Lease liabilities

12 Months Ended

Dec. 31, 2023

Lease liabilities.

Lease liabilities

23.Lease liabilities


		2023		2022	*
		$’000		$’000

Current		91,156		87,240
Non-current		510,838		518,318
Total lease liabilities		601,994		605,558

Lease liabilities represent the net present value of future payments due under long term land leases for leasehold land on which our towers are located and for other leasehold assets such as warehouses and offices. During the period, payments to the value of $131.3 million (2022: $112.8 million, 2021: $96.2 million) were made in respect of recognized lease liabilities. These lease liabilities are unwound using incremental borrowing rates which represent the credit risk of the lessee entity and the length of the lease agreement.

Reconciliation of cash and non-cash changes


		2023		2022	*	2021
		$’000		$’000		$’000

At January 1		605,558		376,101		314,747
Additions through business combinations (note 31)		—		216,218		44,557
Additions through new leases or remeasurements		159,624		118,609		131,438
Interest and finance charges for lease liabilities (note 11)		61,617		52,234		32,826
Payments for the principal of lease liabilities		(72,854)		(76,629)		(63,324)
Interest paid for lease liabilities		(58,443)		(36,178)		(32,923)
Remeasurements or terminations**		(67,547)		(37,718)		(30,978)
Effects of movement in exchange rates		(25,961)		(7,079)		(20,242)
Closing balance – December 31		601,994		605,558		376,101

Amount recognized in the statement of income


		2023		2022	*	2021
		$'000		$'000		$'000

Interest on lease liabilities (note 11)		61,617		52,234		32,826
Expenses relating to short-term leases and low value assets (note 7)		10,879		16,924		11,165
Depreciation for right of use assets (note 14)		95,895		88,615		60,685
Total for the year ended		168,391		157,773		104,676

As at December 31 the contractual maturities of the lease liabilities were as follows:

Total

Carrying

contractual

Within

2 - 3

4 – 5

Over 5

value

cash flows

1 year

years

years

years

$'000

$'000

$'000

$'000

$'000

$'000

2023

Lease liabilities

601,994

1,181,459

101,709

193,434

180,895

705,421

2022

Lease liabilities*

605,558

1,108,532

92,417

179,930

168,231

667,954

*Re-presented to reflect the remeasurement period adjustments, as required by IFRS 3, in respect of updates to the accounting for the MTN SA Acquisition in May 2022.

**This value represents disposals due to terminated leases and the impact of remeasurement of lease liabilities as a result of changes in lease terms.

Lease obligation contractual cash flows are disclosed with the same renewal expectation assumption assessed for lease accounting under IFRS 16. The average remaining lease term remaining at December 31, 2023 is 12.5 years.