equipment) 8 - 10 years Fiber assets • Fixed line network equipment (including civil works, duct system, cable system and survey costs) 25 years • Outdoor cabinet 10 years Land and buildings, furniture and office equipment, and motor vehicles • Office complex 40 years • Furniture and office equipment 3 years • Motor vehicles 4 years Asset residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. Where an indication of impairment exists, an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss for the period. The Group assesses its property, plant and equipment for possible impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be recoverable, or at least at the end of every reporting period. Such indicators include changes in the Group’s business plans, changes in diesel prices, evidence of physical damage and technological changes and impacts of obsolescence including those driven by climate change. 2.13 Goodwill arises on the acquisition of businesses and represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured at fair value is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognized directly in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (“CGUs”), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at or below the operating segment level. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed. (a) Network related intangible assets represent future income from leasing excess tower capacity to new tenants. Customer related intangible assets represent customer contracts and relationships. Network and customer-related intangible assets acquired in a business combination are recognized at fair value at the acquisition date. Network and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of network and customer related intangible assets over their estimated useful lives of 14-34 years (2021: 14-26 years, 2020: 14-20 years) and 5-41 years (2021: 5-37 years, 2020: 5-30 years) respectively. The remaining amortization period for network and customer related assets are between 4-33 years (2021: 5-26 years, 2020: 6-26 years) and 20-40 years (2021: 21-36 years, 2020: 1-27 years) respectively. (b) Separately acquired licenses are shown at historical cost. Licenses acquired in a business combination are recognized at fair value at the acquisition date. Licenses have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method over their estimated useful lives of 3-15 years (2021: 3-15 years, 2020: 3-15 years). (c) Costs associated with maintaining computer software programs are recognized as expenses as incurred. Acquired computer software licenses are capitalized at the cost incurred to acquire and bri |
Critical accounting estimates a
Critical accounting estimates and judgements | 12 Months Ended |
Dec. 31, 2022 | |
Critical accounting estimates and judgements | |
Critical accounting estimates and judgements | 3. The preparation of financial statements requires management to make certain judgements, accounting estimates and assumptions that affect the amounts reported for the assets and liabilities as at the end of the reporting period and the amounts reported for revenues and expenses during the year. The nature of the estimation means that actual outcomes could differ from those estimates. The key sources of judgment and estimation uncertainty that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities are discussed below. In preparing these consolidated financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements for the year ended December 31, 2021. (a) 3.1 The Russia and Ukraine conflict has impacted global diesel prices as well as the supply chain for raw materials such as steel and for equipment, including batteries. In addition, the conflict has also impacted global financial markets leading to higher interest rates and inflation. The Group has no direct operations in Ukraine or trading with sanctioned individuals and companies. The below table outlines Management’s assessment of and response to the main risks arising from the current uncertain situation regarding the Russia and Ukraine conflict. These risks inherently impact the significant judgements and estimates made by management. Assessment Risk discussion and response Revenue and profitability · Limited impact on revenue collections thus far. · Customers continue to perform, and we have not experienced significant deterioration in payments. · The Group has long-term revenue contracts with its customers amounting to $13.3 billion in contracted revenue. · Our ability to collect revenue from our customers is impacted by our customers’ ability to generate and collect revenues from their operations. Our customers have, in the main, seen an increased demand for their services. · The impact on collections has thus far been limited and the Group remains in constant conversation with customers regarding their liquidity and ability to meet their obligations. · The Group regularly reviews measures for cost savings whilst maintaining its ability to operate effectively and towards strategic goals. · The Group has continued to invest in capital expenditure which supports revenue growth. The Group will continue to invest in capital expenditure relating to revenue growth during 2023. Liquidity · Sufficient liquidity is available. · No current impact on going concern. · The Group has cash and cash equivalents of $514 million as at December 31, 2022. · Management has assessed current cash reserves and the availability of undrawn facilities and continues to monitor available liquidity in the context of ongoing operational requirements and planned capital expenditure. · In the context of current commitments and available liquidity, management believes that the going concern assumption remains appropriate. · All of the Group’s operations are cash generative. Assessment Risk discussion and response Access to USD · Moderate risk due to decreased availability. · While there has been a reduction in US Dollar liquidity in the Nigerian market, we were still able to source US Dollars locally to fund our semi-annual coupons during the year. Internal controls · Minimal impact to date. · Our IT team monitors the increased risk of fraud, data or security breaches, loss of data and the potential for other cyber-related attacks and utilises security measures to mitigate such risks. Supply chain · Moderate risk due to delays. · The Group works closely with suppliers and contractors to ensure availability of supplies on site, especially diesel supplies which are critical to many of our operations. · Regular maintenance of our towers continues while observing strict safety guidelines for our employees and our suppliers and contractors. Due to the uncertainty of the Russia and Ukraine conflict we will continue to assess the situation. As part of their regular assessment of the Group’s liquidity and financing position, the Directors have prepared detailed forecasts for a period which extends beyond 12 months after the date of approval of these financial statements. In assessing the forecasts, the Directors have considered: ● the current economic conditions in the operating markets and how that impacts trading; ● the impact of macroeconomic factors, particularly interest rates and foreign exchange rates; ● the status of the Group’s financial arrangements (see also note 19); ● mitigating actions available should business activities fall behind current expectations; and ● additional sensitivity analysis under a stressed scenario to assess the impact of a severe but plausible downside case. Whilst inherently uncertain, and we expect some impact to our operations and performance, we currently do not believe that the Russia and Ukraine conflict will directly have a material adverse effect on our financial condition or liquidity for the foreseeable future. Having carefully considered this and the other factors noted above, the Directors have a reasonable expectation that the Group and the Company have adequate resources to continue in operational existence for at least 12 months from the date of issuance of these financial statements and to operate within the covenant levels of its current debt facilities. The Directors therefore continue to consider it appropriate to adopt the going concern basis of accounting in preparing the financial statements. 3.2 The Group had been using the relevant central bank rate, being the relevant official rate in each jurisdiction for foreign currency translation. On April 24, 2017, the Central Bank of Nigeria (CBN) introduced a special foreign exchange window for investors and exporters, known as the NAFEX market. By introducing the NAFEX window, the CBN created a situation where there are multiple differing official rates in the market. This resulted in a need for the Group to reach a judgement regarding the appropriate exchange rates for translating foreign denominated transactions and balances for Nigerian subsidiaries and for the translation of Nigerian results on consolidation. The Group considered the requirements of IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ and performed an assessment of the availability of the NAFEX rate in that market. The Group concluded that access to US Dollar in Nigeria in the future to meet payments or dividends is expected to be obtained via the NAFEX market, which has since May 2021 been adopted by the CBN. From January 1, 2018, the NAFEX rate has been used for the translation of USD transactions and denominated balances in the Nigerian subsidiaries and also for consolidation purposes. 3.3 The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised and any periods covered by an option to terminate the lease, if it is reasonably certain that the termination options will not be exercised. The Group has the option under some of its leases to lease the assets for additional periods of up to 10 years. The Group applies judgement in evaluating whether it has a unilateral option to renew the lease for a further period or is otherwise provided that option under the laws governing the lease agreement and is reasonably certain to exercise the option to renew. That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal or for the landlord to accept a renewal, including the nature of the underlying asset, the availability of a similar asset in a similar location, and the expected business impact or relocating its towers. After the commencement (b) 3.4 The Group assesses its non-financial assets including property, plant and equipment, goodwill, and other intangible assets for possible impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be recoverable, or at least at the end of every reporting period. Such indicators include changes in the Group’s business plans, changes in diesel prices, evidence of physical damage and technological changes and impacts of obsolescence. If there are rapid changes in technology of the existing communications infrastructure, the Group may need to recognize significant impairment charges. The Group tests annually whether goodwill has suffered any impairment, in accordance with the accounting policy stated in note 2.13. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows. Refer to note 15 for Goodwill and intangible assets impairment considerations. The assessment for impairment entails comparing the carrying value of the cash generating unit, or group of cash generating units, with its recoverable amount, that is, the higher of the value in use and the fair value less costs of disposal. Value in use is determined on the basis of discounted estimated future net cash flows. Fair value less costs of disposal is determined on the basis of the income approach, discounting estimated future net cash flows that reflects current market expectations. Determination as to whether and how much an asset is impaired involves management estimates on highly uncertain matters such as future revenue (taking into account tenancy rates for tower businesses and homes passed and homes connected for the fiber business), and the direct effect these have on gross profit margins in the initial five-year forecast period, discount rates, terminal growth rates and cost related to the disposal of a business. In determining value in use the Group makes estimates and assumptions concerning the future. The assumptions adopted in the computation of the value in use are considered reasonable to the circumstance of each CGU. The resulting accounting estimates will, by definition, seldom equal the related actual results. Such estimates and assumptions are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Refer to the sensitivity analysis in note 15. 3.5 The Group requires a variety of regulatory approvals and permits related to its license to operate and meets its compliance requirements in respect of individual tower sites. These charges are levied by various national and state authorities. There is uncertainty over the level of charges where rates (e.g. percentage of revenue) remain under negotiation with the relevant authorities and also over the period for which charges will apply where demands have not yet been received from authorities on a site by site basis. State authorities may also make claims on an ad-hoc basis for additional charges relating to new compliance requirements or charges significantly in excess of levels previously charged for an existing requirement. These ad-hoc claims may be made on a prospective or retrospective basis. The Group recognizes an accrual for unbilled regulatory costs based on management estimates of the rates per permit/approval type, periods for which permits/approvals potentially relate and the probability of charges being raised resulting in a cash outflow. The most significant accrual relates to the Group’s operations in Nigeria, where the amount accrued is $29.4 million (2021: $31.9 million, 2020: $28.3 million). The accrual is based both on permits where rates are known amounts and those where amounts are based on management estimates including: ● the assumed percentage of maximum “claimed” liability related to “ad hoc” state level claims; ● the assumption that the risk related to potentially unpaid “regular” claims reduces over time and is accrued at 100% but reduced to 0% for balance over a certain number of years; and ● assumptions regarding the risk of liabilities arising in respect of one-off site development related charges in respect of sites acquired by the group. A 10 percentage point change in management’s estimate of the amount of the potential liability that, subject to these estimates, will eventually be demanded and paid to the relevant authorities would alter the accrual at December 31, 2022 by approximately $2.9 million (2021: $3.2 million, 2020: $2.9 million). Management has only considered items in the sensitivity analysis that are subject to management’s rates estimate in the total amount accrued. 3.6 (a) Initial recognition of revenue is estimated based on an assessment of the recoverability of revenue taking into account our contractual rights to consideration, our exposure to our customer’s credit risk and our practice of managing credit risk exposure through the occasional negotiation of price concessions with customers. Only amounts expected to be recovered at the point of initial recognition are recognized in revenue, and the remainder is considered variable consideration (see note 2.5(a)). Recognition of amounts not expected to be recovered is contingent upon the receipt of funds from the customer. The assessment of the amounts expected to be recovered is closely aligned with the assumed credit risk of the customer, determined as part of the assessment of expected credit losses made in accordance with the Group’s IFRS 9 expected credit loss policy as described in note 2.16.4. A 10-percentage point change in management’s estimate of the amount of variable consideration that will eventually be received would alter revenue recognized by approximately $17.4 million (2021: $16.8 million, 2020: $14.2 million). (b) Revenue also includes estimates for services provided where billing is not completed, including in respect of (1) tower sites coming into service, or changes in customer implemented technologies since the most recent invoicing cycle and (2) services subject to ongoing negotiation regarding price or other contract interpretation disputes with customers. For each of these scenarios, revenue is accrued based on management’ expectation of the final billable amounts based primarily on historical experience. A 20-percentage point change in management’s estimate of the amount of accrued revenue, subject to these delayed billing estimates would alter revenue recognized by approximately $4.4 million (2021: $5.0 million, 2020: $3.3 million). |
Introduction and overview of Gr
Introduction and overview of Group's risk management | 12 Months Ended |
Dec. 31, 2022 | |
Introduction and overview of Group's risk management | |
Introduction and overview of Group's risk management | 4. The Group’s activities expose it to a variety of financial risks including market risk (foreign exchange risk and interest rate risk), credit risk and liquidity risk. The Board of Directors has overall responsibility for the establishment and oversight of the Group’s risk management framework. The Group’s Executive Committee is responsible for developing and monitoring the Group’s risk management policies. The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to establish appropriate risk appetite and controls, and to monitor risks and adherence to our risk appetite. Risk management policies and systems are reviewed regularly by the executive management to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations. The Board, through the Audit Committee, oversees how management monitors compliance with the Group’s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Board is supported by various management functions that check and undertake both regular and ad hoc reviews of compliance with established controls and procedures. (a) Derivatives are only used for economic hedging purposes and not as speculative investments. Derivatives do not meet the criteria for hedge accounting and are therefore classified as financial instruments through fair value through profit or loss. ● Non-deliverable forwards ( NDFs ) — The calculation of an NDF fair value is based on the difference between the contracted exchange rate and the anticipated spot exchange rate at the relevant period. The rate applied to represent the anticipated spot exchange rate requires judgement given the limited market liquidity in Nigeria. The Group has determined that the spot NAFEX exchange rate obtained from FMDQ OTC securities exchange is the most appropriate rate. The gain or loss at the settlement date is calculated by taking the difference between the agreed upon contract exchange rate (NGN/USD) and the spot rate at the time of settlement, for an agreed upon notional amount of funds. ● Embedded options within listed bonds — The bonds issued by IHS Netherlands Holdco B.V. in September 2019 and the bonds issued by IHS Holding Limited in November 2021 have embedded options which allow early redemption at the option of the issuer and holder upon the occurrence of specified events. These are accounted for as derivatives at fair value through profit or loss. ● Embedded derivatives within revenue contracts — T he embedded derivatives within revenue contracts represent the fair value of the US$ linked components of the Group’s revenue contracts with customers, where such US$ linked components are translated to local currency at the time of billing using a fixed, pre-determined exchange rate or an exchange rate which is not referenced to a liquid market exchange rate. These are accounted for as derivatives at fair value through profit or loss. (b) Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Group manages market risks by keeping costs low through various cost optimization programs. Moreover, market developments are monitored and discussed regularly, and mitigating actions are taken where necessary. (i) The Group operates internationally and is exposed to foreign exchange risk arising from currency exposures other than the US Dollar. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. The Group is exposed to risks resulting from fluctuations in foreign currency exchange rates. A material change in the value of any such foreign currency could result in a material adverse effect on the Group’s cash flow and future profits. The Group is exposed to foreign exchange risk to the extent that balances and transactions are denominated in a currency other than the functional currency in which they are measured. In managing foreign exchange risk, the Group aims to reduce the impact of short-term fluctuations on earnings. The Group has no export sales, but it has customers that are either contracted using fees quoted in US Dollars or other foreign currencies, but with foreign exchange indexation. The Group’s significant exposure to currency risk relates to its loan facilities that are mainly in foreign currencies. The Group manages foreign exchange risk through the use of derivative financial instruments such as currency swaps and forward contracts. The Group monitors the movement in the currency rates on an ongoing basis. Currency exposure arising from assets and liabilities denominated in foreign currencies is managed primarily by setting limits on the percentage of net assets that may be invested in such deposits. Sensitivity analysis The table below shows the impact on the Group’s loss if the exchange rate between the following currencies to US Dollars had increased or decreased, with all other variables held constant. The rate of change was determined by an assessment of a reasonable or probable change in the exchange rate being applied as at December 31. The impact is based on external and intercompany loans. Effect on Effect on Effect on Effect on Effect on Effect on Effect on Rwandan Nigerian Zambian South Africa Brazilian Kuwaiti Euro Franc Naira Kwacha Rand Real Dinar $’000 $’000 $’000 $’000 $’000 $’000 $’000 2022 Rate of change 7 % 7 % 7 % 7 % 7 % 7 % 7 % Effect of US Dollar weakening on loss (13,153) (4,402) (165,880) (15,528) (2,809) (18,898) (648) Effect of US Dollar strengthening on loss 13,153 4,402 165,880 15,528 2,809 18,898 648 2021 Rate of change 5 % 5 % 5 % 5 % n/a 5 % 5 % Effect of US Dollar weakening on loss (15,726) (3,284) (106,595) (11,078) — (15,502) (424) Effect of US Dollar strengthening on loss 15,726 3,284 106,595 11,078 — 15,502 424 2020 Rate of change 5 % 5 % 5 % 5 % n/a 5 % 5 % Effect of US Dollar weakening on loss (18,652) (3,522) (114,799) (10,808) — (14,302) (250) Effect of US Dollar strengthening on loss 18,652 3,522 114,799 10,808 — 14,302 250 This analysis excludes the natural hedging arising from contracts with customers in the Nigeria, Zambia and Rwanda operations, which are either wholly or partly linked to the US Dollar exchange rate. It is, however, impracticable to incorporate the impact of this US Dollar component in the above analysis due to the complexity of the contracts and the timing of any devaluation event. The Group is exposed to foreign exchange exposure that arises on intercompany loans denominated in US Dollars and Euro at a subsidiary level as a result of loan revaluations in local functional currency at period ends. The balances, as translated into US$, of the foreign denominated intercompany loans in the local books of the subsidiaries are: Nigerian Rwandan Zambian South African Brazilian Kuwaiti Naira Franc Kwacha Rand Real Dinar US Dollar $’000 $’000 $’000 $’000 $’000 $’000 $’000 2022 US Dollar loan 2,172,230 62,886 127,235 40,132 269,976 9,261 — Euro loan — — — — — — 244,194 2021 US Dollar loan 2,037,580 65,679 128,084 — 310,047 8,476 — Euro loan — — — — — — 290,346 The summary of quantitative data about the Group’s exposure to foreign exchange risk (balances excluding inter-company balances, and in currencies other than the local functional currency) is as follows: 2022 2021 $’000 $’000 Trade receivables 7,356 36,629 Cash and cash equivalents 45,234 43,928 Trade payables (69,480) (28,707) Borrowings (306,291) (211,961) Net exposure (323,181) (160,111) (ii) The Group’s main interest rate risk arises from long term borrowings with variable rates, which expose the Group to cash flow interest rate risk. The Group’s fixed rate borrowings and receivables are carried at amortized cost. They are therefore not subject to interest rate risk as defined in IFRS 7, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates. The Group manages interest rate risk through the use of derivative financial instruments such as interest rate caps or by issuing fixed rate debt. The table below shows the impact on the Group’s post tax loss if the interest rates increased or decreased by 1% (2021: 1%, 2020: 1%). 2022 2021 2020 $'000 $'000 $'000 Effect of 1% (2021 and 2020: 1%) increase on post tax loss 6,345 6,343 5,850 Effect of 1% (2021 and 2020: 1%) decrease on post tax loss (6,846) (6,079) (6,035) (c) Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk arises from cash and cash equivalents, derivative financial instruments and deposits with banks and financial institutions, as well as credit exposures to customers, including outstanding receivables and committed transactions. Credit risk is managed on a Group basis. The Group accounts for the write-off of a trade receivable when a specific customer is assessed to be uncollectible, based on a review of their specific trading circumstances, credit quality and continuing poor payment performance of the specific customer. The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the end of the reporting period was: 2022 2021 $’000 $'000 Other receivables (note 19) 387,019 201,759 Derivative financial instrument assets (note 18) 6,121 165,100 Trade receivables (net) (note 19) 211,025 222,789 Cash and cash equivalents (note 20) 514,078 916,488 1,118,243 1,506,136 No impairment allowance is recorded at December 31, 2022 in respect of cash and cash equivalents and other receivables (2021:nil). Derivative financial instruments are carried at fair value through profit or loss. Any fair value gains or losses are recognized in profit or loss during the period. Credit ratings The Group works with approved banks and financial institutions which it believes are financially sound, including by reference to their external ratings. The credit ratings of the Group’s other receivables at December 31, 2022 and 2021 are based on publicly reported Fitch ratings: 2022 2021 $’000 $'000 Other receivables AAA 27,820 — A 63 — B 335,600 145,300 B- — 7,418 BB- — 6,665 Not rated 23,536 42,376 387,019 201,759 Refer to note 18 and note 20 for the credit ratings of derivative financial instrument assets and cash and cash equivalents respectively. The finance department assesses the credit quality of a customer, taking into account its financial position, past experience and other factors. The compliance with credit limits by customers is regularly monitored by line management. The Group utilizes data analysis and market knowledge to determine the concentration of its risks by reference to independent and internal ratings of customers. The assessment of the concentration risk is consistent with the overall risk appetite as established by the Group. The Group’s credit concentration is based on internal ratings. The finance department classifies customers as first tier and second tier customers based on sales revenue from each customer during the period. First tier customers are the two to five customers that contributed 80% and above of total revenue and represent the major mobile network operators in our markets while second tier customers are the customers that contributed 20% and below of total revenue and typically represent ISPs or mobile operators with smaller or regional network footprints. Internal Credit rating 2022 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 84,975 156 85,131 Not due 58,169 3,128 61,297 0-30 days 22,581 2,267 24,848 31-60 days 11,233 3,269 14,502 61-90 days 4,411 3,902 8,313 Over 90 days 11,748 30,551 42,299 Gross trade receivables 193,117 43,273 236,390 Impairment allowance (2,597) (22,768) (25,365) Net trade receivables 190,520 20,505 211,025 Internal Credit rating 2021 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 102,931 438 103,369 Not due 37,238 2,712 39,950 0-30 days 15,113 1,419 16,532 31-60 days 25,585 2,824 28,409 61-90 days 8,024 1,964 9,988 Over 90 days* 28,941 26,663 55,604 Gross trade receivables 217,832 36,020 253,852 Impairment allowance* (6,682) (24,381) (31,063) Net trade receivables 211,150 11,639 222,789 * Amount has been re-presented to reflect a trade receivables reclassification to align with 2022 disclosure. Over the term of trade receivables, the Group accounts for its credit risk by appropriately providing for expected credit losses on a timely basis on a customer by customer basis. In calculating the expected credit loss for each customer, the Group considers historical loss rates, available information on the customer’s financial position and adjusts for forward looking macroeconomic data. Impairment allowances, derived in accordance with the policy described in note 2.16.4, predominantly relate to provisions representing a significant proportion of the aged balances due from a small number of customers with poor payment history. The movement in the allowance for impairment in respect of trade receivables during the year was as follows: 2022 2021 2020 $'000 $'000 $'000 Opening balance 31,063 133,800 133,889 (Decrease)/increase in impairment provision (4,446) (34,031) 13,081 Written-off during the year (312) (67,053) (2,106) Foreign exchange (940) (1,653) (11,064) 25,365 31,063 133,800 (d) Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation. The Group has a clear focus on ensuring sufficient access to capital to finance growth and to refinance maturing debt obligations. As part of the liquidity management process, the Group has various credit arrangements with some banks which can be utilized to meet its liquidity requirements. At the end of the reporting period, the Group had $3.1 billion (2021: $2.7 billion, 2020: $2.3 billion) utilized of $3.7 billion (2021: $3.5 billion, 2020: $2.6 billion) credit facilities with its financiers. Typically, the credit terms with customers are more favorable compared to payment terms from its vendors in order to help provide sufficient cash on demand to meet expected operational expenses, including the servicing of financial obligations. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. The table below analyzes the Group’s financial liabilities including estimated interest payments and excluding the impact of netting agreements into relevant maturity groupings based on the remaining period from the end of the reporting period to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. Within 1 year 2 - 3 years 4 - 5 years Over 5 years Total $'000 $'000 $'000 $'000 $'000 2022 Trade payables (note 21) 442,959 — — — 442,959 Other payables (note 21) 88,676 1,459 — — 90,135 Payroll and other related statutory liabilities (note 21) 45,331 — — — 45,331 Lease liabilities (note 23) 92,417 179,930 168,231 667,954 1,108,532 Bank and bond borrowings 649,110 1,051,663 1,922,606 753,813 4,377,192 1,318,493 1,233,052 2,090,837 1,421,767 6,064,149 2021 Trade payables (note 21) 342,841 — — — 342,841 Other payables (note 21) 78,193 312 — — 78,505 Payroll and other related statutory liabilities (note 21) 53,446 — — — 53,446 Lease liabilities (note 23) 54,303 106,015 99,573 440,986 700,877 Bank and bond borrowings 363,345 657,292 1,008,212 1,515,659 3,544,508 892,128 763,619 1,107,785 1,956,645 4,720,177 (e) The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern in order to provide returns for shareholders and benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the leverage ratio to optimize market pricing, such that Net Debt (loan principal outstanding less cash and cash equivalents) to Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (Adjusted EBITDA) would be within a long term target leverage of 3.0x and 4.0x (2021: 3.0x and 4.0x, 2020: 3.0x and 4.0x), subject to various factors such as the availability and cost of capital and the potential long term return on our discretionary investments. We may fall outside of the target range in the shorter term to accommodate acquisitions or other restructurings. Segment Adjusted EBITDA as defined by the Group is profit/(loss) for the period before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of withholding tax receivables, business combination transaction costs, impairment of property, plant and equipment and related prepaid land rent on the decommissioning of sites, reversal of provision for decommissioning costs, net (profit)/loss on sale of assets, share-based payment (credit)/expense, insurance claims, provisions for bad or doubtful debts related to one Key Customer as a result of its restructuring, listing costs and certain other items that management believes are not indicative of the core performance of its business. The Group’s net leverage ratios are shown in the table below: 2022 2021 $’000 $'000 Bank and bond borrowings (note 22) 3,344,402 2,609,090 Lease liabilities (note 23) 604,529 376,101 Less: Cash and cash equivalents (note 20) (514,078) (916,488) Net debt 3,434,853 2,068,703 Segment Adjusted EBITDA 1,031,386 926,396 Management net leverage ratio 3.3x 2.2x Fair value hierarchy The table below analyzes financial instruments carried at fair value, by valuation method. The different levels have been defined as follows: ● Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). ● Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). ● Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3). The following table presents the Group’s financial instruments that are measured at fair value at December 31, 2022 and 2021. Level 1 Level 2 Level 3 Total 2022 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 10 — — 10 Interest rate caps (note 18) — 821 — 821 Embedded options within listed bonds (note 18) — 5,300 — 5,300 Foreign exchange swaps (note 18) — (1,393) — (1,393) 10 4,728 — 4,738 Level 1 Level 2 Level 3 Total 2021 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 11 — — 11 Embedded options within listed bonds (note 18) — 165,100 — 165,100 Non-deliverable forwards (NDF/NDS) (note 18) — (3,771) — (3,771) 11 161,329 — 161,340 As at the end of the reporting period, the Group has level 1 and level 2 financial instruments. Financial instruments in level 1 The fair value of financial instruments traded in active markets is based on quoted market prices at the reporting date. A market is regarded as active if quoted prices are readily and regularly available from an exchange, dealer, broker, or regulatory agency, and those prices represent actual and regularly occurring market transactions on an arm’s length basis. The quoted market price used for financial assets held by the Group is the current bid price. These instruments are included in level 1. Instruments included in level 1 comprise investment in marketable securities and classified as fair value through other comprehensive income financial assets. Financial instruments in level 2 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques maximize the use of observable market data where it is available and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2. Instruments included in level 2 comprise primarily of Non deliverable forwards (NDF), foreign exchange swaps and options embedded in the bonds. Their fair values are determined based on mark to market values provided by the counterparty financial institutions or valuation techniques using observable market data. Financial instruments in level 3 The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using valuation techniques. These valuation techniques are not based on observable market data and rely on entity or market specific estimates. If all significant inputs required to fair value an instrument are not observable, the instrument is included in level 3. There were no level 3 financial instruments at December 31, 2022 and December 31, 2021. Reconciliation of Level 3 fair value measurements of financial instruments 2022 2021 $'000 $'000 Opening balance at January 1 — 7,285 Recognition of embedded derivatives within revenue contracts — — Change in fair value — (7,231) Foreign exchange translation impact — (54) Closing balance at December 31 — — Fair value estimation 2022 2021 Carrying Carrying value Fair value value Fair value Financial liabilities $'000 $'000 $'000 $'000 Bank and bond borrowings (note 22) 3,344,402 3,116,193 2,609,090 2,668,792 3,344,402 3,116,193 2,609,090 2,668,792 The fair values of non-current liabilities are based on discounted cash flows using a current borrowing rate. The fair value of current assets and current liabilities are not materially different from their carrying values. Financial instruments by category The Group’s financial instruments are categorized as follows: Financial assets Fair value through other Fair value Amortized comprehensive through profit cost income or loss Total $'000 $'000 $'000 $'000 2022 Trade receivables (note 19) 211,025 — — 211,025 Other receivables (note 19) 387,019 — — 387,019 Cash and cash equivalents (note 20) 514,078 — — 514,078 Fair value through other comprehensive income financial assets — 10 — 10 Derivative financial instruments assets (note 18) — — 6,121 6,121 1,112,122 10 6,121 1,118,253 2021 Trade receivables (note 19) 222,789 — — 222,789 Other receivables (note 19) 201,759 — — 201,759 Cash and cash equivalents (note 20) 916,488 — — 916,488 Fair value through other comprehensive income financial assets — 11 — 11 Derivative financial instruments assets (note 18) — — 165,100 165,100 1,341,036 11 165,100 1,506,147 Fair value through other comprehensive income financial assets (IFRS 9) are marketable securities in various financial institutions in Nigeria. Financial liabilities Fair value through profit Amortized cost or loss Total $'000 $'000 $'000 2022 Bank and bond borrowings (note 22) 3,344,402 — 3,344,402 Trade payables (note 21) 442,959 — 442,959 Other payables (note 21) 90,135 — 90,135 Derivative financial instruments liabilities (note 18) — 1,393 1,393 Lease liabilities (note 23) 604,529 — 604,529 4,482,025 1,393 4,483,418 2021 Bank and bond borrowings (note 22) 2,609,090 — 2,609,090 Trade payables (note 21) 342,841 — 342,841 Other payables (note 21) 78,505 — 78,505 Derivative financial instruments liabilities (note 18) — 3,771 3,771 Lease liabilities (note 23) 376,101 — 376,101 3,406,537 3,771 3,410,308 The fair values of non-current liabilities are based on discounted cash flows using a current borrowing rate. The fair values of trade payable and other current liabilities are not materially different from carrying values. |
Segment reporting
Segment reporting | 12 Months Ended |
Dec. 31, 2022 | |
Segment reporting | |
Segment reporting | 5. The Group’s Executive Committee, identified as the chief operating decision maker (“CODM”), reviews and evaluates the Group’s performance from a business perspective according to how the geographical locations are managed. Regional and operating company management are responsible for managing performance, underlying risks, and effectiveness of operations. Regions are broadly based on a scale and geographic basis because the Group’s risks and rates of return are affected predominantly by the fact that the Group operates in different geographical areas, namely Nigeria as the major market, Cameroon, Côte d’Ivoire, Rwanda, South Africa and Zambia, as our Sub Saharan Africa business (“SSA”), Kuwait and Egypt as our Middle East and North Africa business (“MENA”) and Brazil, Colombia and Peru as our Latin America business (“Latam”). The Executive Committee reviews the Company’s internal reporting to assess performance and allocate resources. Management has determined the operating segments based on these reports. The CODM has identified four operating segments: ● Nigeria ● SSA, which comprises operations in Cameroon, Côte d’Ivoire, Rwanda, South Africa and Zambia ● Latam, which comprises operations in Brazil, Colombia and Peru ● MENA, which comprises operations in Kuwait and Egypt. Although full operations in Egypt have not commenced, the business has incurred some startup costs. All operating segments are engaged in the business of leasing tower space for communication equipment and capacity leasing and services on fixed broadband networks to Mobile Network Operators (MNOs) and other customers (internet service providers, security functions or private corporations) and provide managed services in limited situations, such as maintenance, operations and leasing services, for certain towers owned by third parties within their respective geographic areas. However, they are managed and grouped within the four operating segments, which are primarily distinguished by reference to the scale of operations, to the similarity of their future prospects and long-term financial performance (i.e. margins and geographic basis). The CODM primarily uses a measure of Segment Adjusted EBITDA (as defined in note 4(e)) to assess the performance of the business. The CODM also regularly receives information about the Group’s revenue, assets and liabilities. The Group has additional corporate costs which do not meet the quantitative thresholds to be separately reported and which are aggregated in ‘Other’ in the reconciliation of financial information presented below. These include costs associated with centralized Group functions including Group executive, legal, finance, tax and treasury services. There are no revenue transactions which occur between operating segments. Intercompany finance income, finance costs and loans are not included in the amounts below. The segment’s assets and liabilities are comprised of all assets and liabilities attributable to the segment, based on the operations of the segment and the physical location of the assets, including goodwill and other intangible assets and are measured in the same way as in the financial statements. Other assets and liabilities that are not attributable to Nigeria, SSA, Latam and MENA segments consist principally of amounts excluded from specific segments including costs incurred for and by Group functions not attributable directly to the operations of the reportable segments, share-based payment and any amounts due on debt held at Group level as the balances are not utilized in assessing each segment’s performance. Summarized financial information for the year ended December 31, 2022 is as follows: 2022 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,352,402 412,824 160,008 36,065 — 1,961,299 Segment Adjusted EBITDA (note 4(e)) 802,822 230,521 114,434 16,021 (132,412) 1,031,386 Depreciation and amortization (note 7 and 8) (469,250) Net loss on disposal of property, plant and equipment (note 8) (3,382) Insurance claims (note 9) 2,092 Impairment of withholding tax receivables in Nigeria (note 8) (52,334) Impairment of Goodwill (note 8) (121,596) Business combination costs (note 8) (20,851) Impairment of property, plant and equipment and prepaid rental (note 7) (38,157) Other costs (a) (4,873) Share‑based payment expense (note 8) (13,265) Finance income (note 10) 15,825 Finance costs (note 11) (872,029) Other non-operating income (note 9) 2,584 Loss before income tax (543,850) Additions of property, plant and equipment and intangible assets: - through business combinations — 719,837 386,460 3,650 - In the normal course of business 400,430 101,154 135,069 23,532 Segment assets 2,270,656 1,639,384 1,931,317 178,471 Segment liabilities 935,387 914,588 555,885 109,087 (a) Other costs for the year ended December 31, 2022 included $2.3 million costs related to internal restructurings. Summarized financial information for the year ended December 31, 2021 is as follows: 2021 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,146,732 343,945 59,706 29,347 — 1,579,730 Segment Adjusted EBITDA (note 4(e)) 783,544 190,654 42,688 13,085 (103,575) 926,396 Depreciation and amortization (note 7 and 8) (382,882) Net gain on disposal of property, plant and equipment (note 8) 2,499 Insurance claims (note 9) 6,861 Impairment of withholding tax receivables in Nigeria (note 8) (61,810) Business combination costs (note 8) (15,779) Impairment of property, plant and equipment and prepaid rental (note 7) (51,113) Reversal of provision for decommissioning costs 2,671 Listing costs (22,153) Other costs (a) (15,752) Share‑based payment expense (note 8) (11,780) Finance income (note 10) 25,522 Finance costs (note 11) (422,034) Other non-operating income 11,213 Loss before income tax (8,141) Additions of property, plant and equipment and intangible assets: - through business combinations* — — 468,535 — - In the normal course of business 318,971 56,291 103,338 20,725 Segment assets* 2,038,376 1,024,347 1,453,729 173,888 Segment liabilities* 745,944 494,236 393,090 100,947 (b) Other costs for the year ended December 31, 2021 included non-recurring professional costs related to financing of $15.1 million and aborted transaction costs of $0.7 million. * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). Summarized financial information for the year ended December 31, 2020 is as follows: 2020 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,037,836 313,416 30,185 21,712 — 1,403,149 Segment Adjusted EBITDA (note 4(e)) 701,273 170,784 22,696 9,937 (85,676) 819,014 Depreciation and amortization (note 7 and 8) (408,662) Net gain on disposal of property, plant and equipment (note 8) 764 Insurance claims (note 9) 14,987 Impairment of withholding tax receivables in Nigeria (note 8) (31,533) Business combination costs (note 8) (13,727) Impairment of property, plant and equipment and prepaid rental (note 7) (27,594) Listing costs (12,652) Other costs (a) (310) Share‑based payment expense (note 8) (8,342) Finance income (note 10) 148,968 Finance costs (note 11) (633,766) Loss before income tax (152,853) Additions of property, plant and equipment and intangible assets: - through business combinations — — 760,246 112,878 - In the normal course of business 195,692 61,147 31,703 8,465 Segment assets 2,040,911 1,043,669 682,813 142,210 Segment liabilities 747,428 532,801 266,596 92,917 (a) Geographical information: The following countries contribute material revenue and/or have material non-current assets in country as follows: 2022 2021 2020 $’000 $'000 $'000 Revenue Nigeria 1,352,402 1,146,732 1,037,836 Rest of world 608,897 432,998 365,313 1,961,299 1,579,730 1,403,149 Non ‑ current assets* Nigeria 1,597,989 1,572,774 1,654,318 Côte d’Ivoire n.a as less than 10% n.a as less than 10% 330,705 Cameroon n.a as less than 10% n.a as less than 10% n.a as less than 10% Brazil 1,648,863 1,274,378 **/*** 641,253 South Africa 652,599 — — Rest of world 953,607 1,013,385 ** 626,991 4,853,058 3,860,537 3,253,267 * Non-current assets exclude financial instruments, non-current trade and other receivables and deferred tax assets. ** Amount has been re-presented to classify I-Systems Soluções de Infraestrutura S.A. in Brazil rather than rest of world. *** Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). Revenue from two tier one customers represent approximately 10% or more of the Group’s total revenue: 2022 2021 2020 $’000 $'000 $'000 Customer A 62 % 66 % 66 % Customer B 17 % 14 % n.a as less than 10% Customer C n.a as less than 10% n.a as less than 10% 14 % |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2022 | |
Revenue. | |
Revenue | 6. The Group’s revenue accrues from providing telecommunication support services. The Group provides infrastructure sharing and leasing known as colocation (which includes colocation rental revenue and colocation services) and to a limited extent, managed services. 2022 2021 2020 $’000 $'000 $'000 Lease component 1,534,415 1,233,816 1,026,103 Services component 426,884 345,914 377,046 1,961,299 1,579,730 1,403,149 The following table shows unsatisfied performance obligations which represents the services component of future minimum receipts expected from customer under non-cancellable agreements in effect at December 31, as follows: 2022 2021 2020 $’000 $'000 $'000 Within one year 418,137 351,071 343,209 1-2 years 386,416 309,861 331,608 2-3 years 309,326 255,791 291,891 3-4 years 288,244 211,615 258,129 4-5 years 276,816 190,018 214,223 After 5 years 1,149,649 858,912 879,294 2,828,588 2,177,268 2,318,354 The Group leases space on its towers under leases over periods ranging between 5 and 20 years. The lease component of future minimum receipts expected from tenants under non-cancellable agreements in effect at December 31, were as follows: 2022 2021 2020 $’000 $'000 $'000 Within one year 1,589,439 1,284,692 1,011,501 1-2 years 1,478,221 1,177,665 981,778 2-3 years 1,194,924 1,083,942 880,316 3-4 years 1,136,303 847,224 801,452 4-5 years 1,098,901 749,839 625,352 After 5 years 4,008,713 2,703,888 2,594,074 10,506,501 7,847,250 6,894,473 Certain customer contracts allow for the cancellation of a proportion of sites during the contract term without payment of termination penalties. The minimum service and lease revenue in the tables above assumes that each customer will fully utilize this Churn available to them under the contract. Where rentals are denominated in US Dollar, which is not the functional currency of the subsidiary, they have been included in the above table at the exchange rate at the end of the reporting period. |
Cost of sales
Cost of sales | 12 Months Ended |
Dec. 31, 2022 | |
Cost of sales [abstract] | |
Cost of sales | 7. 2022 2021 2020 $'000 $'000 $'000 Tower repairs and maintenance 90,126 74,523 75,931 Power generation 419,151 267,044 216,030 Short term site rental 13,656 11,165 7,543 Short term other rent 2,813 3,419 3,085 Vehicle maintenance and repairs 1,968 2,754 2,754 Site regulatory permits 33,999 41,165 27,313 Security services 43,448 36,132 32,719 Insurance 5,109 4,156 4,695 Staff costs (note 8.3) 33,229 26,323 24,588 Travel costs 5,343 7,155 4,313 Professional fees 3,460 3,385 2,457 Depreciation (note 14)* 411,925 330,799 367,007 Amortization (note 15) 42,050 34,051 32,503 Impairment of property, plant and equipment and prepaid land rent 38,157 51,113 27,594 Other 12,458 14,204 9,891 1,156,892 907,388 838,423 Foreign exchange gains and losses on cost of sales are included in Other. * |
Administrative expenses
Administrative expenses | 12 Months Ended |
Dec. 31, 2022 | |
Administrative expenses. | |
Administrative expenses | 8. 2022 2021 2020 $’000 $'000 $'000 Facilities, short term rental and upkeep 34,203 23,210 12,872 Depreciation (note 14) 9,995 13,917 6,240 Amortization (note 15) 5,280 4,115 2,912 Travel costs 15,535 8,654 6,815 Staff costs (note 8.3) 132,399 101,567 78,376 Key management compensation (note 30.2) 21,703 25,642 13,776 Share-based payment expense (note 8.3 and 28) 13,265 11,780 8,342 Professional fees 38,964 49,685 38,200 Business combination transaction costs 20,851 15,779 13,727 Impairment of withholding tax receivables* 52,334 61,810 31,533 Impairment of goodwill 121,596 — — Net loss/(gain) on disposal of property, plant and equipment 3,382 (2,499) (764) Operating taxes 963 1,561 2,239 Other 30,705 21,290 21,844 501,175 336,511 236,112 * Withholding tax receivables were impaired following the Group’s assessment of the recoverability of withholding tax assets based on a five year cash flow projection and an analysis of the utilization of withholding tax balances against future income tax liabilities. Foreign exchange gains and losses on administrative expenses are included in Other. 8.1 The net credit for the year of $4.4 million (2021: $34.0 million, 2020: expense of $13.1 million) arising in respect of loss allowances for trade receivables represents the net impact of the reversal of allowances made in previous years in respect of balances recovered in the year or no longer considered doubtful partially offset by new or increased provisions for balances now assessed as doubtful. 8.2 2022 2021 2020 $’000 $'000 $'000 Salaries and wages 137,450 106,754 85,690 Pension contribution – employer 9,410 4,854 3,780 Other benefits 18,768 16,282 13,494 Share-based payment expense (note 8.3 and 28) 13,265 11,780 8,342 178,893 139,670 111,306 Other benefits are comprised of employee related insurances, employee training costs, staff entertainment and redundancy costs. 8.3 2022 2021 2020 $’000 $'000 $'000 Cost of sales 33,229 26,323 24,588 Administrative expenses 145,664 113,347 86,718 178,893 139,670 111,306 |
Other income
Other income | 12 Months Ended |
Dec. 31, 2022 | |
Other income. | |
Other income | 9. 2022 2021 2020 $’000 $'000 $'000 Insurance claims 2,092 6,861 14,987 Other income 2,584 11,648 1,425 4,676 18,509 16,412 The 2020 insurance claims includes $8.7 million relating to a one off claim in Cameroon. Other income for the 2021 year mainly relates to the remeasurement of the liabilities for contingent consideration on the Skysites Acquisition and the IHS Kuwait Acquisition. |
Finance income
Finance income | 12 Months Ended |
Dec. 31, 2022 | |
Finance income. | |
Finance income | 10. 2022 2021 2020 $’000 $'000 $'000 Interest income - bank deposits 15,170 7,798 5,101 Net foreign exchange gain arising from derivative instruments - unrealized — — 29,151 Net foreign exchange gain arising from derivative instruments - realized 655 9,889 4,061 Fair value gain on embedded options — 604 110,655 Fair value gain on embedded derivative within revenue contract — 7,231 — 15,825 25,522 148,968 |
Finance Costs
Finance Costs | 12 Months Ended |
Dec. 31, 2022 | |
Finance costs. | |
Finance costs | 11. 2022 2021 2020 $’000 $'000 $'000 Interest expenses - third party loans 256,208 174,876 177,737 Interest expenses - withholding tax paid on bond interest 12,197 4,404 4,509 Unwinding of discount on decommissioning liability 7,084 4,644 2,644 Interest and finance charges paid/payable for lease liabilities 52,214 32,826 27,384 Net foreign exchange loss arising from financing - unrealized 157,836 126,131 363,953 Net foreign exchange loss arising from financing - realized 206,329 43,422 49,564 Fair value loss on embedded options 159,889 — — Costs paid on early loan and bond settlement — 18,171 — Fees on loans and financial derivatives 18,673 13,663 7,806 Fair value loss on embedded derivative within revenue contract — — 169 Net foreign exchange loss on derivative instruments - unrealized 1,599 3,897 — 872,029 422,034 633,766 Net foreign exchange loss arising from financing - unrealized in 2022 is primarily due to significant fluctuations in exchange rates predominantly between the Kwacha and the US Dollar, the Naira and the US Dollar rate and the Brazilian Real and the US Dollar (2021: predominantly from the Kwacha and US Dollar, the Naira and the US Dollar rate and the Brazilian Real and the US Dollar rate. 2020: predominantly from the Kwacha and US Dollar rate and the Naira and the US Dollar rate). This arises on commercial bank and intercompany loans denominated in US Dollars at subsidiary level as a result of loan revaluations in local functional currency at period ends. Refer to note 4(b) for further information. |
