When Airtel Uganda, under the leadership of Soumendra Sahu as Managing Director, announced a 28.7% surge in Profit After Tax (PAT) to Shs197.2 billion for the first half of 2025, the headlines painted a picture of a company on the rise.
The numbers are impressive, but what comes next is what will truly define Airtel’s place in Uganda’s digital economy.
This is mainly because what might appear as a rosy picture on the surface could actually be a massive iceberg that the company is buoying on.
Investments That Cannot Be Ignored
Airtel has injected nearly Shs88 billion into network expansion in just six months, rolling out 176 new 4G sites, 150 5G sites, and extending its fibre backbone by close to 1,800 km. Today, Airtel claims to reach 91% of Uganda’s population with 4G coverage, a milestone that deserves recognition.
Data Dominates, Voice Declines
Consumer behaviour is shifting. Data subscribers are up 25.9%, and traffic has grown by over 57%. Voice, once the lifeblood of telcos, is losing ground. Regulatory changes and falling interconnect rates only accelerate this trend. For Airtel, the data business is booming, but can it keep scaling at this pace without running into affordability walls?
The Device Dilemma
Coverage is one thing. Access is another. A significant share of Uganda’s population still struggles with the cost of smartphones and data.
Airtel’s recent engagement with the Uganda Communications Commission (UCC) on device affordability and digital inclusion is timely, but until real solutions reach the consumer, the digital divide remains. Important to note, however, is that it is not only Smartphones that are expensive; several Ugandans are also complaining about exorbitant data charges, which lessen the affordability of services.
Commenting about this, Airtel Uganda Public Relations Manager, Mr David Birungi, downplayed the challenge, noting that the issue of affordability doesn’t deserve the importance it’s being given.
“I see a lot of uninformed debate on affordability. Uganda operates the cheapest rates in the region…”
Asked whether he has a recent benchmark or comparative stat, say, Airtel’s data bundle rates vs MTN or in comparison with the regional average rates, Mr Birungi said that, “According to the latest report from Intelpoint, Uganda and Mauritius offer the most affordable mobile data in Africa, with 1GB for just US$0.02 over 30 days. Comoros, Ghana, and South Africa also rank among the cheapest, each offering 1GB of data for US$0.07 to US$0.10.”
He added that “Nigeria is among the top 10, with a relatively low cost of US$0.13 per 1GB, placing it below the continental average. Madagascar, at US$0.32 per 1GB, closes out the top 20, which reflects the upper boundary of affordable data across African nations.”
According to the report, across Africa, the cost of mobile data can vary sharply from one country to the next, even among those with the cheapest rates.
Profits Today, Costs Tomorrow?
The shine of record profits hides a less glamorous reality: rising finance costs tied to infrastructure and borrowing.
However, how Airtel manages this balance between aggressive investment and sustainable margins will determine whether today’s boom becomes tomorrow’s burden.
Our Take
Airtel Uganda has delivered results that deserve applause. But credit should not blind us to the challenges ahead. Coverage without affordability risks widening inequality. Profit without deeper innovation risks stagnation.
For a company positioning itself as Uganda’s digital backbone, the test is no longer about how much fibre or 5G you roll out; it is whether or not ordinary Ugandans can truly afford to connect and thrive in this new economy.