Economic stability is essential in every country for sustainable development. It is for this reason that almost every country in the world engages in many activities and makes discoveries in order to develop economically. Airtel is one of the factors that contribute to the economic development in Zambia and it remains the largest mobile phone operator in Zambia, by revenue with customers’ base about more than 7.2 million.
Airtel is a leading provider of telecommunication service, ranks among the top three mobile operators globally and its network covers over two billion people. In Zambia, Airtel was founded in 1998 as Celtel Zambia Plc, the company is owned by Bharti Airtel Zambia Holdings BV (BAZHBV) with 96.36 percent shareholding and the remaining 3.64 percent owned by public investors through the Lusaka Stock Exchange (LUSE).
However, Airtel provides to almost every Zambian an easy, dependable way to connect to the world and it is a number one service provider covering the entire 117 district in Zambia with an offering of the widest range of tariffs. Airtel has really contributed enormous economical development to the country by introducing Airtel money, where people deposit and withdraw at a reasonable charge. A person can make a deposit starting from low as 5.00ZMW and money can stay in the account for some years without being deducted.
Not only that, with Airtel money you can buy airtime, data or voice bundles for yourself, friends and family at any time as well as pay for goods and services like electricity, water, pay TV and many more, which has really made works easier and faster. Airtel continues to expand its investments resulting in significant growth in its key operating indicators. For instance, in 2020 the total revenue increased by 20.61% representing 2,598.00ZMW million compared to 2,154ZMW in 2019.
On 18th November, 2020 government commended Airtel Zambia for donating assorted disinfectants and other cleaning materials to various schools on the Copperbelt, where Copperbelt Provincial Education Officer Ngoma said the donation is timely and will assist schools during Covid-19 times as he spoke when received a donation from Airtel at Wusakile Secondary School in Kitwe. Meanwhile, Airtel Copperbelt regional business manager Felix Simfukwe said the materials were bought using funds raised by workers for all schools in the region. Earlier, Kitwe District Education Board Sectary Christopher Nyungile thanked Airtel Zambia for going to the aid of the school.
With regards to financial business performance and remuneration for 2020/21, the annual financial statement report provides that the annual bonuses depend primarily on financial measures, with 20% of the CEO. The shareholder’s equity as at 31 March 2021 showed a total amount of USD 214,179 thousands and the Income Statement for the Year 2020/2021 is showing a post-tax profit of USD 1 thousand (2019/2020: loss of USD 12 thousands). For purposes of VAT and corporate income tax, the Company forms a fiscal unity with Bharti Airtel International (Netherlands) BV.
According to the 2021 Airtel financial report indicated that employee benefits mainly include wages, salaries, and bonuses. The employee benefits are recognized in the year in which the associated services are rendered by the Group employees. Short-term employee benefits are recognized in statement of comprehensive income at undiscounted amounts during the period in which the related services are rendered.
Airtel Zambia issues tax obligation statements in which the Lusaka Stock Exchange issued a statement regarding its tax affairs and advised stakeholders to ignore the malicious statements that went viral in relation to the market announcements that were published on 19th August 2021. Airtel Zambia clarified to all its stakeholders, who include its esteemed customers, not to pay any need to the malicious and mischievous messages being circulated regarding its tax liability. This can be seen in the statement issued on 20th October, 2021 by the Corporate Company and Communication Office.
The statement served as a reminder to all concerned about the substantial investment that the company has made in the last three years. “Airtel Networks has invested over 100 million United State Dollars in the last three years in building a 100% 4G network to bridge the digital divide in Zambia”. Under that statement the company also indicated that it was compliant with all statutory requirements and had made public all essential documents for stakeholders to verify. “Every financial statement of Airtel Networks Zambia Plc is in the public domain by virtue of it being listed on the Lusaka Securities Exchange. The company had signaled that it ignored the malicious statements and will remain razor focused on Zambia.”We remain committed to Zambia and will continue working resolutely without any distractions.”
In summing up according to the statements given by Airtel Zambia, having the new dawn government and escalating appreciation of the local currency with decrease in inflation, Airtel Zambia intend to continue providing market-reading innovative, world class products and services spurred by continued investment in the Network and distribution infrastructure development in the country.