Income Tax Expense
Income Tax Expense | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Expense | |
Income Tax Expense | 12. 2022 2021 2020 $’000 $'000 $'000 Current taxes on income 108,842 91,692 95,107 Deferred income taxes (note 16) (182,295) (73,712) 74,722 Total taxes (73,453) 17,980 169,829 Reconciliation of effective tax charge Loss before income tax (543,850) (8,141) (152,853) Tax calculated at domestic tax rates applicable to profits in respective countries (193,607) (4,433) (66,049) Tax effects of: Tax incentives and income not subject to taxation (25,183) (46,175) (34,932) Expenses not deductible for tax purposes 93,687 76,059 82,662 Movement in deferred tax assets not recognized 79,477 74,084 181,403 Change in tax base* (74,291) (86,184) — Prior year (under)/over provision (562) 6,636 478 Goodwill impairment 40,937 — — Withholding tax on distributable profits 5,967 — — Other profit‑related taxes — 5,239 876 Foreign tax credit — — (3,570) Effects of changes in tax rates** (4,845) (5,272) — Non-deductible share-based payment expense — 1,441 1,082 Foreign exchange effects and other differences 4,967 (3,415) 7,879 Total taxes (73,453) 17,980 169,829 Current income tax receivables 1,174 128 — Current income tax payables (70,008) (68,834) (48,703) (68,834) (68,706) (48,703) * Effect of change in tax base of assets in Brazil following the legal merger of acquired businesses and group holding entities in 2022 and 2021. ** The rate of Education Tax, a component of the income tax charge in Nigeria, increased from 2% to 2.5% with effect from the year ended December 31, 2021. The rate applicable to deferred tax decreased from 40% to 35% in Zambia and from 28% to 27% in South Africa with effect from the year ended December 31, 2022. The movement in the current income tax is as follows: At beginning of year (68,706) (48,703) (30,140) Additions through business combination (note 31) — (3,434) (1,538) Charged to profit or loss (108,842) (91,692) (95,107) Paid during the year 51,245 29,147 14,540 Withholding tax netting off 54,878 45,849 59,986 Exchange difference 2,591 127 3,556 At end of year (68,834) (68,706) (48,703) Deferred income tax assets are recognized for deductible temporary differences and tax losses carried forward only to the extent that the realization of the related tax benefits are expected to be met through the reversal of taxable temporary differences and future taxable profits, any deferred tax assets are only recognized to the extent they are expected to reverse in a period when they will be offset by expected reversals in deferred tax liabilities. Refer to note 16 for deferred income tax. |
Loss per share
Loss per share | 12 Months Ended |
Dec. 31, 2022 | |
Loss per share | |
Loss per share | 13. The following table sets forth basic and diluted net income per common share computational data (in thousands, except per share data): 2022 2021 2020 Loss attributable to equity holders ($'000) (470,397) (26,121) (322,682) Less: allocation of loss to non-controlling interest ($'000) (9,959) (289) (688) Loss attributable to IHS common shareholders ($'000) (460,438) (25,832) (321,994) Basic weighted average shares outstanding (‘000)* 330,963 301,185 294,103 Potentially dilutive securities (‘000)* 5,083 20,323 23,246 Potentially dilutive weighted average common shares outstanding (‘000)* 336,046 321,508 317,349 Loss per share: Basic loss per share ($) (1.39) (0.09) (1.09) Diluted loss per share ($) (1.39) (0.09) (1.09) * On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The loss per share is based on the new number of shares. The comparatives have also been adjusted. Refer to note 25 for further information. Potentially dilutive securities represent share-based compensation, but these securities are currently anti-dilutive and thus do not impact diluted loss per share . |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Property, plant and equipment | 14. Total Towers Furniture and Capital (excluding Right- and tower Fiber Land and office Motor work in right-of-use of-use equipment assets buildings equipment vehicles progress asset) asset $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2020 2,527,637 — 51,734 15,877 19,824 85,060 2,700,132 406,897 Additions during the year 10,287 — 768 2,470 2,576 87,014 103,115 72,888 Additions through business combinations (note 31) 144,388 — 566 305 — 4,970 150,229 129,711 Reclassification 91,165 — 887 808 658 (93,518) — — Transfer from advance payments 124,272 — 620 91 — (2,997) 121,986 — Disposals* (23,591) — (1,203) (95) (1,310) — (26,199) (15,721) Effects of movement in exchange rates (214,038) — (5,936) (1,287) (1,600) (5,883) (228,744) (44,181) At December 31, 2020 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 At January 1, 2021 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 Additions during the year 20,995 — 825 5,056 6,012 224,479 257,367 113,722 Additions through business combinations (note 31) **** 77,142 233,809 968 93 — 5,495 317,507 41,709 Reclassification 124,548 23,241 5,999 — — (153,788) — — Transfer from advance payments 111,439 7,862 4,112 — — 3,959 127,372 — Disposals* (21,359) — — (82) (1,825) — (23,266) (18,872) Effects of movement in exchange rates (143,357) (14,222) (3,072) (1,038) (877) (8,438) (171,004) (35,649) At December 31, 2021 *** 2,829,528 250,690 56,268 22,198 23,458 146,353 3,328,495 650,504 At January 1, 2022 2,829,528 250,690 56,268 22,198 23,458 146,353 3,328,495 650,504 Additions during the year ***** (20,994) 70,905 1,489 7,453 6,961 350,512 416,326 100,832 Additions through business combinations (note 31) **** 266,110 — 885 — — — 266,995 477,981 Reclassification 176,625 10,991 1,992 4,231 — (193,839) — — Transfer from advance payments 100,578 16,412 6,754 33 — 2,008 125,785 — Disposals* (239,350) — — (459) (1,286) — (241,095) (17,755) Effects of movement in exchange rates (150,930) 15,184 (3,802) (1,148) (1,856) (17,876) (160,428) (46,917) At December 31, 2022 2,961,567 364,182 63,586 32,308 27,277 287,158 3,736,078 1,164,645 Accumulated depreciation and impairment At January 1, 2020 1,134,484 — 1,163 12,678 14,652 — 1,162,977 37,035 Charge for the year 315,131 — 331 2,547 1,959 — 319,968 54,089 Impairment 26,824 — 421 — — — 27,245 — Disposals* (21,435) — — (41) (1,294) — (22,770) (5,594) Effects of movement in exchange rates (102,812) — (187) (893) (1,049) — (104,941) (4,066) At December 31, 2020 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 At January 1, 2021 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 Charge for the year 272,068 5,366 296 3,806 2,902 — 284,438 60,685 Impairment/(reversal of impairment) 48,391 — (318) — — — 48,073 2,797 Disposals* (14,660) — — (73) (1,816) — (16,549) (8,634) Effects of movement in exchange rates (82,676) (12) (69) (867) (583) — (84,207) (6,459) At December 31, 2021 1,575,315 5,354 1,637 17,157 14,771 — 1,614,234 129,853 At January 1, 2022 1,575,315 5,354 1,637 17,157 14,771 — 1,614,234 129,853 Charge for the year** 268,999 54,152 315 5,800 4,610 — 333,876 88,961 Impairment 34,702 201 — — — — 34,903 3,151 Disposals* (234,117) — — (301) (1,272) — (235,690) (13,237) Effects of movement in exchange rates (83,573) (675) (119) (1,219) (1,100) — (86,686) (8,076) At December 31, 2022 1,561,326 59,032 1,833 21,437 17,009 — 1,660,637 200,652 Net book value At December 31, 2020 1,307,928 — 45,708 3,878 5,880 74,646 1,438,040 468,130 At December 31, 2021 1,254,213 245,336 54,631 5,041 8,687 146,353 1,714,261 520,651 At December 31, 2022 1,400,241 305,150 61,753 10,871 10,268 287,158 2,075,441 963,993 * The disposals value of right-of-use assets represents disposals due to terminated leases and the impact of remeasurement of lease assets as a result of changes in lease terms. ** The charge for the period does not agree to the charge in the consolidated statement of income/(loss) and other comprehensive income/(loss) due to the indirect taxes benefit of $0.9 million (2021: $0.4 million, 2020: $0.8 million) in IHS Brasil Cessão de Infraestruturas S.A. claimed through depreciation over the useful life of the asset. *** Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). **** Includes subsequent asset acquisitions on business combination transactions. *****Includes net movements in assets relating to the decommissioning and site restoration provision. Capital work-in-progress comprises mainly of tower and tower equipment still under construction and not yet available for use. The Group transfers such assets to the appropriate class once they are available for use. There were no qualifying borrowing costs capitalized during the year. The impairment in the year ended December 31, 2022 is primarily driven by the rationalization program agreed with a Key Customer which resulted in the impairment of the related Towers. It was determined that the recoverable amounts were nil and therefore their carrying amounts were written down to the recoverable amount. The impairment losses have been recognized in cost of sales in the consolidated statement of loss and other comprehensive income/(loss). The impairment in the year ended December 31, 2021 relates to towers on certain sites made dormant following the consolidation of customer equipment between sites, such towers being no longer in use and with no installed customer equipment. The carrying value of the “ ” (i) Depreciation expense has been included in cost of sales and administrative expenses in the statement of income and other comprehensive income as below: 2022 2021 2020 $'000 $'000 $'000 Cost of sales (note 7) 411,925 330,799 367,007 Administrative expense (note 8) 9,995 13,917 6,240 421,920 344,716 373,247 (ii) Analysis of right of use assets The carrying value of right of use assets at December 31, 2022 are comprised of vehicles of $3.5 million (2021: $1.8 million, 2020: $1.3 million) and land and building assets, the majority being leased land on which our towers are situated. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and other intangible assets | |
Goodwill and other intangible assets | 15. Customer- Network - related related intangible intangible Goodwill assets assets Licenses Software Total $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2020 518,392 496,990 43,556 14,592 20,902 1,094,432 Additions during the year — — — 4 2,460 2,464 Additions through business combinations (note 31) 232,030 324,290 36,831 — 33 593,184 Disposals — — — (1) (475) (476) Exchange difference (93,915) (88,846) (6,835) 1,201 (829) (189,224) At December 31, 2020 656,507 732,434 73,552 15,796 22,091 1,500,380 At January 1, 2021 656,507 732,434 73,552 15,796 22,091 1,500,380 Additions during the year — — — 3,145 1,909 5,054 Additions through business combinations (note 31)* 156,817 191,332 38,205 — 1,035 387,389 Disposals — — — (18) (723) (741) Exchange difference (33,177) (46,002) (4,555) (1,217) (514) (85,465) At December 31, 2021* 780,147 877,764 107,202 17,706 23,798 1,806,617 At January 1, 2022 780,147 877,764 107,202 17,706 23,798 1,806,617 Additions during the year — — — 14,772 6,413 21,185 Additions through business combinations (note 31) 115,686 178,257 71,028 — — 364,971 Disposals — — — (4) (395) (399) Exchange difference (13,254) (18,723) (4,679) (1,886) (572) (39,114) At December 31, 2022 882,579 1,037,298 173,551 30,588 29,244 2,153,260 Accumulated amortization and impairment At January 1, 2020 251 89,885 15,955 5,067 15,501 126,659 Charge for the year — 26,921 4,070 871 3,553 35,415 Disposals — — — — (475) (475) Exchange difference — (7,091) (1,003) 518 (740) (8,316) At December 31, 2020 251 109,715 19,022 6,456 17,839 153,283 At January 1, 2021 251 109,715 19,022 6,456 17,839 153,283 Charge for the year — 29,037 4,237 978 3,914 38,166 Disposals — — — (15) (726) (741) Exchange difference — (7,184) (1,374) (542) (616) (9,716) At December 31, 2021 251 131,568 21,885 6,877 20,411 180,992 At January 1, 2022 251 131,568 21,885 6,877 20,411 180,992 Charge for the year — 36,169 6,936 2,598 1,627 47,330 Impairment charge for the year** 121,596 — — — — 121,596 Disposals — — — (4) (394) (398) Exchange difference 404 (8,335) (1,245) (395) (313) (9,884) At December 31, 2022 122,251 159,402 27,576 9,076 21,331 339,636 Net book value At December 31, 2020 656,256 622,719 54,530 9,340 4,252 1,347,097 At December 31, 2021 779,896 746,196 85,317 10,829 3,387 1,625,625 At December 31, 2022 760,328 877,896 145,975 21,512 7,913 1,813,624 Network related intangible assets represent future income from leasing excess tower capacity to new tenants. Customer related intangible assets represent customer contracts and relationships. * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). ** The carrying amount of the IHS Latam tower businesses group of CGUs has been reduced to its recoverable amount through the recognition of an impairment loss against goodwill. This loss is included in administrative expenses in the statement of profit or loss. Amortization expense has been included in cost of sales and administrative expenses in the statement of income and other comprehensive income: 2022 2021 2020 $’000 $'000 $'000 Cost of sales (note 7) 42,050 34,051 32,503 Administrative expenses (note 8) 5,280 4,115 2,912 47,330 38,166 35,415 15.1 Management reviews the business performance based on the geographical location of business. It has identified IHS Nigeria Limited, INT Towers Limited, IHS Towers NG Limited, IHS Cameroon S.A., IHS Côte d’Ivoire S.A., IHS Rwanda Limited, IHS Zambia Limited, IHS Kuwait Limited, IHS South Africa Proprietary Limited, the IHS Latam tower businesses and I-Systems Soluções de Infraestrutura S.A. (“I-Systems”) as the main CGUs/Group of CGUs relevant for the allocation of goodwill. IHS Nigeria Limited, INT Towers Limited and IHS Towers NG Limited CGUs related to the Nigeria operating segment, IHS Cameroon S.A, IHS Côte d’Ivoire S.A, IHS Zambia Limited, IHS South Africa Proprietary Limited and IHS Rwanda Limited CGUs related to the SSA operating segment, IHS Kuwait Limited CGU related to the MENA operating segment, and the IHS Latam tower businesses group of CGUs and the I-Systems CGU relate to the Latam operating segment. Goodwill is monitored by management at a CGU/group of CGU level as noted above. The following is a summary of goodwill allocation for each CGU. Effects of Additions through movements in Opening business combinations exchange rates Closing balance (note 31) Impairment and other movements balance $'000 $'000 $'000 $'000 $'000 2022 IHS Nigeria Limited 59,768 — — (3,432) 56,336 INT Towers Limited 214,775 — — (12,316) 202,459 IHS Towers NG Limited 43,138 — — (2,476) 40,662 IHS Cameroon S.A. 44,388 — — (2,647) 41,741 IHS Côte d’Ivoire S.A. 22,012 — — (1,311) 20,701 IHS Zambia Limited 50,709 — — (3,991) 46,718 IHS Rwanda Limited 11,867 — — (681) 11,186 IHS Kuwait Limited 12,369 — — (146) 12,223 IHS South Africa Proprietary Limited — 61,045 — (5,273) 55,772 IHS Latam tower businesses 241,451 54,641 (121,596) 13,076 187,572 I-Systems 79,419 — — 5,539 84,958 779,896 115,686 (121,596) (13,658) 760,328 2021 IHS Nigeria Limited 63,374 — — (3,606) 59,768 INT Towers Limited 227,715 — — (12,940) 214,775 IHS Towers NG Limited 45,741 — — (2,603) 43,138 IHS Cameroon S.A. 48,170 — — (3,782) 44,388 IHS Côte d’Ivoire S.A. 23,888 — — (1,876) 22,012 IHS Zambia Limited 39,907 — — 10,802 50,709 IHS Rwanda Limited 12,319 — — (452) 11,867 IHS Kuwait Limited 13,142 — — (773) 12,369 IHS Latam tower businesses 182,000 75,034 — (15,583) 241,451 I-Systems* — 81,783 — (2,364) 79,419 656,256 156,817 — (33,177) 779,896 2020 IHS Nigeria Limited 71,297 — — (7,923) 63,374 INT Towers Limited 256,149 — — (28,434) 227,715 IHS Towers NG Limited 51,460 — — (5,719) 45,741 IHS Cameroon S.A. 43,933 — — 4,237 48,170 IHS Côte d’Ivoire S.A. 21,787 — — 2,101 23,888 IHS Zambia Limited 60,529 — — (20,622) 39,907 IHS Rwanda Limited 12,986 — — (667) 12,319 IHS Kuwait Limited — 13,143 — (1) 13,142 IHS Latam tower businesses — 218,887 — (36,887) 182,000 518,141 232,030 — (93,915) 656,256 * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). The recoverable amount of each CGU, except for the IHS Latam tower businesses group of CGUs and the I-Systems CGU, was determined based on value in use calculations. The recoverable amount of the IHS Latam tower businesses group of CGUs and the I-Systems CGU was determined based on fair value less costs of disposal. (a) These calculations used pre-tax local currency cash flow projections based on the financial budgets approved by management covering a five-year period. Within the five-year period, revenue growth assumptions are based on past experience and expected future developments in the Group’s CGUs. Cash flows beyond the five-year period were valued using the estimated terminal growth rates stated below. The key assumptions to which the value-in-use calculations are most sensitive are: ● Revenue growth assumptions (taking into account tenancy rates), and the direct effect these have on gross profit margins in the five-year forecast period; ● pre-tax weighted average cost of capital; ● gross margins; and ● terminal growth rates. Pre-tax weighted average cost Terminal Tenancy Gross margins excluding depreciation & of capital growth rate Ratio* amortization* 2022 IHS Nigeria Limited 24.4 % 3.2 % 3.76 x - 7.74 x 62.5 % - 78.7 % INT Towers Limited 25.4 % 3.2 % 3.93 x - 4.79 x 61.7 % - 74.0 % IHS Towers NG Limited 24.9 % 3.2 % 3.65 x - 4.73 x 65.3 % - 72.3 % IHS Cameroon S.A. 13.7 % 4.0 % 2.56 x - 3.10 x 56.6 % - 65.5 % IHS Côte d’Ivoire S.A. 11.0 % 4.0 % 3.35 x - 4.00 x 54.8 % - 61.5 % IHS Zambia Limited 30.2 % 4.0 % 2.61 x - 3.24 x 65.4 % - 72.8 % IHS Rwanda Limited 18.1 % 4.0 % 2.04 x - 2.64 x 69.0 % - 73.2 % IHS South Africa Proprietary Limited 13.9 % 3.3 % 1.25 x - 2.28 x 42.9 % - 66.4 % IHS Kuwait Limited 6.3 % 3.6 % 1.01 x - 1.53 x 56.6 % - 62.6 % 2021 IHS Nigeria Limited 16.1 % 2.7 % 3.32 x - 5.18 x 64.2 % - 79.7 % INT Towers Limited 16.0 % 2.7 % 3.56 x - 4.98 x 67.4 % - 74.9 % IHS Towers NG Limited 16.5 % 2.7 % 3.63 x - 4.44 x 52.3 % - 63.1 % IHS Cameroon S.A. 12.1 % 3.2 % 2.37 x - 2.89 x 57.8 % - 64.6 % IHS Côte d’Ivoire S.A. 9.8 % 3.2 % 3.45 x - 4.46 x 53.8 % - 63.5 % IHS Zambia Limited 24.1 % 2.0 % 2.40 x - 3.30 x 65.2 % - 74.6 % IHS Rwanda Limited 15.5 % 3.2 % 2.04 x - 2.97 x 67.0 % - 73.3 % IHS Kuwait Limited 6.0 % 2.9 % 1.00 x - 1.46 x 52.4 % - 64.9 % 2020 IHS Nigeria Limited 22.6 % 2.7 % 2.59 x - 4.55 x 67.8 % - 82.1 % INT Towers Limited 22.5 % 2.7 % 2.87 x - 5.22 x 73.7 % - 79.9 % IHS Towers NG Limited 23.2 % 2.7 % 2.80 x - 3.02 x 64.4 % - 69.9 % IHS Cameroon S.A. 13.8 % 3.2 % 2.61 x - 3.16 x 55.9 % - 61.0 % IHS Côte d’Ivoire S.A. 10.0 % 3.2 % 3.44 x - 4.56 x 57.5 % - 61.6 % IHS Zambia Limited 32.2 % 3.2 % 2.21 x - 2.93 x 68.4 % - 75.8 % IHS Rwanda Limited 17.0 % 3.2 % 2.13 x - 2.60 x 65.9 % - 69.8 % IHS Kuwait Limited 5.0 % 2.8 % 1.00 x - 1.46 x 45.3 % - 59.2 % * Management has considered and assessed reasonably possible changes for key assumptions on all markets. Any one of the following changes in assumptions could represent a reasonably possible scenario: - 1% increase in the post-tax discount rate - 1% decrease in the terminal growth rate - 50% decrease in tenancy growth - 10% decrease in gross margin None of these reasonably possible scenarios would result in an impairment of any CGU except for IHS South Africa Proprietary Limited (2021: None). Each of the above scenarios when applied to IHS South Africa Proprietary Limited would result in the following impairment charge: 1% increase 1% decrease 50% decrease 10% decrease in post-tax in terminal in tenancy in gross discount rate growth rate growth margin $'000 $'000 $'000 $'000 IHS South Africa Proprietary Limited 68,724 45,732 155,908 77,017 The changes that would cause an impairment for the other CGUs are set out below: Sensitivity analysis IHS IHS Nigeria INT Towers IHS Towers Cameroon IHS Côte IHS Zambia IHS Rwanda IHS Kuwait Limited Limited NG Limited S.A. d’Ivoire S.A. Limited Limited Limited % Rise in discount rate Increase by 41.8pp Increase by 19.4pp Increase by 5.6pp Increase by 3.2pp Increase by 9.5pp Increase by 4.2pp Increase by 7.7pp Increase by 3.3pp Decrease in tenancy ratio Decrease by an average of 3.5 x over 4 years Decrease by an average of 1.5 x over 4 years Decrease by an average of 0.8 x over 4 years Decrease by an average of 0.42 x over 4 years Decrease by an average of 1.31 x over 4 years Decrease by an average of 0.27 x over 4 years Decrease by an average of 0.61 x over 4 years Decrease by an average of 0.51 x over 4 years Gross margin (excluding depreciation and amortization) Decrease by an average of 44.1 pp over 4 years Decrease by an average of 26.5 pp over 4 years Decrease by an average of 11.9 pp over 4 years Decrease by an average of 12.1 pp over 4 years Decrease by an average of 28.4 pp over 4 years Decrease by an average of 7.8 pp over 4 years Decrease by an average of 21.6 pp over 4 years Decrease by an average of 27.9 pp over 4 years Decrease in terminal growth rate Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % (b) December 31, 2022 The recoverable amounts of the IHS Latam tower businesses group of CGUs and the I-Systems CGU were based on fair value less costs of disposal. Fair value less costs of disposal is determined on the basis of the income approach, discounting estimated future net local currency cash flows that reflects current market expectations. The key assumptions to which the fair value less costs of disposal calculation for the Latam tower businesses are most sensitive are: ● revenue growth assumptions (taking into account tenancy growth) and the direct effect these have on gross profit margins in the ten-year forecast period for the IHS Latam tower businesses group of CGUs; ● revenue growth assumptions (including homes connected) and the direct effect these have on gross profit margins in the ten-year forecast period for the I-Systems CGU; ● discount rates (being post-tax weighted average cost of capital); ● estimated costs of disposal based on management’s experience of previously completed business combinations; and ● terminal growth rates. 2022 Discount rate Terminal growth rate Tenancy growth* Homes connected Cost of disposal IHS Latam tower businesses 10.1 % 4.1 % 9.8 % n.a 0.5 % I-Systems 9.6 % 4.3 % n.a 1 million - 3.6 million 0.5 % *Tenancy growth disclosed is for the average annual growth rate for tenancies over the forecast period 2023 – 2032. An impairment loss of $121.6 million was recognized in the IHS Latam Tower business group of CGUs due to macroeconomic conditions which have deteriorated over the last year, increasing the discount rate, and a reduction in the cash flows in the outer years of the forecast used for impairment testing. Management has determined the reasonably possible changes in key assumptions as follows: - 1% increase in the post-tax discount rate - 1% decrease in the terminal growth rate - 15% decrease in tenancy growth - 15% decrease in growth in homes connected For the Latam Towers businesses group of CGUs these reasonably possible change scenarios would individually increase the impairment charge recognized as follows: 1% increase 1% decrease 15% decrease in post tax in terminal in tenancy discount rate growth rate growth $'000 $'000 $'000 Latam Towers businesses 174,000 108,000 113,000 For the I-Systems CGU management has concluded that no reasonably possible scenario could give rise to an impairment. Individually, the changes that would cause an impairment are set out below: % rise in % decrease in % decrease in discount homes terminal rate connected growth rate I-Systems 2.2% 45.0% 3.8% December 31, 2021 Fair value less costs of disposal is determined on the basis of information observed or derived from recent comparable transactions, including in respect of the IHS Latam tower businesses, tower cash flow multiples. The key assumptions to which the fair value less costs of disposal calculation for the Latam tower businesses group of CGUs is most sensitive are: ● monthly tower cash flow for the Latam tower businesses group of CGUs determined on the basis of contractual revenues and gross margin percentage for existing towers at December 31, 2021; ● tower cash flow multiples determined from analysis of information available relating to recent comparable transactions; and ● estimated costs of disposal based on management’s experience of previously completed business combinations. The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used. Valuation technique Significant unobservable inputs Sensitivity of the input to fair value Recent transactions, Tower cash flow market multiples ● Monthly tower cash flow: $2.6 million (2020: $1.6 million) ● Multiple: 22.0 x (2020: 22.0 x) ● Costs of disposal: 0.82% of enterprise value (2020: 1.2% ) ● Decrease by $327,000 ● Decrease by 2.63 x ● Increase by 11.95% of enterprise value As can be seen from the analysis above, the valuation derived from the fair value calculation exceeds the carrying amount by a very small margin. Should market participant sentiment alter in future such that the market is viewed as less attractive, it is likely that the comparable transaction multiple would fall and that would result in an impairment. I-Systems was purchased on November 16, 2021. The post-acquisition performance of the business (including key non-financial metrics such as homes passed and homes connected) is in line with management’s forecasts such that the purchase price paid for the business is considered to remain the best estimate of fair value at December 31, 2021. |
Deferred income tax
Deferred income tax | 12 Months Ended |
Dec. 31, 2022 | |
Deferred income tax | |
Deferred income tax | 16. 2022 2021 $’000 $'000 Deferred income tax assets 78,394 11,064 Deferred income tax liabilities* (186,261) (169,119) Net deferred tax liabilities (107,867) (158,055) Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current tax liabilities and when the deferred income taxes related to the same fiscal authority and are classified on a net basis within either deferred tax assets or deferred tax liabilities. These net country amounts are aggregated according to their asset or liability position and presented as then aggregated in the statement of financial position: 2022 2021 $’000 $'000 Deferred income tax assets Property, plant and equipment (6,351) 1,678 Intangible assets 20,313 (6,231) Provisions 13,788 13,064 Tax losses 28,443 240 Other 22,201 2,313 Total 78,394 11,064 2022 2021 $'000 $'000 Deferred income tax liabilities Property, plant and equipment* (147,364) (147,733) Intangible assets* (199,064) (159,907) Provisions 38,837 36,397 Unrealized derivative income (337) (48,077) Timing differences on loans 19,071 33,192 Unrealized foreign exchange 12,150 21,010 Tax losses 11,170 3,450 Unutilized capital allowances 79,110 89,157 Other 166 3,392 Total (186,261) (169,119) The Group has recognized deferred tax with respect to losses of $39.6 million. None of this amount is due to expire under the relevant tax laws. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflects uncertainty related to income taxes, if any. Other including Provisions/ Unrealized Property, share ‑ based exchange plant and payments Intangible Loans and differences equipment obligation assets derivatives /tax losses Total Net deferred income tax $'000 $'000 $'000 $'000 $'000 $'000 At January 1, 2020 (106,060) 29,279 (121,721) (11,697) 195,262 (14,937) Additions through business combinations (note 31)* (3,378) 2,182 (103,638) — 6,165 (98,669) Tax (charge)/income (46,364) 35,089 11,030 (16,444) (58,033) (74,722) Effects of movement in exchange rates 2,721 (407) 22,442 2,087 (2,256) 24,587 At December 31, 2020 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) At January 1, 2021 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) Additions through business combinations (note 31)* (6,065) — (73,330) — — (79,395) Tax income/(charge) 2,078 (11,922) 85,254 9,295 (10,989) 73,716 Effects of movement in exchange rates 11,014 (4,759) 13,806 1,874 (10,570) 11,365 At December 31, 2021 (146,054) 49,462 (166,157) (14,885) 119,579 (158,055) At January 1, 2022 (146,054) 49,462 (166,157) (14,885) 119,579 (158,055) Additions through business combinations (note 31) (61,184) — (77,919) — — (139,103) Tax income 47,148 5,324 58,054 32,969 38,800 182,295 Effects of movement in exchange rates 6,375 (2,161) 7,271 650 (5,139) 6,996 At December 31, 2022 (153,715) 52,625 (178,751) 18,734 153,240 (107,867) Deferred income tax assets are recognized for deductible temporary differences and tax losses carried forward only to the extent that the realization of the related tax benefits are expected to be met through the reversal of taxable temporary differences and future taxable profits. The Group has $1.8 billion (2021: $1.8 billion, 2020: $1.6 billion) in deductible temporary differences for which no deferred tax is recognized. Of this amount, $222.3 million (2021: $230.9 million, 2020: $383.8 million), $180.0 million (2021: $191.0 million, 2020: $195.6 million) and $274.3 million (2021: $298.1 million, 2020: $nil) and $99.4 million (2021: $nil, 2020: $nil) will expire on December 31, 2024, December 31, 2025, December 31, 2026 and December 31, 2027 respectively. At the end of the reporting period, there were material temporary differences associated with undistributed earnings of subsidiaries, of which deferred tax liabilities of $5.1 million have been recognized on December 31, 2022. * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Inventories | 17. 2022 2021 $'000 $'000 Stock of materials 74,216 42,021 Inventories are measured at lower of cost and net realizable value. Diesel inventory is held at cost, consumables are held at cost less provision for obsolescence. During the year, an inventory write-down expense of $1.7 million was recognized (2021: $0.1 million, 2020: $4.7 million). The value of inventory recognized as an expense during the year is $371.8 million (2021: $267.5 million, 2020: $216.3 million). |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative financial instruments | |
Derivative financial instruments | 18. The derivative instruments have been classified as fair value through profit or loss. The instruments are measured at fair value with the resultant gains or losses recognized in the statement of loss and other comprehensive income/(loss). The related net foreign exchange gain/(loss) is included in finance income (note 10) and finance costs (note 11). The underlying contractual notional amount for the derivative instruments is as follows, as of December 31, of each of the following years: 2022 2021 $'000 $'000 Derivative instruments Foreign exchange swaps/non‑deliverable forwards 160,448 124,023 Embedded options within listed bonds 1,940,000 1,940,000 2,100,448 2,064,023 The fair value balances are as follows: 2022 2021 $'000 $'000 Derivative instruments Foreign exchange swaps/non‑deliverable forwards (1,393) (3,771) Interest rate caps 821 — Embedded options within listed bonds 5,300 165,100 4,728 161,329 The change in fair value of the derivative instruments has been recorded in the statement of loss and other comprehensive income/(loss) as follows: 2022 2021 2020 $'000 $'000 $'000 Derivative instruments Foreign exchange swaps/non‑deliverable forwards (1,599) (3,897) 29,151 Interest rate caps (89) — — Embedded options within listed bonds (159,889) 604 110,655 Embedded options within revenue contracts — 7,231 (169) (161,577) 3,938 139,637 The credit ratings of the Group’s derivative financial instrument assets at December 31, 2022 and 2021 based on publicly reported Fitch ratings were: 2022 2021 $'000 $'000 Derivative financial instrument assets Not rated 6,121 165,100 6,121 165,100 Refer to note 4(a) for further information on the derivative financial instruments. Reconciliation of movements 2022 2021 $'000 $'000 Foreign exchange swaps/non-deliverable forwards Opening balance (3,771) 27,495 Fair value loss (unrealized foreign exchange on open contracts) (1,599) (3,897) Foreign exchange gain 780 10,342 Cash flow on settlement 3,197 (37,711) (1,393) (3,771) |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables | |
Trade and other receivables | 19. 2022 2021 $’000 $'000 Current Trade receivables 236,390 253,852 Less: impairment provisions (25,365) (31,063) Net trade receivables* 211,025 222,789 Other receivables**/**** 387,019 201,759 Prepaid land rent 1,030 1,069 Other prepaid expenses 26,820 25,080 Advance payments 22,076 14,663 Withholding tax receivables 1,201 992 VAT receivables 14,296 5,401 663,467 471,753 Non-current Accrued income and lease incentive 35,321 21,408 Other tax receivables 5,945 — Payment in advance for property, plant and equipment 83,118 48,071 Contingent consideration receivable***/**** 5,963 5,575 130,347 75,054 * The fair value is equal to their carrying amount. ** Other receivables are margins on non-deliverable forward contracts and short-term fixed deposits which are not classified as cash and cash equivalents as it exceeds the three-month maturity period. *** Refer to the I-Systems Soluções de Infraestrutura S.A. acquisition in note 31. The balance increased since acquisition due to foreign exchange movements. **** Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). Included in trade receivables is $86.2 million (2021: $103.4 million, 2020: $90.0 million) relating to accrued revenue of which $17.7 million (2021: $22.2 million, 2020: $23.2 million) relates to contract assets, with the remainder being accrued lease rental income. Payment in advance for property, plant and equipment relates to the future supply of tower and tower equipment and fiber assets. All non-current receivables are due within twenty years from the end of the reporting period. All current trade and other receivables are due within 12 months from the end of the reporting period. The Group does not secure any collateral for its trade receivables. Refer to note 4 (c) for further information on trade and other receivables. Prepaid land rent is capitalized to the right of use asset insofar as it relates to leases accounted for under IFRS 16. The prepaid land rent for leases that are exempt from being accounted for under IFRS 16 under the Group’s accounting policy are accounted for as short-term prepayments. |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents. | |
Cash and cash equivalents | 20. 2022 2021 $’000 $'000 Cash at bank 514,078 916,488 Cash and cash equivalents 514,078 916,488 The credit ratings of the Group’s principal banking partners at December 31, 2022 and 2021 based on publicly reported Fitch ratings as shown below. The Group regularly monitors its credit risk with banking partners and did not incur any losses during 2022 and 2021 as a result of bank failures. 2022 2021 $’000 $'000 Cash and cash equivalents AAA (F1+) 20,916 127,781 A+ 22,790 — A (F1) 244,483 628,033 BBB+ 506 — BBB — 3,143 BBB- 115 162 B 217,335 157,277 B- 7,242 — C — 67 Not rated 691 25 514,078 916,488 |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other payables. | |
Trade and other payables | 21. 2022 2021 $’000 $'000 Current Trade payables 442,959 342,841 Deferred revenue 86,363 20,435 Withholding tax payable 5,820 4,517 Payroll and other related statutory liabilities 45,331 53,446 VAT payables 51,103 37,973 Other payables 37,573 40,220 669,149 499,432 Non-current Other payables 1,459 312 1,459 312 * Included in deferred revenue is $22.9 million (2021: $2.8 million, 2020: $0.6 million) which relates to contract liabilities. The contract liabilities relating to December 31, 2021 were fully recognized in revenue during the year end December 31, 2022. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings. | |
Borrowings | 22. 2022 2021 $’000 $'000 Non-current Senior Notes 1,920,783 1,916,062 Bank borrowings 985,505 485,409 2,906,288 2,401,471 Current Senior Notes 27,060 27,195 Bank borrowings 213,576 177,216 Letters of credit 197,478 3,208 438,114 207,619 Total borrowings 3,344,402 2,609,090 Reconciliation of cash and non-cash changes 2022 2021 2020 $’000 $’000 $’000 Opening balance – January 1 2,609,090 2,203,209 2,055,878 Additions through business combination (note 31) — 6,457 46,356 Interest expense (note 11) 256,208 174,876 177,737 Interest paid (234,567) (168,285) (167,938) Bank loans and bond proceeds received (net of transaction costs) 1,263,272 1,076,063 232,219 Bank loans and bonds repaid (506,504) (653,504) (99,903) Bank overdraft — 3,208 — Other transaction costs (19,911) (38,597) (5,561) Foreign exchange and other movements (23,186) 5,663 (35,579) Closing balance – December 31 3,344,402 2,609,090 2,203,209 22.1 Debt is made up of the following: 2022 2021 Currency Maturity date Interest rate $’000 $’000 Senior notes IHS Holding Limited US Dollar 2026 5.63 % 497,861 496,850 IHS Holding Limited US Dollar 2028 6.25 % 497,979 497,367 IHS Netherlands Holdco B.V. US Dollar 2027 8.00 % 952,003 949,042 Bank borrowings IHS Holding Term Loan US Dollar 2025 3.75 % + CAS + 3M SOFR 368,630 — IHS (Nigeria) Limited Nigerian Naira 2023 12.50 -18.00% 57,448 — INT Towers Ltd Nigerian Naira 2024 2.50 % + 3M NIBOR 191,188 284,882 INT Towers Ltd US Dollar 2024 4.25 % + 3M LIBOR — 92,769 IHS Côte d'Ivoire Ltd CFA Franc 2024 5.00 % 18,854 31,627 IHS Côte d'Ivoire Ltd Euro 2024 3.00 % + 3M EURIBOR 14,217 24,156 IHS Zambia Ltd US Dollar 2027 5.00 % + 3M LIBOR 94,596 93,164 IHS Brasil - Cessão de Infraestruturas S.A. Brazilian Real 2029 3.65 % + CDI 68,591 69,768 IHS Brasil - Cessão de Infraestruturas S.A. Brazilian Real 2028 3.05 % + CDI 82,928 — I-Systems Soluções de Infraestrutura S.A. Brazilian Real 2030 2.45 % + CDI 38,542 — IHS Kuwait Limited Kuwait Dinar 2029 2.00 % + 3M KIBOR 66,251 66,257 IHS Towers South Africa Proprietary Limited South African Rand 2029 2.75 % + 3M JIBAR 197,836 — Letters of credit IHS (Nigeria) Limited US Dollar 2023 8.95 - 12.05% 66,047 — INT Towers Ltd US Dollar 2023 9.50 - 11.70% 128,063 — ITNG Limited US Dollar 2023 12.05 % 987 — Global Independent Connect Limited US Dollar 2023 12.05 % 1,330 — Global Independent Connect Limited Chinese Yuan 2023 8.97 % 1,051 3,208 3,344,402 2,609,090 i. IHS Holding Limited At December 31, 2022, there was an aggregate principal amount outstanding of the $500 million 5.625% Senior Notes due 2026 (the “2026 Notes”) and the $500 million 6.250% Senior Notes due 2028 (the “2028 Notes”), in each case issued by the Company and which listed on The International Stock Exchange (TISE). These notes were originally issued on November 29, 2021 and are guaranteed by certain other members of the group. The 2026 Notes and 2028 Notes have a tenor of five years and seven years, respectively, interest is payable semi-annually in arrear on May 29 and November 29 of each year, beginning on May 29, 2022 and the principal is repayable in full on maturity. The 2026 Notes and 2028 Notes have early redemption features whereby IHS Holding Limited has the right to redeem the relevant notes before the maturity date, and the holders hold a right to request the early settlement of the Notes, in certain circumstances. The value of these options are disclosed in note 18. IHS Netherlands Holdco B.V. At December 31, 2022, there was an aggregate principal amount outstanding of $940 million of the 8.0% Senior Notes due 2027 (the “2027 Notes”) issued by IHS Netherlands Holdco B.V., and which are listed on The International Stock Exchange (TISE). IHS Netherlands Holdco B.V. initially issued $800 million in aggregate principal amount of the 2027 Notes pursuant to a Senior Notes Indenture dated September 18, 2019 between, inter alios, In June 2021, pursuant to a successful consent solicitation, IHS Netherlands Holdco B.V. also effected certain amendments to the indenture governing the notes to, among other things, expand the “restricted group” to encompass IHS Holding Limited (as parent guarantor) and all of IHS Holding Limited’s subsidiaries (which would then be subject to the covenants and events of default under the indenture), and to make certain other consequential changes to the negative covenants and restrictions resulting from the larger group structure. The 2027 Notes have a tenor of eight years from September 18, 2019, with interest payable semi-annually in arrear on March 18 and September 18 of each year, beginning on March 18, 2020 and principal repayable in full on maturity. The 2027 Notes have early redemption features whereby the issuer has the right to redeem the relevant notes before the maturity date, and the holders hold a right to request the early settlement of the Notes, in certain circumstances. The value of these options are disclosed in note 18. ii. The Group is in compliance with the restrictive debt covenants related to the listed bonds and covenants related to external borrowings as at year end. IHS Holding (2020) Revolving Credit Facility IHS Holding Limited entered into a $270.0 million revolving credit facility agreement, originally dated March 30, 2020 (as amended and/or restated from time to time, including pursuant to an amendment and restatement agreement dated June 2, 2021) (the “IHS Holding RCF”) and entered into between, amongst others, IHS Holding Limited as borrower, IHS Netherlands Holdco B.V., IHS Netherlands NG1 B.V., IHS Towers NG Limited, IHS Netherlands NG2 B.V., Nigeria Tower Interco B.V., INT Towers Limited and IHS Nigeria as guarantors, Citibank Europe PLC, UK Branch as facility agent and certain financial institutions listed therein as original lenders. In September 2022, in accordance with the terms of the agreement, the IHS Holding RCF termination date was extended for a period of two years after its original termination date to 30 March 2025. As of December 31, 2022, the IHS Holding RCF remained undrawn and had $270.0 million in available borrowing capacity, which could be increased to up to $300.0 million. IHS Holding (2021) Bridge Facility IHS Holding Limited entered into a $500.0 million bridge facility agreement originally dated August 10, 2021 (as amended and/or restated from time to time, the “IHS Holding Bridge Facility”). The IHS Holding Bridge Facility is denominated in U.S. dollars and is governed by English law. Funds borrowed under the IHS Holding Bridge Facility could only be applied toward certain acquisitions listed therein. The interest rate under the IHS Holding Bridge Facility was equal to a compounded reference rate based on SOFR (calculated on a five The IHS Holding Bridge Facility termination date was extended for a period of six months after its original termination date to February 10, 2023. In May 2022, the total commitments under the IHS Holding Bridge Facility were reduced by $38.6 million. As at December 31, 2022, this facility has been fully repaid. IHS Holding (2022) Bullet Term Loan Facility IHS Holding Limited entered into a $600.0 million term loan agreement on October 28, 2022 (as amended and/or restated from time to time, the “IHS Holding 2022 Term Loan”). The interest rate per annum applicable to loans made under the IHS Holding 2022 Term Loan is equal to Term SOFR, a credit adjustment spread plus a margin of 3.75% per annum. IHS Holding Limited also pays certain other fees and costs, including fees for undrawn commitments, arrangement fees and fees to the facility agent. The IHS Holding 2022 Term Loan is denominated in U.S. dollars and is governed by English law. As of December 31, 2022, $370.0 million of the IHS Holding 2022 Term Loan was drawn. The majority of the proceeds of the drawdown were applied toward the prepayment of the IHS Holding Bridge Facility of $280.0 million (plus accrued interest) and the U.S. dollar tranche of the Nigeria 2019 Facility of $75.6 million (plus accrued interest and break costs). The undrawn portion can be applied toward general corporate purposes and is available for up to 12 months from the date of the agreement. Nigeria (2019) term loan IHS Netherlands Holdco B.V., IHS Nigeria, IHS Towers NG Limited, INT Towers and IHS Holding Limited entered into a term loan agreement, originally dated September 3, 2019 (and as amended and/or restated from time to time, including pursuant to an amendment and restatement agreement dated September 29, 2021) (the “Nigeria 2019 Facility”), and between, amongst others, IHS Netherlands Holdco B.V. as holdco and guarantor; IHS Nigeria, IHS Towers NG Limited and INT Towers as borrowers and guarantors; each of IHS Holding Limited, IHS Netherlands NG1 B.V., IHS Nigeria, IHS Netherlands NG2 B.V., IHS Towers NG Limited, Nigeria Tower Interco B.V. and INT Towers as guarantors; Ecobank Nigeria Limited as agent and certain financial institutions listed therein as original lenders. In November 2022, we prepaid the full remaining principal amount of the U.S. dollar tranche of the loan of $75.6 million (plus accrued interest and break costs) using the proceeds received following the initial drawdown under the IHS Holding 2022 Term Loan. As of December 31, 2022, the Naira facility had ₦88.3 billion (approximately $191.4 million) outstanding. IHS (Nigeria) Local Facilities IHS (Nigeria) Limited has entered into two local currency facilities, each governed by Nigerian law, as follows: a) a NGN 16.1 billion (approximately $34.9 million) facility in March 2022 and guaranteed by each of IHS Holding Limited, INT Towers Limited and IHS Towers NG Limited. The applicable interest rate is 12.5% per annum and funds borrowed under the facility are to be applied towards general corporate purposes (the “IHSN NG1 Facility”). The IHSN NG1 Facility will terminate in March 2023 and was fully drawn down in April 2022; and b) a NGN 10.0 billion (approximately $21.7 million) facility in May 2022 and guaranteed by each of IHS Holding Limited, INT Towers Limited and IHS Towers NG Limited (the “IHSN NG2 Facility” and, together with the IHSN NG1 Facility, the “IHS Nigeria Local Facilities”). The applicable interest rate is 18.0% per annum and funds borrowed under the facility are to be applied towards working capital requirements. The IHSN NG2 Facility will terminate in July 2023 and was fully drawn down in July 2022. IHS Côte d’Ivoire S.A. Facility On June 2022, the IHS Côte d’Ivoire S.A. Facility was amended and restated. As a result of the amendment and restatement, the termination date has been extended to June 2024 with the facility fully drawn down in 2017. IHS Brasil - Cessão de Infraestruturas S.A. Facilities IHS Brasil - Cessão de Infraestruturas S.A. also entered into a BRL 495.0 million (approximately $94.9 million) credit agreement originally dated April 18, 2022 (as amended and/or restated from time to time, the “GTS Facility”), which is guaranteed by Skysites Americas S.A., IHS Centennial Brasil Torres de Telecomunicacoes Ltda and IHS SP Locação de Infraestrutura Ltd. The GTS Facility has an interest rate of CDI plus a margin of 3.05% (assuming a 252-day calculation basis) and will terminate in April 2028. The GTS Facility was fully drawn down in April 2022. I-Systems Facility I-Systems Soluções de Infraestrutura S.A. (I-Systems) entered into a BRL 200.0 million (approximately $38.3 million) credit agreement, originally dated October 3, 2022 (as amended and/or restated from time to time, the “I-Systems Facility”). The I-Systems Facility has an interest rate of CDI plus 2.45% (assuming a 252-day calculation basis), will terminate in October 2030. The facility was fully drawn down in October 2022. On October 13, 2022, Itaú Unibanco S.A. provided an additional commitment in an aggregate amount of BRL 200.0 million (approximately $38.3 million) on the same terms, available in two tranches. The first tranche of BRL 80.0 million (approximately $15.3 million) was drawn down in February 2023 with an interest rate of CDI plus 2.45% (assuming a 252-day calculation basis), and the second tranche is available to draw down until March 31, 2023 with an interest rate of CDI plus 2.50% (assuming a 252-day calculation basis). Commitment fees of between 2.00% and 2.15% p.a. are payable quarterly on undrawn amounts. IHS South Africa Facility IHS Towers South Africa Proprietary Limited (“IHS SA”) entered into a ZAR 3,470.0 million (approximately $204.3 million) facility agreement originally dated May 26, 2022 (as amended and/or restated from time to time) (the “IHS SA Facility”), with, amongst others, certain financial institutions listed therein as original lenders. The IHS SA Facility is governed by South African law and funds borrowed under the facility were partly applied toward the payment of consideration owed pursuant to the MTN SA Acquisition. The undrawn portion can be applied toward capital expenditure and general corporate purposes and is available for up to 24 months from the signature date of the agreement. The IHS SA Facility has an interest rate of 2.75% plus 3 Month JIBAR, and contains customary information and negative covenants, as well as requirements for IHS SA to observe certain customary affirmative covenants (subject to certain agreed exceptions and materiality carve-outs) and maintain specified net debt to EBITDA ratios and interest coverage ratios. The IHS SA Facility will terminate in May 2029. As of December 31, 2022, ZAR 3,400.0 million (approximately $200.2 million) of this facility has been drawn. IHS Kuwait Facility On August 17, 2022, IHS Kuwait Limited drew down a further KWD 0.3 million (approximately $1.0 million), from its available credit line pursuant to the loan agreement originally dated April 19, 2020 with a total commitment of the KWD equivalent of $85.0 million. This facility will terminate in April 2029, and as at December 31, 2022, KWD21.5 million (approximately $70.0 million) of this facility was drawn down. iii. Letters of credit As of December 31, 2022, IHS (Nigeria) has utilized $66.0 million through funding under agreed letters of credit. These letters mature at various dates during 2023 and their interest rates range from 8.95% to 12.05%. These letters of credit are utilized in order to fund capital and operating expenditure purchases with suppliers. As of December 31, 2022, INT Towers Limited has utilized $128.1 million through funding under agreed letters of credit. These letters mature at various dates during 2023 and their interest rates range from 9.5% to 11.7%. These letters of credit are utilized in order to fund capital and operating expenditure purchases with suppliers. As of December 31, 2022, ITNG Limited has utilized $1.0 million through funding under agreed letters of credit. These letters mature at various dates during 2023 and incur interest at a rate of 12.05%. These letters of credit are utilized in order to fund capital and operating expenditure purchases with suppliers. As of December 31, 2022, Global Independent Connect Limited has utilized $2.4 million through funding under agreed letters of credit. These letters mature at various dates during 2023 and their interest rates range from 8.97% to 12.05%. These letters of credit are utilized in order to fund capital and operating expenditure purchases with suppliers. |
Lease liabilities
Lease liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Lease liabilities. | |
Lease liabilities | 23. See accounting policy in note 2.7 Leases 2022 2021 $’000 $’000 Current 87,240 50,560 Non-current 517,289 325,541 Total lease liabilities 604,529 376,101 Lease liabilities represent the net present value of future payments due under long term land leases for leasehold land on which our towers are located and for other leasehold assets such as warehouses and offices. During the period, payments to the value of $112.8 million (2021: $96.2 million, 2020: $58.4 million) were made in respect of recognized lease liabilities. These lease liabilities are unwound using incremental borrowing rates which represent the credit risk of the lessee entity and the length of the lease agreement. Reconciliation of cash and non-cash changes 2022 2021 2020 $’000 $’000 $’000 At January 1 376,101 314,747 184,494 Additions through business combinations (note 31) 215,597 44,557 131,651 Additions through new leases or remeasurements 118,609 131,438 65,070 Interest and finance charges for lease liabilities (note 11) 52,214 32,826 27,384 Payments for the principal of lease liabilities (76,629) (63,324) (39,153) Interest paid for lease liabilities (36,178) (32,923) (19,239) Remeasurements or terminations* (37,718) (30,978) (15,380) Effects of movement in exchange rates (7,467) (20,242) (20,080) Closing balance – December 31 604,529 376,101 314,747 * Amount recognized in the statement of income 2022 2021 2020 $'000 $'000 $'000 Interest on lease liabilities (note 11) 52,214 32,826 27,384 Expenses relating to short term leases and low value assets (note 7) 16,469 11,165 7,543 Depreciation for right of use assets (note 14) 88,961 60,685 54,089 Total for the year ended 157,644 104,676 89,016 As at December 31 the contractual maturities of the lease liabilities were as follows: Total Carrying contractual Within 2 - 3 4 – 5 Over 5 value cash flows 1 year years years years $'000 $'000 $'000 $'000 $'000 $'000 2022 Lease liabilities 604,529 1,108,532 92,417 179,930 168,231 667,954 2021 Lease liabilities 376,101 700,877 54,303 106,015 99,573 440,986 Lease obligation contractual cash flows are disclosed with the same renewal expectation assumption assessed for lease accounting under IFRS 16. The average remaining lease term remaining at December 31, 2022 is 12.4 years. |
Provisions for other liabilitie
Provisions for other liabilities and charges | 12 Months Ended |
Dec. 31, 2022 | |
Provisions for other liabilities and charges | |
