IHS Towers Cuts H1 Infrastructure Spend 16% to Prioritize Cash Flow
IHS Towers, recognized as Africa’s largest telecommunications infrastructure provider, has executed a significant strategic shift in the first half of 2025, moving away from its previous aggressive growth posture. The company has embraced a more measured, cash-flow-driven strategy, evidenced by a sharp reduction in its infrastructure spending. This pivot is taking place against a backdrop of considerable portfolio adjustments, including major asset disposals, as IHS narrows its focus to fortify its position in core markets such as Nigeria, South Africa, and Brazil. The new approach prioritizes financial stability and operational efficiency over rapid, capital-intensive expansion.
Dissecting the Capital Expenditure Reduction
A detailed analysis of the company’s financials reveals a substantial decrease in capital expenditure (capex). In the first half of 2025, IHS invested approximately $89.9 million in new tower projects, a significant drop from the $106.8 million allocated during the same period last year. This represents a decline of roughly 15.8%. The reduction was implemented consistently throughout the half, with Q1 capex falling 17.8% year-on-year to $43.6 million, followed by a 13.8% drop in Q2 to $46.3 million. Geographically, the steepest cuts were seen in Latin America, where investment in new site construction and fibre rollouts was deliberately curtailed. IHS’s largest market, Nigeria, was not immune to the slowdown, experiencing a 5.5% spending decrease in Q1 and a 10.4% decrease in Q2 due to reduced outlays on maintenance, fibre deployment, and site upgrades.
The decision by IHS Towers to scale back its infrastructure investment is a clear indicator of a new strategic direction focused on sustainable operations and cash preservation. By consciously reducing spending in both emerging and established markets, the company is adapting to current economic realities. This move to optimize its portfolio and concentrate resources on its most profitable core operations signals a shift towards reinforcing its financial foundation, ensuring long-term stability in the dynamic African and global telecommunications landscape.
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