Bharti Enterprises founder and Chairman, Sunil Bharti Mittal has promised to invest $1 billion annually in its African operations over the next few years.
Mittal, a co-chair at the on-going World Economic Forum on Africa in Abuja, says his company intends to increase investment in its existing operations in 17 African countries rather than expand to newer markets.
“We have made massive investments in 17 countries and we spend capital expenditures every year in excess of $1 billion is the plan,” Sunil Mittal was quoted as saying on the sidelines of the forum.
Airtel began operations in Africa in 2010 after it took over operations from Kuwait’s Zain Telecom in a $10.7 billion acquisition deal.
Today, Airtel Africa represents one-third of Bharti Airtel’s business.
In the last fiscal, Airtel made capital expenditure of $635 million in Africa, bringing its cumulative investment to $14,388 million in the fast-growing continent at the end of 2013-14.
Its revenue however declined by 1.7 percent to $1.145 million during March quarter while net income from operations stood at $116 million compared to $103 million recorded in the previous quarter.
It also registered a net loss of $124 million in Africa as compared to a loss of $91 million in the corresponding quarter of the previous year.
According its Africa MD/CEO, Christian de Faria, the quarter was “impacted by the seasonal downturn in parts of Africa and regulatory interventions in Nigeria.”