Provisions for other liabilities and charges | 24. Decommissioning and site restoration provision 2022 2021 2020 $'000 $'000 $'000 At January 1 71,941 53,266 33,568 Additions through business combinations (refer to note 31) 34,419 8,347 15,437 Net provision increases and remeasurements (24,898) 7,212 8,315 Payments for tower and tower equipment decommissioning (343) (231) (65) Reversal of decommissioning through profit and loss — (2,671) — Unwinding of discount 7,084 4,644 2,644 Effects of movement in exchange rates (3,187) 1,374 (6,633) At December 31 85,016 71,941 53,266 Analysis of total decommissioning and site restoration provisions : Non-current 84,533 71,598 49,469 Current 483 343 3,797 85,016 71,941 53,266 This provision relates to the probable obligation that the Group may incur to dismantle and remove assets from tower sites. The amount recognized initially is the present value of the estimated amount that will be required to decommission and restore the leased sites to their original states, discounted using rates applicable to each of the individual operations within the Group. The amount provided for each site has been discounted based on the respective lease terms attached to each site. The provisions have been created based on management’s decommissioning experience of the specific situations. Assumptions have been made based on the current economic environment, current construction requirements, technology, price levels and expected plans for remediation. Management believes that these assumptions are a reasonable basis upon which to estimate the future liability. These estimates are reviewed regularly to take into account any material changes to the assumptions. These remeasurements result in adjustments to the value of the related assets within property plant and equipment. Actual decommissioning or restoration costs will however, ultimately depend upon future market prices for the necessary decommissioning works required that will reflect market conditions at the relevant time. Furthermore, the timing of decommissioning is likely to depend on when the lease term is terminated without renewal. This, in turn, will depend upon technological changes in the local and international telecommunication industries which are inherently uncertain. The discount rates applied have been in line with the weighted average borrowing rate for the respective operating entities in the periods the assets were constructed/acquired. Below is the discount rate applied by each operating entity: IHS IHS Côte IHS IHS IHS Nigerian Cameroon d’Ivoire Zambia South Africa Rwanda Brazilian IHS Kuwait Discount entities S.A. S.A. Limited Proprietary Limited Limited entities Limited rates % % % % % % % % 2022 11.1 5.5 8.0 9.1 11.1 16.0 16.4 3.4 2021 11.2 5.5 8.0 5.1 n/a 16.0 6.8 3.4 Based on the simulation performed, the impact on accumulated losses of a 1% (2021: 1%) shift in discount rate is given below: Increase/ (decrease) on accumulated losses 2022 2021 $’000 $’000 Effect of 1% increase in discount rate (2,066) (1,571) Effect of 1% decrease in discount rate 1,606 1,093 |
Stated capital
Stated capital | 12 Months Ended |
Dec. 31, 2022 | |
Stated capital | |
Stated capital | 25. Class A shares pre-IPO / Ordinary Shares post-IPO Class B shares pre-IPO Stated Stated capital net capital net Number of Stated of issue Number of Stated of issue shares capital costs shares capital costs 000’s $'000 $'000 000’s $'000 $'000 At January 1, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 December 31, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 At January 1, 2021 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 Reclassification of Class A and Class B shares to ordinary shares 16,558,927 299,405 299,014 (16,558,927) (299,405) (299,014) Impact of reverse share split (146,757,391) — — — — — Shares issued on IPO 18,000 378,000 378,000 — — — Share issue costs — — (28,154) — — — Shares issued on exercise of options 15,717 342,768 342,768 — — — December 31, 2021 327,820 5,253,508 5,223,484 — — — Shares issued on exercise of options 4,100 88,469 88,469 — — — At December 31, 2022 331,920 5,341,977 5,311,953 * — — — * As at December 31, 2022 stated capital was made up of share capital of $99,576,000 and share premium of $5,212,377,048. For the year ended December 31, 2020 the Company had Class C shares in addition to Class A and B shares. Class C shares would only be issued pursuant to an approved employee stock plan. Summarised below are the terms of the shares for the year end December 31, 2020: ● Class A and B shares are at no par value. ● Class A and B shares rank pari passu in all respects except that Class B shares shall accrue no voting rights. ● Class C shares shall accrue no rights to vote. There was no limit over the number of equity shares that could be authorized for the year ended December 31, 2020. All Class A and B shares issued were fully paid up as at December 31, 2020. On October 14, 2021 the Company announced the pricing of its initial public offering (“IPO”) of 18,000,000 ordinary shares at a public offering price of $21 per share on the New York Stock Exchange (NYSE). All of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares and the outstanding options granted pursuant to the Company’s existing Long Term Incentive Plan was converted into ordinary shares (other than 7,940,413 ordinary shares issuable upon the exercise of share options outstanding as of September 30, 2021 pursuant to the Long-Term Incentive Plan). Summarized below are the terms of the shares for the year end December 31, 2022 and 2021: ● There is only one class of ordinary shares. ● Ordinary shares have a par value of $0.30 each. ● The holders of our ordinary shares are entitled to such dividends as may be declared by our board of directors subject to the Companies Act and our Articles. Dividends and other distributions on issued and outstanding ordinary shares may be paid out of the funds of the Company lawfully available for such purpose, subject to any preference of any outstanding preferred shares. Dividends and other distributions will be distributed among the holders of our ordinary shares on a pro rata basis. ● Voting at any shareholders’ meeting is by way of poll. On a poll every shareholder present in person or by proxy shall have one vote for each ordinary share on all matters upon which the ordinary shares are entitled to vote except that, for so long as the number of ordinary shares held by Mobile Telephone Networks (Netherlands) B.V. or an affiliate of it or MTN Group is greater than twenty percent ( 20% ) of the total number of ordinary shares in issue, each ordinary share held by MTN Group shall entitle MTN Group to the number of votes per ordinary share calculated by dividing 20% of the total number of ordinary shares in issue by the number of Shares held by MTN Group. ● Any of our shareholders may transfer all or any of his or her ordinary shares by an instrument of transfer in the usual or common form or any other form approved by our board of directors, subject to the applicable restrictions of our Articles, such as the suspension of transfers for a period immediately preceding a general meeting, or the determination that a proposed transfer is not eligible, as well as restrictions in our Shareholders’ Agreement and our Registration Rights Agreement. ● On a return of capital on winding up or otherwise (other than on conversion, redemption or purchase of ordinary shares), assets available for distribution among the holders of ordinary shares shall be distributed among the holders of the ordinary shares on a pro rata basis. The authorized share capital of the Company is 1,700,000,000 shares with par value of $0.30 each. All ordinary shares issued were fully paid up and non-assessable as at December 31, 2022 and 2021. |
Other reserves
Other reserves | 12 Months Ended |
Dec. 31, 2022 | |
Other reserves. | |
Other reserves | 26. Fair value through other compre- Foreign hensive Restruct- Share- based Loss on exchange income uring payment transactions translation reserve reserve reserve between owners reserve Total $’000 $’000 $’000 $’000 $’000 $’000 At January 1, 2020 (6) 4,019 504,331 (840,359) (255,140) (587,155) Other comprehensive income — — — — 94,434 94,434 Recognition of share-based payment expense — — 7,216 — — 7,216 At December 31, 2020 (6) 4,019 511,547 (840,359) (160,706) (485,505) At January 1, 2021 (6) 4,019 511,547 (840,359) (160,706) (485,505) Other comprehensive income 3 — — — (22,560) (22,557) Recognition of share-based payment expense — — 13,003 — — 13,003 SBP reserve converted to share capital — — (342,768) — — (342,768) Other reclassifications related to share based payment — — (5,084) — — (5,084) At December 31, 2021 (3) 4,019 176,698 (840,359) (183,266) (842,911) At January 1, 2022 (3) 4,019 176,698 (840,359) (183,266) (842,911) Other comprehensive income — — — — 59,370 59,370 Recognition of share-based payment expense — — 13,423 — — 13,423 SBP reserve converted to share capital — — (88,469) — — (88,469) Other reclassifications related to share based payment — — (2,835) — — (2,835) At December 31, 2022 (3) 4,019 98,817 (840,359) (123,896) (861,422) Fair value through other comprehensive income reserve This reserve holds accumulated gains and losses on fair value movements of fair value through other comprehensive income financial assets. This is a non-distributable reserve. Restructuring reserve This reserve is the excess of consideration over net assets acquired in business combinations under common control arising from Group restructuring. This is a non-distributable reserve. Share-based payment reserve This reserve represents the cumulative amounts charged in respect of unsettled options issued to employees of the Group. This is a non-distributable reserve. Loss on transactions between owners This reserve is the accumulated loss arising from transactions between parent and non-controlling interest shareholders. Foreign exchange translation reserve This reserve is the accumulated exchange gains and losses arising from the translation of foreign operations from those operations’ functional currencies to the Group’s reporting currency. It is a non-distributable reserve. |
Non-controlling interest
Non-controlling interest | 12 Months Ended |
Dec. 31, 2022 | |
Non-controlling interest | |
Non-controlling interest | 27. 2022 2021* 2020 $’000 $’000 $’000 Balance at January 1 223,188 14,216 — Non-controlling interest arising on business combinations (refer to note 31) ** 831 215,014 14,927 Loss for the period (9,959) (289) (688) Other comprehensive gain / (loss) 13,140 (5,753) (23) Balance at December 31 227,200 223,188 14,216 * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). ** Includes non-controlling interest arising on subsequent asset acquisitions on business combination transactions. In November 2021, the Group completed a deal with TIM S.A. to acquire a controlling interest in I-Systems Soluções de Infraestrutura S.A. (“I-Systems”) incorporated and with its principal place of business in Brazil. The Group owns a 51% (same proportion voting rights) stake in I-Systems and TIM the remaining 49%. Refer to note 31 for further information on the business combination. Set out below is summarized financial information for the I-Systems subsidiary, being the only subsidiary that has non-controlling interest that is material to the group. The amounts disclosed are before inter-company eliminations. Summarized balance sheet and cash flows I-Systems Soluções de Infraestrutura S.A. 2022 ($’000) 2021* ($’000) Current assets 102,445 103,315 Current liabilities (38,834) (19,357) Current net assets 63,611 83,958 Non-current assets 462,122 386,761 Non-current liabilities (92,453) (51,389) Non-current net assets 369,669 335,372 Net assets 433,280 419,330 Accumulated non-controlling interest at the end of the period 212,307 205,433 Summarized statement of comprehensive income for the reporting period I-Systems Soluções de Infraestrutura S.A. 2022 ($’000) Revenue 56,602 Loss for the period (15,377) Other comprehensive income 29,449 Total comprehensive income 14,072 Loss allocated to non-controlling interest during the period (2021: $1,637) (7,535) I-Systems Soluções de Infraestrutura S.A. 2022 ($’000) 2021 ($’000) Cash flows generated from operating activities 55,714 6,056 Cash flows used in investing activities (91,680) (18,771) Cash flows generated from financing activities 36,574 41,965 Net increase in cash and cash equivalents 608 29,250 * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). In February 2020, the Group, via IHS GCC KW Holding Limited (“IHS GCC KW”) a subsidiary of the Group, entered into an agreement to purchase 1,620 towers from Mobile Telecommunications Company K.S.C.P. (“Zain”). As part of the agreement, Zain subscribed for shares in IHS GCC KW representing 30 per cent of the share capital of IHS GCC KW by issuing a loan note to IHS GCC KW. Refer to note 31 for further information on the business combination. |
Share-based payment obligation
Share-based payment obligation | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment obligation | |
Share-based payment obligation | 28. Legacy employee share-based payment scheme The terms of the IHS share-based payment plans for employees were amended on July 10, 2019 such that the exercise prices of the share option were removed and the number of shares options an option holder will receive was reduced on a pro-rata basis (taking into account their relative values). The amended terms are: ● No exercise price. ● On a liquidity event (sale or IPO), the options will be converted and replaced with a fixed pool of shares. ● In the event of a Sale option holders will receive the entirety of their options in shares. ● In the event of an IPO: ● Option holders will be awarded two thirds ( 66.7% ) of their options as shares. ● Option holders will further be entitled to receive up to an additional 33.3% of their shares subject to achieving the performance conditions below: - 50% issued annually if the Group achieves 5% Adjusted EBITDA growth and Adjusted funds from operations (“AFFO”) growth compared to the prior 12 month period where AFFO is defined as the profit/(loss) for the period, before income tax expense/(benefit), finance costs and income, depreciation and amortization, impairment of property, plant and equipment and prepaid land rent, net (profit)/loss on sale of assets, share-based payment (credit)/expense, insurance claims, exceptional items income, exceptional items expense and other non-operating income and expenses, amortization of prepaid site rent, adjusted to take into account interest paid, interest income received, revenue withholding tax, income taxes paid, lease payments made, amortization of prepaid site rent, maintenance capital expenditures and corporate capital expenditures - 50% issued annually on a sliding scale basis for Adjusted EBITDA growth and AFFO growth between 5 and 10% compared to the prior 12 month period. No share options expired during the year. On October 14, 2021 the Company announced the pricing of its initial public offering on the New York Stock Exchange (NYSE). In accordance with the terms above option holders were awarded two thirds (66.7%) of their options as shares. 50% of the remaining third (33.3%) will be awarded in the year ended December 2022 as the performance conditions stated above have been met. The other 50% of the remaining third will be awarded in March 2023 if the performance conditions stated above are met. Omnibus employee share-based payment scheme Between February 4, 2022 and February 7, 2022, a total of 1,147,500 options, of which 62,500 options have been forfeited due to employee leavers, were issued as part of the new Omnibus employee share-based payment plan. The plan will be deemed equity settled and comprise of: ◾ Restricted stock units (“RSU”), which do not include performance conditions and vest on three equal portions on October 15, 2022, 2023 and 2024. ◾ Performance stock units (“PSU”), with a Recurring Levered Free Cash Flow target and a cumulative total shareholder return target. Recurring Levered Free Cash flow target is a non-market-based performance condition, assessed annually over a three-year period. A cumulative total shareholder return target is market-based, was valued based on a Monte Carlo model for a three-year performance period, an approach that is commonly used for IFRS 2 valuations. The PSUs include a vesting period which is 3 years up to October 15, 2024. On June 9, 2022, a total of 1,700,446 options, of which 23,718 options have been forfeited due to employee leavers, were issued as part of the existing Omnibus employee share-based payment plan. The plan will be deemed equity settled and comprise of: ◾ Restricted stock units (“RSU”), which do not include performance conditions and vest on three equal portions on March 31, 2023, 2024 and 2025. ◾ Performance stock units (“PSU”), with a Recurring Levered Free Cash Flow target and a cumulative total shareholder return target. Recurring Levered Free Cash flow target is a non-market-based performance condition, assessed annually over a three-year period. A cumulative total shareholder return target is market-based, was valued based on a Monte Carlo model for a three-year performance period, an approach that is commonly used for IFRS 2 valuations. The PSUs include a vesting period which is 3 years up to March 31, 2025. On October 14, 2022, a total of 94,876 options were issued as part of the existing Omnibus employee share-based payment plan. The plan will be deemed equity settled and comprise of: ◾ Restricted stock units (“RSU”), which do not include performance conditions and vest on three equal portions on June 1, 2023, 2024 and 2025. The total charge to the profit or loss in the year is analyzed as follows: 2022 2021 2020 $’000 $’000 $’000 Expense under equity settled classification from date of amendment 13,265 11,780 8,342 13,265 11,780 8,342 (i) Movements in the number of share options outstanding 2022 Incentive Incentive Incentive Incentive Omnibus plan 1 plan 2 plan 2B plan 3 plan 000’s 000’s 000’s 000’s 000’s Authorized 1,267 5,120 1,537 19 2,943 Issued At January 1 1,267 5,120 1,537 19 — Issued — — — — 2,943 Forfeited — — — — (86) Exercised during the period (633) (2,560) (769) (9) (239) At December 31 634 2,560 768 10 2,618 2021 Incentive Incentive Incentive Incentive plan 1 plan 2 plan 2B plan 3 000’s 000’s 000’s 000’s Authorized 3,800 15,360 4,600 56 Issued At January 1 3,749 15,350 4,595 56 Issued 94 10 55 — Forfeited (43) — (39) — Exercised during the period * (2,533) (10,240) (3,074) (37) At December 31 1,267 5,120 1,537 19 *Relates to the number of options converted to shares as a result of the IPO. On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The movements in the number of share options outstanding is based on the new number of shares. Refer to note 25 for further information. (ii) The share option plans have been valued using a Black Scholes model, an approach that is commonly used for similar IFRS 2 valuations. Valuation assumptions – legacy employee share-based payment scheme At the modification date of July 10, 2019 since the exercise price term was amended to $Nil and dividends were not expected to be paid in the near future, the options were deep in the money and the Black Scholes model returns the value of the share price for the value of the option. The share price assumption used was $22.04. A forfeiture rate of 10% and 5% was assumed for the LTIP1 and LTIP2 plans respectively and 0% for LTIP2B and LTIP3. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. On March 9, 2020, 120,228 options were issued. They were valued at $2.2 million at issue using a share price assumption of $21.20. Forfeiture rates of 0%, 5% and 10% were assumed for the Group’s various long term incentive plans. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. On July 14, 2020, 33,405 options were issued. They were valued at $0.7 million at issue using a share price assumption of $22.14. Forfeiture rates of 0%, 5% and 10% were assumed for the Group’s various long term incentive plans. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. On July 1, 2021 159,369 options were issued. They were valued at $3.7 million at issue using a share price assumption of $23.19. Forfeiture rates of 0% were assumed for the Group’s various long term incentive plans. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and there is very minimal likelihood that dividends will be paid in the near future. The above information has been adjusted for the reverse share split that took place in October 2021. Valuation assumptions – Omnibus employee share-based payment scheme The Omnibus options issued were valued at $32.4 million at issue using a share price assumption of $11.39 - $11.55 depending on the grant date. The fair value of the RSUs and PSUs with non-market conditions determined using share price at grant date amounted to $17.4 million and $10.9 million respectively while the fair value of the PSUs with market conditions determined using the Monte Carlo model amounted to $4.1 million. At December 31, 2022 a forfeiture rate of 7% was assumed resulting in an expected charge over the remaining term of the options of $18.1 million. No dividend was taken into account in performing the valuation since IHS Holding Limited has never paid dividends and no dividends are planned to be paid in the near future. (iv) Share options were originally granted at dates between June 2014 and September 2018 with a contractual life of 12 years. The weighted-average remaining contractual life shown in the tables below is simply the period of time from the year end date to the expiry date of each of the options. At December 31, following the amendment to terms on July 10, 2019, all share options had a nil exercise price. 2022 2021 Weighted Number of Weighted Number of average options in force average options in force Year of remaining at year end remaining at year end grant contractual life* contractual life 2014 0.33 519,763 0.83 1,039,526 2015 0.33 2,538,812 0.83 5,077,624 2017 0.33 842,658 0.83 1,685,317 2018 0.33 17,869 0.83 35,737 2020 0.33 25,605 0.83 51,211 2021 0.33 26,553 0.83 53,123 2022 1.72 2,617,876 — — 6,589,136 7,942,538 * The current year contractual remaining life has been determined using vesting dates as all options are expected to be exercised on vesting date. On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The movements in the number of options in force at year end is based on the new number of shares. Refer to note 25 for further information. |
Cash from operations
Cash from operations | 12 Months Ended |
Dec. 31, 2022 | |
Cash from operations | |
Cash from operations | 29. 2022 2021 2020 $’000 $'000 $'000 Reconciliation: Loss before income tax (543,850) (8,141) (152,853) Adjustments Depreciation of property, plant and equipment (note 7 and 8) 421,920 344,716 373,247 Amortization of intangible assets (note 15) 47,330 38,166 35,415 Impairment of property, plant and equipment and prepaid land rent (note 7) 38,157 51,113 27,594 (Reversal of loss allowance)/loss allowance on trade receivables (note 8.1) (4,446) (34,031) 13,081 Impairment of withholding tax receivables (note 8) 52,334 61,810 31,533 Impairment of goodwill (note 8) 121,596 — — Amortization of prepaid site rent 9,176 8,321 4,459 Net loss/(gain) on disposal of plant, property and equipment (note 8) 3,382 (2,499) (764) Insurance claim income (note 9) (2,092) (6,861) (14,987) Interest expense (note 11) 872,029 422,034 633,766 Interest income (note 10) (15,825) (25,522) (148,968) Share‑based payment expense (note 28) 13,265 11,780 8,342 Impairment/(reversal of impairment) of inventory 138 (315) 4,599 Reversal of decommissioning through profit and loss — (2,671) — Operating profit before working capital changes 1,013,114 857,900 814,464 Changes in working capital (Increase)/decrease in inventory (37,750) 6,689 (8,482) Increase in trade and other receivables (141,723) (164,382) (130,265) Increase/(decrease) in trade and other payables 133,233 87,866 (19,018) Net movement in working capital (46,240) (69,827) (157,765) Cash from operations 966,874 788,073 656,699 |
Related parties
Related parties | 12 Months Ended |
Dec. 31, 2022 | |
Related parties. | |
Related parties | 30 30.1 IHS Holding Limited (‘the Parent’) is the ultimate parent of the following related parties at the year-end: Ownership interests Ownership held interests held Country of by the Group by the Group Entity name Principal activity incorporation 2022 2021 IHS Holding Limited (ultimate parent) Holding company Cayman Islands — — IHS Mauritius Cameroon Limited Holding company Mauritius 100 % 100 % IHS Mauritius Côte d’Ivoire Limited Holding company Mauritius 100 % 100 % IHS Mauritius Netherlands Limited Holding company Mauritius 100 % 100 % IHS Mauritius Zambia Limited Holding company Mauritius 100 % 100 % IHS Mauritius Rwanda Limited Holding company Mauritius 100 % 100 % IHS Africa (UK) Limited Provision of management services United Kingdom 100 % 100 % IHS Netherlands (Interco) Coöperatief U.A. Holding company Netherlands 100 % 100 % IHS Netherlands Holdco B.V. Provision of finance Netherlands 100 % 100 % IHS Netherlands NG1 B.V. Holding company Netherlands 100 % 100 % IHS Netherlands NG2 B.V. Holding company Netherlands 100 % 100 % IHS Nigeria Limited Operating* Nigeria 100 % 100 % INT Towers Limited Operating* Nigeria 100 % 100 % IHS Towers NG Limited Operating* Nigeria 100 % 100 % IHS Côte d’Ivoire S.A. Operating* Côte d’Ivoire 100 % 100 % IHS Cameroon S.A. Operating* Cameroon 100 % 100 % IHS Zambia Limited Operating* Zambia 100 % 100 % IHS Rwanda Limited Operating* Rwanda 100 % 100 % Rwanda Towers Limited Operating* Rwanda 100 % 100 % IHS Kuwait Limited Operating* Kuwait 100 % 100 % IHS Brasil - Cessão de Infraestruturas S.A. Operating* Brazil 100 % 100 % IHS Towers Colombia S.A.S Operating* Colombia 100 % 100 % IHS Peru S.A.C. Operating* Peru 100 % 100 % San Gimignano Imoveis e Adminsitracao Ltda. Provision of land management Brazil 100 % 100 % Nigeria Tower Interco B.V. Holding company Netherlands 100 % 100 % IHS Netherlands GCC B.V. Holding company Netherlands 100 % 100 % IHS Netherlands KSA B.V. Holding company Netherlands 100 % 100 % IHS GCC Limited Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands Connect B.V. Holding company Netherlands 100 % 100 % IHS GCC KW Holding Limited Provision of management services United Arab Emirates 70 % 70 % IHS FinCo Management Limited Provision of finance United Arab Emirates 100 % 100 % IHS GCC MAR Holding Limited Holding company United Arab Emirates 100 % — Global Independent Connect Limited Operating* Nigeria 100 % 100 % IHS KSA Limited Operating* Kingdom of Saudi Arabia 100 % 100 % IHS SSC FZE Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands RSA B.V Holding company Netherlands 100 % 100 % IHS Netherlands BR B.V Holding company Netherlands 100 % 100 % IHS South Africa Holding Proprietary Limited Holding company South Africa 100 % 100 % IHS Towers South Africa Proprietary Limited Operating* South Africa 100 % 100 % IHS Netherlands PHP B.V Holding company Netherlands 100 % 100 % IHS Towers Inc. Provision of management services United States of America 100 % 100 % IHS Netherlands EGY B.V. Holding company Netherlands 100 % 100 % IHS Telecom Towers Egypt S.A.E. Operating* Egypt 80 % 80 % Skysites Americas Ltda Operating* Brazil 100 % 100 % Wi-Fi Mundial Ltda. Operating* Brazil 100 % 100 % Topázio Empreendimentos Imoliliarios Ltda. Operating* Brazil ** 100 % IHS Fiber Brasil Participações Ltda. Holding company Brazil 100 % 100 % IHS Fiber Brasil - Cessão de Infraestruturas Ltda. Holding company Brazil 100 % 100 % I-Systems Soluções de Infraestrutura S.A. Operating* Brazil 51 % 51 % Centennial Towers Colombia S.A.S. Operating* Colombia 100 % 100 % Polar Breeze Colombia S.A.S Operating* Colombia 100 % 100 % Centennial Towers Brasil Cooperatief U.A. Holding company Netherlands 100 % 100 % Centennial Towers of Brasil B.V. Holding company Netherlands 100 % 100 % Centennial Towers of Colombia Ltd. Financing company British Virgin Islands 100 % 100 % IHS CNT Brasil Torres de Telecomunicacoes Ltda. Operating* Brazil 100 % 100 % Polar Breeze Empreendimentos Ltda. Operating* Brazil 100 % 100 % * All operating subsidiaries provide telecommunication support services as their principal activity. ** Entity liquidated after an internal merger. The shares of the Parent are widely owned by various investors. No investor has the full controlling right over the Company. 30.2 The compensation paid or payable to key management for employee services is shown below: 2022 2021 2020 $’000 $’000 $’000 Key management compensation Short‑term employee benefits 19,980 25,537 13,671 Post‑employment benefits 1,723 105 105 21,703 25,642 13,776 Share-based payments 5,380 9,795 6,029 27,083 35,437 19,805 Key management during in the year ended December 31, 2022 included members of the Executive team (Sam Darwish, William Saad, Mustafa Tharoo, David Ordman, Mohamad Darwish, Adam Walker (retired March 31, 2022), Ayotade Oyinlola, William Bates, Colby Synesael and Stephen Howden) and Non-Executive Directors. 30.3 During the year ended December 31, 2022, DAR Telecom Consulting LLC (“DAR Telecom”) was paid $175,000 (2021: $1,125,384, 2020 - Nil) for services provided by Mr Sam Darwish, the Chairman & Group Chief Executive Officer. DAR Telecom is controlled by Mr Darwish. These amounts are included in Key Management Compensation. During the year ended December 31, 2022, DAR Telecom invoiced the Group for medical insurance premiums it had paid on behalf of the Group for Nil (2021: $85,163, 2020 - $85,338). Included in these amounts are Nil (2021: $38,330, 2020 - $36,648) that relate to Mr Darwish and are included in Key Management Compensation. During the year ended December 31, 2022, the Group incurred costs on behalf of Mr Darwish of $26,910 (2021: $551,574, 2020 - $196,340) which were fully repaid by DAR Telecom. At December 31, 2022, the Group had a receivable of Nil (2021: $551,574, 2020 - Nil) from DAR Telecom. During the year ended December 31, 2022 and in prior years, the Group was provided corporate administration services by CKLB International Management Limited (“CKLB”). Mr Christian Li and Mrs Kathleen Lai, who served as directors of IHS Holding Limited until October 13, 2021, are directors of CKLB. The fees paid in prior years up to the date of their resignation were $300,935 and $252,615 for the years ended December 31, 2021 and 2020 respectively. During the year ended December 31, 2022, the Group entered into an arm’s length agreement to sub-lease office space from a subsidiary company of Wendel Group, a significant shareholder of the Company. Under the subs-lease agreement, the Group paid rent and utilities amounting to $343,600 and paid a deposit of $195,298. There were no other material transactions or balances between the Group and its key management personnel or members of their close family. |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations | |
Business Combinations | 31. For acquisitions that meet the definition of a business combination, the Group applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition, and the results of operations are included with those of the Group from the dates of the respective acquisitions. All acquisitions completed in 2020, 2021 and 2022 met the definition of a business as defined, and were accounted for as business combinations with the exception of the additional stages of the IHS Kuwait acquisition completed in 2021 and 2022 which are accounted for as asset acquisitions. Where acquisitions are completed within the reporting period accounting for the business combination may be incomplete for valuation of assets and liabilities such that the amounts recognized in the financial statements for the business combination are determined only provisionally. There were two acquisitions during the year ended December 31, 2022. Had these businesses been acquired on January 1, 2022, the amount of revenue and loss after tax for the year ended December 31, 2022 for the Group would have been approximately $1,970 million and $466 million, respectively. MTN telecom towers in South Africa IHS Holding Limited, through its subsidiary IHS Towers South Africa Proprietary Limited, completed the acquisition of a portfolio of towers, comprising 5,691 towers, in South Africa from MTN South Africa on May 31, 2022, which includes an agreement to provide Managed Services, including to approximately 7,100 additional MTN South Africa sites. IHS will own 70% of the South African towers business with the remaining 30% to be owned by a B-BBEE consortium. At the date of issue of these financial statements, IHS owns 100% of the business as the transfer of the non-controlling interest has not been finalized and hence no non-controlling interest has been recognized. The accounting for the business combination is incomplete for valuation of all assets and liabilities. The amounts recognized in the financial statements for the business combination have been determined only provisionally. The provisional goodwill of $61.0 million includes goodwill attributable to a new market penetration for the Group. None of the goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the assets acquired at the acquisition date, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of loss and other comprehensive income/(loss). 2022 $’000 Gross consideration 421,239 Net cash consideration 421,239 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 251,683 Customer related intangible asset 127,957 Network related intangible asset 67,837 Right of use asset 211,315 Lease liabilities (211,315) Deferred tax (52,864) Provisions for other liabilities and charges (34,419) Total identifiable net assets acquired 360,194 Goodwill 61,045 Revenue — post‑acquisition 71,398 Loss — post‑acquisition (21,975) São Paulo Cinco Locação de Torres Ltda. IHS Holding Limited acquired 100% of the share capital of São Paulo Cinco Locação de Torres Ltda. (“GTS SP5”) on March 17, 2022. The acquisition is consistent with the Group’s strategy to expand in the Latin American region. The goodwill of $54.6 million arising from the acquisition is attributable to the enhanced market presence in Brazil, the complementary service offering and closer alignment to certain customers as it relates to their future deployments. The goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date including right of use assets relating to leases which were fully pre-paid prior to acquisition, and the amounts of revenue and profit of the acquiree from the acquisition date included in the consolidated statement of loss and other comprehensive income/(loss). 2022 $’000 Gross consideration 317,188 Less: cash in business at the date of acquisition (1,896) Net cash consideration 315,292 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 13,395 Land 885 Customer related intangible asset 48,353 Network related intangible asset 2,520 Right of use asset 266,666 Trade and other receivables 23,575 Lease liabilities (4,282) Trade and other payables (4,222) Deferred tax (86,239) Total identifiable net assets acquired 260,651 Goodwill 54,641 Revenue — post‑acquisition 34,129 Profit — post‑acquisition* 6,340 * Includes profit up until an internal merger of the entity. Skysites Holdings S.A. IHS Holding Limited acquired 100% of the share capital of Skysites Holdings S.A. (“Skysites”), a telecommunications services provider, with related passive infrastructure and ground leases on January 6, 2021. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. The goodwill of $26.9 million arising from the acquisition is attributable to the enhanced market presence in Brazil, the complementary service offering and closer alignment to certain customers as it relates to their future deployments. The goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of loss and other comprehensive income/(loss). 2021 $’000 Gross consideration 40,611 Less: contingent consideration* (4,169) Less: cash in business at the date of acquisition (2,775) Net cash consideration 33,667 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 11,276 Land 15 Furniture and office equipment 11 Capital work in progress 535 Customer related intangible asset 4,703 Right of use asset 9,675 Trade and other receivables 713 Trade and other payables (1,132) Provisions for other liabilities and charges (2,548) Lease liabilities (10,071) Deferred tax (2,205) Total identifiable net assets acquired 10,972 Goodwill 26,864 Revenue — post‑acquisition 4,041 Loss — post‑acquisition (142) * Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. IHS Holding Limited acquired 100% of the share capital of Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. (together “Centennial”), a telecommunications services provider, with related passive infrastructure and ground leases in two parts, on March 19, 2021 and on April 8, 2021, respectively. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. The goodwill of $11.7 million and $36.5 million arising from the Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. acquisitions respectively, is attributable to the enhanced market presence in Brazil and Colombia and closer alignment to certain customers in those markets as it relates to their future deployments. None of the goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of loss and other comprehensive income/(loss). Brazil Colombia Total 2021 2021 2021 $’000 $’000 $’000 Gross consideration 93,900 47,051 140,951 Less: cash in business at the date of acquisition (260) (659) (919) Net cash consideration 93,640 46,392 140,032 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 43,890 14,074 57,964 Land 407 546 953 Furniture and office equipment 65 17 82 Capital work in progress 628 500 1,128 Right of use asset 22,273 9,761 32,034 Customer related intangible asset 35,422 32,599 68,021 Network related intangible asset 594 321 915 Software 495 1 496 Trade and other receivables 2,363 3,023 5,386 Trade and other payables (1,471) (3,646) (5,117) Provisions for other liabilities and charges (5,272) (527) (5,799) Lease liabilities (24,028) (10,458) (34,486) Tax payable (2,809) (625) (3,434) Deferred tax (15,374) (10,907) (26,281) Total identifiable net assets acquired 57,183 34,679 91,862 Goodwill 36,457 11,713 48,170 Revenue — post‑acquisition 9,515 Profit/(loss) — post‑acquisition (3,961) I-Systems Soluções de Infraestrutura S.A. IHS Netherlands BR B.V. (“IHS BR BV”), a subsidiary of IHS Holding Limited, completed a deal with TIM S.A to acquire a controlling interest in I-Systems Soluções de Infraestrutura S.A. (formerly known as Fiberco Soluções de Infraestrutura S.A.) on November 16, 2021. This includes TIM secondary fiber network and assets as well as the provision of fiber optic infrastructure services as an Open Fiber Network Service Provider. I-Systems Soluções de Infraestrutura S.A. will operate under the name of I-Systems. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. IHS owns a 51% stake in I-Systems and TIM the remaining 49%. The initial asset base of I-Systems includes TIM’s secondary network infrastructure, covering 3.5 million Fiber-to-the-Home and 3.4 million Fiber-to-the-Cabinet households, resulting in a total of 6.4 million households covered (allowing for 570 thousand homes of overlapping coverage). I-Systems is responsible for the deployment of new secondary fiber infrastructure for TIM, and the operation and maintenance of all such fiber infrastructure. TIM continues as the anchor tenant across the network under a long-term master services agreement. Certain services will be provided to I-Systems by TIM under a Transition Services Arrangement. The goodwill of $81.8 million arising from the I-Systems acquisition is largely attributable to customer relationships and the entry into a new service offering for IHS. None of the goodwill recognized is currently expected to be deductible for income tax purposes. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date, and the amounts of revenue and loss of the acquiree since the acquisition date included in the consolidated statement of loss and other comprehensive income/(loss). As reported As re-presented December 31, 2021 Adjustments December 31, 2021 $’000 $’000 $’000 Gross consideration 266,739 (6,074) 260,665 Contingent consideration* — 5,739 5,739 Less: deferred consideration (64,474) (2,366) (66,840) Net cash consideration 202,265 (2,701) 199,564 Capital injection** 42,996 — 42,996 Identifiable assets acquired and liabilities assumed: Network assets 220,950 12,859 233,809 Cash 44,872 — 44,872 Capital work in progress 3,832 — 3,832 Software 539 — 539 Customer related intangible asset — 113,159 113,159 Network related intangible asset — 35,413 35,413 Trade and other receivables 72,989 2,349 75,338 Trade and other payables (5,764) (7,271) (13,035) Loans payable (6,457) — (6,457) Deferred tax — (52,415) (52,415) Total identifiable net assets acquired 330,961 104,094 435,055 Non-controlling interest 162,171 51,006 213,177 Goodwill 140,945 (59,162) 81,783 Revenue — post‑acquisition 5,426 Loss — post‑acquisition (3,341) *Contingent consideration consists of $5.7 million of consideration receivable at a future date which is recognized at fair value on the date of acquisition. The contingent consideration relates to a pay-out if certain conditions are met post-acquisition around homes connected, homes passed, and Churn. ** The capital injection relates to a payment made to I-Systems for the issuance of new share capital as part of the acquisition agreement to achieve the agreed shareholding structure post acquisition. The acquisition accounting was completed in September 2022. As IFRS 3 requires fair value adjustments to be recorded with effect from the date of acquisition, this requires re-presentation of previously reported financial results. The impact on the Statement of Financial Position, and corresponding notes to the financial statements, as at December 31, 2021 is shown below. As reported As re-presented December 31, 2021 Adjustments December 31, 2021 $’000 $’000 $’000 Property, plant and equipment 1,708,834 5,427 1,714,261 Goodwill 837,374 (57,478) 779,896 Other intangible assets 701,425 144,304 845,729 Trade and other receivables - non-current 69,479 5,575 75,054 Trade and other receivables - current 469,130 2,623 471,753 Deferred tax liabilities (118,210) (50,909) (169,119) Non-controlling interest (173,647) (49,541) (223,188) IHS Kuwait Limited In the 2020 financial year IHS GCC KW Holding Limited (‘IHS GCC KW’), a subsidiary of IHS Holding Limited completed the first two stages of the acquisition of 1,620 towers from Mobile Telecommunications Company K.S.C.P. (‘Zain Kuwait’) comprising 1,162 towers. During April 2021, October 2021 and September 2022 IHS GCC KW completed the third, fourth and fifth stages of the acquisition of 1,620 towers from Zain Kuwait comprising 67, 126 and 43 towers respectively. The remaining 222 towers are managed and operated under a Managed Services agreement until such time as these towers can legally be transferred. IHS GCC KW transferred the purchase right to IHS Kuwait Limited for the Construction, Erection and Maintenance of Wired and Wireless Communication and Radar Towers and Stations / With Limited Liability (‘IHS Kuwait’) who operates the towers as a standalone business. As part of the agreement, IHS Kuwait also assumed existing supplier contracts and land leases, allowing it to apply the Group business processes and deliver services immediately after the assignment of the towers. As part of the agreement, Zain Kuwait subscribed for shares in IHS GCC KW representing 30 per cent of the share capital of IHS GCC KW by issuing a loan note to IHS GCC KW. The acquisition is consistent with the Group’s strategy to expand in selected geographic areas. The following table summarizes the consideration paid and the fair value of assets and liabilities acquired at the acquisition date of the 193 towers acquired in 2021 and 43 towers acquired in 2022, and the amounts of revenue and profit/(loss) of the acquiree since the acquisition date included in the consolidated statement of loss and other comprehensive income/(loss). 2022 2021 $’000 $’000 Gross consideration 2,729 12,248 Less: consideration received in exchange for a retained 30% interest (by Zain Kuwait) in IHS GCC KW (819) (1,837) Net consideration for 70% controlling interest in the acquired towers 1,910 10,411 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 1,032 7,902 Customer related assets 1,947 5,449 Network-related assets 671 1,877 Trade and other receivables — 872 Trade and other payables (921) (3,852) Total identifiable net assets acquired (at 100% ) 2,729 12,248 Goodwill — - Determination of non-controlling interest Total identifiable net assets acquired (at 100%) 2,729 12,248 Shareholder funding provided by the Group and external debt* — (6,124) Total identifiable net assets acquired for purposes of non-controlling interest 2,729 6,124 Non-controlling interest portion of above at 30% 819 1,837 Revenue — post‑acquisition n.a. n.a. Loss — post‑acquisition n.a. n.a. * This was shareholder funding provided by the Group and recorded as short term liabilities in IHS GCC KW. These funds were loaned to IHS Kuwait to fund the acquisition of the towers from Zain. This short term liability was subsequently replaced by external debt. |
Capital commitments and conting
Capital commitments and contingent liabilities | 12 Months Ended |
Dec. 31, 2022 | |
Capital commitments and contingent liabilities. | |
Capital commitments and contingent liabilities | 32 32.1 The Group was committed to the purchase of property, plant and equipment of about $337.0 million as at December 31, 2022 (2021: $206.7 million). 32.2 The Group has contingent liabilities in respect of legal claims arising in the ordinary course of business. The Group reviews these matters in consultation with internal and external legal counsel to determine on a case-by-case basis whether a loss from each of these matters is probable, possible or remote. The Group’s possible contingent liabilities in respect of litigations and claims amounted to $3.8 million at the end of the reporting period (2021: $2.0 million). Based on legal advice received, the Group’s liability is not considered probable, thus no provisions have been made in these financial statements. |
Events after the reporting peri
Events after the reporting period | 12 Months Ended |
Dec. 31, 2022 | |
Events after the reporting period | |
Events after the reporting period | 33. (a) New facilities in Nigeria Nigeria (2023) term loan IHS Netherlands Holdco B.V., IHS Nigeria, IHS Towers NG Limited, INT Towers and IHS Holding Limited entered into an up to NGN165 billion ($357.5 million) term loan agreement on January 3, 2023 (as amended and/or restated from time to time the “Nigeria 2023 Term Loan”), and between, amongst others, IHS Netherlands Holdco B.V. as holdco and guarantor; IHS Nigeria, IHS Towers NG Limited and INT Towers as borrowers and guarantors; each of IHS Holding Limited, IHS Netherlands NG1 B.V., IHS Nigeria, IHS Netherlands NG2 B.V., IHS Towers NG Limited, Nigeria Tower Interco B.V. and INT Towers as guarantors; Ecobank Nigeria Limited as agent and certain financial institutions listed therein as original lenders. The interest rate per annum is equal to 20% in the first year moving to a floating rate for the remainder of the term. This floating rate is defined by the Nigerian MPR plus a margin of 2.5% and is subject to a cap of 24% and floor of 18%. IHS Netherlands Holdco B.V. also pays certain other fees and costs, including agent fees. The Nigeria 2023 Term Loan was drawn down for an original principal amount of NGN124.5 billion (which was approximately $269.8 million), and funds borrowed under the loan were applied towards, inter alia, refinancing certain indebtedness of INT Towers, IHS Nigeria, and general corporate and working capital purposes. As of January 3, 2023, the total commitments available under the Nigeria 2023 Term Loan were NGN124.5 billion (approximately $269.8 million), which were further increased on February 9, 2023, by NGN29.0 billion (approximately $62.8 million) pursuant to the facility increase clause contained within the loan agreement. As of March 28, 2023, NGN138.5 billion (approximately $300.2 million) had been drawn down under this facility. The proceeds from the drawdown were applied towards, inter alia, refinancing certain indebtedness of INT Towers, IHS Nigeria, general corporate and working capital purposes. Nigeria (2023) Revolving Credit Facility IHS Netherlands Holdco B.V., IHS Nigeria, IHS Towers NG Limited, INT Towers and IHS Holding Limited entered into an up to NGN 55 billion ($119.2 million) revolving credit facility agreement on January 3, 2023 (as amended and/or restated from time to time the “Nigeria 2023 RCF”), and between, amongst others, IHS Netherlands Holdco B.V. as holdco and guarantor; IHS Nigeria, IHS Towers NG Limited and INT Towers as borrowers and guarantors; each of IHS Holding Limited, IHS Netherlands NG1 B.V., IHS Nigeria, IHS Netherlands NG2 B.V., IHS Towers NG Limited, Nigeria Tower Interco B.V. and INT Towers as guarantors; Ecobank Nigeria Limited as agent and certain financial institutions listed therein as original lenders. The interest rate per annum is equal to 20% in the first year moving to a floating rate for the remainder of the term. This floating rate is defined by the Nigerian MPR plus a margin of 2.5% and is subject to a cap of 24% and floor of 18%. IHS Netherlands Holdco B.V. also pays certain other fees and costs, including agent fees. As of January 3, 2023, the total commitments available under the Nigeria 2023 RCF were NGN44.0 billion (approximately $95.3 million), which were further increased on February 9, 2023, by NGN11.0 billion (approximately $23.8 million) to NGN55.0 billion (approximately $119.2 million), pursuant to the facility increase clause contained within the loan agreement. As of March 28, 2023, the Nigeria 2023 RCF remains undrawn. (b) Repayment of IHS (Nigeria) Local Facilities On January 3, 2023, the following IHS (Nigeria) Limited local facilities were fully repaid, (i) IHSN NG1 Facility, for NGN 16.1 billion (approximately $34.9 million) entered into in March 2022 (ii) IHSN NG2 Facility, for NGN 10.0 billion (approximately $21.7 million) entered into in May 2022 (c) Repayment Nigeria (2019) term loan facility On January 3, 2023, the full remaining principal amount of the Naira tranche of the Nigeria 2019 Facility of NGN 88.3 billion (approximately $191.4 million) (plus accrued interest) was repaid. (d) I-Systems Facility drawdown On February 3, 2023, I-Systems Soluções de Infraestrutura S.A. drew down a tranche of BRL 80.0 million (approximately $15.3 million) pursuant to the I-Systems Facility. The interest rate applicable on this tranche is CDI plus 2.45% (assuming a 252-day calculation basis). (e) IHS Kuwait Facility drawdown On February 22, 2023, IHS Kuwait Limited drew down a further KWD 0.3 million (approximately $1.0 million) under the Kuwait Facility. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Basis of preparation | 2.1 The consolidated financial statements of IHS have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The consolidated financial statements have been prepared under the historical cost convention, as modified by financial assets and liabilities (including derivative financial instruments) which are recognized at fair value. 2.1.1 (a) The Group has applied the following standards and amendments for the first time for its annual reporting period commencing January 1, 2022: ● Annual Improvements to IFRS: 2018-2020 Cycle ● Conceptual Framework for Financial Reporting (Amendments to IFRS 3) ● Onerous contracts – Cost of Fulfilling a Contract – Amendments to IAS 37 ● Property, Plant and Equipment: Proceeds before Intended Use – Amendments to IAS 16 The amendments to standards listed above did not have any material impact on the Group’s financial statements. (b) Certain new accounting standards, interpretations and amendments have been published that are not effective for December 31, 2022 reporting period and have not been early adopted by the Group. They are: ● IFRS 17 Insurance Contracts ● Classification of Liabilities as Current or Noncurrent – Amendments to IAS 1 ● Disclosure of Accounting Policies – Amendments to IAS 1 and IFRS Practice Statement 2 ● Definition of Accounting Estimates – Amendments to IAS 8 ● Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12 ● Sale or contribution of assets between an investor and its associate or joint venture – Amendments to IFRS 10 and IAS 28 ● Lease Liability in a Sale and Leaseback Amendments to IFRS 16 ● Non-current Liabilities with Covenants Amendments to IAS 1 The Company is in the process of analysing the impact of the amendments to IAS 12 which are expected to impact the gross values of deferred tax assets and deferred tax liabilities disclosed in the notes to the financial st atements with no material impact on the net assets of the Group. Other than this, n one of the above amendments to standards are expected to have a material effect on the Group’s financial statements. |
Consolidation | 2.2. (a) The consolidated financial statements include the financial information and results of the Company and those entities in which it has a controlling interest. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Subsidiaries are all entities (including structured entities) over which the Group has control. Subsidiaries are fully consolidated from the date on which control is transferred to the Group. They are deconsolidated from the date the control ceases. All intercompany balances and transactions have been eliminated. (b) For acquisitions that meet the definition of a business combination, the Group applies the acquisition method of accounting where assets acquired and liabilities assumed are recorded at fair value at the date of each acquisition, and the results of operations are included with those of the Group from the dates of the respective acquisitions. Any excess of the purchase price paid by the Group over the amounts recognized for assets acquired and liabilities assumed is recorded as goodwill and any acquisition related costs are expensed as incurred. The Group recognizes any non-controlling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the recognized amounts of the acquiree’s identifiable net assets. The consideration transferred for the acquisition comprises the fair value of the assets transferred, liabilities incurred, equity interests issued by the Group and any contingent consideration. Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions. If the Group gains control in a business combination in stages, the acquisition date carrying value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date; any gains or losses arising from such remeasurement are recognized in profit or loss. Where the group acquires a portfolio of tower assets and associated revenue contracts judgement is required in the determining whether the transaction meets the definition of a business combination. The Group makes this judgement on a case by case basis taking into account the specific facts and circumstances of each transaction including the substance of other elements of the transactions such as transferred systems, processes, workforce and novated supplier contracts. The Group has considered whether any of its business combinations represent a sale and leaseback transaction from a lessor perspective. It has been determined that since the space on towers and associated assets are able to be leased to multiple tenants without restriction, that no such arrangement of the entire tower site portfolio acquired exists. (c) The Group treats transactions with non-controlling interests as transactions with equity owners of the Company. A change in ownership interest results in an adjustment between the carrying amounts of the controlling and non-controlling interests to reflect their relative interests in the subsidiary. Any difference between the amount of the adjustment to non-controlling interests and any consideration paid or received is recognized in a separate reserve within equity attributable to owners of the Company. |
