On Tuesday, May 20, 2025, IHS Holdings—Africa’s largest independent telecom tower operator—announced the sale of its Rwandan operations to Paradigm Tower Ventures for up to $274.5 million. Although the deal covers just 1,465 tower sites—less than 4% of IHS’s total portfolio—it marks a clear strategic pivot: the company is shifting away from smaller, lower-margin markets to focus on larger, high-growth African economies where scale offers stronger operational leverage and profitability.
This move represents a departure from IHS’s earlier strategy: aggressive expansion and geographic diversification across emerging markets. In the past decade, the company has entered countries such as Rwanda, Kuwait, and Peru through acquisitions and build-to-suit agreements, to secure early-mover advantages and long-term tenancy contracts. That expansion drive helped position IHS as a global player ahead of its 2021 IPO, even though it meant operating in markets that often delivered lower returns or posed operational complexities.
The Rwandan divestment follows similar exits from Kuwait and Peru in 2024, signaling a deliberate realignment of IHS’s global footprint. The company now prioritises markets with higher commercial potential and more favorable economics. CEO Sam Darwish described the Rwanda sale as “carefully considered” and part of a broader effort to drive shareholder value. The deal’s valuation—8.3 times adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA)—underscores continued investor confidence in African telecom infrastructure, even as the sector recalibrates for efficiency and scale.
This transaction also simplifies IHS’s business model. Streamlining its portfolio allows the company to reduce operational complexity and allocate capital more efficiently. It also supports clearer financial reporting and enhances visibility for investors, key priorities as IHS continues to evolve post-IPO.
IHS’s shift mirrors a broader trend across the African tower industry. Tower companies are increasingly retreating from smaller or operationally challenging markets in response to rising interest rates, currency volatility, and logistical constraints like unreliable electricity.
Helios Towers, for instance, reduced its capital expenditure from $765 million in 2022 to a projected $170–210 million in 2023, focusing on core markets such as Tanzania, the Democratic Republic of Congo, and Oman. The company also paused planned acquisitions in Chad and Gabon due to regulatory hurdles, reflecting a more disciplined and selective expansion strategy.
Despite Rwanda’s reputation as a politically stable, fast-digitising economy, its scale presented limitations for a player of IHS’s size. The 1,465 towers operated in Rwanda represented a small portion of IHS’s 39,212 sites as of Q1 2025. Post-sale, IHS’s portfolio will stand at approximately 37,747 towers—still far ahead of any independent towerco operating on the continent.
The deal highlights a fundamental truth in the tower business: scale matters. Managing towers in smaller markets demands similar administrative, regulatory, and infrastructure oversight as larger ones—but without the same revenue potential. By concentrating on scale, IHS aims to improve margin efficiency, deepen market penetration, and better serve anchor tenants across its core geographies.
These core markets are not only larger, more strategic. Nigeria accounts for over 16,000 towers, representing roughly 43% of IHS’s post-sale portfolio. IHS holds a 63% market share in Nigeria and is the sole independent tower operator in Cameroon, Côte d’Ivoire, and Zambia. In South Africa, it maintains a 37% market share and continues to invest in 4G densification and early-stage 5G deployments.
The Rwandan divestment is also a play in capital discipline. Proceeds from the sale can be reinvested into infrastructure upgrades in high-value markets or used to reduce debt, strengthening IHS’s financial position and positioning it for future growth. As Darwish noted in the company’s Q1 2025 report, such moves are about “boosting the balance sheet” and realigning the portfolio to match evolving market opportunities.
According to IHS Q1 2025 earnings, the Rwandan business remained part of its consolidated results during the quarter, with revenue from the sale to be recognised once the deal closes in H2 2025
Despite the sale, IHS remains the undisputed leader in Africa’s tower infrastructure landscape. With over 37,700 towers, its scale enables it to negotiate favorable tenancy agreements, reduce per-site costs, and attract long-term investment. IHS’s leaner, more focused structure positions it to capitalise on the next wave of infrastructure demand. The reduction in tower count, from 39,000 to 37,700, is less a contraction and more a strategic reorientation—designed to play smarter in a market where scale and focus increasingly trump size alone.