Segment reporting | 2.3 Operating segments are components of IHS’ business activities about which separate financial statements are available and reported internally to the chief operating decision maker. The Group’s Executive Committee has been identified as the chief operating decision maker, responsible for allocating resources and assessing performance of the operating segments. The Group’s Executive Committee currently consists of the Chief Executive Officer (“CEO”), the Chief Operating Officer (“COO”), the Chief Financial Officer (“CFO”), the General Counsel, the IHS Nigeria CEO, the Chief Strategy Officer, the Chief Human Resource Officer and the Executive Vice President of Communications. Where operating segments share similar characteristics, they have been aggregated into reportable segments, of which the Group has identified four: Nigeria, Sub Saharan Africa (“SSA”), Middle East and North Africa (“MENA”) and Latin America (“Latam”). |
Foreign currency translation | 2.4 (a) Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in US Dollars. (b) During the year ended December 31, 2017, the Central Bank of Nigeria introduced a new foreign exchange window, which includes the NAFEX (Nigerian Autonomous Foreign Exchange Fixing). This resulted in a situation where there are several different official exchange rates in the market, thereby requiring the Company to monitor and evaluate which exchange rate is most appropriate to apply in translating foreign currency transactions in its Nigeria businesses and in translating Naira amounts for Group reporting purposes. Where multiple official exchange rates exist, the Group assesses the appropriate rate to use and takes into account relevant factors. In the case of translating foreign operations or foreign transactions, such factors include access to those rates in the future to meet payments or dividends. In determining whether it is appropriate to move from one official rate to another, the Group considers the available rates in official markets for settlement of transactions. Refer to note 3 for further information. (c) Foreign currency transactions are translated into the functional currency of each entity using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognized in profit or loss. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the statement of income and other comprehensive income within “finance income” or “finance cost.” Foreign exchange gains and losses that relate to other monetary items are presented in the statement of income and other comprehensive income within “cost of sales,” “administrative expense” and “other income” as appropriate. Non-monetary items that are measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value was determined. Translation differences on assets and liabilities carried at fair value are reported as part of the fair value gain or loss. For example, translation differences on non-monetary assets and liabilities such as equities designated as fair value through other comprehensive income are recognized in other comprehensive income. The subsidiaries based in Nigeria translated their foreign currency transactions into the functional currency, Nigerian Naira, at the Nigerian Autonomous Foreign Exchange Fixing (“NAFEX”) prevailing rate at the date of the transaction. Monetary items and liabilities denominated in foreign currencies were also translated at the NAFEX rate. The NAFEX rate was between 416.00 and 461.50 during 2022 (2021: 394.13 and 435, 2020: 363.2 and 410.25) and at December 31, 2022 was 461.506 (December 31,2021: 435.00, December 31, 2020: 410.25). Both years experienced a spike in the month of December of that year, with the average rate for December 2022 being 451.01 (2021: 415.6, 2020: 394.3). Refer to note 3 for further information on foreign exchange rate assessment. The results and financial position of all the Group entities (none of which has the currency of a hyper inflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ● assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that statement of financial position, ● income and expenses for each statement of income and other comprehensive income are translated at the monthly average exchange rates (unless this average is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the rate on the dates of the transactions), and ● all resulting exchange differences are recognized in other comprehensive income. On consolidation, exchange differences arising from the translation of the net investment in foreign operations and of borrowings are taken to other comprehensive income. Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing rate. Exchange differences arising are recognized in other comprehensive income. The results of the subsidiaries based in Nigeria were translated into US Dollars at the NAFEX monthly average exchange rate for income and expenses and the assets and liabilities at the NAFEX closing rate at the date of the statement of financial position with rates as noted above. Refer to note 3 for further information. |
Revenue recognition | 2.5 Our revenue is derived from fees paid by our customers for services from our colocation business and its ancillary managed services. The colocation business involves the lease of space on IHS owned and leased towers and our fixed copper and fibre network infrastructure, which are shared by various operators and data service providers. Revenue is generated on towers either from anchor tenants (original tenants on towers) or colocation tenants (subsequent tenants) when they install equipment on towers and on cable and fibre networks from tenants when they use the fixed network infrastructure to provide connectivity to/from towers or to provide broadband services to their customers. A portion of colocation arrangements for the rental of space on the towers, other assets on tower sites on which the use of space is dependent and the use of fixed copper and fibre network infrastructure dedicated to an individual customer is within the scope of IFRS 16 Leases. A portion of colocation arrangements for the provision of services, energy charges and use of shared fixed copper and fibre network infrastructure is within the scope of IFRS 15 ‘Revenue from contracts with customers’ as a provision of service. The Group also offers ancillary services to manage tenant operations of existing customers on a limited basis. Revenue from such managed services is within the scope of IFRS 15 ‘Revenue from contracts with customers’. In determining the amounts of colocation revenue from our contracts with customers that fall within the scope of IFRS 15 or IFRS 16, the Group considers whether there are separate performance obligations to which a portion of the transaction price needs to be allocated and revenue recognized separately. For colocation services the Group determines the transaction price (including lease and non-lease elements) at contract inception and considers the effects of: ● Variable consideration - The contractual price may be subject to service credits, price indexation, discounts provided on site consolidation and discounts associated with site occupancy. All of these items of variable consideration are considered to relate to individual service periods of series performance obligations, or represent contingent rentals, and are therefore recognized in the future periods in which they arise rather than when estimating the transaction price at contract inception. ● The existence of significant financing components - Financing components are not expected to be significant as services and payments are generally in line over the period of the contract. ● Consideration payable to the customer (if any) - Payments to customers (such as rebates and discounts refunded to the customer and payments for exit fees) are deducted from transaction price unless they are payments for a distinct good or service supplied to the Group in return for the payments. At the date of contract inception, the Group determines the stand-alone selling prices of the performance obligations (including the lease elements of the contract) using a combination of data on observable prices from comparable managed service arrangements, supplemented by the cost plus a margin approach. The Group allocates the transaction price to these non-lease elements of the contract and between performance obligations within the non-lease element of the contract on the basis of relative stand-alone selling price. Revenue is typically invoiced quarterly in advance except where a deferral of invoicing has been agreed with a customer such as where there is an ongoing dispute over pricing in which case revenue is recognized upon satisfaction of performance obligations on the basis of the expected outcome of such disputes. Customer contracts typically require payment within 30 to 60 days. (a) For non-lease revenue, two separate performance obligations have typically been identified, one in respect of the operation of tower infrastructure and one in respect of the provision of maintenance services and power, with each being a series of performance obligations to stand ready to deliver the required services. The identification of these two performance obligations does not change the timing of revenue recognition of the non-lease component as both are typically satisfied over the same time period. In limited cases, contracts may provide the customer with a right to purchase additional services at a significant discount. In these cases, the material right is also identified as a performance obligation. On initial recognition of revenue, the Group assesses the recoverability of revenue taking into account our contractual rights and obligations to consideration, our exposure to our customer’s credit risk and our practice of managing credit risk exposure through the occasional negotiation of price concessions with customers and recognizes the revenue, in respect of satisfied performance obligations, which is expected to be recovered. Recognition of amount not expected to be recovered is considered variable consideration and is contingent upon the receipt of funds from the customer (see note 3.6). The assessment of amounts expected to be recovered are closely aligned with the assumed credit risk of the customer, determined as part of the assessment of expected credit losses made in accordance with the Group’s IFRS 9 expected credit loss policy as described in note 2.16.4. (b) The portion of colocation revenue, for which IHS is the lessor, is treated as a lease. Contracts are assessed at inception to determine whether this element of the colocation services are finance or operating leases. At present all arrangements are assessed to be operating leases with revenue including fixed escalation clauses present in non-cancellable lease agreements recognized on a straight line basis over the current lease term of the related lease agreements, when collectability is reasonably assured. The duration of these lease arrangements is typically between 5 and 10 years. Escalation clauses tied to the Consumer Price Index (“CPI”) or other inflation based indices, are excluded from the straight line calculation, however, any fixed increases are included. Revenue is recognized in the accounting period in which the rental income is earned and services are rendered. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue until the criteria for recognition have been met. (c) Revenue from managed services contracts with customers is recognized when the services are delivered at an amount that reflects the consideration to which the Group expects to be entitled in exchange for those services. Revenue is recognized in the accounting period in which the services are rendered by reference to the stage of completion based on the terms of each contract. Services revenues are derived under contracts or arrangements with customers that provide for billings either on a fixed price basis or a variable price basis, which includes factors such as time and expenses. Revenues are recognized as services are performed. Amounts billed or received for services prior to being earned are deferred and reflected in deferred revenue in the accompanying statement of financial position until the criteria for recognition have been met. |
Embedded derivatives in revenue contracts | 2.6 Certain revenue contracts and subsequent amendments include fees that are priced in $ but are invoiced and settled in the relevant local currency of the operation using foreign exchange rates calculated in accordance with the contractual terms. Where the contractual foreign exchange rates are reset at regular intervals in arrears, management evaluates and determines at the date of inception, or at the date of material modification, of the contracts whether the reset features are closely related to the host contracts or not. For existing contracts in making the evaluation, management assessed that the $ is a commonly used currency in the local operation, and that the reset interval is sufficiently frequent to approximate the local currency spot exchange rate given economic conditions at that time. Management also considers whether, at the time of inception or material modification, contract rates reference a liquid market exchange rate. If reference rates are assessed as liquid the embedded derivative is assessed as closely related and no accounting bifurcation is made. Where such fees that are priced in $ are translated to local currency at the time of billing using a fixed, pre-determined exchange rate or an exchange rate which is not referenced to a liquid market exchange rate, this results in an embedded derivative which is not closely related to the host contract and is thus bifurcated, fair valued and disclosed separately. The fair values of these embedded derivatives are determined by reference to the discounted forecast billings under the contractual rates compared to those under the forecast liquid market rates. Upon initial recognition of a revenue embedded derivative asset or liability, the Group recognizes a contract liability or asset, respectively. The contract liability or asset is released to revenue over the shorter of the term of the contract or the term over which the conditions that result in the embedded derivative expire. The release to revenue is recognized on the same basis that those contractual conditions materialize, to match the release of the contract liability or asset to the recognition of revenue from the underlying contract. |
Leases | 2.7 The Group is a lessee of various assets, comprising land and building, towers, equipment and motor vehicles. The determination whether an arrangement is, or contains, a lease is based on whether the contract conveys a right to control the use of an identified asset for a period of time in exchange for consideration. The following sets out the Group’s lease accounting policy for all leases with the exception of leases with low-value (i.e. < $5,000) and short term of less than 12 months for which the Group has taken the exemption under the standard and are expensed to profit or loss as incurred. (a) The Group recognizes right of use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use under the contract). Right of use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right of use assets includes the amount of lease liabilities recognized, initial direct costs incurred, and lease payments made at or before the commencement date (which do not form part of the lease liability value at the commencement date). Right of use assets are depreciated on a straight-line basis over the shorter of their estimated useful life and the lease term. The right-of-use assets are tested for impairment in accordance with IAS 36 “Impairment of Assets”. (b) At the commencement date of the lease, the Group recognizes lease liabilities measured at the present value of all remaining lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments where the contracts specify fixed or minimum uplifts) and variable lease payments that depend on an index or a rate. The variable lease payments that do not depend on an index or a rate are recognized as an expense in the period in which the event or condition that triggers the payment occurs. Due to the nature of our leased assets the interest rate implicit in the lease is usually not readily determinable, the Group therefore uses the incremental borrowing rate in calculating the present value of lease payments at the lease commencement date. The incremental borrowing rate is calculated using a series of inputs, including: a local currency cost of debt for each country based on local borrowing (or where not available, an inflation adjusted US$ cost of debt which encompasses the country specific adjustment), an adjustment for the duration of the referenced borrowings to arrive at an interest rate for a one-year facility, and an adjustment for the lease term based on local government, US or Eurozone bond yields, as appropriate in the context of each country’s debt markets. The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term or a change in the in-substance fixed lease payments. The Group determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised and any periods covered by an option to terminate the lease, if it is reasonably certain that the termination options will not be exercised. The Group has the option under some of its leases to lease the assets for additional periods of up to 10 years. The Group applies judgement in evaluating whether it has a unilateral option to renew the lease for a further period and is reasonably certain to exercise the option to renew (note 3). That is, it considers all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement date, the Group reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise (or not to exercise) the option to renew. |
Cost of sales | 2.8 Cost of sales is mainly comprised of power generation costs, depreciation, tower repairs and maintenance costs, operational staff and costs and site rental costs. |
Administrative expenses | 2.9 Administrative expenses are costs not directly related to provision of services to customers, but which support our business as a whole. These overhead expenses primarily consist of administrative staff costs (including key management compensation), office rent and related property expenses, insurance, travel costs, professional fees, depreciation and amortization of administrative assets, net (gain)/loss on disposal of property, plant and equipment and other sundry costs. Administrative expenses also includes other corporate overhead expenses related to the Group’s acquisition efforts and costs associated with new business initiatives. |
Other income | 2.10 Other income includes proceeds from insurance claims and the remeasurement of contingent consideration arising from acquisitions. |
Interest income | 2.11 Interest income is recognized in profit or loss and is calculated using the effective interest method as set out in IFRS 9. |
Property, plant and equipment | 2.12 These are mainly towers and towers equipment, fiber telecommunications network cables and equipment, land and buildings, furniture and office equipment, motor vehicles and capital work in progress that are used directly by the Group in the provision of services to customers, or for administrative purposes. The assets are carried at historical cost less accumulated depreciation and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to the acquisition of the assets including amounts related to the cost of future decommissioning and site restoration obligations. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the asset will flow to the Group and the cost can be measured reliably. The carrying amount of the replaced asset is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred. Freehold land is not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost to their residual values over their estimated useful lives, as follows: Towers and tower equipment • Base station equipment (including civil costs and overheads) 10 - 20 years • Base station equipment (other equipment) 15 years • Base station equipment (rectifier and solar power) 10 years • Base station equipment (alarm and battery) 3 - 5 years • Base station equipment (generator & generator overhaul) 1 - 3 years • Base station equipment (base transmission equipment) 8 - 10 years Fiber assets • Fixed line network equipment (including civil works, duct system, cable system and survey costs) 25 years • Outdoor cabinet 10 years Land and buildings, furniture and office equipment, and motor vehicles • Office complex 40 years • Furniture and office equipment 3 years • Motor vehicles 4 years Asset residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period. Where an indication of impairment exists, an asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable amount. The gain or loss arising on the disposal or retirement of an asset is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss for the period. The Group assesses its property, plant and equipment for possible impairment if there are events or changes in circumstances that indicate that carrying values of the assets may not be recoverable, or at least at the end of every reporting period. Such indicators include changes in the Group’s business plans, changes in diesel prices, evidence of physical damage and technological changes and impacts of obsolescence including those driven by climate change. |
Intangible assets and goodwill | 2.13 Goodwill arises on the acquisition of businesses and represents the excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the identifiable net assets acquired. If the total of consideration transferred, non-controlling interest recognized and previously held interest measured at fair value is less than the fair value of the net assets of the subsidiary acquired, in the case of a bargain purchase, the difference is recognized directly in profit or loss. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units (“CGUs”), or groups of CGUs, that is expected to benefit from the synergies of the combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at or below the operating segment level. Goodwill impairment reviews are undertaken annually or more frequently if events or changes in circumstances indicate a potential impairment. The carrying value of the CGU containing the goodwill is compared to the recoverable amount, which is the higher of value in use and the fair value less costs of disposal. Any impairment is recognized immediately as an expense and is not subsequently reversed. (a) Network related intangible assets represent future income from leasing excess tower capacity to new tenants. Customer related intangible assets represent customer contracts and relationships. Network and customer-related intangible assets acquired in a business combination are recognized at fair value at the acquisition date. Network and customer-related intangible assets have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method to allocate the cost of network and customer related intangible assets over their estimated useful lives of 14-34 years (2021: 14-26 years, 2020: 14-20 years) and 5-41 years (2021: 5-37 years, 2020: 5-30 years) respectively. The remaining amortization period for network and customer related assets are between 4-33 years (2021: 5-26 years, 2020: 6-26 years) and 20-40 years (2021: 21-36 years, 2020: 1-27 years) respectively. (b) Separately acquired licenses are shown at historical cost. Licenses acquired in a business combination are recognized at fair value at the acquisition date. Licenses have a finite useful life and are carried at cost less accumulated amortization. Amortization is calculated using the straight-line method over their estimated useful lives of 3-15 years (2021: 3-15 years, 2020: 3-15 years). (c) Costs associated with maintaining computer software programs are recognized as expenses as incurred. Acquired computer software licenses are capitalized at the cost incurred to acquire and bring into use the software. Amortization is calculated using the straight-line method over their estimated useful lives of three |
Impairment of nonfinancial assets | 2.14 Goodwill and intangible assets that have an indefinite useful life are not subject to amortization and are tested annually for impairment, or more frequently if events or changes in circumstances indicate that they might be impaired (note 3). Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs of disposal and its value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or groups of assets (cash-generating units). Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period. |
Inventories | 2.15 Inventories are stated at the lower of cost and estimated net realizable value. Cost comprises direct materials costs and where applicable, direct labor costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Cost is calculated using the first-in, first-out method. Net realizable value represents the estimated selling price less all estimated costs of completion and costs to be incurred in marketing, selling and distribution. If the carrying value exceeds net realizable amount, a write down is recognized. The write-down may be reversed in a subsequent period if the circumstances which caused it no longer exist. In other instances, where the net realizable value of an inventory item is not readily determinable, management assesses the age and the risk of obsolescence of such items in determining net realizable value of such items using an appropriate age/obsolescence factor model. |
Financial assets | 2.16 2.16.1 The Group classifies its financial assets in the following measurement categories: ● those to be measured subsequently at fair value (either through other comprehensive income (OCI) or through profit or loss), and ● those to be measured at amortized cost. The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows. The Group reclassifies debt investments when and only when its business model for managing those assets changes. 2.16.2 Regular way purchases and sales of financial assets are recognized on trade-date, the date on which the Group commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the Group has transferred substantially all the risks and rewards of ownership. 2.16.3 At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss (FVPL), transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at FVPL are expensed in profit or loss. a) Subsequent measurement of debt instruments depends on the Group’s business model for managing the asset and the cash flow characteristics of the asset. The Group measures its debt instruments at amortized cost as assets are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest. Interest income from these financial assets is included in finance income using the effective interest rate method. Any gain or loss arising on derecognition is recognized directly in profit or loss and presented in other gains/(losses) together with foreign exchange gains and losses. Impairment losses are presented as separate line item in the statement of income and other comprehensive income. For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are reflected within borrowings in current liabilities in the statement of financial position. b) The Group subsequently measures all equity investments at fair value. The Group has elected to present fair value gains and losses on equity investments in OCI. There is no subsequent reclassification of fair value gains and losses to profit or loss following the derecognition of the investment. 2.16.4 The Group evaluates each customer individually for the purpose of estimating the impairment at the reporting date rather than using a portfolio approach. The Group has limited history of losses and given the short duration of receivables, the Group uses the experienced credit judgement (ECJ) approach to estimate the impairment of trade receivables in accordance with the expected credit loss (ECL) requirement of IFRS 9. The ECJ approach assesses the credit risk of the customer at the reporting date to evaluate the customer’s capacity to meet its contractual cash flow obligations in the near term and combines this with an evaluation of the impact of changes in economic and business conditions on the customer’s ability to pay. |
Financial liabilities | 2.17 2.17.1 Classification The Group’s financial liabilities are classified at amortized cost. Financial liabilities are recognized initially at fair value and inclusive of directly attributable transaction costs. The Group’s financial liabilities are borrowings and trade and other payables. (a) Borrowings are initially recognized at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in the statement of income and other comprehensive income over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a prepayment for liquidity services and amortized over the period of the facility to which it relates. A day one gain or loss on intercompany loans at a non-market interest rate is included in investments. Borrowings are removed from the statement of financial position when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in the statement of income and other comprehensive income as other income or finance costs. Where the terms of a financial liability are renegotiated and the entity issues equity instruments to a creditor to extinguish all or part of the liability (debt for equity swap), a gain or loss is recognized in the statement of income and other comprehensive income, which is measured as the difference between the carrying amount of the financial liability and the fair value of the equity instruments issued. Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period. (b) Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest method. |
Derivative financial instruments | 2.18 Derivatives are financial instruments that derive their value from an underlying price or index. A derivative instrument gives one party a contractual right to exchange financial assets and financial liabilities with another party under conditions that are potentially favorable or financial liabilities with another party under conditions that are potentially unfavorable. Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. Where we have an obligation to purchase non-controlling interest that will be settled for a variable number of own shares, rather than cash, another financial asset, or a fixed number of shares, our policy is to treat this as a derivative transaction and measure it at fair value in the statement of income. |
Embedded derivatives | 2.19 An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract. An embedded derivative causes some or all of the cash flows that otherwise would be required by the contract to be modified according to a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates or other variable (provided in the case of a non-financial variable that the variable is not specific to a party to the contract). An embedded derivative is only separated and reported at fair value with gains and losses being recognized in the statement of income and other comprehensive income when the following requirements are met: ● where the economic characteristics and risks of the embedded derivative are not clearly and closely related to those of the host contract; ● the terms of the embedded derivative are the same as those of a stand-alone derivative; and ● the combined contract is not held for trading or designated at fair value through profit or loss. The Group’s listed bonds include embedded put and call features which are bifurcated at the time of issuance of the bonds. The Group has analyzed the 2027 Notes issued in September 2019 along with the 2026 and 2028 notes issued in November 2021 and has identified free standing call and put options embedded in the listed bonds that required separate valuation. The Group employed valuation techniques commonly used by market participants to evaluate bonds with embedded options, including discounted cash flow and option pricing models, and makes maximum reference to market inputs. The techniques adopted include the major factors that market participants would consider in setting a price and are consistent with accepted economic methodologies for pricing financial instruments. The options are valued equivalent to an American Receiver Swaption under the Hull & White Model. A significant portion of the Group’s contracted revenue pricing is denominated in US Dollars and the amount of local currency due is determined by reference to the US Dollar amount invoiced, translated at the spot rate or an average rate to the respective subsidiary. This represents an embedded foreign currency derivative in a host contract. Management’s judgement is that where fees that are priced in US$ are translated to local currency at the time of billing using a liquid market exchange rate, derivatives are not bifurcated as at the time the contracts are entered into. They are considered closely related to the host contract since they are denominated in a currency that is commonly used in the regions that the Group operates in (US Dollar being a relatively stable and liquid currency that is commonly used for pricing in local business transactions and trade). Where fees priced in US$ are translated to local currency at the time of billing using a fixed, pre-determined exchange rate, or an exchange rate which is not referenced to a liquid market exchange rate, derivatives are bifurcated at the time the contracts are entered into. |
Current and deferred income tax | 2.20 (a) Deferred income tax is recognized in full, using the liability method, on all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the end of the reporting period and are expected to apply when the related deferred income tax asset is realized or the deferred income tax liability is settled. Deferred income tax liabilities are not recognized if they arise from initial recognition of goodwill and deferred income tax is not accounted for if it arises from initial recognition of an asset or liability, in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred income taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. (b) Current income tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or directly in equity. In this case, the tax is also recognized in other comprehensive income or directly in equity, respectively. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted by the end of the reporting period in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that a taxation authority will accept an uncertain tax treatment. The Group measures its tax balances either based on the most likely amount or the expected value, depending on which method provides a better prediction of the resolution of the uncertainty. |
Employee benefits | 2.21 (a) The Group operates a number of defined contribution plans which are funded by contributions from the Group and the employees based on the law ruling in each country. The amounts contributed by the Group is recognized as employee benefit expenses and are charged to profit or loss in the period to which the contributions relate. The Group has no further payment obligation once the contributions have been paid. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in the future payment is available. (b) Short term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably. (c) The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit that employees have earned in return for their service in the current and prior periods. That benefit is discounted to determine its present value. Remeasurements are recognized in the statement of income and other comprehensive income in the period in which they arise. |
Share-based payments | 2.22 The Group operates a number of equity settled, share-based compensation plans, under which the entity receives services from employees as consideration for equity instruments (options) of the Company. Equity settled share-based payment obligations granted to employees are measured at their fair value (at the date of grant or the date of amendment in the case of modification of terms) and the fair value is recognized as an expense in profit or loss, with a corresponding increase in equity, over the vesting period of the awards. The amount recognized as an expense is adjusted to reflect the number of awards for which the related service and non-market performance conditions (for example, profitability, sales growth targets are expected to be met), such that the amount ultimately recognized is based on the number of awards that meet the related service and non-market performance conditions at the vesting date (note 3). In the event of a modification of the terms of the share-based instruments, if the fair value of the new amended instruments is greater than the fair value of the original instruments as at the modification date, then for options vested at the modification date, the incremental fair value is recognized in profit or loss immediately and for unvested options, the incremental amount is recognized in profit or loss over the remaining vesting period. In prior periods, and up to the 10 July 2019, the share-based compensation plans operated by the Group were classified and accounted for as cash-settled instruments. Options were measured at their fair value (at the date of grant) and the fair value was recognized as an expense in profit or loss with a corresponding liability recognized. Cash settled share-based payment liabilities were remeasured at the end of each reporting period up to the date of settlement, with any changes in fair value recognized in profit or loss. At the end of each reporting period and up to 10 July 2019, the Group revised its estimates of the number of options that were expected to vest based on the non-market vesting conditions and service conditions and recognized the impact of the revision to original estimates, if any, in profit or loss, with a corresponding adjustment to liability. Refer to note 28 for further information. |
Decommissioning and site restoration obligations | 2.23 The Group makes provision for any future cost of decommissioning of its telecommunication towers where required by regulation or land lease terms. These costs are expected to be incurred within a period of up to 20 years depending on the term of the leasehold. The Group estimates this provision using existing technology at current prices as quoted by decommissioning experts, escalated at the relevant inflation factor. The inflated decommissioning provision is subsequently discounted to present value using the Group’s incremental borrowing rate for borrowings over the expected term of the leasehold. The timing of each decommissioning will depend on the term of the lease and whether or not the lessor intends to renew the rental contract. A corresponding amount is recognized as part of property, plant and equipment. This is subsequently depreciated as part of the tower. Other than the unwinding discount on the provision, any change in the present value of the estimated expenditure is reflected as an adjustment to the provision and the corresponding item of property, plant and equipment. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of significant accounting policies | |
Schedule of property and equipment useful life | Towers and tower equipment • Base station equipment (including civil costs and overheads) 10 - 20 years • Base station equipment (other equipment) 15 years • Base station equipment (rectifier and solar power) 10 years • Base station equipment (alarm and battery) 3 - 5 years • Base station equipment (generator & generator overhaul) 1 - 3 years • Base station equipment (base transmission equipment) 8 - 10 years Fiber assets • Fixed line network equipment (including civil works, duct system, cable system and survey costs) 25 years • Outdoor cabinet 10 years Land and buildings, furniture and office equipment, and motor vehicles • Office complex 40 years • Furniture and office equipment 3 years • Motor vehicles 4 years |
Critical accounting estimates_2
Critical accounting estimates and judgements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Critical accounting estimates and judgements | |
Schedule of management's assessment of current uncertainties | Assessment Risk discussion and response Revenue and profitability · Limited impact on revenue collections thus far. · Customers continue to perform, and we have not experienced significant deterioration in payments. · The Group has long-term revenue contracts with its customers amounting to $13.3 billion in contracted revenue. · Our ability to collect revenue from our customers is impacted by our customers’ ability to generate and collect revenues from their operations. Our customers have, in the main, seen an increased demand for their services. · The impact on collections has thus far been limited and the Group remains in constant conversation with customers regarding their liquidity and ability to meet their obligations. · The Group regularly reviews measures for cost savings whilst maintaining its ability to operate effectively and towards strategic goals. · The Group has continued to invest in capital expenditure which supports revenue growth. The Group will continue to invest in capital expenditure relating to revenue growth during 2023. Liquidity · Sufficient liquidity is available. · No current impact on going concern. · The Group has cash and cash equivalents of $514 million as at December 31, 2022. · Management has assessed current cash reserves and the availability of undrawn facilities and continues to monitor available liquidity in the context of ongoing operational requirements and planned capital expenditure. · In the context of current commitments and available liquidity, management believes that the going concern assumption remains appropriate. · All of the Group’s operations are cash generative. Assessment Risk discussion and response Access to USD · Moderate risk due to decreased availability. · While there has been a reduction in US Dollar liquidity in the Nigerian market, we were still able to source US Dollars locally to fund our semi-annual coupons during the year. Internal controls · Minimal impact to date. · Our IT team monitors the increased risk of fraud, data or security breaches, loss of data and the potential for other cyber-related attacks and utilises security measures to mitigate such risks. Supply chain · Moderate risk due to delays. · The Group works closely with suppliers and contractors to ensure availability of supplies on site, especially diesel supplies which are critical to many of our operations. · Regular maintenance of our towers continues while observing strict safety guidelines for our employees and our suppliers and contractors. |
Introduction and overview of _2
Introduction and overview of Group's risk management (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Introduction and overview of Group's risk management | |
Schedule of sensitivity analysis of exchange rates | Effect on Effect on Effect on Effect on Effect on Effect on Effect on Rwandan Nigerian Zambian South Africa Brazilian Kuwaiti Euro Franc Naira Kwacha Rand Real Dinar $’000 $’000 $’000 $’000 $’000 $’000 $’000 2022 Rate of change 7 % 7 % 7 % 7 % 7 % 7 % 7 % Effect of US Dollar weakening on loss (13,153) (4,402) (165,880) (15,528) (2,809) (18,898) (648) Effect of US Dollar strengthening on loss 13,153 4,402 165,880 15,528 2,809 18,898 648 2021 Rate of change 5 % 5 % 5 % 5 % n/a 5 % 5 % Effect of US Dollar weakening on loss (15,726) (3,284) (106,595) (11,078) — (15,502) (424) Effect of US Dollar strengthening on loss 15,726 3,284 106,595 11,078 — 15,502 424 2020 Rate of change 5 % 5 % 5 % 5 % n/a 5 % 5 % Effect of US Dollar weakening on loss (18,652) (3,522) (114,799) (10,808) — (14,302) (250) Effect of US Dollar strengthening on loss 18,652 3,522 114,799 10,808 — 14,302 250 |
Schedule of foreign exchange exposure on inter company loans | Nigerian Rwandan Zambian South African Brazilian Kuwaiti Naira Franc Kwacha Rand Real Dinar US Dollar $’000 $’000 $’000 $’000 $’000 $’000 $’000 2022 US Dollar loan 2,172,230 62,886 127,235 40,132 269,976 9,261 — Euro loan — — — — — — 244,194 2021 US Dollar loan 2,037,580 65,679 128,084 — 310,047 8,476 — Euro loan — — — — — — 290,346 |
Schedule of foreign exchange risk | 2022 2021 $’000 $’000 Trade receivables 7,356 36,629 Cash and cash equivalents 45,234 43,928 Trade payables (69,480) (28,707) Borrowings (306,291) (211,961) Net exposure (323,181) (160,111) |
Schedule of interest rate risk | 2022 2021 2020 $'000 $'000 $'000 Effect of 1% (2021 and 2020: 1%) increase on post tax loss 6,345 6,343 5,850 Effect of 1% (2021 and 2020: 1%) decrease on post tax loss (6,846) (6,079) (6,035) |
Schedule of maximum credit exposure | 2022 2021 $’000 $'000 Other receivables (note 19) 387,019 201,759 Derivative financial instrument assets (note 18) 6,121 165,100 Trade receivables (net) (note 19) 211,025 222,789 Cash and cash equivalents (note 20) 514,078 916,488 1,118,243 1,506,136 |
Fitch credit ratings | 2022 2021 $’000 $'000 Other receivables AAA 27,820 — A 63 — B 335,600 145,300 B- — 7,418 BB- — 6,665 Not rated 23,536 42,376 387,019 201,759 |
Internal credit ratings | Internal Credit rating 2022 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 84,975 156 85,131 Not due 58,169 3,128 61,297 0-30 days 22,581 2,267 24,848 31-60 days 11,233 3,269 14,502 61-90 days 4,411 3,902 8,313 Over 90 days 11,748 30,551 42,299 Gross trade receivables 193,117 43,273 236,390 Impairment allowance (2,597) (22,768) (25,365) Net trade receivables 190,520 20,505 211,025 Internal Credit rating 2021 First tier Second tier Total $'000 $'000 $'000 Accrued Revenue 102,931 438 103,369 Not due 37,238 2,712 39,950 0-30 days 15,113 1,419 16,532 31-60 days 25,585 2,824 28,409 61-90 days 8,024 1,964 9,988 Over 90 days* 28,941 26,663 55,604 Gross trade receivables 217,832 36,020 253,852 Impairment allowance* (6,682) (24,381) (31,063) Net trade receivables 211,150 11,639 222,789 * Amount has been re-presented to reflect a trade receivables reclassification to align with 2022 disclosure. |
Schedule of movement in allowance for impairment in respect of trade receivables | 2022 2021 2020 $'000 $'000 $'000 Opening balance 31,063 133,800 133,889 (Decrease)/increase in impairment provision (4,446) (34,031) 13,081 Written-off during the year (312) (67,053) (2,106) Foreign exchange (940) (1,653) (11,064) 25,365 31,063 133,800 |
Schedule of contractual undiscounted cash flows of financial liabilities | Within 1 year 2 - 3 years 4 - 5 years Over 5 years Total $'000 $'000 $'000 $'000 $'000 2022 Trade payables (note 21) 442,959 — — — 442,959 Other payables (note 21) 88,676 1,459 — — 90,135 Payroll and other related statutory liabilities (note 21) 45,331 — — — 45,331 Lease liabilities (note 23) 92,417 179,930 168,231 667,954 1,108,532 Bank and bond borrowings 649,110 1,051,663 1,922,606 753,813 4,377,192 1,318,493 1,233,052 2,090,837 1,421,767 6,064,149 2021 Trade payables (note 21) 342,841 — — — 342,841 Other payables (note 21) 78,193 312 — — 78,505 Payroll and other related statutory liabilities (note 21) 53,446 — — — 53,446 Lease liabilities (note 23) 54,303 106,015 99,573 440,986 700,877 Bank and bond borrowings 363,345 657,292 1,008,212 1,515,659 3,544,508 892,128 763,619 1,107,785 1,956,645 4,720,177 |
Schedule of net leverage ratios | 2022 2021 $’000 $'000 Bank and bond borrowings (note 22) 3,344,402 2,609,090 Lease liabilities (note 23) 604,529 376,101 Less: Cash and cash equivalents (note 20) (514,078) (916,488) Net debt 3,434,853 2,068,703 Segment Adjusted EBITDA 1,031,386 926,396 Management net leverage ratio 3.3x 2.2x |
Schedule of reconciliation of financial instruments measured at fair value | 2022 2021 $'000 $'000 Opening balance at January 1 — 7,285 Recognition of embedded derivatives within revenue contracts — — Change in fair value — (7,231) Foreign exchange translation impact — (54) Closing balance at December 31 — — |
Schedule of financial instruments measured at fair value | Level 1 Level 2 Level 3 Total 2022 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 10 — — 10 Interest rate caps (note 18) — 821 — 821 Embedded options within listed bonds (note 18) — 5,300 — 5,300 Foreign exchange swaps (note 18) — (1,393) — (1,393) 10 4,728 — 4,738 Level 1 Level 2 Level 3 Total 2021 $'000 $'000 $'000 $'000 Fair value through other comprehensive income financial assets 11 — — 11 Embedded options within listed bonds (note 18) — 165,100 — 165,100 Non-deliverable forwards (NDF/NDS) (note 18) — (3,771) — (3,771) 11 161,329 — 161,340 |
Schedule of fair value estimation | 2022 2021 Carrying Carrying value Fair value value Fair value Financial liabilities $'000 $'000 $'000 $'000 Bank and bond borrowings (note 22) 3,344,402 3,116,193 2,609,090 2,668,792 3,344,402 3,116,193 2,609,090 2,668,792 |
Schedule of financial instruments by category - Assets | Financial assets Fair value through other Fair value Amortized comprehensive through profit cost income or loss Total $'000 $'000 $'000 $'000 2022 Trade receivables (note 19) 211,025 — — 211,025 Other receivables (note 19) 387,019 — — 387,019 Cash and cash equivalents (note 20) 514,078 — — 514,078 Fair value through other comprehensive income financial assets — 10 — 10 Derivative financial instruments assets (note 18) — — 6,121 6,121 1,112,122 10 6,121 1,118,253 2021 Trade receivables (note 19) 222,789 — — 222,789 Other receivables (note 19) 201,759 — — 201,759 Cash and cash equivalents (note 20) 916,488 — — 916,488 Fair value through other comprehensive income financial assets — 11 — 11 Derivative financial instruments assets (note 18) — — 165,100 165,100 1,341,036 11 165,100 1,506,147 |
Schedule of financial instruments by category - Liabilities | Financial liabilities Fair value through profit Amortized cost or loss Total $'000 $'000 $'000 2022 Bank and bond borrowings (note 22) 3,344,402 — 3,344,402 Trade payables (note 21) 442,959 — 442,959 Other payables (note 21) 90,135 — 90,135 Derivative financial instruments liabilities (note 18) — 1,393 1,393 Lease liabilities (note 23) 604,529 — 604,529 4,482,025 1,393 4,483,418 2021 Bank and bond borrowings (note 22) 2,609,090 — 2,609,090 Trade payables (note 21) 342,841 — 342,841 Other payables (note 21) 78,505 — 78,505 Derivative financial instruments liabilities (note 18) — 3,771 3,771 Lease liabilities (note 23) 376,101 — 376,101 3,406,537 3,771 3,410,308 |
Segment reporting (Tables)
Segment reporting (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment reporting | |
Schedule of summarized financial information | Summarized financial information for the year ended December 31, 2022 is as follows: 2022 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,352,402 412,824 160,008 36,065 — 1,961,299 Segment Adjusted EBITDA (note 4(e)) 802,822 230,521 114,434 16,021 (132,412) 1,031,386 Depreciation and amortization (note 7 and 8) (469,250) Net loss on disposal of property, plant and equipment (note 8) (3,382) Insurance claims (note 9) 2,092 Impairment of withholding tax receivables in Nigeria (note 8) (52,334) Impairment of Goodwill (note 8) (121,596) Business combination costs (note 8) (20,851) Impairment of property, plant and equipment and prepaid rental (note 7) (38,157) Other costs (a) (4,873) Share‑based payment expense (note 8) (13,265) Finance income (note 10) 15,825 Finance costs (note 11) (872,029) Other non-operating income (note 9) 2,584 Loss before income tax (543,850) Additions of property, plant and equipment and intangible assets: - through business combinations — 719,837 386,460 3,650 - In the normal course of business 400,430 101,154 135,069 23,532 Segment assets 2,270,656 1,639,384 1,931,317 178,471 Segment liabilities 935,387 914,588 555,885 109,087 (a) Other costs for the year ended December 31, 2022 included $2.3 million costs related to internal restructurings. Summarized financial information for the year ended December 31, 2021 is as follows: 2021 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,146,732 343,945 59,706 29,347 — 1,579,730 Segment Adjusted EBITDA (note 4(e)) 783,544 190,654 42,688 13,085 (103,575) 926,396 Depreciation and amortization (note 7 and 8) (382,882) Net gain on disposal of property, plant and equipment (note 8) 2,499 Insurance claims (note 9) 6,861 Impairment of withholding tax receivables in Nigeria (note 8) (61,810) Business combination costs (note 8) (15,779) Impairment of property, plant and equipment and prepaid rental (note 7) (51,113) Reversal of provision for decommissioning costs 2,671 Listing costs (22,153) Other costs (a) (15,752) Share‑based payment expense (note 8) (11,780) Finance income (note 10) 25,522 Finance costs (note 11) (422,034) Other non-operating income 11,213 Loss before income tax (8,141) Additions of property, plant and equipment and intangible assets: - through business combinations* — — 468,535 — - In the normal course of business 318,971 56,291 103,338 20,725 Segment assets* 2,038,376 1,024,347 1,453,729 173,888 Segment liabilities* 745,944 494,236 393,090 100,947 (b) Other costs for the year ended December 31, 2021 included non-recurring professional costs related to financing of $15.1 million and aborted transaction costs of $0.7 million. * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). Summarized financial information for the year ended December 31, 2020 is as follows: 2020 Nigeria SSA Latam MENA Other Total $’000 $’000 $’000 $’000 $’000 $’000 Revenues from external customers 1,037,836 313,416 30,185 21,712 — 1,403,149 Segment Adjusted EBITDA (note 4(e)) 701,273 170,784 22,696 9,937 (85,676) 819,014 Depreciation and amortization (note 7 and 8) (408,662) Net gain on disposal of property, plant and equipment (note 8) 764 Insurance claims (note 9) 14,987 Impairment of withholding tax receivables in Nigeria (note 8) (31,533) Business combination costs (note 8) (13,727) Impairment of property, plant and equipment and prepaid rental (note 7) (27,594) Listing costs (12,652) Other costs (a) (310) Share‑based payment expense (note 8) (8,342) Finance income (note 10) 148,968 Finance costs (note 11) (633,766) Loss before income tax (152,853) Additions of property, plant and equipment and intangible assets: - through business combinations — — 760,246 112,878 - In the normal course of business 195,692 61,147 31,703 8,465 Segment assets 2,040,911 1,043,669 682,813 142,210 Segment liabilities 747,428 532,801 266,596 92,917 (a) |
Schedule of countries contributing material revenue and/or have material non current assets | 2022 2021 2020 $’000 $'000 $'000 Revenue Nigeria 1,352,402 1,146,732 1,037,836 Rest of world 608,897 432,998 365,313 1,961,299 1,579,730 1,403,149 Non ‑ current assets* Nigeria 1,597,989 1,572,774 1,654,318 Côte d’Ivoire n.a as less than 10% n.a as less than 10% 330,705 Cameroon n.a as less than 10% n.a as less than 10% n.a as less than 10% Brazil 1,648,863 1,274,378 **/*** 641,253 South Africa 652,599 — — Rest of world 953,607 1,013,385 ** 626,991 4,853,058 3,860,537 3,253,267 * Non-current assets exclude financial instruments, non-current trade and other receivables and deferred tax assets. ** Amount has been re-presented to classify I-Systems Soluções de Infraestrutura S.A. in Brazil rather than rest of world. *** Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Schedule of revenue from tier one customers | 2022 2021 2020 $’000 $'000 $'000 Customer A 62 % 66 % 66 % Customer B 17 % 14 % n.a as less than 10% Customer C n.a as less than 10% n.a as less than 10% 14 % |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue. | |
Schedule of revenue | 2022 2021 2020 $’000 $'000 $'000 Lease component 1,534,415 1,233,816 1,026,103 Services component 426,884 345,914 377,046 1,961,299 1,579,730 1,403,149 |
Schedule of unsatisfied performance obligation | 2022 2021 2020 $’000 $'000 $'000 Within one year 418,137 351,071 343,209 1-2 years 386,416 309,861 331,608 2-3 years 309,326 255,791 291,891 3-4 years 288,244 211,615 258,129 4-5 years 276,816 190,018 214,223 After 5 years 1,149,649 858,912 879,294 2,828,588 2,177,268 2,318,354 |
Schedule of future minimum receipts of lease component | 2022 2021 2020 $’000 $'000 $'000 Within one year 1,589,439 1,284,692 1,011,501 1-2 years 1,478,221 1,177,665 981,778 2-3 years 1,194,924 1,083,942 880,316 3-4 years 1,136,303 847,224 801,452 4-5 years 1,098,901 749,839 625,352 After 5 years 4,008,713 2,703,888 2,594,074 10,506,501 7,847,250 6,894,473 |
Cost of sales (Tables)
Cost of sales (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cost of sales [abstract] | |
Schedule of cost of sales | 2022 2021 2020 $'000 $'000 $'000 Tower repairs and maintenance 90,126 74,523 75,931 Power generation 419,151 267,044 216,030 Short term site rental 13,656 11,165 7,543 Short term other rent 2,813 3,419 3,085 Vehicle maintenance and repairs 1,968 2,754 2,754 Site regulatory permits 33,999 41,165 27,313 Security services 43,448 36,132 32,719 Insurance 5,109 4,156 4,695 Staff costs (note 8.3) 33,229 26,323 24,588 Travel costs 5,343 7,155 4,313 Professional fees 3,460 3,385 2,457 Depreciation (note 14)* 411,925 330,799 367,007 Amortization (note 15) 42,050 34,051 32,503 Impairment of property, plant and equipment and prepaid land rent 38,157 51,113 27,594 Other 12,458 14,204 9,891 1,156,892 907,388 838,423 Foreign exchange gains and losses on cost of sales are included in Other. * |
Administrative expenses (Tables
Administrative expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Administrative expenses. | |
Schedule of administrative expenses | 2022 2021 2020 $’000 $'000 $'000 Facilities, short term rental and upkeep 34,203 23,210 12,872 Depreciation (note 14) 9,995 13,917 6,240 Amortization (note 15) 5,280 4,115 2,912 Travel costs 15,535 8,654 6,815 Staff costs (note 8.3) 132,399 101,567 78,376 Key management compensation (note 30.2) 21,703 25,642 13,776 Share-based payment expense (note 8.3 and 28) 13,265 11,780 8,342 Professional fees 38,964 49,685 38,200 Business combination transaction costs 20,851 15,779 13,727 Impairment of withholding tax receivables* 52,334 61,810 31,533 Impairment of goodwill 121,596 — — Net loss/(gain) on disposal of property, plant and equipment 3,382 (2,499) (764) Operating taxes 963 1,561 2,239 Other 30,705 21,290 21,844 501,175 336,511 236,112 2022 2021 2020 $’000 $'000 $'000 Salaries and wages 137,450 106,754 85,690 Pension contribution – employer 9,410 4,854 3,780 Other benefits 18,768 16,282 13,494 Share-based payment expense (note 8.3 and 28) 13,265 11,780 8,342 178,893 139,670 111,306 2022 2021 2020 $’000 $'000 $'000 Cost of sales 33,229 26,323 24,588 Administrative expenses 145,664 113,347 86,718 178,893 139,670 111,306 |
Other income (Tables)
Other income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other income. | |
Schedule of other income | 2022 2021 2020 $’000 $'000 $'000 Insurance claims 2,092 6,861 14,987 Other income 2,584 11,648 1,425 4,676 18,509 16,412 |
Finance Income (Tables)
Finance Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Finance income. | |
Schedule of Finance income | 2022 2021 2020 $’000 $'000 $'000 Interest income - bank deposits 15,170 7,798 5,101 Net foreign exchange gain arising from derivative instruments - unrealized — — 29,151 Net foreign exchange gain arising from derivative instruments - realized 655 9,889 4,061 Fair value gain on embedded options — 604 110,655 Fair value gain on embedded derivative within revenue contract — 7,231 — 15,825 25,522 148,968 |
Finance Costs (Tables)
Finance Costs (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Finance costs. | |
Schedule of finance costs | 2022 2021 2020 $’000 $'000 $'000 Interest expenses - third party loans 256,208 174,876 177,737 Interest expenses - withholding tax paid on bond interest 12,197 4,404 4,509 Unwinding of discount on decommissioning liability 7,084 4,644 2,644 Interest and finance charges paid/payable for lease liabilities 52,214 32,826 27,384 Net foreign exchange loss arising from financing - unrealized 157,836 126,131 363,953 Net foreign exchange loss arising from financing - realized 206,329 43,422 49,564 Fair value loss on embedded options 159,889 — — Costs paid on early loan and bond settlement — 18,171 — Fees on loans and financial derivatives 18,673 13,663 7,806 Fair value loss on embedded derivative within revenue contract — — 169 Net foreign exchange loss on derivative instruments - unrealized 1,599 3,897 — 872,029 422,034 633,766 |
Income Tax Expense (Tables)
Income Tax Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Expense | |
Schedule of Reconciliation of effective tax charge | 2022 2021 2020 $’000 $'000 $'000 Current taxes on income 108,842 91,692 95,107 Deferred income taxes (note 16) (182,295) (73,712) 74,722 Total taxes (73,453) 17,980 169,829 Reconciliation of effective tax charge Loss before income tax (543,850) (8,141) (152,853) Tax calculated at domestic tax rates applicable to profits in respective countries (193,607) (4,433) (66,049) Tax effects of: Tax incentives and income not subject to taxation (25,183) (46,175) (34,932) Expenses not deductible for tax purposes 93,687 76,059 82,662 Movement in deferred tax assets not recognized 79,477 74,084 181,403 Change in tax base* (74,291) (86,184) — Prior year (under)/over provision (562) 6,636 478 Goodwill impairment 40,937 — — Withholding tax on distributable profits 5,967 — — Other profit‑related taxes — 5,239 876 Foreign tax credit — — (3,570) Effects of changes in tax rates** (4,845) (5,272) — Non-deductible share-based payment expense — 1,441 1,082 Foreign exchange effects and other differences 4,967 (3,415) 7,879 Total taxes (73,453) 17,980 169,829 |
Schedule of Current Income Tax | |
Schedule of movement in the current income tax | The movement in the current income tax is as follows: At beginning of year (68,706) (48,703) (30,140) Additions through business combination (note 31) — (3,434) (1,538) Charged to profit or loss (108,842) (91,692) (95,107) Paid during the year 51,245 29,147 14,540 Withholding tax netting off 54,878 45,849 59,986 Exchange difference 2,591 127 3,556 At end of year (68,834) (68,706) (48,703) |
Loss per share (Tables)
Loss per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Loss per share | |
Schedule of basic and diluted net income/(loss) per common share | 2022 2021 2020 Loss attributable to equity holders ($'000) (470,397) (26,121) (322,682) Less: allocation of loss to non-controlling interest ($'000) (9,959) (289) (688) Loss attributable to IHS common shareholders ($'000) (460,438) (25,832) (321,994) Basic weighted average shares outstanding (‘000)* 330,963 301,185 294,103 Potentially dilutive securities (‘000)* 5,083 20,323 23,246 Potentially dilutive weighted average common shares outstanding (‘000)* 336,046 321,508 317,349 Loss per share: Basic loss per share ($) (1.39) (0.09) (1.09) Diluted loss per share ($) (1.39) (0.09) (1.09) * On October 13, 2021 all of the outstanding Class A and Class B shares of the Company were exchanged on a 500 to 1 basis for ordinary shares. The loss per share is based on the new number of shares. The comparatives have also been adjusted. Refer to note 25 for further information. |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, plant and equipment. | |
Schedule of property, plant and equipment | Total Towers Furniture and Capital (excluding Right- and tower Fiber Land and office Motor work in right-of-use of-use equipment assets buildings equipment vehicles progress asset) asset $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2020 2,527,637 — 51,734 15,877 19,824 85,060 2,700,132 406,897 Additions during the year 10,287 — 768 2,470 2,576 87,014 103,115 72,888 Additions through business combinations (note 31) 144,388 — 566 305 — 4,970 150,229 129,711 Reclassification 91,165 — 887 808 658 (93,518) — — Transfer from advance payments 124,272 — 620 91 — (2,997) 121,986 — Disposals* (23,591) — (1,203) (95) (1,310) — (26,199) (15,721) Effects of movement in exchange rates (214,038) — (5,936) (1,287) (1,600) (5,883) (228,744) (44,181) At December 31, 2020 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 At January 1, 2021 2,660,120 — 47,436 18,169 20,148 74,646 2,820,519 549,594 Additions during the year 20,995 — 825 5,056 6,012 224,479 257,367 113,722 Additions through business combinations (note 31) **** 77,142 233,809 968 93 — 5,495 317,507 41,709 Reclassification 124,548 23,241 5,999 — — (153,788) — — Transfer from advance payments 111,439 7,862 4,112 — — 3,959 127,372 — Disposals* (21,359) — — (82) (1,825) — (23,266) (18,872) Effects of movement in exchange rates (143,357) (14,222) (3,072) (1,038) (877) (8,438) (171,004) (35,649) At December 31, 2021 *** 2,829,528 250,690 56,268 22,198 23,458 146,353 3,328,495 650,504 At January 1, 2022 2,829,528 250,690 56,268 22,198 23,458 146,353 3,328,495 650,504 Additions during the year ***** (20,994) 70,905 1,489 7,453 6,961 350,512 416,326 100,832 Additions through business combinations (note 31) **** 266,110 — 885 — — — 266,995 477,981 Reclassification 176,625 10,991 1,992 4,231 — (193,839) — — Transfer from advance payments 100,578 16,412 6,754 33 — 2,008 125,785 — Disposals* (239,350) — — (459) (1,286) — (241,095) (17,755) Effects of movement in exchange rates (150,930) 15,184 (3,802) (1,148) (1,856) (17,876) (160,428) (46,917) At December 31, 2022 2,961,567 364,182 63,586 32,308 27,277 287,158 3,736,078 1,164,645 Accumulated depreciation and impairment At January 1, 2020 1,134,484 — 1,163 12,678 14,652 — 1,162,977 37,035 Charge for the year 315,131 — 331 2,547 1,959 — 319,968 54,089 Impairment 26,824 — 421 — — — 27,245 — Disposals* (21,435) — — (41) (1,294) — (22,770) (5,594) Effects of movement in exchange rates (102,812) — (187) (893) (1,049) — (104,941) (4,066) At December 31, 2020 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 At January 1, 2021 1,352,192 — 1,728 14,291 14,268 — 1,382,479 81,464 Charge for the year 272,068 5,366 296 3,806 2,902 — 284,438 60,685 Impairment/(reversal of impairment) 48,391 — (318) — — — 48,073 2,797 Disposals* (14,660) — — (73) (1,816) — (16,549) (8,634) Effects of movement in exchange rates (82,676) (12) (69) (867) (583) — (84,207) (6,459) At December 31, 2021 1,575,315 5,354 1,637 17,157 14,771 — 1,614,234 129,853 At January 1, 2022 1,575,315 5,354 1,637 17,157 14,771 — 1,614,234 129,853 Charge for the year** 268,999 54,152 315 5,800 4,610 — 333,876 88,961 Impairment 34,702 201 — — — — 34,903 3,151 Disposals* (234,117) — — (301) (1,272) — (235,690) (13,237) Effects of movement in exchange rates (83,573) (675) (119) (1,219) (1,100) — (86,686) (8,076) At December 31, 2022 1,561,326 59,032 1,833 21,437 17,009 — 1,660,637 200,652 Net book value At December 31, 2020 1,307,928 — 45,708 3,878 5,880 74,646 1,438,040 468,130 At December 31, 2021 1,254,213 245,336 54,631 5,041 8,687 146,353 1,714,261 520,651 At December 31, 2022 1,400,241 305,150 61,753 10,871 10,268 287,158 2,075,441 963,993 * The disposals value of right-of-use assets represents disposals due to terminated leases and the impact of remeasurement of lease assets as a result of changes in lease terms. ** The charge for the period does not agree to the charge in the consolidated statement of income/(loss) and other comprehensive income/(loss) due to the indirect taxes benefit of $0.9 million (2021: $0.4 million, 2020: $0.8 million) in IHS Brasil Cessão de Infraestruturas S.A. claimed through depreciation over the useful life of the asset. *** Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). **** Includes subsequent asset acquisitions on business combination transactions. *****Includes net movements in assets relating to the decommissioning and site restoration provision. |
Schedule of depreciation expense | 2022 2021 2020 $'000 $'000 $'000 Cost of sales (note 7) 411,925 330,799 367,007 Administrative expense (note 8) 9,995 13,917 6,240 421,920 344,716 373,247 (ii) Analysis of right of use assets |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of intangible assets material to entity [line items] | |
Summary of goodwill and intangible asset | Customer- Network - related related intangible intangible Goodwill assets assets Licenses Software Total $’000 $’000 $’000 $’000 $’000 $’000 Cost At January 1, 2020 518,392 496,990 43,556 14,592 20,902 1,094,432 Additions during the year — — — 4 2,460 2,464 Additions through business combinations (note 31) 232,030 324,290 36,831 — 33 593,184 Disposals — — — (1) (475) (476) Exchange difference (93,915) (88,846) (6,835) 1,201 (829) (189,224) At December 31, 2020 656,507 732,434 73,552 15,796 22,091 1,500,380 At January 1, 2021 656,507 732,434 73,552 15,796 22,091 1,500,380 Additions during the year — — — 3,145 1,909 5,054 Additions through business combinations (note 31)* 156,817 191,332 38,205 — 1,035 387,389 Disposals — — — (18) (723) (741) Exchange difference (33,177) (46,002) (4,555) (1,217) (514) (85,465) At December 31, 2021* 780,147 877,764 107,202 17,706 23,798 1,806,617 At January 1, 2022 780,147 877,764 107,202 17,706 23,798 1,806,617 Additions during the year — — — 14,772 6,413 21,185 Additions through business combinations (note 31) 115,686 178,257 71,028 — — 364,971 Disposals — — — (4) (395) (399) Exchange difference (13,254) (18,723) (4,679) (1,886) (572) (39,114) At December 31, 2022 882,579 1,037,298 173,551 30,588 29,244 2,153,260 Accumulated amortization and impairment At January 1, 2020 251 89,885 15,955 5,067 15,501 126,659 Charge for the year — 26,921 4,070 871 3,553 35,415 Disposals — — — — (475) (475) Exchange difference — (7,091) (1,003) 518 (740) (8,316) At December 31, 2020 251 109,715 19,022 6,456 17,839 153,283 At January 1, 2021 251 109,715 19,022 6,456 17,839 153,283 Charge for the year — 29,037 4,237 978 3,914 38,166 Disposals — — — (15) (726) (741) Exchange difference — (7,184) (1,374) (542) (616) (9,716) At December 31, 2021 251 131,568 21,885 6,877 20,411 180,992 At January 1, 2022 251 131,568 21,885 6,877 20,411 180,992 Charge for the year — 36,169 6,936 2,598 1,627 47,330 Impairment charge for the year** 121,596 — — — — 121,596 Disposals — — — (4) (394) (398) Exchange difference 404 (8,335) (1,245) (395) (313) (9,884) At December 31, 2022 122,251 159,402 27,576 9,076 21,331 339,636 Net book value At December 31, 2020 656,256 622,719 54,530 9,340 4,252 1,347,097 At December 31, 2021 779,896 746,196 85,317 10,829 3,387 1,625,625 At December 31, 2022 760,328 877,896 145,975 21,512 7,913 1,813,624 |
Schedule of classification of intangible asset amortization expenses | 2022 2021 2020 $’000 $'000 $'000 Cost of sales (note 7) 42,050 34,051 32,503 Administrative expenses (note 8) 5,280 4,115 2,912 47,330 38,166 35,415 |
Summary of goodwill allocation for each CGU | Effects of Additions through movements in Opening business combinations exchange rates Closing balance (note 31) Impairment and other movements balance $'000 $'000 $'000 $'000 $'000 2022 IHS Nigeria Limited 59,768 — — (3,432) 56,336 INT Towers Limited 214,775 — — (12,316) 202,459 IHS Towers NG Limited 43,138 — — (2,476) 40,662 IHS Cameroon S.A. 44,388 — — (2,647) 41,741 IHS Côte d’Ivoire S.A. 22,012 — — (1,311) 20,701 IHS Zambia Limited 50,709 — — (3,991) 46,718 IHS Rwanda Limited 11,867 — — (681) 11,186 IHS Kuwait Limited 12,369 — — (146) 12,223 IHS South Africa Proprietary Limited — 61,045 — (5,273) 55,772 IHS Latam tower businesses 241,451 54,641 (121,596) 13,076 187,572 I-Systems 79,419 — — 5,539 84,958 779,896 115,686 (121,596) (13,658) 760,328 2021 IHS Nigeria Limited 63,374 — — (3,606) 59,768 INT Towers Limited 227,715 — — (12,940) 214,775 IHS Towers NG Limited 45,741 — — (2,603) 43,138 IHS Cameroon S.A. 48,170 — — (3,782) 44,388 IHS Côte d’Ivoire S.A. 23,888 — — (1,876) 22,012 IHS Zambia Limited 39,907 — — 10,802 50,709 IHS Rwanda Limited 12,319 — — (452) 11,867 IHS Kuwait Limited 13,142 — — (773) 12,369 IHS Latam tower businesses 182,000 75,034 — (15,583) 241,451 I-Systems* — 81,783 — (2,364) 79,419 656,256 156,817 — (33,177) 779,896 2020 IHS Nigeria Limited 71,297 — — (7,923) 63,374 INT Towers Limited 256,149 — — (28,434) 227,715 IHS Towers NG Limited 51,460 — — (5,719) 45,741 IHS Cameroon S.A. 43,933 — — 4,237 48,170 IHS Côte d’Ivoire S.A. 21,787 — — 2,101 23,888 IHS Zambia Limited 60,529 — — (20,622) 39,907 IHS Rwanda Limited 12,986 — — (667) 12,319 IHS Kuwait Limited — 13,143 — (1) 13,142 IHS Latam tower businesses — 218,887 — (36,887) 182,000 518,141 232,030 — (93,915) 656,256 |
Schedule of key assumptions to which the value-in-use calculations are most sensitive | Pre-tax weighted average cost Terminal Tenancy Gross margins excluding depreciation & of capital growth rate Ratio* amortization* 2022 IHS Nigeria Limited 24.4 % 3.2 % 3.76 x - 7.74 x 62.5 % - 78.7 % INT Towers Limited 25.4 % 3.2 % 3.93 x - 4.79 x 61.7 % - 74.0 % IHS Towers NG Limited 24.9 % 3.2 % 3.65 x - 4.73 x 65.3 % - 72.3 % IHS Cameroon S.A. 13.7 % 4.0 % 2.56 x - 3.10 x 56.6 % - 65.5 % IHS Côte d’Ivoire S.A. 11.0 % 4.0 % 3.35 x - 4.00 x 54.8 % - 61.5 % IHS Zambia Limited 30.2 % 4.0 % 2.61 x - 3.24 x 65.4 % - 72.8 % IHS Rwanda Limited 18.1 % 4.0 % 2.04 x - 2.64 x 69.0 % - 73.2 % IHS South Africa Proprietary Limited 13.9 % 3.3 % 1.25 x - 2.28 x 42.9 % - 66.4 % IHS Kuwait Limited 6.3 % 3.6 % 1.01 x - 1.53 x 56.6 % - 62.6 % 2021 IHS Nigeria Limited 16.1 % 2.7 % 3.32 x - 5.18 x 64.2 % - 79.7 % INT Towers Limited 16.0 % 2.7 % 3.56 x - 4.98 x 67.4 % - 74.9 % IHS Towers NG Limited 16.5 % 2.7 % 3.63 x - 4.44 x 52.3 % - 63.1 % IHS Cameroon S.A. 12.1 % 3.2 % 2.37 x - 2.89 x 57.8 % - 64.6 % IHS Côte d’Ivoire S.A. 9.8 % 3.2 % 3.45 x - 4.46 x 53.8 % - 63.5 % IHS Zambia Limited 24.1 % 2.0 % 2.40 x - 3.30 x 65.2 % - 74.6 % IHS Rwanda Limited 15.5 % 3.2 % 2.04 x - 2.97 x 67.0 % - 73.3 % IHS Kuwait Limited 6.0 % 2.9 % 1.00 x - 1.46 x 52.4 % - 64.9 % 2020 IHS Nigeria Limited 22.6 % 2.7 % 2.59 x - 4.55 x 67.8 % - 82.1 % INT Towers Limited 22.5 % 2.7 % 2.87 x - 5.22 x 73.7 % - 79.9 % IHS Towers NG Limited 23.2 % 2.7 % 2.80 x - 3.02 x 64.4 % - 69.9 % IHS Cameroon S.A. 13.8 % 3.2 % 2.61 x - 3.16 x 55.9 % - 61.0 % IHS Côte d’Ivoire S.A. 10.0 % 3.2 % 3.44 x - 4.56 x 57.5 % - 61.6 % IHS Zambia Limited 32.2 % 3.2 % 2.21 x - 2.93 x 68.4 % - 75.8 % IHS Rwanda Limited 17.0 % 3.2 % 2.13 x - 2.60 x 65.9 % - 69.8 % IHS Kuwait Limited 5.0 % 2.8 % 1.00 x - 1.46 x 45.3 % - 59.2 % * |
Schedule of possible changes for key assumptions, that would cause the carrying amount to exceed the recoverable amount resulting in an impairment | IHS IHS Nigeria INT Towers IHS Towers Cameroon IHS Côte IHS Zambia IHS Rwanda IHS Kuwait Limited Limited NG Limited S.A. d’Ivoire S.A. Limited Limited Limited % Rise in discount rate Increase by 41.8pp Increase by 19.4pp Increase by 5.6pp Increase by 3.2pp Increase by 9.5pp Increase by 4.2pp Increase by 7.7pp Increase by 3.3pp Decrease in tenancy ratio Decrease by an average of 3.5 x over 4 years Decrease by an average of 1.5 x over 4 years Decrease by an average of 0.8 x over 4 years Decrease by an average of 0.42 x over 4 years Decrease by an average of 1.31 x over 4 years Decrease by an average of 0.27 x over 4 years Decrease by an average of 0.61 x over 4 years Decrease by an average of 0.51 x over 4 years Gross margin (excluding depreciation and amortization) Decrease by an average of 44.1 pp over 4 years Decrease by an average of 26.5 pp over 4 years Decrease by an average of 11.9 pp over 4 years Decrease by an average of 12.1 pp over 4 years Decrease by an average of 28.4 pp over 4 years Decrease by an average of 7.8 pp over 4 years Decrease by an average of 21.6 pp over 4 years Decrease by an average of 27.9 pp over 4 years Decrease in terminal growth rate Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % Decrease to less than 0 % |
Schedule of sensitivities to key assumption for fair value less costs of disposals calculation | 2022 Discount rate Terminal growth rate Tenancy growth* Homes connected Cost of disposal IHS Latam tower businesses 10.1 % 4.1 % 9.8 % n.a 0.5 % I-Systems 9.6 % 4.3 % n.a 1 million - 3.6 million 0.5 % *Tenancy growth disclosed is for the average annual growth rate for tenancies over the forecast period 2023 – 2032. |
IHS Latam Group | |
Disclosure of intangible assets material to entity [line items] | |
Schedule of scenarios that would increase the impairment charge recognised | 1% increase 1% decrease 15% decrease in post tax in terminal in tenancy discount rate growth rate growth $'000 $'000 $'000 Latam Towers businesses 174,000 108,000 113,000 |
Disclosure of level 3 fair value measurement inputs used in calculation of recoverable amount | The fair value measurement was categorized as a Level 3 fair value based on the inputs in the valuation technique used. Valuation technique Significant unobservable inputs Sensitivity of the input to fair value Recent transactions, Tower cash flow market multiples ● Monthly tower cash flow: $2.6 million (2020: $1.6 million) ● Multiple: 22.0 x (2020: 22.0 x) ● Costs of disposal: 0.82% of enterprise value (2020: 1.2% ) ● Decrease by $327,000 ● Decrease by 2.63 x ● Increase by 11.95% of enterprise value |
I-Systems Solues de Infraestrutura S.A. | |
Disclosure of intangible assets material to entity [line items] | |
Schedule of scenarios that would increase the impairment charge recognised | % rise in % decrease in % decrease in discount homes terminal rate connected growth rate I-Systems 2.2% 45.0% 3.8% |
IHS South Africa Proprietary Limited | |
Disclosure of intangible assets material to entity [line items] | |
Schedule of impairment of cash generating units from reasonably possible changes in key assumptions | 1% increase 1% decrease 50% decrease 10% decrease in post-tax in terminal in tenancy in gross discount rate growth rate growth margin $'000 $'000 $'000 $'000 IHS South Africa Proprietary Limited 68,724 45,732 155,908 77,017 |
Deferred income tax (Tables)
Deferred income tax (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deferred income tax | |
Summary of deferred tax asset and liability | 2022 2021 $’000 $'000 Deferred income tax assets 78,394 11,064 Deferred income tax liabilities* (186,261) (169,119) Net deferred tax liabilities (107,867) (158,055) |
Summary of deferred tax asset and liability offset | 2022 2021 $’000 $'000 Deferred income tax assets Property, plant and equipment (6,351) 1,678 Intangible assets 20,313 (6,231) Provisions 13,788 13,064 Tax losses 28,443 240 Other 22,201 2,313 Total 78,394 11,064 2022 2021 $'000 $'000 Deferred income tax liabilities Property, plant and equipment* (147,364) (147,733) Intangible assets* (199,064) (159,907) Provisions 38,837 36,397 Unrealized derivative income (337) (48,077) Timing differences on loans 19,071 33,192 Unrealized foreign exchange 12,150 21,010 Tax losses 11,170 3,450 Unutilized capital allowances 79,110 89,157 Other 166 3,392 Total (186,261) (169,119) |
Summary of deferred tax reconciliation | Other including Provisions/ Unrealized Property, share ‑ based exchange plant and payments Intangible Loans and differences equipment obligation assets derivatives /tax losses Total Net deferred income tax $'000 $'000 $'000 $'000 $'000 $'000 At January 1, 2020 (106,060) 29,279 (121,721) (11,697) 195,262 (14,937) Additions through business combinations (note 31)* (3,378) 2,182 (103,638) — 6,165 (98,669) Tax (charge)/income (46,364) 35,089 11,030 (16,444) (58,033) (74,722) Effects of movement in exchange rates 2,721 (407) 22,442 2,087 (2,256) 24,587 At December 31, 2020 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) At January 1, 2021 (153,081) 66,143 (191,887) (26,054) 141,138 (163,741) Additions through business combinations (note 31)* (6,065) — (73,330) — — (79,395) Tax income/(charge) 2,078 (11,922) 85,254 9,295 (10,989) 73,716 Effects of movement in exchange rates 11,014 (4,759) 13,806 1,874 (10,570) 11,365 At December 31, 2021 (146,054) 49,462 (166,157) (14,885) 119,579 (158,055) At January 1, 2022 (146,054) 49,462 (166,157) (14,885) 119,579 (158,055) Additions through business combinations (note 31) (61,184) — (77,919) — — (139,103) Tax income 47,148 5,324 58,054 32,969 38,800 182,295 Effects of movement in exchange rates 6,375 (2,161) 7,271 650 (5,139) 6,996 At December 31, 2022 (153,715) 52,625 (178,751) 18,734 153,240 (107,867) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventories | |
Schedule of inventories | 2022 2021 $'000 $'000 Stock of materials 74,216 42,021 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative financial instruments | |
Schedule of contractual notional amount for the derivative instruments | 2022 2021 $'000 $'000 Derivative instruments Foreign exchange swaps/non‑deliverable forwards 160,448 124,023 Embedded options within listed bonds 1,940,000 1,940,000 2,100,448 2,064,023 |
Schedule of fair value of derivative instruments | 2022 2021 $'000 $'000 Derivative instruments Foreign exchange swaps/non‑deliverable forwards (1,393) (3,771) Interest rate caps 821 — Embedded options within listed bonds 5,300 165,100 4,728 161,329 |
Schedule of changes in fair value of derivative instruments | 2022 2021 2020 $'000 $'000 $'000 Derivative instruments Foreign exchange swaps/non‑deliverable forwards (1,599) (3,897) 29,151 Interest rate caps (89) — — Embedded options within listed bonds (159,889) 604 110,655 Embedded options within revenue contracts — 7,231 (169) (161,577) 3,938 139,637 |
Schedule of credit ratings of derivative instruments | 2022 2021 $'000 $'000 Derivative financial instrument assets Not rated 6,121 165,100 6,121 165,100 |
Schedule of reconciliation of movements of derivative financial instruments | 2022 2021 $'000 $'000 Foreign exchange swaps/non-deliverable forwards Opening balance (3,771) 27,495 Fair value loss (unrealized foreign exchange on open contracts) (1,599) (3,897) Foreign exchange gain 780 10,342 Cash flow on settlement 3,197 (37,711) (1,393) (3,771) |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other receivables | |
Trade and other receivables | 2022 2021 $’000 $'000 Current Trade receivables 236,390 253,852 Less: impairment provisions (25,365) (31,063) Net trade receivables* 211,025 222,789 Other receivables**/**** 387,019 201,759 Prepaid land rent 1,030 1,069 Other prepaid expenses 26,820 25,080 Advance payments 22,076 14,663 Withholding tax receivables 1,201 992 VAT receivables 14,296 5,401 663,467 471,753 Non-current Accrued income and lease incentive 35,321 21,408 Other tax receivables 5,945 — Payment in advance for property, plant and equipment 83,118 48,071 Contingent consideration receivable***/**** 5,963 5,575 130,347 75,054 * The fair value is equal to their carrying amount. ** Other receivables are margins on non-deliverable forward contracts and short-term fixed deposits which are not classified as cash and cash equivalents as it exceeds the three-month maturity period. *** Refer to the I-Systems Soluções de Infraestrutura S.A. acquisition in note 31. The balance increased since acquisition due to foreign exchange movements. **** Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents. | |
Schedule of cash and cash equivalents | 2022 2021 $’000 $'000 Cash at bank 514,078 916,488 Cash and cash equivalents 514,078 916,488 |
Schedule of credit ratings of banking partners | 2022 2021 $’000 $'000 Cash and cash equivalents AAA (F1+) 20,916 127,781 A+ 22,790 — A (F1) 244,483 628,033 BBB+ 506 — BBB — 3,143 BBB- 115 162 B 217,335 157,277 B- 7,242 — C — 67 Not rated 691 25 514,078 916,488 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Trade and other payables. | |
Schedule of trade and other payables | 2022 2021 $’000 $'000 Current Trade payables 442,959 342,841 Deferred revenue 86,363 20,435 Withholding tax payable 5,820 4,517 Payroll and other related statutory liabilities 45,331 53,446 VAT payables 51,103 37,973 Other payables 37,573 40,220 669,149 499,432 Non-current Other payables 1,459 312 1,459 312 * Included in deferred revenue is $22.9 million (2021: $2.8 million, 2020: $0.6 million) which relates to contract liabilities. The contract liabilities relating to December 31, 2021 were fully recognized in revenue during the year end December 31, 2022. |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowings. | |
Schedule of external debt classification | 2022 2021 $’000 $'000 Non-current Senior Notes 1,920,783 1,916,062 Bank borrowings 985,505 485,409 2,906,288 2,401,471 Current Senior Notes 27,060 27,195 Bank borrowings 213,576 177,216 Letters of credit 197,478 3,208 438,114 207,619 Total borrowings 3,344,402 2,609,090 |
Schedule of reconciliation of debt | 2022 2021 2020 $’000 $’000 $’000 Opening balance – January 1 2,609,090 2,203,209 2,055,878 Additions through business combination (note 31) — 6,457 46,356 Interest expense (note 11) 256,208 174,876 177,737 Interest paid (234,567) (168,285) (167,938) Bank loans and bond proceeds received (net of transaction costs) 1,263,272 1,076,063 232,219 Bank loans and bonds repaid (506,504) (653,504) (99,903) Bank overdraft — 3,208 — Other transaction costs (19,911) (38,597) (5,561) Foreign exchange and other movements (23,186) 5,663 (35,579) Closing balance – December 31 3,344,402 2,609,090 2,203,209 |
Schedule of debt by debt instrument | 2022 2021 Currency Maturity date Interest rate $’000 $’000 Senior notes IHS Holding Limited US Dollar 2026 5.63 % 497,861 496,850 IHS Holding Limited US Dollar 2028 6.25 % 497,979 497,367 IHS Netherlands Holdco B.V. US Dollar 2027 8.00 % 952,003 949,042 Bank borrowings IHS Holding Term Loan US Dollar 2025 3.75 % + CAS + 3M SOFR 368,630 — IHS (Nigeria) Limited Nigerian Naira 2023 12.50 -18.00% 57,448 — INT Towers Ltd Nigerian Naira 2024 2.50 % + 3M NIBOR 191,188 284,882 INT Towers Ltd US Dollar 2024 4.25 % + 3M LIBOR — 92,769 IHS Côte d'Ivoire Ltd CFA Franc 2024 5.00 % 18,854 31,627 IHS Côte d'Ivoire Ltd Euro 2024 3.00 % + 3M EURIBOR 14,217 24,156 IHS Zambia Ltd US Dollar 2027 5.00 % + 3M LIBOR 94,596 93,164 IHS Brasil - Cessão de Infraestruturas S.A. Brazilian Real 2029 3.65 % + CDI 68,591 69,768 IHS Brasil - Cessão de Infraestruturas S.A. Brazilian Real 2028 3.05 % + CDI 82,928 — I-Systems Soluções de Infraestrutura S.A. Brazilian Real 2030 2.45 % + CDI 38,542 — IHS Kuwait Limited Kuwait Dinar 2029 2.00 % + 3M KIBOR 66,251 66,257 IHS Towers South Africa Proprietary Limited South African Rand 2029 2.75 % + 3M JIBAR 197,836 — Letters of credit IHS (Nigeria) Limited US Dollar 2023 8.95 - 12.05% 66,047 — INT Towers Ltd US Dollar 2023 9.50 - 11.70% 128,063 — ITNG Limited US Dollar 2023 12.05 % 987 — Global Independent Connect Limited US Dollar 2023 12.05 % 1,330 — Global Independent Connect Limited Chinese Yuan 2023 8.97 % 1,051 3,208 3,344,402 2,609,090 |
Lease liabilities (Tables)
Lease liabilities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lease liabilities. | |
Schedule of current and non current lease liabilities | 2022 2021 $’000 $’000 Current 87,240 50,560 Non-current 517,289 325,541 Total lease liabilities 604,529 376,101 |
Schedule of reconciliation of cash and non-cash changes | 2022 2021 2020 $’000 $’000 $’000 At January 1 376,101 314,747 184,494 Additions through business combinations (note 31) 215,597 44,557 131,651 Additions through new leases or remeasurements 118,609 131,438 65,070 Interest and finance charges for lease liabilities (note 11) 52,214 32,826 27,384 Payments for the principal of lease liabilities (76,629) (63,324) (39,153) Interest paid for lease liabilities (36,178) (32,923) (19,239) Remeasurements or terminations* (37,718) (30,978) (15,380) Effects of movement in exchange rates (7,467) (20,242) (20,080) Closing balance – December 31 604,529 376,101 314,747 * |
Schedule of amount recognized in the statement of income | 2022 2021 2020 $'000 $'000 $'000 Interest on lease liabilities (note 11) 52,214 32,826 27,384 Expenses relating to short term leases and low value assets (note 7) 16,469 11,165 7,543 Depreciation for right of use assets (note 14) 88,961 60,685 54,089 Total for the year ended 157,644 104,676 89,016 |
Schedule of contractual maturities of the lease liabilities | Total Carrying contractual Within 2 - 3 4 – 5 Over 5 value cash flows 1 year years years years $'000 $'000 $'000 $'000 $'000 $'000 2022 Lease liabilities 604,529 1,108,532 92,417 179,930 168,231 667,954 2021 Lease liabilities 376,101 700,877 54,303 106,015 99,573 440,986 |
Provisions for other liabilit_2
Provisions for other liabilities and charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Provisions for other liabilities and charges | |
Schedule of decommissioning and site restoration provision | 2022 2021 2020 $'000 $'000 $'000 At January 1 71,941 53,266 33,568 Additions through business combinations (refer to note 31) 34,419 8,347 15,437 Net provision increases and remeasurements (24,898) 7,212 8,315 Payments for tower and tower equipment decommissioning (343) (231) (65) Reversal of decommissioning through profit and loss — (2,671) — Unwinding of discount 7,084 4,644 2,644 Effects of movement in exchange rates (3,187) 1,374 (6,633) At December 31 85,016 71,941 53,266 Analysis of total decommissioning and site restoration provisions : Non-current 84,533 71,598 49,469 Current 483 343 3,797 85,016 71,941 53,266 |
Schedule of discount rate applied by each operating entity | IHS IHS Côte IHS IHS IHS Nigerian Cameroon d’Ivoire Zambia South Africa Rwanda Brazilian IHS Kuwait Discount entities S.A. S.A. Limited Proprietary Limited Limited entities Limited rates % % % % % % % % 2022 11.1 5.5 8.0 9.1 11.1 16.0 16.4 3.4 2021 11.2 5.5 8.0 5.1 n/a 16.0 6.8 3.4 |
Schedule of impact on accumulated losses of 1% shift in discount rate | Increase/ (decrease) on accumulated losses 2022 2021 $’000 $’000 Effect of 1% increase in discount rate (2,066) (1,571) Effect of 1% decrease in discount rate 1,606 1,093 |
Stated capital (Tables)
Stated capital (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stated capital | |
Schedule of stated capital | Class A shares pre-IPO / Ordinary Shares post-IPO Class B shares pre-IPO Stated Stated capital net capital net Number of Stated of issue Number of Stated of issue shares capital costs shares capital costs 000’s $'000 $'000 000’s $'000 $'000 At January 1, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 December 31, 2020 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 At January 1, 2021 130,492,567 4,233,335 4,231,856 16,558,927 299,405 299,014 Reclassification of Class A and Class B shares to ordinary shares 16,558,927 299,405 299,014 (16,558,927) (299,405) (299,014) Impact of reverse share split (146,757,391) — — — — — Shares issued on IPO 18,000 378,000 378,000 — — — Share issue costs — — (28,154) — — — Shares issued on exercise of options 15,717 342,768 342,768 — — — December 31, 2021 327,820 5,253,508 5,223,484 — — — Shares issued on exercise of options 4,100 88,469 88,469 — — — At December 31, 2022 331,920 5,341,977 5,311,953 * — — — * As at December 31, 2022 stated capital was made up of share capital of $99,576,000 and share premium of $5,212,377,048. |
Other reserves (Tables)
Other reserves (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other reserves. | |
Schedule of other reserves | Fair value through other compre- Foreign hensive Restruct- Share- based Loss on exchange income uring payment transactions translation reserve reserve reserve between owners reserve Total $’000 $’000 $’000 $’000 $’000 $’000 At January 1, 2020 (6) 4,019 504,331 (840,359) (255,140) (587,155) Other comprehensive income — — — — 94,434 94,434 Recognition of share-based payment expense — — 7,216 — — 7,216 At December 31, 2020 (6) 4,019 511,547 (840,359) (160,706) (485,505) At January 1, 2021 (6) 4,019 511,547 (840,359) (160,706) (485,505) Other comprehensive income 3 — — — (22,560) (22,557) Recognition of share-based payment expense — — 13,003 — — 13,003 SBP reserve converted to share capital — — (342,768) — — (342,768) Other reclassifications related to share based payment — — (5,084) — — (5,084) At December 31, 2021 (3) 4,019 176,698 (840,359) (183,266) (842,911) At January 1, 2022 (3) 4,019 176,698 (840,359) (183,266) (842,911) Other comprehensive income — — — — 59,370 59,370 Recognition of share-based payment expense — — 13,423 — — 13,423 SBP reserve converted to share capital — — (88,469) — — (88,469) Other reclassifications related to share based payment — — (2,835) — — (2,835) At December 31, 2022 (3) 4,019 98,817 (840,359) (123,896) (861,422) |
Non-controlling interest (Table
Non-controlling interest (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non-controlling interest. | |
Schedule of non controlling interests | 2022 2021* 2020 $’000 $’000 $’000 Balance at January 1 223,188 14,216 — Non-controlling interest arising on business combinations (refer to note 31) ** 831 215,014 14,927 Loss for the period (9,959) (289) (688) Other comprehensive gain / (loss) 13,140 (5,753) (23) Balance at December 31 227,200 223,188 14,216 * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). ** Includes non-controlling interest arising on subsequent asset acquisitions on business combination transactions. |
Schedule of summarized financial information of subsidiary | Summarized balance sheet and cash flows I-Systems Soluções de Infraestrutura S.A. 2022 ($’000) 2021* ($’000) Current assets 102,445 103,315 Current liabilities (38,834) (19,357) Current net assets 63,611 83,958 Non-current assets 462,122 386,761 Non-current liabilities (92,453) (51,389) Non-current net assets 369,669 335,372 Net assets 433,280 419,330 Accumulated non-controlling interest at the end of the period 212,307 205,433 Summarized statement of comprehensive income for the reporting period I-Systems Soluções de Infraestrutura S.A. 2022 ($’000) Revenue 56,602 Loss for the period (15,377) Other comprehensive income 29,449 Total comprehensive income 14,072 Loss allocated to non-controlling interest during the period (2021: $1,637) (7,535) I-Systems Soluções de Infraestrutura S.A. 2022 ($’000) 2021 ($’000) Cash flows generated from operating activities 55,714 6,056 Cash flows used in investing activities (91,680) (18,771) Cash flows generated from financing activities 36,574 41,965 Net increase in cash and cash equivalents 608 29,250 * Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Share-based payment obligation
Share-based payment obligation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based payment obligation | |
Schedule of total charge to the profit or loss | 2022 2021 2020 $’000 $’000 $’000 Expense under equity settled classification from date of amendment 13,265 11,780 8,342 13,265 11,780 8,342 |
Schedule of movements in the number of share options outstanding | |
Schedule of weightedaverage remaining contractual life | 2022 2021 Weighted Number of Weighted Number of average options in force average options in force Year of remaining at year end remaining at year end grant contractual life* contractual life 2014 0.33 519,763 0.83 1,039,526 2015 0.33 2,538,812 0.83 5,077,624 2017 0.33 842,658 0.83 1,685,317 2018 0.33 17,869 0.83 35,737 2020 0.33 25,605 0.83 51,211 2021 0.33 26,553 0.83 53,123 2022 1.72 2,617,876 — — 6,589,136 7,942,538 * The current year contractual remaining life has been determined using vesting dates as all options are expected to be exercised on vesting date. |
Cash from operations (Tables)
Cash from operations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash from operations | |
Schedule of cash flow from operations | 2022 2021 2020 $’000 $'000 $'000 Reconciliation: Loss before income tax (543,850) (8,141) (152,853) Adjustments Depreciation of property, plant and equipment (note 7 and 8) 421,920 344,716 373,247 Amortization of intangible assets (note 15) 47,330 38,166 35,415 Impairment of property, plant and equipment and prepaid land rent (note 7) 38,157 51,113 27,594 (Reversal of loss allowance)/loss allowance on trade receivables (note 8.1) (4,446) (34,031) 13,081 Impairment of withholding tax receivables (note 8) 52,334 61,810 31,533 Impairment of goodwill (note 8) 121,596 — — Amortization of prepaid site rent 9,176 8,321 4,459 Net loss/(gain) on disposal of plant, property and equipment (note 8) 3,382 (2,499) (764) Insurance claim income (note 9) (2,092) (6,861) (14,987) Interest expense (note 11) 872,029 422,034 633,766 Interest income (note 10) (15,825) (25,522) (148,968) Share‑based payment expense (note 28) 13,265 11,780 8,342 Impairment/(reversal of impairment) of inventory 138 (315) 4,599 Reversal of decommissioning through profit and loss — (2,671) — Operating profit before working capital changes 1,013,114 857,900 814,464 Changes in working capital (Increase)/decrease in inventory (37,750) 6,689 (8,482) Increase in trade and other receivables (141,723) (164,382) (130,265) Increase/(decrease) in trade and other payables 133,233 87,866 (19,018) Net movement in working capital (46,240) (69,827) (157,765) Cash from operations 966,874 788,073 656,699 |
Related parties (Tables)
Related parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related parties. | |
Schedule of subsidiaries | Ownership interests Ownership held interests held Country of by the Group by the Group Entity name Principal activity incorporation 2022 2021 IHS Holding Limited (ultimate parent) Holding company Cayman Islands — — IHS Mauritius Cameroon Limited Holding company Mauritius 100 % 100 % IHS Mauritius Côte d’Ivoire Limited Holding company Mauritius 100 % 100 % IHS Mauritius Netherlands Limited Holding company Mauritius 100 % 100 % IHS Mauritius Zambia Limited Holding company Mauritius 100 % 100 % IHS Mauritius Rwanda Limited Holding company Mauritius 100 % 100 % IHS Africa (UK) Limited Provision of management services United Kingdom 100 % 100 % IHS Netherlands (Interco) Coöperatief U.A. Holding company Netherlands 100 % 100 % IHS Netherlands Holdco B.V. Provision of finance Netherlands 100 % 100 % IHS Netherlands NG1 B.V. Holding company Netherlands 100 % 100 % IHS Netherlands NG2 B.V. Holding company Netherlands 100 % 100 % IHS Nigeria Limited Operating* Nigeria 100 % 100 % INT Towers Limited Operating* Nigeria 100 % 100 % IHS Towers NG Limited Operating* Nigeria 100 % 100 % IHS Côte d’Ivoire S.A. Operating* Côte d’Ivoire 100 % 100 % IHS Cameroon S.A. Operating* Cameroon 100 % 100 % IHS Zambia Limited Operating* Zambia 100 % 100 % IHS Rwanda Limited Operating* Rwanda 100 % 100 % Rwanda Towers Limited Operating* Rwanda 100 % 100 % IHS Kuwait Limited Operating* Kuwait 100 % 100 % IHS Brasil - Cessão de Infraestruturas S.A. Operating* Brazil 100 % 100 % IHS Towers Colombia S.A.S Operating* Colombia 100 % 100 % IHS Peru S.A.C. Operating* Peru 100 % 100 % San Gimignano Imoveis e Adminsitracao Ltda. Provision of land management Brazil 100 % 100 % Nigeria Tower Interco B.V. Holding company Netherlands 100 % 100 % IHS Netherlands GCC B.V. Holding company Netherlands 100 % 100 % IHS Netherlands KSA B.V. Holding company Netherlands 100 % 100 % IHS GCC Limited Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands Connect B.V. Holding company Netherlands 100 % 100 % IHS GCC KW Holding Limited Provision of management services United Arab Emirates 70 % 70 % IHS FinCo Management Limited Provision of finance United Arab Emirates 100 % 100 % IHS GCC MAR Holding Limited Holding company United Arab Emirates 100 % — Global Independent Connect Limited Operating* Nigeria 100 % 100 % IHS KSA Limited Operating* Kingdom of Saudi Arabia 100 % 100 % IHS SSC FZE Provision of management services United Arab Emirates 100 % 100 % IHS Netherlands RSA B.V Holding company Netherlands 100 % 100 % IHS Netherlands BR B.V Holding company Netherlands 100 % 100 % IHS South Africa Holding Proprietary Limited Holding company South Africa 100 % 100 % IHS Towers South Africa Proprietary Limited Operating* South Africa 100 % 100 % IHS Netherlands PHP B.V Holding company Netherlands 100 % 100 % IHS Towers Inc. Provision of management services United States of America 100 % 100 % IHS Netherlands EGY B.V. Holding company Netherlands 100 % 100 % IHS Telecom Towers Egypt S.A.E. Operating* Egypt 80 % 80 % Skysites Americas Ltda Operating* Brazil 100 % 100 % Wi-Fi Mundial Ltda. Operating* Brazil 100 % 100 % Topázio Empreendimentos Imoliliarios Ltda. Operating* Brazil ** 100 % IHS Fiber Brasil Participações Ltda. Holding company Brazil 100 % 100 % IHS Fiber Brasil - Cessão de Infraestruturas Ltda. Holding company Brazil 100 % 100 % I-Systems Soluções de Infraestrutura S.A. Operating* Brazil 51 % 51 % Centennial Towers Colombia S.A.S. Operating* Colombia 100 % 100 % Polar Breeze Colombia S.A.S Operating* Colombia 100 % 100 % Centennial Towers Brasil Cooperatief U.A. Holding company Netherlands 100 % 100 % Centennial Towers of Brasil B.V. Holding company Netherlands 100 % 100 % Centennial Towers of Colombia Ltd. Financing company British Virgin Islands 100 % 100 % IHS CNT Brasil Torres de Telecomunicacoes Ltda. Operating* Brazil 100 % 100 % Polar Breeze Empreendimentos Ltda. Operating* Brazil 100 % 100 % * All operating subsidiaries provide telecommunication support services as their principal activity. ** Entity liquidated after an internal merger. |
Summary of compensation paid or payable to key management for employee services. | 2022 2021 2020 $’000 $’000 $’000 Key management compensation Short‑term employee benefits 19,980 25,537 13,671 Post‑employment benefits 1,723 105 105 21,703 25,642 13,776 Share-based payments 5,380 9,795 6,029 27,083 35,437 19,805 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations | |
Schedule of fair value adjustments in accordance with IFRS 3 | As reported As re-presented December 31, 2021 Adjustments December 31, 2021 $’000 $’000 $’000 Property, plant and equipment 1,708,834 5,427 1,714,261 Goodwill 837,374 (57,478) 779,896 Other intangible assets 701,425 144,304 845,729 Trade and other receivables - non-current 69,479 5,575 75,054 Trade and other receivables - current 469,130 2,623 471,753 Deferred tax liabilities (118,210) (50,909) (169,119) Non-controlling interest (173,647) (49,541) (223,188) |
IHS Kuwait acquisition of towers in Kuwait | |
Business Combinations | |
Disclosure of detailed information about asset acquisitions | 2022 2021 $’000 $’000 Gross consideration 2,729 12,248 Less: consideration received in exchange for a retained 30% interest (by Zain Kuwait) in IHS GCC KW (819) (1,837) Net consideration for 70% controlling interest in the acquired towers 1,910 10,411 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 1,032 7,902 Customer related assets 1,947 5,449 Network-related assets 671 1,877 Trade and other receivables — 872 Trade and other payables (921) (3,852) Total identifiable net assets acquired (at 100% ) 2,729 12,248 Goodwill — - Determination of non-controlling interest Total identifiable net assets acquired (at 100%) 2,729 12,248 Shareholder funding provided by the Group and external debt* — (6,124) Total identifiable net assets acquired for purposes of non-controlling interest 2,729 6,124 Non-controlling interest portion of above at 30% 819 1,837 Revenue — post‑acquisition n.a. n.a. Loss — post‑acquisition n.a. n.a. * This was shareholder funding provided by the Group and recorded as short term liabilities in IHS GCC KW. These funds were loaned to IHS Kuwait to fund the acquisition of the towers from Zain. This short term liability was subsequently replaced by external debt. |
MTN telecom towers in South Africa | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | 2022 $’000 Gross consideration 421,239 Net cash consideration 421,239 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 251,683 Customer related intangible asset 127,957 Network related intangible asset 67,837 Right of use asset 211,315 Lease liabilities (211,315) Deferred tax (52,864) Provisions for other liabilities and charges (34,419) Total identifiable net assets acquired 360,194 Goodwill 61,045 Revenue — post‑acquisition 71,398 Loss — post‑acquisition (21,975) |
Sao Paulo Cinco Locacao de Torres Ltda (SP5) | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | 2022 $’000 Gross consideration 317,188 Less: cash in business at the date of acquisition (1,896) Net cash consideration 315,292 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 13,395 Land 885 Customer related intangible asset 48,353 Network related intangible asset 2,520 Right of use asset 266,666 Trade and other receivables 23,575 Lease liabilities (4,282) Trade and other payables (4,222) Deferred tax (86,239) Total identifiable net assets acquired 260,651 Goodwill 54,641 Revenue — post‑acquisition 34,129 Profit — post‑acquisition* 6,340 * Includes profit up until an internal merger of the entity. |
Skysites Holdings S.A. | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | 2021 $’000 Gross consideration 40,611 Less: contingent consideration* (4,169) Less: cash in business at the date of acquisition (2,775) Net cash consideration 33,667 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 11,276 Land 15 Furniture and office equipment 11 Capital work in progress 535 Customer related intangible asset 4,703 Right of use asset 9,675 Trade and other receivables 713 Trade and other payables (1,132) Provisions for other liabilities and charges (2,548) Lease liabilities (10,071) Deferred tax (2,205) Total identifiable net assets acquired 10,972 Goodwill 26,864 Revenue — post‑acquisition 4,041 Loss — post‑acquisition (142) * |
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | Brazil Colombia Total 2021 2021 2021 $’000 $’000 $’000 Gross consideration 93,900 47,051 140,951 Less: cash in business at the date of acquisition (260) (659) (919) Net cash consideration 93,640 46,392 140,032 Identifiable assets acquired and liabilities assumed: Towers and tower equipment 43,890 14,074 57,964 Land 407 546 953 Furniture and office equipment 65 17 82 Capital work in progress 628 500 1,128 Right of use asset 22,273 9,761 32,034 Customer related intangible asset 35,422 32,599 68,021 Network related intangible asset 594 321 915 Software 495 1 496 Trade and other receivables 2,363 3,023 5,386 Trade and other payables (1,471) (3,646) (5,117) Provisions for other liabilities and charges (5,272) (527) (5,799) Lease liabilities (24,028) (10,458) (34,486) Tax payable (2,809) (625) (3,434) Deferred tax (15,374) (10,907) (26,281) Total identifiable net assets acquired 57,183 34,679 91,862 Goodwill 36,457 11,713 48,170 Revenue — post‑acquisition 9,515 Profit/(loss) — post‑acquisition (3,961) |
I-Systems Solues de Infraestrutura S.A. | |
Business Combinations | |
Summary of consideration paid and the fair value of assets and liabilities acquired at the acquisition date | As reported As re-presented December 31, 2021 Adjustments December 31, 2021 $’000 $’000 $’000 Gross consideration 266,739 (6,074) 260,665 Contingent consideration* — 5,739 5,739 Less: deferred consideration (64,474) (2,366) (66,840) Net cash consideration 202,265 (2,701) 199,564 Capital injection** 42,996 — 42,996 Identifiable assets acquired and liabilities assumed: Network assets 220,950 12,859 233,809 Cash 44,872 — 44,872 Capital work in progress 3,832 — 3,832 Software 539 — 539 Customer related intangible asset — 113,159 113,159 Network related intangible asset — 35,413 35,413 Trade and other receivables 72,989 2,349 75,338 Trade and other payables (5,764) (7,271) (13,035) Loans payable (6,457) — (6,457) Deferred tax — (52,415) (52,415) Total identifiable net assets acquired 330,961 104,094 435,055 Non-controlling interest 162,171 51,006 213,177 Goodwill 140,945 (59,162) 81,783 Revenue — post‑acquisition 5,426 Loss — post‑acquisition (3,341) *Contingent consideration consists of $5.7 million of consideration receivable at a future date which is recognized at fair value on the date of acquisition. The contingent consideration relates to a pay-out if certain conditions are met post-acquisition around homes connected, homes passed, and Churn. ** The capital injection relates to a payment made to I-Systems for the issuance of new share capital as part of the acquisition agreement to achieve the agreed shareholding structure post acquisition. |
Summary of significant accoun_4
Summary of significant accounting policies (Details) | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 ₦ / $ | Dec. 31, 2021 ₦ / $ | Dec. 31, 2020 ₦ / $ | Dec. 31, 2022 ₦ / $ segment | |
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Foreign exchange rate | 461.506 | 435 | 410.25 | 461.506 |
Average foreign exchange rate | 451.01 | 415.6 | 394.3 | |
Typical number of performance obligations in non-lease revenue contracts | 2 | 2 | ||
Lease additional periods | 10 years | |||
Number of reportable segments | segment | 4 | |||
Bottom of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Foreign exchange rate | 416 | 394.13 | 363.2 | 416 |
Bottom of range | Leasing contracts in which reporting entity is lessor | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Lease term | 5 years | |||
Top of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Foreign exchange rate | 461.50 | 435 | 410.25 | 461.50 |
Top of range | Leasing contracts in which reporting entity is lessor | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Lease term | 10 years | |||
Base station equipment (including civil costs and overheads) | Bottom of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 10 years | |||
Base station equipment (including civil costs and overheads) | Top of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 20 years | |||
Base station equipment (other equipment) | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 15 years | |||
Base station equipment (rectifier and solar power) | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 10 years | |||
Base station equipment (alarm and battery) | Bottom of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 3 years | |||
Base station equipment (alarm and battery) | Top of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 5 years | |||
Base station equipment (generator and generator overhaul) | Bottom of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 1 year | |||
Base station equipment (generator and generator overhaul) | Top of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 3 years | |||
Base station equipment (base transmission equipment) | Bottom of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 8 years | |||
Base station equipment (base transmission equipment) | Top of range | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 10 years | |||
Fixed line network equipment (including civil works, duct system, cable system and survey costs) | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 25 years | |||
Outdoor cabinet | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 10 years | |||
Office complex | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 40 years | |||
Furniture and office equipment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 3 years | |||
Motor vehicles | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property and equipment estimated useful lives | 4 years |
Summary of significant accoun_5
Summary of significant accounting policies - Intangible Assets (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |||
Period over which cost of decommissioning of telecommunication towers incurred | 20 years | ||
Network | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 14 years | 14 years | 14 years |
Remaining amortization period of intangible assets | 4 years | 5 years | 6 years |
Network | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 34 years | 26 years | 20 years |
Remaining amortization period of intangible assets | 33 years | 26 years | 26 years |
Customerrelated intangible assets | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 5 years | 5 years | 5 years |
Remaining amortization period of intangible assets | 20 years | 21 years | 1 year |
Customerrelated intangible assets | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 41 years | 37 years | 30 years |
Remaining amortization period of intangible assets | 40 years | 36 years | 27 years |
Licenses | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 3 years | 3 years | 3 years |
Licenses | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 15 years | 15 years | 15 years |
Computer software | Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 3 years | ||
Computer software | Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets estimated useful lives | 5 years |
Critical accounting estimates_3
Critical accounting estimates and judgements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Critical accounting estimates and assumptions [Line Items] | |||||
Value of contracted revenue | $ 13,300,000 | ||||
Cash and cash equivalents | $ 514,078 | $ 916,488 | [1] | $ 585,416 | $ 898,802 |
Lease renewal term | 10 years | ||||
Percentage of unpaid regular claims accrued | 100% | ||||
Percentage of unpaid regular claims accrual over certain years | 0% | ||||
Percentage of change in management estimate of regulatory payables | 10% | ||||
Increase (decrease ) in unbilled regulatory payables due to change in management estimate | $ 2,900 | 3,200 | 2,900 | ||
Nigeria | |||||
Critical accounting estimates and assumptions [Line Items] | |||||
Unbilled regulatory accruals | $ 29,400 | $ 31,900 | $ 28,300 | ||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Critical accounting estimates_4
Critical accounting estimates and judgements - Revenue recognition (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Critical accounting estimates and judgements | |||
Percentage Of Reasonably Possible Increase (Decrease) In Management's Estimate of Variable Consideration | 10% | ||
Increase (decrease) in revenue as a result of reasonably possible increase (decrease) in management's estimate of variable consideration | $ 17.4 | $ 16.8 | $ 14.2 |
Percentage Of Reasonably Possible Increase (Decrease) In Management's Estimate of Amount of Accrued Revenue | 20% | ||
Increase (decrease) in revenue as a result of reasonably possible increase (decrease) in management's estimate amount of accrued revenue | $ 4.4 | $ 5 | $ 3.3 |
Introduction and overview of _3
Introduction and overview of Groups risk management - Sensitivity analysis (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Introduction and overview of Group's risk management | |||
Export sales | $ 0 | ||
Foreign exchange risk | Euro | |||
Introduction and overview of Group's risk management | |||
Rate of change | 7% | 5% | 5% |
Effect of US Dollar weakening on loss | $ (13,153) | $ (15,726) | $ (18,652) |
Effect of US Dollar strengthening on loss | $ 13,153 | $ 15,726 | $ 18,652 |
Foreign exchange risk | Rwandan Franc | |||
Introduction and overview of Group's risk management | |||
Rate of change | 7% | 5% | 5% |
Effect of US Dollar weakening on loss | $ (4,402) | $ (3,284) | $ (3,522) |
Effect of US Dollar strengthening on loss | $ 4,402 | $ 3,284 | $ 3,522 |
Foreign exchange risk | Nigeria Naira | |||
Introduction and overview of Group's risk management | |||
Rate of change | 7% | 5% | 5% |
Effect of US Dollar weakening on loss | $ (165,880) | $ (106,595) | $ (114,799) |
Effect of US Dollar strengthening on loss | $ 165,880 | $ 106,595 | $ 114,799 |
Foreign exchange risk | Zambian Kwacha | |||
Introduction and overview of Group's risk management | |||
Rate of change | 7% | 5% | 5% |
Effect of US Dollar weakening on loss | $ (15,528) | $ (11,078) | $ (10,808) |
Effect of US Dollar strengthening on loss | $ 15,528 | $ 11,078 | $ 10,808 |
Foreign exchange risk | South Africa, Rand | |||
Introduction and overview of Group's risk management | |||
Rate of change | 7% | ||
Effect of US Dollar weakening on loss | $ (2,809) | ||
Effect of US Dollar strengthening on loss | $ 2,809 | ||
Foreign exchange risk | Brazil Real | |||
Introduction and overview of Group's risk management | |||
Rate of change | 7% | 5% | 5% |
Effect of US Dollar weakening on loss | $ (18,898) | $ (15,502) | $ (14,302) |
Effect of US Dollar strengthening on loss | $ 18,898 | $ 15,502 | $ 14,302 |
Foreign exchange risk | Kuwaiti Dinar | |||
Introduction and overview of Group's risk management | |||
Rate of change | 7% | 5% | 5% |
Effect of US Dollar weakening on loss | $ (648) | $ (424) | $ (250) |
Effect of US Dollar strengthening on loss | $ 648 | $ 424 | $ 250 |
Introduction and overview of _4
Introduction and overview of Group's risk management - Foreign exchange exposure on intercompany loans (Details) - Currency risk [member] - Inter Company Loans [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Nigeria, Nairas | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | $ 2,172,230 | $ 2,037,580 |
Rwanda, Rwanda Francs | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 62,886 | 65,679 |
Zambia, Kwacha | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 127,235 | 128,084 |
South Africa, Rand | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 40,132 | |
Brazil, Brazil Real | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 269,976 | 310,047 |
Kuwait, Dinars | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | 9,261 | 8,476 |
United States of America, Dollars | ||
Introduction and overview of Group's risk management | ||
Payable to related parties | $ 244,194 | $ 290,346 |
Introduction and overview of _5
Introduction and overview of Group's risk management - Exposure to foreign exchange risk (Details) - Foreign exchange risk - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Introduction and overview of Group's risk management | ||
Net exposure | $ (323,181) | $ (160,111) |
Trade receivables | ||
Introduction and overview of Group's risk management | ||
Net exposure | 7,356 | 36,629 |
Cash and cash equivalents | ||
Introduction and overview of Group's risk management | ||
Net exposure | 45,234 | 43,928 |
Trade payables | ||
Introduction and overview of Group's risk management | ||
Net exposure | (69,480) | (28,707) |
Borrowings | ||
Introduction and overview of Group's risk management | ||
Net exposure | $ (306,291) | $ (211,961) |
Introduction and overview of _6
Introduction and overview of Group's risk management - Interest rate risk (Details) - Interest rate risk [member] - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Percentage of increase decrease in interest rate | 1% | 1% | 1% | 1% |
Effect of 1% (2020: 1%) increase on post tax loss | $ (6,345) | $ (6,343) | $ (5,850) | |
Effect of 1% (2020: 1%) increase on post tax loss | $ (6,846) | $ (6,079) | $ (6,035) |
Introduction and overview of _7
Introduction and overview of Group's risk management - Credit risk (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | $ 1,118,243 | $ 1,506,136 | ||
Derivative financial instrument assets (note 18) | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | 6,121 | 165,100 | ||
Trade receivables [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Impairment allowance | 25,365 | 31,063 | $ 133,800 | $ 133,889 |
Trade receivables [member] | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | 211,025 | 222,789 | ||
Cash and cash equivalents and other receivables [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Impairment allowance | 0 | 0 | ||
Other receivables | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | 387,019 | 201,759 | ||
Cash and Cash Equivalents | Credit risk [member] | ||||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||||
Maximum exposure to credit risk | $ 514,078 | $ 916,488 |
Introduction and overview of _8
Introduction and overview of Group's risk management - Fitch Credit ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables | $ 387,019 | $ 201,759 |
AAA | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables | 27,820 | |
A | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables | 63 | |
B | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables | 335,600 | 145,300 |
B- | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables | 7,418 | |
BB- | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables | 6,665 | |
Not rated | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Other receivables | $ 23,536 | $ 42,376 |
Introduction and overview of _9
Introduction and overview of Group's risk management - Internal credit rating (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) | |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables and accrued revenue | $ 211,025 | $ 222,789 |
Number of customers | 2 | |
Bottom of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of customers | customer | 2 | |
Top of range | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Number of customers | customer | 5 | |
Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables and accrued revenue | $ 190,520 | 211,150 |
Revenue percentage | 80% | |
Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables and accrued revenue | $ 20,505 | 11,639 |
Revenue percentage | 20% | |
Gross carrying amount [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | $ 85,131 | 103,369 |
Trade receivables and accrued revenue | 236,390 | 253,852 |
Gross carrying amount [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 84,975 | 102,931 |
Trade receivables and accrued revenue | 193,117 | 217,832 |
Gross carrying amount [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Accrued Revenue | 156 | 438 |
Trade receivables and accrued revenue | 43,273 | 36,020 |
Accumulated impairment [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables and accrued revenue | (25,365) | (31,063) |
Accumulated impairment [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables and accrued revenue | (2,597) | (6,682) |
Accumulated impairment [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables and accrued revenue | (22,768) | (24,381) |
Not due | Gross carrying amount [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 61,297 | 39,950 |
Not due | Gross carrying amount [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 58,169 | 37,238 |
Not due | Gross carrying amount [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 3,128 | 2,712 |
030 days | Gross carrying amount [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 24,848 | 16,532 |
030 days | Gross carrying amount [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 22,581 | 15,113 |
030 days | Gross carrying amount [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 2,267 | 1,419 |
3160 days | Gross carrying amount [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 14,502 | 28,409 |
3160 days | Gross carrying amount [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 11,233 | 25,585 |
3160 days | Gross carrying amount [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 3,269 | 2,824 |
6190 days | Gross carrying amount [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 8,313 | 9,988 |
6190 days | Gross carrying amount [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 4,411 | 8,024 |
6190 days | Gross carrying amount [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 3,902 | 1,964 |
Over 90 days | Gross carrying amount [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 42,299 | 55,604 |
Over 90 days | Gross carrying amount [member] | Internal Credit Grades, First tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | 11,748 | 28,941 |
Over 90 days | Gross carrying amount [member] | Internal Credit Grades, Second tier [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Trade receivables | $ 30,551 | $ 26,663 |
Introduction and overview of_10
Introduction and overview of Group's risk management - Impairment loss of trade receivables (Details) - Trade receivables - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of reconciliation of changes in loss allowance and explanation of changes in gross carrying amount for financial instruments [line items] | |||
Opening balance | $ 31,063 | $ 133,800 | $ 133,889 |
(Decrease)/increase in impairment provision | (4,446) | (34,031) | 13,081 |
Written-off during the year | (312) | (67,053) | (2,106) |
Foreign exchange | (940) | (1,653) | (11,064) |
Closing balance | $ 25,365 | $ 31,063 | $ 133,800 |
Introduction and overview of_11
Introduction and overview of Group's risk management - Liquidity risk (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | $ 6,064,149 | $ 4,720,177 | |
Maximum debt amount | 3,700,000 | 3,500,000 | $ 2,600,000 |
Borrowing capacity utilized | 3,100,000 | 2,700,000 | $ 2,300,000 |
Trade payables | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 442,959 | 342,841 | |
Other payables | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 90,135 | 78,505 | |
Payroll and other related statutory liabilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 45,331 | 53,446 | |
Lease liabilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 1,108,532 | 700,877 | |
Bank and bond borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 4,377,192 | 3,544,508 | |
Within 1 year | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 1,318,493 | 892,128 | |
Within 1 year | Trade payables | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 442,959 | 342,841 | |
Within 1 year | Other payables | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 88,676 | 78,193 | |
Within 1 year | Payroll and other related statutory liabilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 45,331 | 53,446 | |
Within 1 year | Lease liabilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 92,417 | 54,303 | |
Within 1 year | Bank and bond borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 649,110 | 363,345 | |
Later than two years and not later than three years [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 1,233,052 | 763,619 | |
Later than two years and not later than three years [member] | Other payables | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 1,459 | 312 | |
Later than two years and not later than three years [member] | Lease liabilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 179,930 | 106,015 | |
Later than two years and not later than three years [member] | Bank and bond borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 1,051,663 | 657,292 | |
Later than four years and not later than five years [member] | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 2,090,837 | 1,107,785 | |
Later than four years and not later than five years [member] | Lease liabilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 168,231 | 99,573 | |
Later than four years and not later than five years [member] | Bank and bond borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 1,922,606 | 1,008,212 | |
Over 5 years | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 1,421,767 | 1,956,645 | |
Over 5 years | Lease liabilities | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | 667,954 | 440,986 | |
Over 5 years | Bank and bond borrowings | |||
Disclosure of nature and extent of risks arising from financial instruments [line items] | |||
Contractual undiscounted cash flows | $ 753,813 | $ 1,515,659 |
Introduction and overview of_12
Introduction and overview of Group's risk management - Net leverage ratios (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | ||
Disclosure of financial assets [line items] | |||||
Borrowings | $ 3,344,402 | $ 2,609,090 | $ 2,203,209 | $ 2,055,878 | |
Lease liabilities | 604,529 | 376,101 | 314,747 | 184,494 | |
Less: Cash and cash equivalents | (514,078) | (916,488) | [1] | $ (585,416) | $ (898,802) |
Net debt | 3,434,853 | 2,068,703 | |||
Adjusted EBITDA | $ 1,031,386 | $ 926,396 | |||
Management net leverage ratio | 3.3 | 2.2 | |||
Top of range | |||||
Disclosure of financial assets [line items] | |||||
Target ratio of net debt to adjusted EBITDA | 4 | 4 | 4 | ||
Bottom of range | |||||
Disclosure of financial assets [line items] | |||||
Target ratio of net debt to adjusted EBITDA | 3 | 3 | 3 | ||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Introduction and overview of_13
Introduction and overview of Group's risk management - Financial instruments that are measured at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | $ 4,738 | $ 161,340 |
Fair value through other comprehensive income financial assets | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 10 | 11 |
Interest rate caps | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 821 | |
Embedded options within listed bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 5,300 | 165,100 |
Foreign exchange swaps | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | (1,393) | |
Non-deliverable forwards (NDF/NDS) | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | (3,771) | |
Level 1 of fair value hierarchy [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 10 | 11 |
Level 1 of fair value hierarchy [member] | Fair value through other comprehensive income financial assets | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 10 | 11 |
Level 2 of fair value hierarchy [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 4,728 | 161,329 |
Level 2 of fair value hierarchy [member] | Interest rate caps | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 821 | |
Level 2 of fair value hierarchy [member] | Embedded options within listed bonds | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | 5,300 | 165,100 |
Level 2 of fair value hierarchy [member] | Foreign exchange swaps | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | $ (1,393) | |
Level 2 of fair value hierarchy [member] | Non-deliverable forwards (NDF/NDS) | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial instruments at fair value | $ (3,771) |
Introduction and overview of_14
Introduction and overview of Group's risk management - Reconciliation of Level 3 fair value measurements of financial instruments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 USD ($) | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Closing balance at December 31 | $ 3,798,600 | [1] |
Level 3 of fair value hierarchy [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Change in fair value | (7,231) | |
Foreign exchange translation impact | (54) | |
Closing balance at December 31 | $ 7,285 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Introduction and overview of_15
Introduction and overview of Group's risk management - Fair value estimation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | $ 4,483,418 | $ 3,410,308 |
Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | 3,344,402 | 2,609,090 |
Fair value | 3,116,193 | 2,668,792 |
Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | 3,344,402 | 2,609,090 |
Bank and bond borrowings | Not measured at fair value in statement of financial position but for which fair value is disclosed [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities, Carrying value | 3,344,402 | 2,609,090 |
Fair value | $ 3,116,193 | $ 2,668,792 |
Introduction and overview of_16
Introduction and overview of Group's risk management - Financial instruments by category - Financial assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | $ 1,118,253 | $ 1,506,147 |
Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 1,112,122 | 1,341,036 |
Financial assets at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 6,121 | 165,100 |
Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 10 | 11 |
Trade receivables [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 211,025 | 222,789 |
Trade receivables [member] | Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 211,025 | 222,789 |
Other receivables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 387,019 | 201,759 |
Other receivables | Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 387,019 | 201,759 |
Cash and cash equivalents | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 514,078 | 916,488 |
Cash and cash equivalents | Financial assets at amortised cost, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 514,078 | 916,488 |
Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 10 | 11 |
Financial assets at fair value through other comprehensive income, category [member] | Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 10 | 11 |
Derivatives [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | 6,121 | 165,100 |
Derivatives [member] | Financial assets at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial assets | $ 6,121 | $ 165,100 |
Introduction and overview of_17
Introduction and overview of Group's risk management - Financial instruments by category - Financial liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | $ 4,483,418 | $ 3,410,308 |
Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 4,482,025 | 3,406,537 |
Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 1,393 | 3,771 |
Bank and bond borrowings | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 3,344,402 | 2,609,090 |
Bank and bond borrowings | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 3,344,402 | 2,609,090 |
Trade payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 442,959 | 342,841 |
Trade payables | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 442,959 | 342,841 |
Other payables | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 90,135 | 78,505 |
Other payables | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 90,135 | 78,505 |
Lease liabilities [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 604,529 | 376,101 |
Lease liabilities [member] | Amortized cost | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 604,529 | 376,101 |
Derivatives [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | 1,393 | 3,771 |
Derivatives [member] | Financial liabilities at fair value through profit or loss, category [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Financial liabilities | $ 1,393 | $ 3,771 |
Segment reporting - Summarized
Segment reporting - Summarized financial information (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | ||
Geographical information | ||||
Number of operating segments | segment | 4 | |||
Number of reportable segments | segment | 4 | |||
Revenues from external customers | $ 1,961,299 | $ 1,579,730 | $ 1,403,149 | |
Segment Adjusted EBITDA | 1,031,386 | 926,396 | 819,014 | |
Depreciation and amortization | (469,250) | (382,882) | (408,662) | |
Net gain/(loss) on disposal of property, plant and equipment | (3,382) | 2,499 | 764 | |
Insurance claims | 2,092 | 6,861 | 14,987 | |
Impairment of withholding tax receivables | (52,334) | (61,810) | (31,533) | |
Impairment of Goodwill | (121,596) | |||
Business combination transaction costs | (20,851) | (15,779) | (13,727) | |
Other costs | (4,873) | (15,752) | (310) | |
Impairment of property, plant and equipment and prepaid land rent | (38,157) | (51,113) | (27,594) | |
Reversal of provision for decommissioning costs | 2,671 | |||
Listing costs | (22,153) | (12,652) | ||
Share-based payment expense | (13,265) | (11,780) | (8,342) | |
Finance income | 15,825 | 25,522 | 148,968 | |
Finance costs | (872,029) | (422,034) | (633,766) | |
Other non-operating income and expenses | 2,584 | 11,213 | ||
Loss before income tax | (543,850) | (8,141) | (152,853) | |
Segment assets | 6,320,865 | 5,542,156 | [1] | |
Segment liabilities | 4,962,217 | 3,798,600 | [1] | |
Internal costs related to restructuring | 2,300 | |||
Professional costs related to financing | 15,100 | |||
Aborted transaction costs | 700 | |||
Nigeria | ||||
Geographical information | ||||
Revenues from external customers | 1,352,402 | 1,146,732 | 1,037,836 | |
Segment Adjusted EBITDA | 802,822 | 783,544 | 701,273 | |
Additions of property, plant and equipment, right of use assets and intangible assets: - in the normal course of business | 400,430 | 318,971 | 195,692 | |
Segment assets | 2,270,656 | 2,038,376 | 2,040,911 | |
Segment liabilities | 935,387 | 745,944 | 747,428 | |
SSA | ||||
Geographical information | ||||
Revenues from external customers | 412,824 | 343,945 | 313,416 | |
Segment Adjusted EBITDA | 230,521 | 190,654 | 170,784 | |
Additions of property, plant and equipment , right of use assets and intangible assets: - through business combinations | 719,837 | |||
Additions of property, plant and equipment, right of use assets and intangible assets: - in the normal course of business | 101,154 | 56,291 | 61,147 | |
Segment assets | 1,639,384 | 1,024,347 | 1,043,669 | |
Segment liabilities | 914,588 | 494,236 | 532,801 | |
Latam | ||||
Geographical information | ||||
Revenues from external customers | 160,008 | 59,706 | 30,185 | |
Segment Adjusted EBITDA | 114,434 | 42,688 | 22,696 | |
Additions of property, plant and equipment , right of use assets and intangible assets: - through business combinations | 386,460 | 468,535 | 760,246 | |
Additions of property, plant and equipment, right of use assets and intangible assets: - in the normal course of business | 135,069 | 103,338 | 31,703 | |
Segment assets | 1,931,317 | 1,453,729 | 682,813 | |
Segment liabilities | 555,885 | 393,090 | 266,596 | |
MENA | ||||
Geographical information | ||||
Revenues from external customers | 36,065 | 29,347 | 21,712 | |
Segment Adjusted EBITDA | 16,021 | 13,085 | 9,937 | |
Additions of property, plant and equipment , right of use assets and intangible assets: - through business combinations | 3,650 | 112,878 | ||
Additions of property, plant and equipment, right of use assets and intangible assets: - in the normal course of business | 23,532 | 20,725 | 8,465 | |
Segment assets | 178,471 | 173,888 | 142,210 | |
Segment liabilities | 109,087 | 100,947 | 92,917 | |
Other | ||||
Geographical information | ||||
Segment Adjusted EBITDA | $ (132,412) | $ (103,575) | $ (85,676) | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Segment reporting - Geographica
Segment reporting - Geographical information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Geographical information | ||||
Revenue | $ 1,961,299 | $ 1,579,730 | $ 1,403,149 | |
Noncurrent assets | $ 5,067,930 | $ 4,111,766 | [1] | |
Customer A | ||||
Geographical information | ||||
Revenue percentage | 62% | 66% | 66% | |
Customer B | ||||
Geographical information | ||||
Revenue percentage | 17% | 14% | ||
Customer B | Top of range | ||||
Geographical information | ||||
Revenue percentage | 10% | |||
Customer C | ||||
Geographical information | ||||
Revenue percentage | 14% | |||
Customer C | Top of range | ||||
Geographical information | ||||
Revenue percentage | 10% | 10% | ||
Countries where entity holds significant non-current assets | ||||
Geographical information | ||||
Noncurrent assets | $ 4,853,058 | $ 3,860,537 | $ 3,253,267 | |
Nigeria | ||||
Geographical information | ||||
Revenue | 1,352,402 | 1,146,732 | 1,037,836 | |
Noncurrent assets | $ 1,597,989 | $ 1,572,774 | 1,654,318 | |
COTE D'IVOIRE | ||||
Geographical information | ||||
Noncurrent assets | $ 330,705 | |||
COTE D'IVOIRE | Top of range | ||||
Geographical information | ||||
Percentage of entity's non-current assets | 10% | 10% | ||
CAMEROON | Top of range | ||||
Geographical information | ||||
Percentage of entity's non-current assets | 10% | 10% | 10% | |
BRAZIL | ||||
Geographical information | ||||
Noncurrent assets | $ 1,648,863 | $ 1,274,378 | $ 641,253 | |
SOUTH AFRICA | ||||
Geographical information | ||||
Noncurrent assets | 652,599 | |||
Rest of world | ||||
Geographical information | ||||
Revenue | 608,897 | 432,998 | 365,313 | |
Noncurrent assets | $ 953,607 | $ 1,013,385 | $ 626,991 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Segment reporting - Major custo
Segment reporting - Major customers (Details) | 12 Months Ended | ||
Dec. 31, 2022 customer | Dec. 31, 2021 | Dec. 31, 2020 | |
Geographical information | |||
Number of major customers | 2 | ||
Top of range | |||
Geographical information | |||
Number of major customers | 5 | ||
Customer A | |||
Geographical information | |||
Revenue percentage | 62% | 66% | 66% |
Customer B | |||
Geographical information | |||
Revenue percentage | 17% | 14% | |
Customer B | Top of range | |||
Geographical information | |||
Revenue percentage | 10% | ||
Customer C | |||
Geographical information | |||
Revenue percentage | 14% | ||
Customer C | Top of range | |||
Geographical information | |||
Revenue percentage | 10% | 10% |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue. | |||
Lease component | $ 1,534,415 | $ 1,233,816 | $ 1,026,103 |
Services component | 426,884 | 345,914 | 377,046 |
Total revenue | $ 1,961,299 | $ 1,579,730 | $ 1,403,149 |
Revenue - Performance obligatio
Revenue - Performance obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue | |||
Remaining performance obligation | $ 2,828,588 | $ 2,177,268 | $ 2,318,354 |
Within one year | |||
Revenue | |||
Remaining performance obligation | 418,137 | 351,071 | 343,209 |
1-2 years | |||
Revenue | |||
Remaining performance obligation | 386,416 | 309,861 | 331,608 |
2-3 years | |||
Revenue | |||
Remaining performance obligation | 309,326 | 255,791 | 291,891 |
3-4 years | |||
Revenue | |||
Remaining performance obligation | 288,244 | 211,615 | 258,129 |
4-5 years | |||
Revenue | |||
Remaining performance obligation | 276,816 | 190,018 | 214,223 |
After 5 years | |||
Revenue | |||
Remaining performance obligation | $ 1,149,649 | $ 858,912 | $ 879,294 |
Revenue - Future minimum receip
Revenue - Future minimum receipts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | $ 10,506,501 | $ 7,847,250 | $ 6,894,473 |
Bottom of range | Space on towers | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Term of leases | 5 years | ||
Top of range | Space on towers | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Term of leases | 20 years | ||
Within one year | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | $ 1,589,439 | 1,284,692 | 1,011,501 |
1-2 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 1,478,221 | 1,177,665 | 981,778 |
2-3 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 1,194,924 | 1,083,942 | 880,316 |
3-4 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 1,136,303 | 847,224 | 801,452 |
4-5 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | 1,098,901 | 749,839 | 625,352 |
After 5 years | |||
Disclosure of maturity analysis of finance lease payments receivable [abstract] | |||
Future minimum receipts | $ 4,008,713 | $ 2,703,888 | $ 2,594,074 |
Cost of sales (Details)
Cost of sales (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expense by nature | |||
Staff costs | $ 178,893 | $ 139,670 | $ 111,306 |
Net (reversal of impairment)/impairment of property, plant and equipment and prepaid land rent | 38,157 | 51,113 | 27,594 |
BRAZIL | |||
Expense by nature | |||
Indirect tax receivable | 900 | 400 | 800 |
Cost of sales | |||
Expense by nature | |||
Tower repairs and maintenance | 90,126 | 74,523 | 75,931 |
Power generation | 419,151 | 267,044 | 216,030 |
Short term site rental | 13,656 | 11,165 | 7,543 |
Short term other rent | 2,813 | 3,419 | 3,085 |
Vehicle maintenance and repairs | 1,968 | 2,754 | 2,754 |
Site regulatory permits | 33,999 | 41,165 | 27,313 |
Security services | 43,448 | 36,132 | 32,719 |
Insurance | 5,109 | 4,156 | 4,695 |
Staff costs | 33,229 | 26,323 | 24,588 |
Travel costs | 5,343 | 7,155 | 4,313 |
Professional fees | 3,460 | 3,385 | 2,457 |
Depreciation | 411,925 | 330,799 | 367,007 |
Amortization | 42,050 | 34,051 | 32,503 |
Net (reversal of impairment)/impairment of property, plant and equipment and prepaid land rent | 38,157 | 51,113 | 27,594 |
Other | 12,458 | 14,204 | 9,891 |
Total | $ 1,156,892 | $ 907,388 | $ 838,423 |
Administrative expenses (Detail
Administrative expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expense by nature | |||
Key management compensation | $ 27,083 | $ 35,437 | $ 19,805 |
Share-based payment expense | 13,265 | 11,780 | 8,342 |
Business combination transaction costs | 20,851 | 15,779 | 13,727 |
Impairment of withholding tax receivables | 52,334 | 61,810 | 31,533 |
Impairment of Goodwill | 121,596 | ||
Net (gain)/loss on disposal of property, plant and equipment | 3,382 | (2,499) | (764) |
Administrative expense | |||
Expense by nature | |||
Facilities, short term rental and upkeep | 34,203 | 23,210 | 12,872 |
Depreciation | 9,995 | 13,917 | 6,240 |
Amortization | 5,280 | 4,115 | 2,912 |
Travel costs | 15,535 | 8,654 | 6,815 |
Staff costs | 132,399 | 101,567 | 78,376 |
Key management compensation | 21,703 | 25,642 | 13,776 |
Share-based payment expense | 13,265 | 11,780 | 8,342 |
Professional fees | 38,964 | 49,685 | 38,200 |
Business combination transaction costs | 20,851 | 15,779 | 13,727 |
Impairment of withholding tax receivables | 52,334 | 61,810 | 31,533 |
Impairment of Goodwill | 121,596 | ||
Net (gain)/loss on disposal of property, plant and equipment | 3,382 | (2,499) | (764) |
Operating taxes | 963 | 1,561 | 2,239 |
Other | 30,705 | 21,290 | 21,844 |
Total | $ 501,175 | $ 336,511 | $ 236,112 |
Reversal of loss allowance_(los
Reversal of loss allowance/(loss allowance) on trade receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reversal of loss Allowance/(loss allowance) on trade receivables | |||
Impairment loss (reversal of impairment loss) on trade receivables, net | $ (4,446) | $ (34,031) | $ 13,081 |
Administrative expenses - Staff
Administrative expenses - Staff Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Expense by nature | |||
Salaries and wages | $ 137,450 | $ 106,754 | $ 85,690 |
Pension contribution - employer | 9,410 | 4,854 | 3,780 |
Other benefits | 18,768 | 16,282 | 13,494 |
Share-based payment expense | 13,265 | 11,780 | 8,342 |
Total Staff costs | 178,893 | 139,670 | 111,306 |
Cost of sales [member] | |||
Expense by nature | |||
Total Staff costs | 33,229 | 26,323 | 24,588 |
Administrative expense | |||
Expense by nature | |||
Share-based payment expense | 13,265 | 11,780 | 8,342 |
Total Staff costs | 145,664 | 113,347 | 86,718 |
Staff costs | $ 132,399 | $ 101,567 | $ 78,376 |
Other income (Details)
Other income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Insurance claims | $ 2,092 | $ 6,861 | $ 14,987 |
Other income | 2,584 | 11,648 | 1,425 |
Total other income | 4,676 | $ 18,509 | $ 16,412 |
CAMEROON | |||
Disclosure of disaggregation of revenue from contracts with customers [line items] | |||
Insurance claims | $ 8,700 |
Finance Income (Details)
Finance Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance income. | |||
Interest income - bank deposits | $ 15,170 | $ 7,798 | $ 5,101 |
Net foreign exchange gain on derivative instruments - unrealized | 29,151 | ||
Net foreign exchange gain on derivative instruments - realized | 655 | 9,889 | 4,061 |
Fair value gain on embedded derivative in revenue contract | 7,231 | ||
Fair value gain on embedded options | 604 | 110,655 | |
Total Finance income | $ 15,825 | $ 25,522 | $ 148,968 |
Finance Costs (Details)
Finance Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finance costs. | |||
Interest expenses - third party loans | $ 256,208 | $ 174,876 | $ 177,737 |
Interest expenses - withholding tax paid on bond interest | 12,197 | 4,404 | 4,509 |
Unwinding of discount on decommissioning liability | 7,084 | 4,644 | 2,644 |
Interest and finance charges paid/payable for lease liabilities | 52,214 | 32,826 | 27,384 |
Net foreign exchange loss arising from financing - unrealized | 157,836 | 126,131 | 363,953 |
Net foreign exchange loss arising from financing - realized | 206,329 | 43,422 | 49,564 |
Net foreign exchange loss on derivative instruments-unrealized | 1,599 | 3,897 | |
Fair value loss on embedded options | 159,889 | ||
Costs paid on early loan and bond settlement | 18,171 | ||
Fees on loans and financial derivatives | 18,673 | 13,663 | 7,806 |
Fair value loss on embedded derivative within revenue contract | 169 | ||
Finance costs | $ 872,029 | $ 422,034 | $ 633,766 |
Taxation (Details)
Taxation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Income Tax Expense | ||||
Current taxes on income | $ 108,842 | $ 91,692 | $ 95,107 | |
Deferred income taxes | (182,295) | (73,712) | 74,722 | |
Total taxes | (73,453) | 17,980 | 169,829 | |
Tax effect of potential deferred tax assets that have been impaired | 79,477 | 74,084 | 181,403 | |
Increase (decrease) through business combinations, deferred tax liability (asset) | 139,103 | 79,395 | $ 98,669 | |
Deferred tax liabilities | $ 186,261 | $ 169,119 | [1] | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Taxation - Reconciliation of ef
Taxation - Reconciliation of effective tax charge (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of effective tax charge | |||
(Loss)/profit before taxation | $ (543,850) | $ (8,141) | $ (152,853) |
Tax calculated at domestic tax rates applicable to profits in respective countries | (193,607) | (4,433) | (66,049) |
Tax incentives and income not subject to taxation | (25,183) | (46,175) | (34,932) |
Expenses not deductible for tax purposes | 93,687 | 76,059 | 82,662 |
Movement in deferred tax assets not recognized | 79,477 | 74,084 | 181,403 |
Change in tax base | (74,291) | (86,184) | |
Prior year under provision | (562) | 6,636 | 478 |
Goodwill impairment | 40,937 | ||
Withholding tax on distributable profits | 5,967 | ||
Other profitrelated taxes | 5,239 | 876 | |
Foreign tax credit | (3,570) | ||
Effects of changes in tax rates | (4,845) | (5,272) | |
Non-deductible share-based payment expense | 1,441 | 1,082 | |
Foreign exchange effects and other differences | 4,967 | (3,415) | 7,879 |
Total taxes | $ (73,453) | $ 17,980 | $ 169,829 |
Taxation - Current Income Tax (
Taxation - Current Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Disclosure of operating segments [line items] | |||||
Current income tax receivables | $ 1,174 | $ 128 | [1] | ||
Current income tax payables | (70,008) | (68,834) | [1] | $ (48,703) | |
Current tax liabilities (assets), net | $ (68,834) | $ (68,706) | $ (48,703) | $ (30,140) | |
Nigeria | |||||
Disclosure of operating segments [line items] | |||||
Education tax rate | 2.50% | 2% | |||
ZAMBIA | |||||
Disclosure of operating segments [line items] | |||||
Applicable deferred tax rate | 35% | 40% | |||
SOUTH AFRICA | |||||
Disclosure of operating segments [line items] | |||||
Applicable deferred tax rate | 27% | 28% | |||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Taxation - Movement in current
Taxation - Movement in current Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Movement in Current Income Tax | |||
At beginning of year | $ (68,706) | $ (48,703) | $ (30,140) |
Additions through business combination | 3,434 | 1,538 | |
Charged to profit or loss | (108,842) | (91,692) | (95,107) |
Paid during the year | 51,245 | 29,147 | 14,540 |
Withholding tax netting off | 54,878 | 45,849 | 59,986 |
Exchange difference | 2,591 | 127 | 3,556 |
At end of year | $ (68,834) | $ (68,706) | $ (48,703) |
Loss per share (Details)
Loss per share (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Oct. 13, 2021 | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Earnings per share [line items] | ||||
Profit/(loss) for the period | $ | $ (470,397) | $ (26,121) | $ (322,682) | |
Non-controlling interests | $ | $ (9,959) | $ (289) | $ (688) | |
Basic weighted average shares outstanding | 330,963 | 301,185 | 294,103 | |
Potentially dilutive securities | 5,083 | 20,323 | 23,246 | |
Potentially dilutive weighted average common shares outstanding | 336,046 | 321,508 | 317,349 | |
Basic (loss)/income per share | $ / shares | $ (1.39) | $ (0.09) | $ (1.09) | |
Diluted (loss)/income per share | $ / shares | $ (1.39) | $ (0.09) | $ (1.09) | |
Class A and B shares | ||||
Earnings per share [line items] | ||||
Ratio for exchange of old classes of shares into ordinary shares | 500 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | [1] | $ 1,714,261 | |||
Charge for the period | 421,920 | $ 344,716 | $ 373,247 | ||
Ending balance | 2,075,441 | 1,714,261 | [1] | ||
Total (excluding right-of-use assets) | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 1,714,261 | 1,438,040 | |||
Ending balance | 2,075,441 | 1,714,261 | 1,438,040 | ||
Total (excluding right-of-use assets) | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 3,328,495 | 2,820,519 | 2,700,132 | ||
Additions during the period | 257,367 | 103,115 | |||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | 416,326 | ||||
Additions through business combinations | 266,995 | 317,507 | 150,229 | ||
Transfer from advance payments | 125,785 | 127,372 | 121,986 | ||
Disposals | (241,095) | (23,266) | (26,199) | ||
Effects of movement in exchange rates | (160,428) | (171,004) | (228,744) | ||
Ending balance | 3,736,078 | 3,328,495 | 2,820,519 | ||
Total (excluding right-of-use assets) | Accumulated depreciation and impairment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | (1,614,234) | (1,382,479) | (1,162,977) | ||
Charge for the period | 333,876 | 284,438 | 319,968 | ||
Impairment/(reversal of impairment) | (34,903) | (48,073) | (27,245) | ||
Disposals | 235,690 | 16,549 | 22,770 | ||
Effects of movement in exchange rates | 86,686 | 84,207 | 104,941 | ||
Ending balance | (1,660,637) | (1,614,234) | (1,382,479) | ||
Towers and tower equipment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 1,254,213 | 1,307,928 | |||
Ending balance | 1,400,241 | 1,254,213 | 1,307,928 | ||
Towers and tower equipment | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 2,829,528 | 2,660,120 | 2,527,637 | ||
Additions during the period | 20,995 | 10,287 | |||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | (20,994) | ||||
Additions through business combinations | 266,110 | 77,142 | 144,388 | ||
Reclassification | 176,625 | 124,548 | 91,165 | ||
Transfer from advance payments | 100,578 | 111,439 | 124,272 | ||
Disposals | (239,350) | (21,359) | (23,591) | ||
Effects of movement in exchange rates | (150,930) | (143,357) | (214,038) | ||
Ending balance | 2,961,567 | 2,829,528 | 2,660,120 | ||
Towers and tower equipment | Accumulated depreciation and impairment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | (1,575,315) | (1,352,192) | (1,134,484) | ||
Charge for the period | 268,999 | 272,068 | 315,131 | ||
Impairment/(reversal of impairment) | (34,702) | (48,391) | (26,824) | ||
Disposals | 234,117 | 14,660 | 21,435 | ||
Effects of movement in exchange rates | 83,573 | 82,676 | 102,812 | ||
Ending balance | (1,561,326) | (1,575,315) | (1,352,192) | ||
Fiber assets | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 245,336 | ||||
Ending balance | 305,150 | 245,336 | |||
Fiber assets | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 250,690 | ||||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | 70,905 | ||||
Additions through business combinations | 233,809 | ||||
Reclassification | 10,991 | 23,241 | |||
Transfer from advance payments | 16,412 | 7,862 | |||
Effects of movement in exchange rates | 15,184 | (14,222) | |||
Ending balance | 364,182 | 250,690 | |||
Fiber assets | Accumulated depreciation and impairment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | (5,354) | ||||
Charge for the period | 54,152 | 5,366 | |||
Impairment/(reversal of impairment) | (201) | ||||
Effects of movement in exchange rates | 675 | 12 | |||
Ending balance | (59,032) | (5,354) | |||
Land and buildings | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 54,631 | 45,708 | |||
Ending balance | 61,753 | 54,631 | 45,708 | ||
Land and buildings | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 56,268 | 47,436 | 51,734 | ||
Additions during the period | 825 | 768 | |||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | 1,489 | ||||
Additions through business combinations | 885 | 968 | 566 | ||
Reclassification | 1,992 | 5,999 | 887 | ||
Transfer from advance payments | 6,754 | 4,112 | 620 | ||
Disposals | (1,203) | ||||
Effects of movement in exchange rates | (3,802) | (3,072) | (5,936) | ||
Ending balance | 63,586 | 56,268 | 47,436 | ||
Land and buildings | Accumulated depreciation and impairment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | (1,637) | (1,728) | (1,163) | ||
Charge for the period | 315 | 296 | 331 | ||
Impairment/(reversal of impairment) | 318 | (421) | |||
Effects of movement in exchange rates | 119 | 69 | 187 | ||
Ending balance | (1,833) | (1,637) | (1,728) | ||
Furniture and office equipment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 5,041 | 3,878 | |||
Ending balance | 10,871 | 5,041 | 3,878 | ||
Furniture and office equipment | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 22,198 | 18,169 | 15,877 | ||
Additions during the period | 5,056 | 2,470 | |||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | 7,453 | ||||
Additions through business combinations | 93 | 305 | |||
Reclassification | 4,231 | 808 | |||
Transfer from advance payments | 33 | 91 | |||
Disposals | (459) | (82) | (95) | ||
Effects of movement in exchange rates | (1,148) | (1,038) | (1,287) | ||
Ending balance | 32,308 | 22,198 | 18,169 | ||
Furniture and office equipment | Accumulated depreciation and impairment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | (17,157) | (14,291) | (12,678) | ||
Charge for the period | 5,800 | 3,806 | 2,547 | ||
Disposals | 301 | 73 | 41 | ||
Effects of movement in exchange rates | 1,219 | 867 | 893 | ||
Ending balance | (21,437) | (17,157) | (14,291) | ||
Motor vehicles | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 8,687 | 5,880 | |||
Ending balance | 10,268 | 8,687 | 5,880 | ||
Motor vehicles | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 23,458 | 20,148 | 19,824 | ||
Additions during the period | 6,012 | 2,576 | |||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | 6,961 | ||||
Reclassification | 658 | ||||
Disposals | (1,286) | (1,825) | (1,310) | ||
Effects of movement in exchange rates | (1,856) | (877) | (1,600) | ||
Ending balance | 27,277 | 23,458 | 20,148 | ||
Motor vehicles | Accumulated depreciation and impairment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | (14,771) | (14,268) | (14,652) | ||
Charge for the period | 4,610 | 2,902 | 1,959 | ||
Disposals | 1,272 | 1,816 | 1,294 | ||
Effects of movement in exchange rates | 1,100 | 583 | 1,049 | ||
Ending balance | (17,009) | (14,771) | (14,268) | ||
Capital work in progress | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 146,353 | 74,646 | |||
Ending balance | 287,158 | 146,353 | 74,646 | ||
Capital work in progress | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 146,353 | 74,646 | 85,060 | ||
Additions during the period | 224,479 | 87,014 | |||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | 350,512 | ||||
Additions through business combinations | 5,495 | 4,970 | |||
Reclassification | (193,839) | (153,788) | (93,518) | ||
Transfer from advance payments | 2,008 | 3,959 | (2,997) | ||
Effects of movement in exchange rates | (17,876) | (8,438) | (5,883) | ||
Ending balance | 287,158 | 146,353 | 74,646 | ||
Right-of-use asset | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 520,651 | 468,130 | |||
Ending balance | 963,993 | 520,651 | 468,130 | ||
Right-of-use asset | Cost | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | 650,504 | 549,594 | 406,897 | ||
Additions during the period | 113,722 | 72,888 | |||
Additions during the period, including net movements in assets relating to the decommissioning and site restoration provision | 100,832 | ||||
Additions through business combinations | 477,981 | 41,709 | 129,711 | ||
Disposals | (17,755) | (18,872) | (15,721) | ||
Effects of movement in exchange rates | (46,917) | (35,649) | (44,181) | ||
Ending balance | 1,164,645 | 650,504 | 549,594 | ||
Right-of-use asset | Accumulated depreciation and impairment | |||||
Disclosure of detailed information about property, plant and equipment [line items] | |||||
Beginning balance | (129,853) | (81,464) | (37,035) | ||
Charge for the period | 88,961 | 60,685 | 54,089 | ||
Impairment/(reversal of impairment) | (3,151) | (2,797) | |||
Disposals | 13,237 | 8,634 | 5,594 | ||
Effects of movement in exchange rates | 8,076 | 6,459 | 4,066 | ||
Ending balance | $ (200,652) | $ (129,853) | $ (81,464) | ||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Property, plant and equipment -
Property, plant and equipment - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Right of use assets | $ 963,993,000 | $ 520,651,000 | [1] | |
IHS Brasil Cesso de Infraestruturas S.A. | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Indirect taxes benefit | 900,000 | 400,000 | $ 800,000 | |
Towers and tower equipment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Borrowing costs capitalized | 0 | |||
Towers and tower equipment | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Property, plant and equipment, value of asset retirement obligation | 50,500,000 | 48,600,000 | 21,800,000 | |
Towers under rationalization program agreed with Key Customer | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Recoverable amount | 0 | |||
Vehicles | ||||
Disclosure of detailed information about property, plant and equipment [line items] | ||||
Right of use assets | $ 3,500,000 | $ 1,800,000 | $ 1,300,000 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Property, plant and equipment_3
Property, plant and equipment - Depreciation expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | $ 421,920 | $ 344,716 | $ 373,247 |
Cost of sales | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | 411,925 | 330,799 | 367,007 |
Administrative expense | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Depreciation expense | $ 9,995 | $ 13,917 | $ 6,240 |
Goodwill and other intangible_3
Goodwill and other intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and other intangible assets | |||
Beginning balance | $ 1,625,625 | $ 1,347,097 | |
Charge for the year | 47,330 | 38,166 | $ 35,415 |
Ending balance | 1,813,624 | 1,625,625 | 1,347,097 |
Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 1,806,617 | 1,500,380 | 1,094,432 |
Additions during the year | 21,185 | 5,054 | 2,464 |
Additions through business combinations | 364,971 | 387,389 | 593,184 |
Disposals | 399 | 741 | 476 |
Effects of movements in exchange rates | (39,114) | (85,465) | (189,224) |
Ending balance | 2,153,260 | 1,806,617 | 1,500,380 |
Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (180,992) | (153,283) | (126,659) |
Charge for the year | 47,330 | 38,166 | 35,415 |
Impairment charge for the year | 121,596 | ||
Disposals | (398) | (741) | (475) |
Effects of movements in exchange rates | 9,884 | 9,716 | 8,316 |
Ending balance | (339,636) | (180,992) | (153,283) |
Goodwill | |||
Goodwill and other intangible assets | |||
Beginning balance | 779,896 | 656,256 | |
Ending balance | 760,328 | 779,896 | 656,256 |
Goodwill | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 780,147 | 656,507 | 518,392 |
Additions through business combinations | 115,686 | 156,817 | 232,030 |
Effects of movements in exchange rates | (13,254) | (33,177) | (93,915) |
Ending balance | 882,579 | 780,147 | 656,507 |
Goodwill | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (251) | (251) | (251) |
Impairment charge for the year | 121,596 | ||
Effects of movements in exchange rates | (404) | ||
Ending balance | (122,251) | (251) | (251) |
Customerrelated intangible assets | |||
Goodwill and other intangible assets | |||
Beginning balance | 746,196 | 622,719 | |
Ending balance | 877,896 | 746,196 | 622,719 |
Customerrelated intangible assets | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 877,764 | 732,434 | 496,990 |
Additions through business combinations | 178,257 | 191,332 | 324,290 |
Effects of movements in exchange rates | (18,723) | (46,002) | (88,846) |
Ending balance | 1,037,298 | 877,764 | 732,434 |
Customerrelated intangible assets | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (131,568) | (109,715) | (89,885) |
Charge for the year | 36,169 | 29,037 | 26,921 |
Effects of movements in exchange rates | 8,335 | 7,184 | 7,091 |
Ending balance | (159,402) | (131,568) | (109,715) |
Network - related intangible assets | |||
Goodwill and other intangible assets | |||
Beginning balance | 85,317 | 54,530 | |
Ending balance | 145,975 | 85,317 | 54,530 |
Network - related intangible assets | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 107,202 | 73,552 | 43,556 |
Additions through business combinations | 71,028 | 38,205 | 36,831 |
Effects of movements in exchange rates | (4,679) | (4,555) | (6,835) |
Ending balance | 173,551 | 107,202 | 73,552 |
Network - related intangible assets | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (21,885) | (19,022) | (15,955) |
Charge for the year | 6,936 | 4,237 | 4,070 |
Effects of movements in exchange rates | 1,245 | 1,374 | 1,003 |
Ending balance | (27,576) | (21,885) | (19,022) |
Licenses | |||
Goodwill and other intangible assets | |||
Beginning balance | 10,829 | 9,340 | |
Ending balance | 21,512 | 10,829 | 9,340 |
Licenses | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 17,706 | 15,796 | 14,592 |
Additions during the year | 14,772 | 3,145 | 4 |
Disposals | 4 | 18 | 1 |
Effects of movements in exchange rates | (1,886) | (1,217) | 1,201 |
Ending balance | 30,588 | 17,706 | 15,796 |
Licenses | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (6,877) | (6,456) | (5,067) |
Charge for the year | 2,598 | 978 | 871 |
Disposals | (4) | (15) | |
Effects of movements in exchange rates | 395 | 542 | (518) |
Ending balance | (9,076) | (6,877) | (6,456) |
Software | |||
Goodwill and other intangible assets | |||
Beginning balance | 3,387 | 4,252 | |
Ending balance | 7,913 | 3,387 | 4,252 |
Software | Cost | |||
Goodwill and other intangible assets | |||
Beginning balance | 23,798 | 22,091 | 20,902 |
Additions during the year | 6,413 | 1,909 | 2,460 |
Additions through business combinations | 1,035 | 33 | |
Disposals | 395 | 723 | 475 |
Effects of movements in exchange rates | (572) | (514) | (829) |
Ending balance | 29,244 | 23,798 | 22,091 |
Software | Accumulated amortization and impairment | |||
Goodwill and other intangible assets | |||
Beginning balance | (20,411) | (17,839) | (15,501) |
Charge for the year | 1,627 | 3,914 | 3,553 |
Disposals | (394) | (726) | (475) |
Effects of movements in exchange rates | 313 | 616 | 740 |
Ending balance | $ (21,331) | $ (20,411) | $ (17,839) |
Goodwill and other intangible_4
Goodwill and other intangible assets - Amortization expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and other intangible assets | |||
Amortization expense | $ 47,330 | $ 38,166 | $ 35,415 |
Cost of sales | |||
Goodwill and other intangible assets | |||
Amortization expense | 42,050 | 34,051 | 32,503 |
Administrative expense | |||
Goodwill and other intangible assets | |||
Amortization expense | $ 5,280 | $ 4,115 | $ 2,912 |
Goodwill and other intangible_5
Goodwill and other intangible assets - Allocation of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | $ 779,896 | [1] | $ 656,256 | $ 518,141 | |
Additions through business combinations | 115,686 | 156,817 | 232,030 | ||
Impairment | (121,596) | ||||
Effects of movements in exchange rates and other movements | (13,658) | (33,177) | (93,915) | ||
Closing balance | 760,328 | 779,896 | [1] | 656,256 | |
IHS Nigeria Limited | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 59,768 | 63,374 | 71,297 | ||
Effects of movements in exchange rates and other movements | (3,432) | (3,606) | (7,923) | ||
Closing balance | 56,336 | 59,768 | 63,374 | ||
INT Towers Limited | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 214,775 | 227,715 | 256,149 | ||
Effects of movements in exchange rates and other movements | (12,316) | (12,940) | (28,434) | ||
Closing balance | 202,459 | 214,775 | 227,715 | ||
IHS Towers NG Limited | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 43,138 | 45,741 | 51,460 | ||
Effects of movements in exchange rates and other movements | (2,476) | (2,603) | (5,719) | ||
Closing balance | 40,662 | 43,138 | 45,741 | ||
IHS Cameroon S.A. | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 44,388 | 48,170 | 43,933 | ||
Effects of movements in exchange rates and other movements | (2,647) | (3,782) | 4,237 | ||
Closing balance | 41,741 | 44,388 | 48,170 | ||
IHS Cote d Ivoire S.A. | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 22,012 | 23,888 | 21,787 | ||
Effects of movements in exchange rates and other movements | (1,311) | (1,876) | 2,101 | ||
Closing balance | 20,701 | 22,012 | 23,888 | ||
IHS Zambia Limited | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 50,709 | 39,907 | 60,529 | ||
Effects of movements in exchange rates and other movements | (3,991) | 10,802 | (20,622) | ||
Closing balance | 46,718 | 50,709 | 39,907 | ||
IHS Rwanda Limited | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 11,867 | 12,319 | 12,986 | ||
Effects of movements in exchange rates and other movements | (681) | (452) | (667) | ||
Closing balance | 11,186 | 11,867 | 12,319 | ||
IHS Kuwait Limited | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 12,369 | 13,142 | |||
Additions through business combinations | 13,143 | ||||
Effects of movements in exchange rates and other movements | (146) | (773) | (1) | ||
Closing balance | 12,223 | 12,369 | 13,142 | ||
IHS South Africa Proprietary Limited | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Additions through business combinations | 61,045 | ||||
Effects of movements in exchange rates and other movements | (5,273) | ||||
Closing balance | 55,772 | ||||
IHS Latam tower businesses | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 241,451 | 182,000 | |||
Additions through business combinations | 54,641 | 75,034 | 218,887 | ||
Impairment | (121,596) | ||||
Effects of movements in exchange rates and other movements | 13,076 | (15,583) | (36,887) | ||
Closing balance | 187,572 | 241,451 | $ 182,000 | ||
I-Systems | |||||
Disclosure of intangible assets material to entity [line items] | |||||
Opening balance | 79,419 | ||||
Additions through business combinations | 81,783 | ||||
Effects of movements in exchange rates and other movements | 5,539 | (2,364) | |||
Closing balance | $ 84,958 | $ 79,419 | |||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Goodwill and other intangible_6
Goodwill and other intangible assets - Recoverable amounts based on value in use (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and other intangible assets | |||
Cash flow calculations, projection period | 5 years | ||
IHS Nigeria Limited | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 24.40% | 16.10% | 22.60% |
Terminal growth rate | 3.20% | 2.70% | 2.70% |
INT Towers Limited | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 25.40% | 16% | 22.50% |
Terminal growth rate | 3.20% | 2.70% | 2.70% |
IHS Towers NG Limited | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 24.90% | 16.50% | 23.20% |
Terminal growth rate | 3.20% | 2.70% | 2.70% |
IHS Cameroon S.A. | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 13.70% | 12.10% | 13.80% |
Terminal growth rate | 4% | 3.20% | 3.20% |
IHS Cote d Ivoire S.A. | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 11% | 9.80% | 10% |
Terminal growth rate | 4% | 3.20% | 3.20% |
IHS Zambia Group | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 30.20% | 24.10% | 32.20% |
Terminal growth rate | 4% | 2% | 3.20% |
IHS Rwanda Group | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 18.10% | 15.50% | 17% |
Terminal growth rate | 4% | 3.20% | 3.20% |
IHS Kuwait Limited | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 6.30% | 6% | 5% |
Terminal growth rate | 3.60% | 2.90% | 2.80% |
IHS South Africa Proprietary Limited | |||
Goodwill and other intangible assets | |||
Pre-tax weighted average cost of capital | 13.90% | ||
Terminal growth rate | 3.30% | ||
Bottom of range | IHS Nigeria Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.76 | 3.32 | 2.59 |
Gross margins excluding depreciation & amortization | 62.50% | 64.20% | 67.80% |
Bottom of range | INT Towers Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.93 | 3.56 | 2.87 |
Gross margins excluding depreciation & amortization | 61.70% | 67.40% | 73.70% |
Bottom of range | IHS Towers NG Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.65 | 3.63 | 2.80 |
Gross margins excluding depreciation & amortization | 65.30% | 52.30% | 64.40% |
Bottom of range | IHS Cameroon S.A. | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.56 | 2.37 | 2.61 |
Gross margins excluding depreciation & amortization | 56.60% | 57.80% | 55.90% |
Bottom of range | IHS Cote d Ivoire S.A. | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.35 | 3.45 | 3.44 |
Gross margins excluding depreciation & amortization | 54.80% | 53.80% | 57.50% |
Bottom of range | IHS Zambia Group | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.61 | 2.40 | 2.21 |
Gross margins excluding depreciation & amortization | 65.40% | 65.20% | 68.40% |
Bottom of range | IHS Rwanda Group | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.04 | 2.04 | 2.13 |
Gross margins excluding depreciation & amortization | 69% | 67% | 65.90% |
Bottom of range | IHS Kuwait Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 1.01 | 1 | 1 |
Gross margins excluding depreciation & amortization | 56.60% | 52.40% | 45.30% |
Bottom of range | IHS South Africa Proprietary Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 1.25 | ||
Gross margins excluding depreciation & amortization | 42.90% | ||
Top of range | IHS Nigeria Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 7.74 | 5.18 | 4.55 |
Gross margins excluding depreciation & amortization | 78.70% | 79.70% | 82.10% |
Top of range | INT Towers Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 4.79 | 4.98 | 5.22 |
Gross margins excluding depreciation & amortization | 74% | 74.90% | 79.90% |
Top of range | IHS Towers NG Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 4.73 | 4.44 | 3.02 |
Gross margins excluding depreciation & amortization | 72.30% | 63.10% | 69.90% |
Top of range | IHS Cameroon S.A. | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.10 | 2.89 | 3.16 |
Gross margins excluding depreciation & amortization | 65.50% | 64.60% | 61% |
Top of range | IHS Cote d Ivoire S.A. | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 4 | 4.46 | 4.56 |
Gross margins excluding depreciation & amortization | 61.50% | 63.50% | 61.60% |
Top of range | IHS Zambia Group | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 3.24 | 3.30 | 2.93 |
Gross margins excluding depreciation & amortization | 72.80% | 74.60% | 75.80% |
Top of range | IHS Rwanda Group | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.64 | 2.97 | 2.60 |
Gross margins excluding depreciation & amortization | 73.20% | 73.30% | 69.80% |
Top of range | IHS Kuwait Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 1.53 | 1.46 | 1.46 |
Gross margins excluding depreciation & amortization | 62.60% | 64.90% | 59.20% |
Top of range | IHS South Africa Proprietary Limited | |||
Goodwill and other intangible assets | |||
Tenancy Ratio | 2.28 | ||
Gross margins excluding depreciation & amortization | 66.40% |
Goodwill and other intangible_7
Goodwill and other intangible assets - Sensitivity analysis (Details) | 12 Months Ended |
Dec. 31, 2022 | |
IHS Nigeria Limited | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.418 |
IHS Nigeria Limited | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (3.5) |
IHS Nigeria Limited | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.441) |
IHS Nigeria Limited | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
INT Towers Limited | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.194 |
INT Towers Limited | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (1.5) |
INT Towers Limited | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.265) |
INT Towers Limited | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
IHS Towers NG Limited | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.056 |
IHS Towers NG Limited | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.8) |
IHS Towers NG Limited | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.119) |
IHS Towers NG Limited | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
IHS Cameroon S.A. | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.032 |
IHS Cameroon S.A. | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.42) |
IHS Cameroon S.A. | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.121) |
IHS Cameroon S.A. | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
IHS Cote d Ivoire S.A. | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.095 |
IHS Cote d Ivoire S.A. | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (1.31) |
IHS Cote d Ivoire S.A. | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.284) |
IHS Cote d Ivoire S.A. | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
IHS Zambia Group | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.042 |
IHS Zambia Group | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.27) |
IHS Zambia Group | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.078) |
IHS Zambia Group | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
IHS Rwanda Group | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.077 |
IHS Rwanda Group | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.61) |
IHS Rwanda Group | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.216) |
IHS Rwanda Group | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
IHS Kuwait Limited | Discount rate | |
Goodwill and other intangible assets | |
Change that would cause the carrying amount to exceed the recoverable amount | 0.033 |
IHS Kuwait Limited | Tenancy ratio | |
Goodwill and other intangible assets | |
Period of tenancy ratio | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.51) |
IHS Kuwait Limited | Gross margin (excluding depreciation and amortization) | |
Goodwill and other intangible assets | |
Period of gross margin | 4 years |
Change that would cause the carrying amount to exceed the recoverable amount | (0.279) |
IHS Kuwait Limited | Terminal growth rate | Maximum | |
Goodwill and other intangible assets | |
Terminal growth rate that would cause carrying amount to exceed recoverable amount | 0% |
IHS Latam tower businesses | |
Goodwill and other intangible assets | |
Period of gross margin | 10 years |
I-Systems Solues de Infraestrutura S.A. [Member] | |
Goodwill and other intangible assets | |
Period of gross margin | 10 years |
Goodwill and other intangible_8
Goodwill and other intangible assets - Additional information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Disclosure of detailed information about intangible assets [line items] | |
Percentage of reasonably possible increase in discount rate | 1% |
Percentage of reasonably possible decrease in terminal growth rate | 1% |
Percentage of reasonably possible decrease in tenancy growth | (50.00%) |
Percentage of reasonably possible decrease in gross margin | 10% |
IHS South Africa Proprietary Limited | |
Disclosure of detailed information about intangible assets [line items] | |
Percentage of reasonably possible increase in discount rate | 1% |
Percentage of reasonably possible decrease in terminal growth rate | 1% |
Percentage of reasonably possible decrease in tenancy growth | 50% |
Percentage of reasonably possible decrease in gross margin | 10% |
IHS South Africa Proprietary Limited | 1% increase in post-tax discount rate | |
Disclosure of detailed information about intangible assets [line items] | |
Impairment loss | $ 68,724 |
IHS South Africa Proprietary Limited | 1% decrease in terminal growth rate | |
Disclosure of detailed information about intangible assets [line items] | |
Impairment loss | 45,732 |
IHS South Africa Proprietary Limited | Reasonably possible decrease in tenancy growth | |
Disclosure of detailed information about intangible assets [line items] | |
Impairment loss | 155,908 |
IHS South Africa Proprietary Limited | 10% decrease in gross margin | |
Disclosure of detailed information about intangible assets [line items] | |
Impairment loss | 77,017 |
IHS Latam Group | |
Disclosure of detailed information about intangible assets [line items] | |
Impairment loss | $ 121,600 |
Percentage of reasonably possible increase in discount rate | 1% |
Percentage of reasonably possible decrease in terminal growth rate | 1% |
Percentage of reasonably possible decrease in tenancy growth | 15% |
Percentage of reasonably possible decrease in growth in homes connected | 15% |
IHS Latam Group | 1% increase in post-tax discount rate | |
Disclosure of detailed information about intangible assets [line items] | |
Increase in incremental charge recognized | $ 174,000 |
IHS Latam Group | 1% decrease in terminal growth rate | |
Disclosure of detailed information about intangible assets [line items] | |
Increase in incremental charge recognized | 108,000 |
IHS Latam Group | Reasonably possible decrease in tenancy growth | |
Disclosure of detailed information about intangible assets [line items] | |
Increase in incremental charge recognized | $ 113,000 |
Goodwill and other intangible_9
Goodwill and other intangible assets - Key assumptions to fair value less costs of disposals calculation (Details) | 12 Months Ended |
Dec. 31, 2022 | |
IHS Latam Group | |
Disclosure of intangible assets material to entity [line items] | |
Discount rate | 10.10% |
Terminal growth rate | 4.10% |
Tenancy growth | 9.80% |
Cost of disposal | 0.50% |
I-Systems [Member] | |
Disclosure of intangible assets material to entity [line items] | |
Discount rate | 9.60% |
Terminal growth rate | 4.30% |
Cost of disposal | 0.50% |
I-Systems Solues de Infraestrutura S.A. | Bottom of range | |
Disclosure of intangible assets material to entity [line items] | |
Homes connected | 1,000,000 |
I-Systems Solues de Infraestrutura S.A. | Top of range | |
Disclosure of intangible assets material to entity [line items] | |
Homes connected | 3,600,000 |
Goodwill and other intangibl_10
Goodwill and other intangible assets - Changes that would cause an impairment (Details) - I-Systems Solues de Infraestrutura S.A. | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of intangible assets material to entity [line items] | |
Rise in discount rate that would cause impairment | 2.20% |
Decrease in homes connected that would cause an impairment | 45% |
Decrease in terminal growth rate that would cause impairment | 3.80% |
Goodwill and other intangibl_11
Goodwill and other intangible assets - Fair value (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
IHS Latam tower businesses | |||
Goodwill and other intangible assets | |||
Discount rate | 10.10% | ||
Period of gross margin | 10 years | ||
I-Systems Solues de Infraestrutura S.A. [Member] | |||
Goodwill and other intangible assets | |||
Rise in discount rate that would cause impairment | 2.20% | ||
Period of gross margin | 10 years | ||
Level 3 | IHS Latam tower businesses | |||
Goodwill and other intangible assets | |||
Monthly tower cashflow | $ 2,600,000 | $ 1,600,000 | |
Decrease in monthly tower cash flows that would cause impairment | $ 327,000 | ||
Tower cashflow multiples | 22 | 22 | |
Decrease in tower cashflow multiple that would cause impairment | 2.63 | ||
Estimated cost of disposal percent | 0.82% | 1.20% | |
Increase in estimated cost of disposal that would cause impairment | 11.95% |
Deferred income tax - Deferred
Deferred income tax - Deferred tax asset and liability (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred income tax | |||||
Deferred income tax assets | $ 78,394 | $ 11,064 | [1] | ||
Deferred income tax liabilities | (186,261) | (169,119) | [1] | ||
Net deferred tax liabilities | $ (107,867) | $ (158,055) | $ (163,741) | $ (14,937) | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Deferred income tax - Offset (D
Deferred income tax - Offset (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred income tax | |||||
Deferred income tax assets | $ 78,394 | $ 11,064 | [1] | ||
Deferred income tax liabilities | (186,261) | (169,119) | [1] | ||
Deferred tax liability (asset) | 107,867 | 158,055 | $ 163,741 | $ 14,937 | |
Property, plant and equipment | |||||
Deferred income tax | |||||
Deferred income tax assets before netting | (6,351) | 1,678 | |||
Deferred income tax liabilities before netting | (147,364) | (147,733) | |||
Deferred tax liability (asset) | 153,715 | 146,054 | 153,081 | 106,060 | |
Intangible assets | |||||
Deferred income tax | |||||
Deferred income tax assets before netting | 20,313 | (6,231) | |||
Deferred income tax liabilities before netting | (199,064) | (159,907) | |||
Deferred tax liability (asset) | 178,751 | 166,157 | $ 191,887 | $ 121,721 | |
Provisions | |||||
Deferred income tax | |||||
Deferred income tax assets before netting | 13,788 | 13,064 | |||
Deferred income tax liabilities before netting | 38,837 | 36,397 | |||
Unrealized derivative income | |||||
Deferred income tax | |||||
Deferred income tax liabilities before netting | (337) | (48,077) | |||
Timing differences on loans | |||||
Deferred income tax | |||||
Deferred income tax liabilities before netting | 19,071 | 33,192 | |||
Unrealized foreign exchange | |||||
Deferred income tax | |||||
Deferred income tax liabilities before netting | 12,150 | 21,010 | |||
Tax losses | |||||
Deferred income tax | |||||
Deferred income tax assets before netting | 28,443 | 240 | |||
Deferred income tax assets | 39,600 | ||||
Deferred income tax liabilities before netting | 11,170 | 3,450 | |||
Unutilized capital allowances | |||||
Deferred income tax | |||||
Deferred income tax liabilities before netting | 79,110 | 89,157 | |||
Other | |||||
Deferred income tax | |||||
Deferred income tax assets before netting | 22,201 | 2,313 | |||
Deferred income tax liabilities before netting | $ 166 | $ 3,392 | |||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Deferred income tax - Reconcili
Deferred income tax - Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Net deferred income tax, Beginning balance | $ (158,055) | $ (163,741) | $ (14,937) | |
Additions through business combinations | 139,103 | 79,395 | 98,669 | |
Tax (charge)/income | 182,295 | 73,716 | (74,722) | |
Effects of movement in exchange rates | (6,996) | (11,365) | (24,587) | |
Net deferred income tax, Ending balance | (107,867) | (158,055) | (163,741) | |
Deductible temporary differences for which no deferred tax is recognized | 1,800,000 | 1,800,000 | 1,600,000 | |
Deferred tax liabilities | 186,261 | 169,119 | [1] | |
December 31, 2024 | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deductible temporary differences for which no deferred tax is recognized | 222,300 | 230,900 | 383,800 | |
December 31, 2025 | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deductible temporary differences for which no deferred tax is recognized | 180,000 | 191,000 | 195,600 | |
December 31, 2026 | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deductible temporary differences for which no deferred tax is recognized | 274,300 | 298,100 | 0 | |
December 31, 2027 | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deductible temporary differences for which no deferred tax is recognized | 99,400 | 0 | 0 | |
Property, plant and equipment | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Net deferred income tax, Beginning balance | (146,054) | (153,081) | (106,060) | |
Additions through business combinations | 61,184 | 6,065 | 3,378 | |
Tax (charge)/income | 47,148 | 2,078 | (46,364) | |
Effects of movement in exchange rates | (6,375) | (11,014) | (2,721) | |
Net deferred income tax, Ending balance | (153,715) | (146,054) | (153,081) | |
Deferred tax liabilities, including netting | 147,364 | 147,733 | ||
Provisions / share based payments obligation | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Net deferred income tax, Beginning balance | 49,462 | 66,143 | 29,279 | |
Additions through business combinations | (2,182) | |||
Tax (charge)/income | 5,324 | (11,922) | 35,089 | |
Effects of movement in exchange rates | 2,161 | 4,759 | 407 | |
Net deferred income tax, Ending balance | 52,625 | 49,462 | 66,143 | |
Intangible assets | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Net deferred income tax, Beginning balance | (166,157) | (191,887) | (121,721) | |
Additions through business combinations | 77,919 | 73,330 | 103,638 | |
Tax (charge)/income | 58,054 | 85,254 | 11,030 | |
Effects of movement in exchange rates | (7,271) | (13,806) | (22,442) | |
Net deferred income tax, Ending balance | (178,751) | (166,157) | (191,887) | |
Deferred tax liabilities, including netting | 199,064 | 159,907 | ||
Loans and derivatives | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Net deferred income tax, Beginning balance | (14,885) | (26,054) | (11,697) | |
Tax (charge)/income | 32,969 | 9,295 | (16,444) | |
Effects of movement in exchange rates | (650) | (1,874) | (2,087) | |
Net deferred income tax, Ending balance | 18,734 | (14,885) | (26,054) | |
Other including unrealized exchange differences/tax losses | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Net deferred income tax, Beginning balance | 119,579 | 141,138 | 195,262 | |
Additions through business combinations | (6,165) | |||
Tax (charge)/income | 38,800 | (10,989) | (58,033) | |
Effects of movement in exchange rates | 5,139 | 10,570 | 2,256 | |
Net deferred income tax, Ending balance | 153,240 | $ 119,579 | $ 141,138 | |
Undistributed earnings of subsidiaries [Member] | ||||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||||
Deferred tax liabilities | $ 5,100 | |||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Inventories | ||||
Stock of materials | $ 74,216 | $ 42,021 | [1] | |
Inventory write-down | 1,700 | 100 | $ 4,700 | |
Inventory recognized as an expense | $ 371,800 | $ 267,500 | $ 216,300 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Derivative financial instrume_3
Derivative financial instruments - Notional amount (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivatives | ||
Derivative financial instruments | ||
Derivative instruments, notional amount | $ 2,100,448 | $ 2,064,023 |
Foreign exchange swaps/nondeliverable forwards | ||
Derivative financial instruments | ||
Derivative instruments, notional amount | 160,448 | 124,023 |
Embedded options within listed bonds | ||
Derivative financial instruments | ||
Derivative instruments, notional amount | $ 1,940,000 | $ 1,940,000 |
Derivative financial instrume_4
Derivative financial instruments - Fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative financial instruments | ||
Derivative financial instruments at fair value | $ 4,728 | $ 161,329 |
Foreign exchange swaps/nondeliverable forwards | ||
Derivative financial instruments | ||
Derivative financial instruments at fair value | (1,393) | (3,771) |
Interest rate caps | ||
Derivative financial instruments | ||
Derivative financial instruments at fair value | 821 | |
Embedded options within listed bonds | ||
Derivative financial instruments | ||
Derivative financial instruments at fair value | $ 5,300 | $ 165,100 |
Derivative financial instrume_5
Derivative financial instruments - Change in fair value of the derivative instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative financial instruments | |||
Change in fair value of the derivative instruments | $ (161,577) | $ 3,938 | $ 139,637 |
Foreign exchange swaps/nondeliverable forwards | |||
Derivative financial instruments | |||
Change in fair value of the derivative instruments | (1,599) | (3,897) | 29,151 |
Interest rate caps | |||
Derivative financial instruments | |||
Change in fair value of the derivative instruments | (89) | ||
Embedded options within listed bonds | |||
Derivative financial instruments | |||
Change in fair value of the derivative instruments | $ (159,889) | 604 | 110,655 |
Embedded options within revenue contracts | |||
Derivative financial instruments | |||
Change in fair value of the derivative instruments | $ 7,231 | $ (169) |
Derivative financial instrume_6
Derivative financial instruments - Credit ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative financial instruments | ||
Derivative financial instrument assets | $ 6,121 | $ 165,100 |
Not rated | ||
Derivative financial instruments | ||
Derivative financial instrument assets | $ 6,121 | $ 165,100 |
Derivative financial instrume_7
Derivative financial instruments - Reconciliation of movements (Details) - Foreign exchange swaps/nondeliverable forwards - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative financial instruments | ||
Opening balance | $ (3,771) | $ 27,495 |
Fair value loss (unrealized foreign exchange on open contracts) | (1,599) | (3,897) |
Foreign exchange gain | 780 | 10,342 |
Cash flow on settlement | 3,197 | (37,711) |
Ending balance | $ (1,393) | $ (3,771) |
Trade and other receivables (De
Trade and other receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Trade and other current receivables [abstract] | ||||
Net trade receivables | $ 211,025 | $ 222,789 | ||
Other receivables | 387,019 | 201,759 | ||
Prepaid land rent | 1,030 | 1,069 | ||
Other prepaid expenses | 26,820 | 25,080 | ||
Advance payments | 22,076 | 14,663 | ||
Withholding tax | 1,201 | 992 | ||
VAT receivables | 14,296 | 5,401 | ||
Trade and other current receivables | 663,467 | 471,753 | [1] | |
Trade and other non-current receivables [abstract] | ||||
Accrued income and lease incentive | 35,321 | 21,408 | ||
Other tax receivables | 5,945 | |||
Payment in advance for property, plant and equipment | 83,118 | 48,071 | ||
Contingent consideration receivable | 5,963 | 5,575 | ||
Trade and other non-current receivables | 130,347 | 75,054 | [1] | |
Accrued revenue | 86,200 | 103,400 | $ 90,000 | |
Current contract assets | $ 17,700 | 22,200 | $ 23,200 | |
Top of range | ||||
Trade and other non-current receivables [abstract] | ||||
Non-current receivable due term | 20 years | |||
Gross carrying amount [member] | ||||
Trade and other current receivables [abstract] | ||||
Net trade receivables | $ 236,390 | 253,852 | ||
Accumulated impairment [member] | ||||
Trade and other current receivables [abstract] | ||||
Net trade receivables | $ (25,365) | $ (31,063) | ||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Cash and cash equivalents (Deta
Cash and cash equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash at bank | $ 514,078 | $ 916,488 | |||
Cash and cash equivalents | 514,078 | 916,488 | [1] | $ 585,416 | $ 898,802 |
AAA (F1+) | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 20,916 | 127,781 | |||
A+ | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 22,790 | ||||
A (F1) | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 244,483 | 628,033 | |||
BBB+ | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 506 | ||||
BBB | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 3,143 | ||||
BBB- | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 115 | 162 | |||
B | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 217,335 | 157,277 | |||
B- | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 7,242 | ||||
C | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | 67 | ||||
Not rated | |||||
ifrs_Cash and Cash Equivalents [Line Items] | |||||
Cash and cash equivalents | $ 691 | $ 25 | |||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Trade and other payables (Detai
Trade and other payables (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current | ||||
Trade payables | $ 442,959 | $ 342,841 | ||
Deferred revenue | 86,363 | 20,435 | ||
Withholding tax payable | 5,820 | 4,517 | ||
Payroll and other related statutory liabilities | 45,331 | 53,446 | ||
VAT payables | 51,103 | 37,973 | ||
Other payables | 37,573 | 40,220 | ||
Trade and other payables | 669,149 | 499,432 | [1] | |
Non-current | ||||
Other payables | 1,459 | 312 | ||
Trade and other payables, non current | 1,459 | 312 | [1] | |
Contract liabilities | $ 22,900 | $ 2,800 | $ 600 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Borrowings - Debt Classificatio
Borrowings - Debt Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowings | |||||
Non Current Borrowings | $ 2,906,288 | $ 2,401,471 | [1] | ||
Current borrowings | 438,114 | 207,619 | [1] | ||
Borrowings | 3,344,402 | 2,609,090 | $ 2,203,209 | $ 2,055,878 | |
Senior Notes | |||||
Borrowings | |||||
Non Current Borrowings | 1,920,783 | 1,916,062 | |||
Current borrowings | 27,060 | 27,195 | |||
Bank borrowings | |||||
Borrowings | |||||
Non Current Borrowings | 985,505 | 485,409 | |||
Current borrowings | 197,478 | 3,208 | |||
Bank overdraft | |||||
Borrowings | |||||
Current borrowings | $ 213,576 | $ 177,216 | |||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Borrowings - Debt Reconciliatio
Borrowings - Debt Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Borrowings. | |||
Opening balance - January 1 | $ 2,609,090 | $ 2,203,209 | $ 2,055,878 |
Additions through business combination | 6,457 | 46,356 | |
Interest expense | 256,208 | 174,876 | 177,737 |
Interest paid | (234,567) | (168,285) | (167,938) |
Bank loans and bond proceeds received (net of transaction costs) | 1,263,272 | 1,076,063 | 232,219 |
Bank loans and bonds repaid | (506,504) | (653,504) | (99,903) |
Bank overdraft | 3,208 | ||
Other transaction costs | (19,911) | (38,597) | (5,561) |
Foreign exchange and other movements | (23,186) | 5,663 | (35,579) |
Closing balance - December 31 | $ 3,344,402 | $ 2,609,090 | $ 2,203,209 |
Borrowings - Debt instrument (D
Borrowings - Debt instrument (Details) $ in Thousands, د.ك in Millions | Dec. 31, 2022 USD ($) | Dec. 31, 2022 KWD (د.ك) | Oct. 03, 2022 | May 31, 2022 | Apr. 18, 2022 | Mar. 31, 2022 | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) |
Borrowings | |||||||||
Borrowings | $ 3,344,402 | $ 2,609,090 | $ 2,203,209 | $ 2,055,878 | |||||
IHS Holding limited, Senior Note Maturing 2026 | |||||||||
Borrowings | |||||||||
Interest rate | 5.625% | 5.625% | |||||||
IHS Holding limited, Senior Note Maturing 2026 | US Dollar | |||||||||
Borrowings | |||||||||
Interest rate | 5.63% | 5.63% | |||||||
Borrowings | $ 497,861 | 496,850 | |||||||
IHS Holding limited, Senior Note Maturing 2028 | |||||||||
Borrowings | |||||||||
Interest rate | 6.25% | 6.25% | |||||||
IHS Holding limited, Senior Note Maturing 2028 | US Dollar | |||||||||
Borrowings | |||||||||
Interest rate | 6.25% | 6.25% | |||||||
Borrowings | $ 497,979 | 497,367 | |||||||
IHS Netherlands Holdco B.V., Senior Note Maturing 2027 | US Dollar | |||||||||
Borrowings | |||||||||
Interest rate | 8% | 8% | |||||||
Borrowings | $ 952,003 | 949,042 | |||||||
IHS Holding Term Loan Facility | |||||||||
Borrowings | |||||||||
Borrowings | 370,000 | ||||||||
IHS Holding Term Loan Facility | US Dollar | |||||||||
Borrowings | |||||||||
Borrowings | $ 368,630 | ||||||||
IHS Holding Term Loan Facility | US Dollar | CAS + SOFR | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 3.75% | 3.75% | |||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | |||||||||
Borrowings | |||||||||
Interest rate | 12.50% | ||||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | Nigeria Naira | |||||||||
Borrowings | |||||||||
Borrowings | $ 57,448 | ||||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | Nigeria Naira | Maximum | |||||||||
Borrowings | |||||||||
Interest rate | 18% | 18% | |||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | Nigeria Naira | Minimum | |||||||||
Borrowings | |||||||||
Interest rate | 12.50% | 12.50% | |||||||
IHS (Nigeria) Limited, IHSN NG2, maturing 2023 | |||||||||
Borrowings | |||||||||
Interest rate | 18% | ||||||||
INT Towers Limited, 2024 | US Dollar | |||||||||
Borrowings | |||||||||
Borrowings | 92,769 | ||||||||
INT Towers Limited, 2024 | US Dollar | 3M NIBOR | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 4.25% | 4.25% | |||||||
INT Towers Limited, 2024 | Nigeria Naira | |||||||||
Borrowings | |||||||||
Borrowings | $ 191,188 | 284,882 | |||||||
INT Towers Limited, 2024 | Nigeria Naira | 3M NIBOR | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 2.50% | 2.50% | |||||||
IHS Cte d'Ivoire Ltd (CFA Franc) maturing 2024 | CFA Franc | |||||||||
Borrowings | |||||||||
Interest rate | 5% | 5% | |||||||
Borrowings | $ 18,854 | 31,627 | |||||||
IHS Cte d'Ivoire Ltd (Euro) maturing 2024 | Euro | |||||||||
Borrowings | |||||||||
Borrowings | $ 14,217 | 24,156 | |||||||
IHS Cte d'Ivoire Ltd (Euro) maturing 2024 | Euro | 3M EURIBOR | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 3% | 3% | |||||||
IHS Zambia Limited, 2027 | US Dollar | |||||||||
Borrowings | |||||||||
Borrowings | $ 94,596 | 93,164 | |||||||
IHS Zambia Limited, 2027 | US Dollar | 3M LIBOR | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 5% | 5% | |||||||
IHS Brasil Cesso de Infraestruturas Limitada, 2029 | Brazil Real | |||||||||
Borrowings | |||||||||
Borrowings | $ 68,591 | 69,768 | |||||||
IHS Brasil Cesso de Infraestruturas Limitada, 2029 | Brazil Real | CDI | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 3.65% | 3.65% | |||||||
IHS Brasil - Cesso de Infraestruturas S.A. Maturing 2028 | CDI | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 3.05% | ||||||||
IHS Brasil - Cesso de Infraestruturas S.A. Maturing 2028 | Brazil Real | |||||||||
Borrowings | |||||||||
Borrowings | $ 82,928 | ||||||||
IHS Brasil - Cesso de Infraestruturas S.A. Maturing 2028 | Brazil Real | CDI | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 3.05% | 3.05% | |||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 | CDI | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 2.45% | ||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 | Brazil Real | |||||||||
Borrowings | |||||||||
Borrowings | $ 38,542 | ||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 | Brazil Real | CDI | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 2.45% | 2.45% | |||||||
IHS Kuwait Limited, 2029 | |||||||||
Borrowings | |||||||||
Borrowings | $ 70,000 | د.ك 21.5 | |||||||
IHS Kuwait Limited, 2029 | Kuwaiti Dinar | |||||||||
Borrowings | |||||||||
Borrowings | $ 66,251 | 66,257 | |||||||
IHS Kuwait Limited, 2029 | Kuwaiti Dinar | 3M KIBOR | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 2% | 2% | |||||||
IHS Towers South Africa Proprietary Limited maturing 2029 | South Africa, Rand | |||||||||
Borrowings | |||||||||
Borrowings | $ 197,836 | ||||||||
IHS Towers South Africa Proprietary Limited maturing 2029 | South Africa, Rand | 3M JIBAR | |||||||||
Borrowings | |||||||||
Borrowings, adjustment to interest rate basis | 2.75% | 2.75% | |||||||
IHS (Nigeria) Limited, Letters of credit, Maturing 2023 One | US Dollar | |||||||||
Borrowings | |||||||||
Borrowings | $ 66,047 | ||||||||
IHS (Nigeria) Limited, Letters of credit, Maturing 2023 One | US Dollar | Maximum | |||||||||
Borrowings | |||||||||
Interest rate | 12.05% | 12.05% | |||||||
IHS (Nigeria) Limited, Letters of credit, Maturing 2023 One | US Dollar | Minimum | |||||||||
Borrowings | |||||||||
Interest rate | 8.95% | 8.95% | |||||||
INT Towers Limited, Letters of Credit Maturing 2022-2023 | US Dollar | |||||||||
Borrowings | |||||||||
Borrowings | $ 128,063 | ||||||||
INT Towers Limited, Letters of Credit Maturing 2022-2023 | US Dollar | Maximum | |||||||||
Borrowings | |||||||||
Interest rate | 11.70% | 11.70% | |||||||
INT Towers Limited, Letters of Credit Maturing 2022-2023 | US Dollar | Minimum | |||||||||
Borrowings | |||||||||
Interest rate | 9.50% | 9.50% | |||||||
INT Towers Limited, Letters of Credit Maturing 2022 | |||||||||
Borrowings | |||||||||
Borrowings | $ 128,100 | ||||||||
INT Towers Limited, Letters of Credit Maturing 2022 | Maximum | |||||||||
Borrowings | |||||||||
Interest rate | 11.70% | 11.70% | |||||||
INT Towers Limited, Letters of Credit Maturing 2022 | Minimum | |||||||||
Borrowings | |||||||||
Interest rate | 9.50% | 9.50% | |||||||
ITNG limited, Letters of Credit Maturing 2023 | |||||||||
Borrowings | |||||||||
Interest rate | 12.05% | 12.05% | |||||||
Borrowings | $ 1,000 | ||||||||
ITNG limited, Letters of Credit Maturing 2023 | US Dollar | |||||||||
Borrowings | |||||||||
Interest rate | 12.05% | 12.05% | |||||||
Borrowings | $ 987 | ||||||||
Global Independent Connect Limited Letters of Credit 2022 | |||||||||
Borrowings | |||||||||
Borrowings | $ 2,400 | ||||||||
Global Independent Connect Limited Letters of Credit 2022 | Maximum | |||||||||
Borrowings | |||||||||
Interest rate | 12.05% | 12.05% | |||||||
Global Independent Connect Limited Letters of Credit 2022 | Minimum | |||||||||
Borrowings | |||||||||
Interest rate | 8.97% | 8.97% | |||||||
Global Independent Connect Limited Letters of Credit 2022 | Chinese Yen | |||||||||
Borrowings | |||||||||
Interest rate | 8.97% | 8.97% | |||||||
Borrowings | $ 1,051 | $ 3,208 | |||||||
Global Independent Connect Limited Letters of Credit 2023 | US Dollar | |||||||||
Borrowings | |||||||||
Interest rate | 12.05% | 12.05% | |||||||
Borrowings | $ 1,330 |
Borrowings - Narratives (Detail
Borrowings - Narratives (Details) $ in Thousands, د.ك in Millions, R$ in Millions, R in Millions, ₦ in Billions | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||
Oct. 28, 2022 USD ($) | Oct. 13, 2022 USD ($) | Oct. 03, 2022 USD ($) | Aug. 17, 2022 USD ($) | Aug. 17, 2022 KWD (د.ك) | May 31, 2022 USD ($) | May 26, 2022 USD ($) | Apr. 18, 2022 USD ($) | Nov. 18, 2021 | Aug. 10, 2021 USD ($) | Jul. 31, 2020 USD ($) | Sep. 18, 2019 USD ($) | Nov. 30, 2022 USD ($) | Sep. 30, 2022 | May 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 NGN (₦) | Dec. 31, 2022 ZAR (R) | Dec. 31, 2022 KWD (د.ك) | Oct. 13, 2022 BRL (R$) | Oct. 03, 2022 BRL (R$) | May 31, 2022 NGN (₦) | May 26, 2022 ZAR (R) | Apr. 18, 2022 BRL (R$) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 NGN (₦) | Apr. 19, 2020 USD ($) | Mar. 30, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Maximum debt amount | $ 3,700,000 | $ 3,500,000 | $ 2,600,000 | |||||||||||||||||||||||||||||
Bank loans and bond proceeds received (net of transaction costs) | 1,263,272 | 1,076,063 | 232,219 | |||||||||||||||||||||||||||||
Borrowings | 3,344,402 | 2,609,090 | 2,203,209 | $ 2,055,878 | ||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | 506,504 | 653,504 | 99,903 | |||||||||||||||||||||||||||||
Debt repaid | 506,504 | 653,504 | 99,903 | |||||||||||||||||||||||||||||
Interest paid | 234,567 | 168,285 | $ 167,938 | |||||||||||||||||||||||||||||
MTN telecom towers in South Africa | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Number of Towers Acquired | 5,691 | |||||||||||||||||||||||||||||||
IHS Netherlands Holdco B.V., 2027 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 940,000 | |||||||||||||||||||||||||||||||
Interest rate | 8% | 8% | 8% | 8% | ||||||||||||||||||||||||||||
Bank loans and bond proceeds received (net of transaction costs) | $ 140,000 | $ 800,000 | ||||||||||||||||||||||||||||||
Debt term | 8 years | |||||||||||||||||||||||||||||||
IHS Holding Revolving 2022 Credit Facility | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 270,000 | |||||||||||||||||||||||||||||||
Debt additional extended term | 2 years | |||||||||||||||||||||||||||||||
Undrawn borrowing facilities | $ 270,000 | |||||||||||||||||||||||||||||||
IHS Holding Revolving 2022 Credit Facility | Forecast | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Undrawn borrowing facilities | $ 300,000 | |||||||||||||||||||||||||||||||
IHS Kuwait Limited, Bank Borrowings Maturing 2029 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 85,000 | |||||||||||||||||||||||||||||||
Bank loans and bond proceeds received (net of transaction costs) | $ 1,000 | د.ك 0.3 | ||||||||||||||||||||||||||||||
Borrowings | 70,000 | د.ك 21.5 | ||||||||||||||||||||||||||||||
IHS Kuwait Limited, Bank Borrowings Maturing 2029 | Kuwaiti Dinar | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 66,251 | 66,257 | ||||||||||||||||||||||||||||||
IHS Kuwait Limited, Bank Borrowings Maturing 2029 | 3M KIBOR | Kuwaiti Dinar | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2% | 2% | 2% | 2% | ||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2026 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 500,000 | |||||||||||||||||||||||||||||||
Interest rate | 5.625% | 5.625% | 5.625% | 5.625% | ||||||||||||||||||||||||||||
Debt term | 5 years | |||||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2026 | US Dollar | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 5.63% | 5.63% | 5.63% | 5.63% | ||||||||||||||||||||||||||||
Borrowings | $ 497,861 | 496,850 | ||||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2028 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 500,000 | |||||||||||||||||||||||||||||||
Interest rate | 6.25% | 6.25% | 6.25% | 6.25% | ||||||||||||||||||||||||||||
Debt term | 7 years | |||||||||||||||||||||||||||||||
IHS Holding limited, Senior Note Maturing 2028 | US Dollar | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 6.25% | 6.25% | 6.25% | 6.25% | ||||||||||||||||||||||||||||
Borrowings | $ 497,979 | $ 497,367 | ||||||||||||||||||||||||||||||
Bridge Facility | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 500,000 | |||||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | 280,000 | |||||||||||||||||||||||||||||||
Debt repaid | $ 280,000 | |||||||||||||||||||||||||||||||
Debt additional extended term | 6 months | |||||||||||||||||||||||||||||||
Reduction of maximum borrowings under facility | $ 38,600 | |||||||||||||||||||||||||||||||
Bridge Facility | SOFR | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Banking day lookback period for calculation of interest rate | 5 days | |||||||||||||||||||||||||||||||
Bridge Facility | SOFR | Minimum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 3.50% | |||||||||||||||||||||||||||||||
Bridge Facility | SOFR | Maximum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 6% | |||||||||||||||||||||||||||||||
IHS (Nigeria) Limited credit facilities | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Number of borrowings facilities | 2 | |||||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 75,600 | |||||||||||||||||||||||||||||||
Debt repaid | 75,600 | |||||||||||||||||||||||||||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 34,900 | ₦ 16.1 | ||||||||||||||||||||||||||||||
Interest rate | 12.50% | 12.50% | ||||||||||||||||||||||||||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | Nigeria Naira | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 57,448 | |||||||||||||||||||||||||||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | Minimum | Nigeria Naira | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 12.50% | 12.50% | 12.50% | 12.50% | ||||||||||||||||||||||||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | Maximum | Nigeria Naira | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 18% | 18% | 18% | 18% | ||||||||||||||||||||||||||||
IHS (Nigeria) Limited, IHSN NG2, maturing 2023 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 21,700 | $ 21,700 | ₦ 10 | |||||||||||||||||||||||||||||
Interest rate | 18% | 18% | 18% | |||||||||||||||||||||||||||||
IHS Towers South Africa Proprietary Limited Facility | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 204,300 | R 3,470 | ||||||||||||||||||||||||||||||
Debt term | 24 months | |||||||||||||||||||||||||||||||
Borrowings | $ 200,200 | R 3,400 | ||||||||||||||||||||||||||||||
IHS Towers South Africa Proprietary Limited Facility | 3M JIBAR | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.75% | 2.75% | ||||||||||||||||||||||||||||||
IHS Nigeria Letters of Credit | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 66,000 | |||||||||||||||||||||||||||||||
IHS Nigeria Letters of Credit | Minimum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 8.95% | 8.95% | 8.95% | 8.95% | ||||||||||||||||||||||||||||
IHS Nigeria Letters of Credit | Maximum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 12.05% | 12.05% | 12.05% | 12.05% | ||||||||||||||||||||||||||||
INT Towers Limited, Letters of Credit Maturing 2022 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 128,100 | |||||||||||||||||||||||||||||||
INT Towers Limited, Letters of Credit Maturing 2022 | Minimum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 9.50% | 9.50% | 9.50% | 9.50% | ||||||||||||||||||||||||||||
INT Towers Limited, Letters of Credit Maturing 2022 | Maximum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 11.70% | 11.70% | 11.70% | 11.70% | ||||||||||||||||||||||||||||
ITNG limited, Letters of Credit Maturing 2023 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 12.05% | 12.05% | 12.05% | 12.05% | ||||||||||||||||||||||||||||
Borrowings | $ 1,000 | |||||||||||||||||||||||||||||||
ITNG limited, Letters of Credit Maturing 2023 | US Dollar | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 12.05% | 12.05% | 12.05% | 12.05% | ||||||||||||||||||||||||||||
Borrowings | $ 987 | |||||||||||||||||||||||||||||||
Global Independent Connect Limited Letters of Credit 2022 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 2,400 | |||||||||||||||||||||||||||||||
Global Independent Connect Limited Letters of Credit 2022 | Minimum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 8.97% | 8.97% | 8.97% | 8.97% | ||||||||||||||||||||||||||||
Global Independent Connect Limited Letters of Credit 2022 | Maximum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Interest rate | 12.05% | 12.05% | 12.05% | 12.05% | ||||||||||||||||||||||||||||
IHS Holding (2022) Bullet Term Loan Facility | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 600,000 | |||||||||||||||||||||||||||||||
Debt term | 12 months | |||||||||||||||||||||||||||||||
Borrowings | $ 370,000 | |||||||||||||||||||||||||||||||
IHS Holding (2022) Bullet Term Loan Facility | US Dollar | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 368,630 | |||||||||||||||||||||||||||||||
IHS Holding (2022) Bullet Term Loan Facility | SOFR | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 3.75% | |||||||||||||||||||||||||||||||
IHS Holding (2022) Bullet Term Loan Facility | CAS + SOFR | US Dollar | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 3.75% | 3.75% | 3.75% | 3.75% | ||||||||||||||||||||||||||||
Nigerian term loan | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 191,400 | ₦ 88.3 | ||||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 75,600 | |||||||||||||||||||||||||||||||
Debt repaid | $ 75,600 | |||||||||||||||||||||||||||||||
IHS Brasil - Cesso de Infraestruturas S.A. Maturing 2028 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 94,900 | R$ 495.0 | ||||||||||||||||||||||||||||||
IHS Brasil - Cesso de Infraestruturas S.A. Maturing 2028 | Brazil Real | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 82,928 | |||||||||||||||||||||||||||||||
IHS Brasil - Cesso de Infraestruturas S.A. Maturing 2028 | CDI | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 3.05% | 3.05% | ||||||||||||||||||||||||||||||
Calculation period for interest rate basis | 252 days | |||||||||||||||||||||||||||||||
IHS Brasil - Cesso de Infraestruturas S.A. Maturing 2028 | CDI | Brazil Real | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 3.05% | 3.05% | 3.05% | 3.05% | ||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 38,300 | R$ 200.0 | ||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 | Brazil Real | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings | $ 38,542 | |||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 | CDI | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.45% | 2.45% | ||||||||||||||||||||||||||||||
Calculation period for interest rate basis | 252 days | |||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 | CDI | Brazil Real | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.45% | 2.45% | 2.45% | 2.45% | ||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. additional loan commitment | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 38,300 | R$ 200.0 | ||||||||||||||||||||||||||||||
Borrowings, Number of Tranches | 2 | |||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. additional loan commitment | Minimum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Percentual commitment fee on undrawn amount | 2% | 2% | ||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. additional loan commitment | Maximum | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Percentual commitment fee on undrawn amount | 2.15% | 2.15% | ||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. Tranche I | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Notional amount | $ 15,300 | R$ 80.0 | ||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. Tranche I | CDI | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.45% | 2.45% | ||||||||||||||||||||||||||||||
Calculation period for interest rate basis | 252 days | |||||||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. Tranche II | CDI | ||||||||||||||||||||||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.50% | 2.50% | ||||||||||||||||||||||||||||||
Calculation period for interest rate basis | 252 days |
Lease liabilities - Components
Lease liabilities - Components of lease (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Lease liabilities. | |||||
Current | $ 87,240 | $ 50,560 | [1] | ||
Non-current | 517,289 | 325,541 | [1] | ||
Total lease liabilities | 604,529 | 376,101 | $ 314,747 | $ 184,494 | |
Lease payments | $ 112,800 | $ 96,200 | $ 58,400 | ||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Lease liabilities - Reconciliat
Lease liabilities - Reconciliation of cash and non-cash changes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease liabilities. | |||
Beginning balance | $ 376,101 | $ 314,747 | $ 184,494 |
Additions through business combinations | 215,597 | 44,557 | 131,651 |
Additions through new leases or remeasurements | 118,609 | 131,438 | 65,070 |
Interest and finance charges for lease liabilities | 52,214 | 32,826 | 27,384 |
Payments for the principal of lease liabilities | (76,629) | (63,324) | (39,153) |
Interest paid for lease liabilities | (36,178) | (32,923) | (19,239) |
Remeasurements or terminations | (37,718) | (30,978) | (15,380) |
Effects of movement in exchange rates | (7,467) | (20,242) | (20,080) |
Closing balance | $ 604,529 | $ 376,101 | $ 314,747 |
Lease liabilities - Amount reco
Lease liabilities - Amount recognized in the statement of income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lease liabilities. | |||
Interest and finance charges paid/payable for lease liabilities | $ 52,214 | $ 32,826 | $ 27,384 |
Expenses relating to short term leases and low value assets | 16,469 | 11,165 | 7,543 |
Depreciation for right of use assets | 88,961 | 60,685 | 54,089 |
Total for the year ended | $ 157,644 | $ 104,676 | $ 89,016 |
Lease liabilities - Contractual
Lease liabilities - Contractual maturities (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Carrying value | $ 604,529 | $ 376,101 | $ 314,747 | $ 184,494 |
Total contractual cash flows | $ 1,108,532 | 700,877 | ||
Average remaining lease term | 12 years 4 months 24 days | |||
Within 1 year | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | $ 92,417 | 54,303 | ||
2-3 years | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | 179,930 | 106,015 | ||
4-5 years | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | 168,231 | 99,573 | ||
Over 5 years | ||||
Disclosure of quantitative information about right-of-use assets [line items] | ||||
Total contractual cash flows | $ 667,954 | $ 440,986 |
Provisions for other liabilit_3
Provisions for other liabilities and charges - Decommissioning and site restoration provision (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of other provisions [line items] | ||||
Non-current | $ 84,533 | $ 71,598 | [1] | |
Current | 483 | 343 | [1] | |
Decommissioning and site restoration provisions | ||||
Disclosure of other provisions [line items] | ||||
At January 1 | 71,941 | 53,266 | $ 33,568 | |
Additions through business combinations (note 27) | 34,419 | 8,347 | 15,437 | |
Net provision increases and remeasurements | (24,898) | 7,212 | 8,315 | |
Payments for tower and tower equipment decommissioning | (343) | (231) | (65) | |
Reversal of decommissioning through profit and loss | (2,671) | |||
Unwinding of discount | 7,084 | 4,644 | 2,644 | |
Effects of movement in exchange rates | (3,187) | 1,374 | (6,633) | |
At end of period/year | 85,016 | 71,941 | 53,266 | |
Non-current | 84,533 | 71,598 | 49,469 | |
Current | $ 483 | $ 343 | $ 3,797 | |
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Provisions for other liabilit_4
Provisions for other liabilities and charges - Discount Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of other provisions [line items] | ||
Percentage of Increase (Decrease) In discount rate | 1% | 1% |
Percentage of increase in discount rate | 1% | |
Percentage of decrease in discount rate | 1% | |
Effect of 1% increase in discount rate | $ (2,066) | $ (1,571) |
Effect of 1% decrease in discount rate | $ 1,606 | $ 1,093 |
Nigerian entities | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 11.10% | 11.20% |
IHS Cameroon S.A. | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 5.50% | 5.50% |
IHS Cote d Ivoire S.A. | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 8% | 8% |
IHS Zambia Limited | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 9.10% | 5.10% |
IHS South Africa Proprietary Limited | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 11.10% | |
IHS Rwanda Limited | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 16% | 16% |
Brazilian entities | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 16.40% | 6.80% |
IHS Kuwait Limited | ||
Disclosure of other provisions [line items] | ||
Discount rate used in provisions calculation | 3.40% | 3.40% |
Stated capital (Details)
Stated capital (Details) | 12 Months Ended | 24 Months Ended | |||||||
Oct. 14, 2021 $ / shares shares | Oct. 13, 2021 | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) Vote $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Sep. 30, 2021 shares | |||
Stated capital. | |||||||||
Beginning balance, Equity | $ 1,743,556,000 | [1] | $ 1,224,191,000 | $ 1,430,319,000 | $ 1,224,191,000 | ||||
Shares issued | 349,846,000 | ||||||||
Ending balance, Equity | 1,358,648,000 | 1,743,556,000 | [1] | 1,224,191,000 | 1,358,648,000 | ||||
Share capital | 99,576,000 | 99,576,000 | |||||||
Share premium | $ 5,212,377,048 | $ 5,212,377,048 | |||||||
Par value per share | $ / shares | $ 0.30 | $ 0.30 | |||||||
Votes per ordinary share | 1 | ||||||||
Number of shares offered in initial public offering | shares | 18,000,000 | ||||||||
Offering price per share in initial public offering | $ / shares | $ 21 | ||||||||
Number of rights to shares through outstanding options that were not converted to ordinary shares in initial public offering | shares | 7,940,413 | ||||||||
Number of shares authorised | shares | 1,700,000,000 | 1,700,000,000 | |||||||
Conversion ratio of old classes of ordinary shares into new class of ordinary shares | 500 | 500 | |||||||
MTN Group | Bottom of range | |||||||||
Stated capital. | |||||||||
Percentage of voting rights held by entity | 20% | 20% | |||||||
Stated capital net of issue costs | |||||||||
Stated capital. | |||||||||
Beginning balance, Equity | $ 5,223,484,000 | 4,530,870,000 | 4,530,870,000 | $ 4,530,870,000 | |||||
Shares issued | 349,846,000 | ||||||||
Shares issued on exercise of options | 88,469,000 | 342,768,000 | |||||||
Ending balance, Equity | $ 5,311,953,000 | $ 5,223,484,000 | $ 4,530,870,000 | $ 5,311,953,000 | |||||
Class A / ordinary shares | |||||||||
Stated capital. | |||||||||
Beginning Balance, Number of shares | shares | 327,820,000 | 130,492,567,000 | 130,492,567,000 | 130,492,567,000 | |||||
Reclassification of Class A and Class B shares to ordinary shares (in shares) | shares | 16,558,927,000 | ||||||||
Impact of reverse share split (in shares) | shares | (146,757,391,000) | ||||||||
Shares issued on IPO (In shares) | shares | 18,000,000 | ||||||||
Shares issued (in shares) | shares | |||||||||
Shares issued on exercise of options (in shares) | shares | 4,100,000 | 15,717,000 | |||||||
Ending Balance, Number of shares | shares | 331,920,000 | 327,820,000 | 130,492,567,000 | 331,920,000 | |||||
Class A / ordinary shares | Stated capital | |||||||||
Stated capital. | |||||||||
Beginning balance, Equity | $ 5,253,508,000 | $ 4,233,335,000 | $ 4,233,335,000 | $ 4,233,335,000 | |||||
Reclassification of Class A and Class B shares to ordinary shares | 299,405,000 | ||||||||
Shares issued | 378,000,000 | ||||||||
Shares issued on exercise of options | 88,469,000 | 342,768,000 | |||||||
Ending balance, Equity | 5,341,977,000 | 5,253,508,000 | 4,233,335,000 | 5,341,977,000 | |||||
Class A / ordinary shares | Stated capital net of issue costs | |||||||||
Stated capital. | |||||||||
Beginning balance, Equity | 5,223,484,000 | 4,231,856,000 | 4,231,856,000 | 4,231,856,000 | |||||
Reclassification of Class A and Class B shares to ordinary shares | 299,014,000 | ||||||||
Shares issued | 378,000,000 | ||||||||
Share issue costs | (28,154,000) | ||||||||
Shares issued on exercise of options | 88,469,000 | 342,768,000 | |||||||
Ending balance, Equity | $ 5,311,953,000 | $ 5,223,484,000 | $ 4,231,856,000 | $ 5,311,953,000 | |||||
Class B shares | |||||||||
Stated capital. | |||||||||
Beginning Balance, Number of shares | shares | 16,558,927,000 | 16,558,927,000 | 16,558,927,000 | ||||||
Reclassification of Class A and Class B shares to ordinary shares (in shares) | shares | (16,558,927,000) | ||||||||
Shares issued (in shares) | shares | |||||||||
Ending Balance, Number of shares | shares | 16,558,927,000 | ||||||||
Voting rights | Vote | 0 | ||||||||
Class B shares | Stated capital | |||||||||
Stated capital. | |||||||||
Beginning balance, Equity | $ 299,405,000 | $ 299,405,000 | $ 299,405,000 | ||||||
Reclassification of Class A and Class B shares to ordinary shares | (299,405,000) | ||||||||
Shares issued | |||||||||
Ending balance, Equity | 299,405,000 | ||||||||
Class B shares | Stated capital net of issue costs | |||||||||
Stated capital. | |||||||||
Beginning balance, Equity | 299,014,000 | 299,014,000 | $ 299,014,000 | ||||||
Reclassification of Class A and Class B shares to ordinary shares | $ (299,014,000) | ||||||||
Shares issued | |||||||||
Ending balance, Equity | $ 299,014,000 | ||||||||
Class C shares | |||||||||
Stated capital. | |||||||||
Voting rights | Vote | 0 | ||||||||
Class A and B shares | |||||||||
Stated capital. | |||||||||
Par value per share | $ / shares | $ 0 | ||||||||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Other reserves (Details)
Other reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Disclosure of reserves within equity [line items] | |||||
Beginning balance, Equity | $ 1,743,556 | [1] | $ 1,224,191 | $ 1,430,319 | |
Other comprehensive income | 72,510 | (28,310) | 94,411 | ||
Recognition of share-based payment expense | 13,423 | 13,003 | 7,216 | ||
Ending balance, Equity | 1,358,648 | 1,743,556 | [1] | 1,224,191 | |
Other reserves | |||||
Disclosure of reserves within equity [line items] | |||||
Beginning balance, Equity | (842,911) | (485,505) | (587,155) | ||
Other comprehensive income | 59,370 | (22,557) | 94,434 | ||
Recognition of share-based payment expense | 13,423 | 13,003 | 7,216 | ||
SBP reserve converted to share capital | (88,469) | (342,768) | |||
Other reclassifications related to share based payment | (2,835) | (5,084) | |||
Ending balance, Equity | (861,422) | (842,911) | (485,505) | ||
Fair value through other comprehensive income reserve | |||||
Disclosure of reserves within equity [line items] | |||||
Beginning balance, Equity | (3) | (6) | (6) | ||
Other comprehensive income | 3 | ||||
Ending balance, Equity | (3) | (3) | (6) | ||
Restructuring reserve | |||||
Disclosure of reserves within equity [line items] | |||||
Beginning balance, Equity | 4,019 | 4,019 | 4,019 | ||
Ending balance, Equity | 4,019 | 4,019 | 4,019 | ||
Share- based payment reserve | |||||
Disclosure of reserves within equity [line items] | |||||
Beginning balance, Equity | 176,698 | 511,547 | 504,331 | ||
Recognition of share-based payment expense | 13,423 | 13,003 | 7,216 | ||
SBP reserve converted to share capital | (88,469) | (342,768) | |||
Other reclassifications related to share based payment | (2,835) | (5,084) | |||
Ending balance, Equity | 98,817 | 176,698 | 511,547 | ||
Loss on transactions between owners | |||||
Disclosure of reserves within equity [line items] | |||||
Beginning balance, Equity | (840,359) | (840,359) | (840,359) | ||
Ending balance, Equity | (840,359) | (840,359) | (840,359) | ||
Foreign exchange translation reserve | |||||
Disclosure of reserves within equity [line items] | |||||
Beginning balance, Equity | (183,266) | (160,706) | (255,140) | ||
Other comprehensive income | 59,370 | (22,560) | 94,434 | ||
Ending balance, Equity | $ (123,896) | $ (183,266) | $ (160,706) | ||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Non-controlling interest (Detai
Non-controlling interest (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Feb. 29, 2020 item | |||
Disclosure of subsidiaries [line items] | ||||||
Balance at January 1 | $ 223,188 | [1] | $ 14,216 | |||
NCI arising on business combination | 831 | 215,014 | $ 14,927 | |||
Loss for the period | (9,959) | (289) | (688) | |||
Other comprehensive (loss)/income | 13,140 | (5,753) | (23) | |||
Balance at September 30 | 227,200 | 223,188 | [1] | $ 14,216 | ||
I-Systems Solues de Infraestrutura S.A. | ||||||
Disclosure of subsidiaries [line items] | ||||||
Balance at January 1 | 205,433 | |||||
Balance at September 30 | $ 212,307 | $ 205,433 | ||||
Proportion of ownership interest in subsidiary | 51% | |||||
Proportion of ownership interests held by non-controlling interests | 49% | |||||
Mobile Telecommunications Company K.S.C.P (Zain) | IHS GCC KW | ||||||
Disclosure of subsidiaries [line items] | ||||||
Percentage of business acquired | 30% | |||||
IHS GCC KW | Mobile Telecommunications Company K.S.C.P (Zain) | ||||||
Disclosure of subsidiaries [line items] | ||||||
Number Of Towers To Be Purchased | item | 1,620 | |||||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Non-controlling interest - Summ
Non-controlling interest - Summarized financial information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of subsidiaries [line items] | ||||
Current assets | $ 1,252,935 | $ 1,430,390 | [1] | |
Current liabilities | (1,266,387) | (830,559) | [1] | |
Noncurrent assets | 5,067,930 | 4,111,766 | [1] | |
Non-current liabilities | (3,695,830) | (2,968,041) | [1] | |
Accumulated non-controlling interest at the end of the year | 227,200 | 223,188 | [1] | $ 14,216 |
Revenue | 1,961,299 | 1,579,730 | 1,403,149 | |
Loss for the year | (470,397) | (26,121) | (322,682) | |
Other comprehensive income/(loss) | 72,510 | (28,310) | 94,411 | |
Total comprehensive loss for the year | (397,887) | (54,431) | (228,271) | |
Loss allocated to non-controlling interest during the period | 3,181 | (6,042) | [2] | (711) |
Cash flows generated from operating activities | 907,303 | 750,189 | 635,256 | |
Cash flows used in investing activities | (1,517,288) | (877,949) | (758,512) | |
Cash flows generated from financing activities | 398,241 | 524,265 | (128,136) | |
Net (decrease)/increase in cash and cash equivalents | (211,744) | 396,505 | $ (251,392) | |
I-Systems Solues de Infraestrutura S.A. | ||||
Disclosure of subsidiaries [line items] | ||||
Current assets | 102,445 | 103,315 | ||
Current liabilities | (38,834) | (19,357) | ||
Current net assets | 63,611 | 83,958 | ||
Noncurrent assets | 462,122 | 386,761 | ||
Non-current liabilities | (92,453) | (51,389) | ||
Non-current net assets | 369,669 | 335,372 | ||
Net assets | 433,280 | 419,330 | ||
Revenue | 56,602 | |||
Loss for the year | (15,377) | |||
Other comprehensive income/(loss) | 29,449 | |||
Total comprehensive loss for the year | 14,072 | |||
Cash flows generated from operating activities | 55,714 | 6,056 | ||
Cash flows used in investing activities | (91,680) | (18,771) | ||
Cash flows generated from financing activities | 36,574 | 41,965 | ||
Net (decrease)/increase in cash and cash equivalents | 608 | 29,250 | ||
I-Systems Solues de Infraestrutura S.A. | ||||
Disclosure of subsidiaries [line items] | ||||
Accumulated non-controlling interest at the end of the year | 212,307 | $ 205,433 | ||
Loss allocated to non-controlling interest during the period | $ (7,535) | |||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Share-based payment obligatio_2
Share-based payment obligation (Details) | 1 Months Ended | 12 Months Ended | ||
Oct. 14, 2021 | Jul. 10, 2019 $ / shares | Mar. 31, 2023 | Dec. 31, 2022 Option | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price of outstanding share options | $ 0 | |||
LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Exercise price of outstanding share options | $ 0 | |||
Percentage of shares awarded in the event of initial public offering | 66.70% | |||
Percentage of shares not automatically awarded in event of initial public offering, subject to performance conditions | 33.30% | |||
Share options subject to performance conditions, annual vesting percentage if target achieved | 50% | |||
Percentage of outstanding options converted to shares | 66.70% | 33.30% | ||
Number of share options expired | Option | 0 | |||
5% Adjusted EBITDA growth and Adjusted funds from operations | LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options subject to performance conditions, annual vesting percentage if target achieved | 50% | |||
Measurement period for share-based payment arrangement | 12 months | |||
Adjusted EBITDA growth and adjusted funds from operations percentage | 5% | |||
5% to 10% Adjusted EBITDA growth and Adjusted funds from operations | LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options subject to performance conditions, annual vesting percentage if target achieved | 50% | |||
Measurement period for share-based payment arrangement | 12 months | |||
5% to 10% Adjusted EBITDA growth and Adjusted funds from operations | LTIP1, LTIP2, LTIP2B and LTIP3 plans | Minimum | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Adjusted EBITDA growth and adjusted funds from operations percentage | 5% | |||
5% to 10% Adjusted EBITDA growth and Adjusted funds from operations | LTIP1, LTIP2, LTIP2B and LTIP3 plans | Maximum | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Adjusted EBITDA growth and adjusted funds from operations percentage | 10% | |||
Forecast | LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options subject to performance conditions, annual vesting percentage if target achieved | 50% |
Share-based payment obligatio_3
Share-based payment obligation - Omnibus employee share-based payment scheme (Details) | 7 Months Ended | 11 Months Ended | 12 Months Ended | |||
Oct. 14, 2022 Option | Jun. 09, 2022 Option | Feb. 07, 2022 Option | Dec. 31, 2022 Option | Dec. 31, 2022 Option | Dec. 31, 2022 Option | |
Omnibus share-based payment plans | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 2,943,000 | |||||
Number of share options forfeited in share-based payment arrangement | 86,000 | |||||
Omnibus share-based payment plans, February 2022 grant | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 1,147,500 | |||||
Number of share options forfeited in share-based payment arrangement | 62,500 | |||||
Omnibus share-based payment plans, February 2022 grant, Restricted Stock Units (RSUs) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of vesting occasions | 3 | |||||
Omnibus share-based payment plans, February 2022 grant, Performance Stock Units (PSUs) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-Based Compensation Arrangement, Cumulative Total Shareholder Return Target, Performance Period | 3 years | |||||
Vesting period of instruments in share-based payment arrangement | 3 years | |||||
Omnibus share-based payment plans, June 2022 grant | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 1,700,446 | |||||
Number of share options forfeited in share-based payment arrangement | 23,718 | |||||
Omnibus share-based payment plans, June 2022 grant, Restricted Stock Units (RSUs) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of vesting occasions | 3 | |||||
Omnibus share-based payment plans, June 2022 grant, Performance Stock Units (PSUs) | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share-Based Compensation Arrangement, Cumulative Total Shareholder Return Target, Performance Period | 3 years | |||||
Vesting period of instruments in share-based payment arrangement | 3 years | |||||
Omnibus share-based payment plans, October 2022 grant | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of share options granted in share-based payment arrangement | 94,876 | |||||
Number of vesting occasions | 3 |
Share-based payment obligatio_4
Share-based payment obligation - Total charge to the profit or loss - (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based payment obligation | |||
Expense under equity settled classification from date of amendment | $ 13,265 | $ 11,780 | $ 8,342 |
Total charge to the profit or loss | $ 13,265 | $ 11,780 | $ 8,342 |
Share-based payment obligatio_5
Share-based payment obligation - Movements in the number of share options outstanding - (Details) shares in Thousands | 12 Months Ended | |||
Oct. 14, 2021 | Oct. 13, 2021 | Dec. 31, 2022 Option shares | Dec. 31, 2021 Option shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options at the beginning of the period | 7,942,538 | |||
Share options ending of the period | 6,589,136 | 7,942,538 | ||
Conversion ratio of old classes of ordinary shares into new class of ordinary shares | 500 | 500 | ||
Incentive plan 1 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options, authorized | shares | 1,267 | 3,800 | ||
Share options at the beginning of the period | 1,267,000 | 3,749,000 | ||
Share options Issued | 94,000 | |||
Share options Forfeited | (43,000) | |||
Exercised during the period | (633,000) | (2,533,000) | ||
Share options ending of the period | 634,000 | 1,267,000 | ||
Incentive plan 2 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options, authorized | shares | 5,120 | 15,360 | ||
Share options at the beginning of the period | 5,120,000 | 15,350,000 | ||
Share options Issued | 10,000 | |||
Exercised during the period | (2,560,000) | (10,240,000) | ||
Share options ending of the period | 2,560,000 | 5,120,000 | ||
Incentive plan 2B | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options, authorized | shares | 1,537 | 4,600 | ||
Share options at the beginning of the period | 1,537,000 | 4,595,000 | ||
Share options Issued | 55,000 | |||
Share options Forfeited | (39,000) | |||
Exercised during the period | (769,000) | (3,074,000) | ||
Share options ending of the period | 768,000 | 1,537,000 | ||
Incentive plan 3 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options, authorized | shares | 19 | 56 | ||
Share options at the beginning of the period | 19,000 | 56,000 | ||
Exercised during the period | (9,000) | (37,000) | ||
Share options ending of the period | 10,000 | 19,000 | ||
Omnibus plan | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Share options, authorized | shares | 2,943 | |||
Share options Issued | 2,943,000 | |||
Share options Forfeited | (86,000) | |||
Exercised during the period | (239,000) | |||
Share options ending of the period | 2,618,000 |
Share-based payment obligatio_6
Share-based payment obligation - Valuation assumptions for LTIP plans - (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jul. 01, 2021 USD ($) Option $ / shares | Jul. 14, 2020 USD ($) Option $ / shares | Mar. 09, 2020 USD ($) Option $ / shares | Jul. 10, 2019 USD ($) $ / shares | Dec. 31, 2022 USD ($) Option $ / shares | Dec. 31, 2021 Option | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Exercise price amendment | $ 0 | |||||
LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Exercise price amendment | 0 | |||||
Share price assumption | $ 23.19 | $ 22.14 | $ 21.20 | $ 22.04 | ||
Assumption of forfeiture rate | 0% | |||||
Expected dividend | $ | $ 0 | $ 0 | $ 0 | $ 0 | ||
Share options Issued | Option | 159,369 | 33,405 | 120,228 | |||
Fair value of options granted, at grant date | $ | $ 3,700 | $ 700 | $ 2,200 | |||
LTIP1, LTIP2, LTIP2B and LTIP3 plans | Bottom of range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Assumption of forfeiture rate | 0% | 0% | ||||
LTIP1, LTIP2, LTIP2B and LTIP3 plans | Middle of range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Assumption of forfeiture rate | 5% | 5% | ||||
LTIP1, LTIP2, LTIP2B and LTIP3 plans | Top of range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Assumption of forfeiture rate | 10% | 10% | ||||
Omnibus plan | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Assumption of forfeiture rate | 7% | |||||
Share options Issued | Option | 2,943,000 | |||||
Fair value of options granted, at grant date | $ | $ 32,400 | |||||
Omnibus plan | Bottom of range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share price assumption | $ 11.39 | |||||
Omnibus plan | Top of range | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share price assumption | $ 11.55 | |||||
Incentive plan 1 | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Assumption of forfeiture rate | 10% | |||||
Share options Issued | Option | 94,000 | |||||
Incentive plan 2 | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Assumption of forfeiture rate | 5% | |||||
Share options Issued | Option | 10,000 | |||||
Incentive plan 2B | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Share options Issued | Option | 55,000 | |||||
Incentive plans 2B and 3 | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Assumption of forfeiture rate | 0% | |||||
LTIP1, LTIP2, LTIP2B and LTIP3 plans | LTIP1, LTIP2, LTIP2B and LTIP3 plans | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Exercise price amendment | $ 0 |
Share-based payment obligatio_7
Share-based payment obligation - Valuation assumptions for Omnibus plans (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares | |
Omnibus share-based payment plans | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Fair value of options granted, at grant date | $ 32.4 |
Assumption of forfeiture rate | 7% |
Expected charge over remaining term of outstanding share options | $ 18.1 |
Omnibus share-based payment plans | Bottom of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share price assumption | $ / shares | $ 11.39 |
Omnibus share-based payment plans | Top of range | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Share price assumption | $ / shares | $ 11.55 |
Omnibus share-based payment plans, RSUs with non-market conditions | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Fair value of options granted, at grant date | $ 17.4 |
Omnibus share-based payment plans, PSUs with non-market conditions | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Fair value of options granted, at grant date | 10.9 |
Omnibus share-based payment plans, PSUs with market conditions | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |
Fair value of options granted, at grant date | $ 4.1 |
Share-based payment obligatio_8
Share-based payment obligation - Weighted average remaining contractual life - (Details) | 12 Months Ended | 52 Months Ended | ||
Dec. 31, 2022 Option | Dec. 31, 2021 Option | Sep. 30, 2018 | Jul. 10, 2019 $ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Contractual life of share options at grant date | 12 years | |||
Exercise price | $ / shares | $ 0 | |||
Number of options in force at year end | 6,589,136 | 7,942,538 | ||
2014 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Weighted average remaining contractual life | 3 months 29 days | 9 months 29 days | ||
Number of options in force at year end | 519,763 | 1,039,526 | ||
2015 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Weighted average remaining contractual life | 3 months 29 days | 9 months 29 days | ||
Number of options in force at year end | 2,538,812 | 5,077,624 | ||
2017 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Weighted average remaining contractual life | 3 months 29 days | 9 months 29 days | ||
Number of options in force at year end | 842,658 | 1,685,317 | ||
2018 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Weighted average remaining contractual life | 3 months 29 days | 9 months 29 days | ||
Number of options in force at year end | 17,869 | 35,737 | ||
2020 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Weighted average remaining contractual life | 3 months 29 days | 9 months 29 days | ||
Number of options in force at year end | 25,605 | 51,211 | ||
2021 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Weighted average remaining contractual life | 3 months 29 days | 9 months 29 days | ||
Number of options in force at year end | 26,553 | 53,123 | ||
2022 | ||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||
Weighted average remaining contractual life | 1 year 8 months 19 days | |||
Number of options in force at year end | 2,617,876 |
Cash from operations (Details)
Cash from operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities | |||
(Loss)/profit before taxation | $ (543,850) | $ (8,141) | $ (152,853) |
Adjustments: | |||
Depreciation of property, plant and equipment | 421,920 | 344,716 | 373,247 |
Amortization of intangible assets | 47,330 | 38,166 | 35,415 |
Net reversal of impairment of property, plant and equipment and prepaid land rent | 38,157 | 51,113 | 27,594 |
(Reversal of loss allowance)/loss allowance on trade receivables | (4,446) | (34,031) | 13,081 |
Impairment of withholding tax receivables | 52,334 | 61,810 | 31,533 |
Impairment of Goodwill | 121,596 | ||
Amortization of prepaid site rent | 9,176 | 8,321 | 4,459 |
Net (gain)/loss on disposal of plant, property and equipment | 3,382 | (2,499) | (764) |
Insurance claim income | (2,092) | (6,861) | (14,987) |
Interest expense | 872,029 | 422,034 | 633,766 |
Interest income | (15,825) | (25,522) | (148,968) |
Impairment/(reversal of impairment) of inventory | 138 | (315) | 4,599 |
Decrease in decommissioning expense | (2,671) | ||
Sharebased payment expense | 13,265 | 11,780 | 8,342 |
Operating profit before working capital changes | 1,013,114 | 857,900 | 814,464 |
Changes in working capital | |||
Decrease/(increase) in inventory | (37,750) | 6,689 | (8,482) |
Increase in trade and other receivables | (141,723) | (164,382) | (130,265) |
Increase/(decrease) in trade and other payables | 133,233 | 87,866 | (19,018) |
Net movement in working capital | (46,240) | (69,827) | (157,765) |
Cash from operations | $ 966,874 | $ 788,073 | $ 656,699 |
Related parties - Ownership per
Related parties - Ownership percentage (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
IHS Mauritius Cameroon Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Mauritius Cote d Ivoire Limited [Member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Mauritius Netherlands Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Mauritius Zambia Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Mauritius Rwanda Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Africa (UK) Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands Coperatief U.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands Holdco B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands NG1 B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands NG2 B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Nigeria Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
INT Towers Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Towers NG Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Cote d Ivoire S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Cameroon S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Zambia Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Rwanda Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Rwanda Towers Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Kuwait Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Brasil Cesso de Infraestruturas S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Towers Colombia S.A.S | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Peru S.A.C. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
San Gimignano Imoveis e Adminsitracao Limitada | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Nigeria Tower Interco B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands GCC B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands KSA B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS GCC Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands Connect B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS GCC KW Holding Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 70% | 70% |
IHS Finco Management Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS GCC MAR Holding Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | |
Global Independent Connect Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS KSA Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS SSC FZE | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands RSA B.V | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands BR B.V | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS South Africa Holding Proprietary Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Towers South Africa Proprietary Limited | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands PHP B.V | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Towers Inc. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Netherlands EGY B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Telecom Towers Egypt S.A.E. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 80% | 80% |
Skysites Americas Ltda | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Wi-Fi Mundial Ltda. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Topzio Empreendimentos Imoliliarios Ltda. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | |
IHS Fiber Brasil Participaes Ltda. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Fiber Brasil - Cesso de Infraestruturas Ltda. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
I-Systems Solues de Infraestrutura S.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 51% | 51% |
Centennial Towers Colombia S.A.S. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Polar Breeze Colombia S.A.S | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Centennial Towers Brasil Cooperatief U.A. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Centennial Towers of Brasil B.V. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Centennial Towers of Colombia Ltd. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
IHS Centennial Brasil Torres de Telecomunicacoes Ltda | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Polar Breeze Empreendimentos Ltda. | ||
Disclosure of transactions between related parties [line items] | ||
Ownership percentage | 100% | 100% |
Related parties - Key manageria
Related parties - Key managerial person expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Related parties. | |||
Shortterm employee benefits | $ 19,980 | $ 25,537 | $ 13,671 |
Postemployment benefits | 1,723 | 105 | 105 |
Total key management personnel compensation excluding share-based payments | 21,703 | 25,642 | 13,776 |
Share-based payments | 5,380 | 9,795 | 6,029 |
Total | $ 27,083 | $ 35,437 | $ 19,805 |
Related parties - Other related
Related parties - Other related party transactions and balances (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Dar Telecom Consulting Llc | |||
Disclosure of transactions between related parties [line items] | |||
Expense for medical insurance premiums, paid by related party and subsequently invoiced to entity | $ 0 | $ 85,163 | $ 85,338 |
Services received | 175,000 | 1,125,384 | 0 |
Receivable, related parties | 0 | 551,574 | 0 |
Sam Darwish | |||
Disclosure of transactions between related parties [line items] | |||
Expense for medical insurance premiums on behalf of related parties | 0 | 38,330 | 36,648 |
Costs incurred and reimbursed on behalf of related party | 26,910 | 551,574 | 196,340 |
Cklb International Management Limited | |||
Disclosure of transactions between related parties [line items] | |||
Services received | $ 300,935 | $ 252,615 | |
Wendel Group | |||
Disclosure of transactions between related parties [line items] | |||
Rent and utilities expense paid to related parties | 343,600 | ||
Deposits paid to related parties | $ 195,298 |
Business Combinations - MTN tel
Business Combinations - MTN telecom towers in South Africa (Details) $ in Thousands | 7 Months Ended | 12 Months Ended | |
May 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Disclosure of detailed information about business combination [line items] | |||
Number of business acquired | 2 | ||
Revenue - postacquisition | $ 1,970,000 | ||
Loss after tax of combined entity | $ (466,000) | ||
MTN telecom towers in South Africa | |||
Disclosure of detailed information about business combination [line items] | |||
Number of Towers Acquired | 5,691 | ||
Number of service sites to which entity is providing Managed Services after acquisition | 7,100 | ||
Proportion of ownership interest in subsidiary | 100% | ||
Goodwill deductible for tax purpose | $ 0 | ||
Gross consideration | 421,239 | ||
Net cash consideration | 421,239 | ||
Identifiable assets acquired and liabilities assumed: | |||
Towers and tower equipment | 251,683 | ||
Customer related intangible asset | 127,957 | ||
Network related intangible asset | 67,837 | ||
Right of use asset | 211,315 | ||
Lease liabilities | (211,315) | ||
Deferred tax | (52,864) | ||
Provisions for other liabilities and charges | (34,419) | ||
Total identifiable net assets acquired | 360,194 | ||
Goodwill | $ 61,045 | ||
Revenue - post-acquisition | $ 71,398 | ||
Profit (Loss) - post-acquisition | $ (21,975) | ||
MTN telecom towers in South Africa | After transfer of non-controlling interests | |||
Disclosure of detailed information about business combination [line items] | |||
Proportion of ownership interest in subsidiary | 70% | ||
Proportion of ownership interests held by non-controlling interests | 30% |
Business Combinations - Sao Pau
Business Combinations - Sao Paulo Cinco Locacao de Torres Ltda (Details) - Sao Paulo Cinco Locacao de Torres Ltda (SP5) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 17, 2022 | Dec. 31, 2022 | |
Disclosure of detailed information about business combination [line items] | ||
Percentage of business acquired | 100% | |
Gross consideration | $ 317,188 | |
Less: cash in business at the date of acquisition | (1,896) | |
Net cash consideration | 315,292 | |
Identifiable assets acquired and liabilities assumed: | ||
Customer related intangible asset | 48,353 | |
Network related intangible asset | 2,520 | |
Right of use asset | 266,666 | |
Trade and other receivables | 23,575 | |
Lease liabilities | (4,282) | |
Trade and other payables | (4,222) | |
Deferred tax | (86,239) | |
Total identifiable net assets acquired | 260,651 | |
Goodwill | 54,641 | |
Revenue - post-acquisition | $ 34,129 | |
Profit (Loss) - post-acquisition | $ 6,340 | |
Towers and tower equipment | ||
Identifiable assets acquired and liabilities assumed: | ||
Property, plant and equipment recognised as of acquisition date | 13,395 | |
Land | ||
Identifiable assets acquired and liabilities assumed: | ||
Property, plant and equipment recognised as of acquisition date | $ 885 |
Business Combinations - Skysite
Business Combinations - Skysites Holdings S.A. (Details) - Skysites Holdings S.A. - USD ($) $ in Thousands | 12 Months Ended | |||
Jan. 06, 2021 | Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2022 | |
Disclosure of detailed information about business combination [line items] | ||||
Percentage of business acquired | 100% | |||
Gross consideration | $ 40,611 | |||
Less: contingent consideration* | (4,169) | $ (2,900) | ||
Less: cash in business at the date of acquisition | (2,775) | |||
Net cash consideration | 33,667 | |||
Identifiable assets acquired and liabilities assumed: | ||||
Capital work in progress | 535 | |||
Customer related intangible asset | 4,703 | |||
Right of use asset | 9,675 | |||
Trade and other receivables | 713 | |||
Trade and other payables | (1,132) | |||
Provisions for other liabilities and charges | (2,548) | |||
Lease liabilities | (10,071) | |||
Deferred tax | (2,205) | |||
Total identifiable net assets acquired | 10,972 | |||
Goodwill | 26,864 | |||
Revenue - post-acquisition | $ 4,041 | |||
Profit (Loss) - post-acquisition | $ (142) | |||
Contingent consideration released | $ 1,300 | |||
Towers and tower equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Towers and tower equipment | 11,276 | |||
Land | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Towers and tower equipment | 15 | |||
Furniture and office equipment | ||||
Identifiable assets acquired and liabilities assumed: | ||||
Towers and tower equipment | $ 11 |
Business Combinations - Centenn
Business Combinations - Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. (Details) | 1 Months Ended | 9 Months Ended | |||
Apr. 08, 2021 USD ($) | Mar. 19, 2021 USD ($) | Apr. 08, 2021 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | |
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | |||||
Business Combinations | |||||
Percentage of business acquired | 100% | 100% | |||
Number of sub-parts of business combination | 2 | ||||
Goodwill deductible for tax purpose | $ 0 | ||||
Gross consideration | $ 140,951,000 | $ 140,951,000 | |||
Less: cash in business at the date of acquisition | (919,000) | ||||
Net cash consideration | 140,032,000 | 140,032,000 | |||
Identifiable assets acquired and liabilities assumed: | |||||
Capital work in progress | 1,128,000 | 1,128,000 | |||
Right of use asset | 32,034,000 | 32,034,000 | |||
Customer related intangible asset | 68,021,000 | 68,021,000 | |||
Network related intangible asset | 915,000 | 915,000 | |||
Trade and other receivables | 5,386,000 | 5,386,000 | |||
Trade and other payables | (5,117,000) | (5,117,000) | |||
Provisions for other liabilities and charges | (5,799,000) | (5,799,000) | |||
Lease liabilities | (34,486,000) | (34,486,000) | |||
Tax payable | (3,434,000) | (3,434,000) | |||
Deferred tax | (26,281,000) | (26,281,000) | |||
Total identifiable net assets acquired | 91,862,000 | 91,862,000 | |||
Goodwill | 48,170,000 | $ 11,700,000 | 48,170,000 | ||
Revenue - post-acquisition | $ 9,515,000 | ||||
Profit (Loss) - post-acquisition | $ (3,961,000) | ||||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Software | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Software | 496,000 | 496,000 | |||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Towers and tower equipment | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | 57,964,000 | 57,964,000 | |||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Land | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | 953,000 | 953,000 | |||
Centennial Towers Colombia, S.A.S. and Centennial Towers Brasil Cooperatief U.A. | Furniture and office equipment | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | 82,000 | 82,000 | |||
Centennial Towers Colombia, S.A.S. | |||||
Business Combinations | |||||
Gross consideration | 47,051,000 | ||||
Less: cash in business at the date of acquisition | (659,000) | ||||
Net cash consideration | 46,392,000 | ||||
Identifiable assets acquired and liabilities assumed: | |||||
Capital work in progress | 500,000 | ||||
Right of use asset | 9,761,000 | ||||
Customer related intangible asset | 32,599,000 | ||||
Network related intangible asset | 321,000 | ||||
Trade and other receivables | 3,023,000 | ||||
Trade and other payables | (3,646,000) | ||||
Provisions for other liabilities and charges | (527,000) | ||||
Lease liabilities | (10,458,000) | ||||
Tax payable | (625,000) | ||||
Deferred tax | (10,907,000) | ||||
Total identifiable net assets acquired | 34,679,000 | ||||
Goodwill | 11,713,000 | ||||
Centennial Towers Colombia, S.A.S. | Software | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Software | 1,000 | ||||
Centennial Towers Colombia, S.A.S. | Towers and tower equipment | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | 14,074,000 | ||||
Centennial Towers Colombia, S.A.S. | Land | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | 546,000 | ||||
Centennial Towers Colombia, S.A.S. | Furniture and office equipment | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | $ 17,000 | ||||
Centennial Towers Brasil Cooperatief U.A. | |||||
Business Combinations | |||||
Gross consideration | 93,900,000 | 93,900,000 | |||
Less: cash in business at the date of acquisition | (260,000) | ||||
Net cash consideration | 93,640,000 | 93,640,000 | |||
Identifiable assets acquired and liabilities assumed: | |||||
Capital work in progress | 628,000 | 628,000 | |||
Right of use asset | 22,273,000 | 22,273,000 | |||
Customer related intangible asset | 35,422,000 | 35,422,000 | |||
Network related intangible asset | 594,000 | 594,000 | |||
Trade and other receivables | 2,363,000 | 2,363,000 | |||
Trade and other payables | (1,471,000) | (1,471,000) | |||
Provisions for other liabilities and charges | (5,272,000) | (5,272,000) | |||
Lease liabilities | (24,028,000) | (24,028,000) | |||
Tax payable | (2,809,000) | (2,809,000) | |||
Deferred tax | (15,374,000) | (15,374,000) | |||
Total identifiable net assets acquired | 57,183,000 | 57,183,000 | |||
Goodwill | 36,457,000 | 36,457,000 | |||
Centennial Towers Brasil Cooperatief U.A. | Software | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Software | 495,000 | 495,000 | |||
Centennial Towers Brasil Cooperatief U.A. | Towers and tower equipment | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | 43,890,000 | 43,890,000 | |||
Centennial Towers Brasil Cooperatief U.A. | Land | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | 407,000 | 407,000 | |||
Centennial Towers Brasil Cooperatief U.A. | Furniture and office equipment | |||||
Identifiable assets acquired and liabilities assumed: | |||||
Towers and tower equipment | $ 65,000 | $ 65,000 |
Business Combinations - FiberCo
Business Combinations - FiberCo Solucoes de Infraestrutura S.A. (Details) - I-Systems Solues de Infraestrutura S.A. $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 USD ($) | Nov. 16, 2021 USD ($) | |
Disclosure of detailed information about business combination [line items] | |||
Proportion of ownership interest in subsidiary | 51% | ||
Proportion of ownership interests held by non-controlling interests | 49% | ||
Number of households covered by Fiber-To-Home | 3,500,000 | ||
Number of households covered by Fiber-to-the-Cabinet | 3,400,000 | ||
Total number of households covered by fiber connection | 6,400,000 | ||
Number of households with overlapping fiber coverage | 570,000 | ||
Goodwill expected to be deductible for tax purposes | $ 0 | ||
Gross consideration | $ 260,665 | ||
Contingent consideration | 5,739 | ||
Less: deferred consideration | (66,840) | ||
Net cash consideration | 199,564 | ||
Capital injection | 42,996 | ||
Identifiable assets acquired and liabilities assumed: | |||
Property, plant and equipment recognised as of acquisition date | 233,809 | ||
Cash | 44,872 | ||
Capital work in progress | 3,832 | ||
Customer related intangible asset | 113,159 | ||
Network related intangible asset | 35,413 | ||
Trade and other receivables | 75,338 | ||
Trade and other payables | (13,035) | ||
Loans payable | (6,457) | ||
Deferred tax | (52,415) | ||
Total identifiable net assets acquired | 435,055 | ||
Non-controlling interest | 213,177 | ||
Goodwill | 81,783 | $ 81,800 | |
Revenue - post-acquisition | 5,426 | ||
Profit (Loss) - post-acquisition | (3,341) | ||
Provisional amounts in business combinations | |||
Disclosure of detailed information about business combination [line items] | |||
Gross consideration | 266,739 | ||
Less: deferred consideration | (64,474) | ||
Net cash consideration | 202,265 | ||
Capital injection | 42,996 | ||
Identifiable assets acquired and liabilities assumed: | |||
Property, plant and equipment recognised as of acquisition date | 220,950 | ||
Cash | 44,872 | ||
Capital work in progress | 3,832 | ||
Trade and other receivables | 72,989 | ||
Trade and other payables | (5,764) | ||
Loans payable | (6,457) | ||
Total identifiable net assets acquired | 330,961 | ||
Non-controlling interest | 162,171 | ||
Goodwill | 140,945 | ||
Adjustments to provisional amounts | |||
Disclosure of detailed information about business combination [line items] | |||
Gross consideration | (6,074) | ||
Contingent consideration | 5,739 | ||
Less: deferred consideration | (2,366) | ||
Net cash consideration | (2,701) | ||
Identifiable assets acquired and liabilities assumed: | |||
Property, plant and equipment recognised as of acquisition date | 12,859 | ||
Customer related intangible asset | 113,159 | ||
Network related intangible asset | 35,413 | ||
Trade and other receivables | 2,349 | ||
Trade and other payables | (7,271) | ||
Deferred tax | (52,415) | ||
Total identifiable net assets acquired | 104,094 | ||
Non-controlling interest | 51,006 | ||
Goodwill | (59,162) | ||
Software | |||
Identifiable assets acquired and liabilities assumed: | |||
Software | 539 | ||
Software | Provisional amounts in business combinations | |||
Identifiable assets acquired and liabilities assumed: | |||
Software | $ 539 |
Business Combinations - Fair va
Business Combinations - Fair value adjustments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of detailed information about business combination [line items] | |||||
Property, plant and equipment | $ 2,075,441 | $ 1,714,261 | [1] | ||
Goodwill | 760,328 | 779,896 | [1] | $ 656,256 | $ 518,141 |
Other intangible assets | 1,053,296 | 845,729 | [1] | ||
Trade and other receivables - non-current | 130,347 | 75,054 | [1] | ||
Trade and other receivables - current | 663,467 | 471,753 | [1] | ||
Deferred income tax liabilities | (186,261) | (169,119) | [1] | ||
Non-controlling interest | $ (227,200) | (223,188) | [1] | $ (14,216) | |
As previously reported | |||||
Disclosure of detailed information about business combination [line items] | |||||
Property, plant and equipment | 1,708,834 | ||||
Goodwill | 837,374 | ||||
Other intangible assets | 701,425 | ||||
Trade and other receivables - non-current | 69,479 | ||||
Trade and other receivables - current | 469,130 | ||||
Deferred income tax liabilities | (118,210) | ||||
Non-controlling interest | (173,647) | ||||
Adjustments | |||||
Disclosure of detailed information about business combination [line items] | |||||
Property, plant and equipment | 5,427 | ||||
Goodwill | (57,478) | ||||
Other intangible assets | 144,304 | ||||
Trade and other receivables - non-current | 5,575 | ||||
Trade and other receivables - current | 2,623 | ||||
Deferred income tax liabilities | (50,909) | ||||
Non-controlling interest | $ (49,541) | ||||
[1] Re-presented to reflect the measurement period adjustments in respect of updates to the accounting for the acquisition of I-Systems Soluções de Infraestrutura S.A. in November 2021 (refer to note 31). |
Business Combinations - IHS Kuw
Business Combinations - IHS Kuwait Limited (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | 24 Months Ended | ||||
Sep. 30, 2022 | Oct. 31, 2021 | Apr. 30, 2021 | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 | Dec. 31, 2022 USD ($) | |
IHS Kuwait acquisition of towers in Kuwait | |||||||
Business Combinations | |||||||
Number of Towers Acquired | 43 | 193 | |||||
Towers acquired in third stage | 67 | ||||||
Towers acquired in fourth stage | 126 | ||||||
Towers acquired in fifth stage | 43 | ||||||
Percentage of interest in net assets acquired | 70% | 70% | |||||
Gross consideration | $ 2,729 | $ 12,248 | $ 2,729 | ||||
Less: consideration received in exchange for a retained 30% interest (by Zain Kuwait) in IHS GCC KW | (819) | (1,837) | (819) | ||||
Net consideration for 70% controlling interest in the acquired towers | 1,910 | 10,411 | 1,910 | ||||
Identifiable assets acquired and liabilities assumed: | |||||||
Towers and tower equipment | 1,032 | 7,902 | 1,032 | ||||
Customer related assets | 1,947 | 5,449 | 1,947 | ||||
Network-related assets | 671 | 1,877 | 671 | ||||
Trade and other receivables | 872 | ||||||
Trade and other payables | (921) | (3,852) | (921) | ||||
Total identifiable net assets acquired (at 100%) | 2,729 | 12,248 | 2,729 | ||||
Shareholder funding provided by the Group and external debt | (6,124) | ||||||
Total identifiable net assets acquired for purposes of non-controlling interest | 2,729 | 6,124 | 2,729 | ||||
Non-controlling interest portion of above at 30% | $ 819 | $ 1,837 | $ 819 | ||||
Percentage of net assets acquired (liabilities assumed) as disclosed in the acquisition analysis | 100% | ||||||
Zain Kuwait | IHS GCC Limited | |||||||
Business Combinations | |||||||
Subscribed percentage of ownership interests in counterparty | 30% | 30% | 30% | ||||
IHS Kuwait Limited | |||||||
Business Combinations | |||||||
Towers to be acquired | 1,620 | ||||||
Towers acquired in first two stages | 1,162 | ||||||
Tower not yet acquired | 222 | 222 |
Capital commitments and conti_2
Capital commitments and contingent liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of contingent liabilities in business combination [line items] | ||
Commitments to purchase property, plant and equipment | $ 337,000,000 | $ 206,700,000 |
Legal proceedings provision | 0 | |
Litigations and claims | ||
Disclosure of contingent liabilities in business combination [line items] | ||
Contingent liabilities | $ 3,800,000 | $ 2,000,000 |
Events after the reporting pe_2
Events after the reporting period (Details) $ in Thousands, د.ك in Millions, R$ in Millions, ₦ in Billions | 1 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||
Feb. 22, 2023 USD ($) | Feb. 22, 2023 KWD (د.ك) | Feb. 09, 2023 USD ($) | Feb. 09, 2023 NGN (₦) | Feb. 03, 2023 USD ($) | Feb. 03, 2023 BRL (R$) | Jan. 03, 2023 USD ($) | Jan. 03, 2023 NGN (₦) | Oct. 13, 2022 | Aug. 17, 2022 USD ($) | Aug. 17, 2022 KWD (د.ك) | Nov. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jan. 03, 2024 | Mar. 28, 2023 USD ($) | Mar. 28, 2023 NGN (₦) | Feb. 09, 2023 NGN (₦) | Jan. 03, 2023 NGN (₦) | Dec. 31, 2022 NGN (₦) | Dec. 31, 2022 KWD (د.ك) | May 31, 2022 USD ($) | May 31, 2022 NGN (₦) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 NGN (₦) | Apr. 19, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Proceeds from borrowings, classified as financing activities | $ 1,263,272 | $ 1,076,063 | $ 232,219 | |||||||||||||||||||||||||
Borrowings | 3,344,402 | 2,609,090 | 2,203,209 | $ 2,055,878 | ||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | 506,504 | $ 653,504 | $ 99,903 | |||||||||||||||||||||||||
IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Notional amount | $ 34,900 | ₦ 16.1 | ||||||||||||||||||||||||||
Borrowings, interest rate | 12.50% | 12.50% | ||||||||||||||||||||||||||
IHS (Nigeria) Limited, IHSN NG2, maturing 2023 | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Notional amount | $ 21,700 | ₦ 10 | ||||||||||||||||||||||||||
Borrowings, interest rate | 18% | 18% | ||||||||||||||||||||||||||
Nigerian term loan | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings | 191,400 | ₦ 88.3 | ||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 75,600 | |||||||||||||||||||||||||||
FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. Tranche II | CDI | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.50% | |||||||||||||||||||||||||||
Calculation period for interest rate basis | 252 days | |||||||||||||||||||||||||||
IHS Kuwait Limited, Bank Borrowings Maturing 2029 | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Notional amount | $ 85,000 | |||||||||||||||||||||||||||
Proceeds from borrowings, classified as financing activities | $ 1,000 | د.ك 0.3 | ||||||||||||||||||||||||||
Borrowings | $ 70,000 | د.ك 21.5 | ||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Term Loan | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Notional amount | $ 357,500 | ₦ 165 | ||||||||||||||||||||||||||
Increase in loan facility | $ 62,800 | ₦ 29 | ||||||||||||||||||||||||||
Borrowings, interest rate | 20% | 20% | ||||||||||||||||||||||||||
Proceeds from borrowings, classified as financing activities | $ 269,800 | ₦ 124.5 | ||||||||||||||||||||||||||
Borrowings | $ 300,200 | ₦ 138.5 | ||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Term Loan | Top of range | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Notional amount | 269,800 | ₦ 124.5 | ||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Term Loan | Forecast | Top of range | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, interest rate | 24% | |||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Term Loan | Forecast | Bottom of range | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, interest rate | 18% | |||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Term Loan | Forecast | Nigerian MPR | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.50% | |||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Revolving Credit Facility (RCF) | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Notional amount | 119,200 | $ 95,300 | ₦ 55 | ₦ 44 | ||||||||||||||||||||||||
Increase in loan facility | $ 23,800 | ₦ 11 | ||||||||||||||||||||||||||
Borrowings, interest rate | 20% | 20% | ||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Revolving Credit Facility (RCF) | Forecast | Top of range | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, interest rate | 24% | |||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Revolving Credit Facility (RCF) | Forecast | Bottom of range | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, interest rate | 18% | |||||||||||||||||||||||||||
Signing of loan agreements | Nigeria 2023 Revolving Credit Facility (RCF) | Forecast | Nigerian MPR | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.50% | |||||||||||||||||||||||||||
Repayment of borrowings | IHS (Nigeria) Limited, IHSN NG1, maturing 2023 | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 34,900 | 16.1 | ||||||||||||||||||||||||||
Repayment of borrowings | IHS (Nigeria) Limited, IHSN NG2, maturing 2023 | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | 21,700 | 10 | ||||||||||||||||||||||||||
Repayment of borrowings | Nigerian term loan | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Repayments of borrowings, classified as financing activities | $ 191,400 | ₦ 88.3 | ||||||||||||||||||||||||||
Drawdown of borrowings | FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. Tranche II | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Proceeds from borrowings, classified as financing activities | $ 15,300 | R$ 80.0 | ||||||||||||||||||||||||||
Drawdown of borrowings | FiberCo Solues de Infraestrutura S.A., maturing 2030 - Itau Unibanco S.A. Tranche II | CDI | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Borrowings, adjustment to interest rate basis | 2.45% | 2.45% | ||||||||||||||||||||||||||
Calculation period for interest rate basis | 252 days | 252 days | ||||||||||||||||||||||||||
Drawdown of borrowings | IHS Kuwait Limited, Bank Borrowings Maturing 2029 | ||||||||||||||||||||||||||||
Disclosure of non-adjusting events after reporting period [line items] | ||||||||||||||||||||||||||||
Proceeds from borrowings, classified as financing activities | $ 1,000 | د.ك 0.3 |