Summary:
TowerCo of Africa Uganda has secured US$40 million in financing from European development finance partners as part of a 10-year deal.
“This new financing backing from European development finance partners is a testament to our shared vision of connecting communities and fostering economic growth here in the heart of Africa,” said Geoffrey Donnels Oketayot, CEO of TowerCo of Africa Uganda.
“The deployment of hundreds of new telecom towers across Uganda will make a significant leap towards ensuring that no one is left behind in the digital age.”
The funding includes investment from the European Investment Bank, the Development Bank of Austria (OeEB) and Belgian Investment Company for Developing countries. It will be used to improve mobile phone network coverage in rural areas of Uganda with the installation of 506 new telecom towers.
The European Investment Bank, supported by the ACP Trust Fund, has pledged US$16 million and the Development Bank of Austria and Belgium US$12 million each.
“The European Investment Bank is committed to tackling the digital divide in Africa and is happy to support TowerCo of Africa Uganda’s engagement to transform rural connectivity across Uganda,” said Thomas Östros, vice president of European Investment Bank.
“Bridging the digital divide is a key focus of the EU Global Gateway initiative and crucial for inclusive development, and this partnership where the Bank is involved with both project and development finance partners exemplifies our shared commitment to making a positive impact on the lives of rural populations.”
The towers will be located in rural areas that currently lack mobile network access or where existing mobile networks are oversubscribed. They will largely be powered by renewable energy and enable rural communities to access 4G and 5G data services, mobile money solutions, and enable financial inclusion.
“Belgium is delighted to contribute to expanding mobile coverage in Uganda,” added Nada Shall, liaison officer – East Africa at BIO.
“This project aligns with our goal of empowering communities through sustainable development, and we anticipate the transformative effects it will bring to rural areas.”
At present only 65% of Uganda has mobile network coverage. The new investment reinforces the need to address coverage challenges and will play a significant role in advancing the country’s 95% coverage goal.
“We believe that providing rural areas with access to modern telecommunication services is essential for economic and social progress. This collaboration exemplifies our commitment to creating positive change in communities through innovative solutions,” commented Sabine Gaber, member of the executive board at OeEB.
The new towers will be shared by multiple mobile network operators, with a significant portion of the new towers will be powered by solar energy.
“Increasing access to digital infrastructure is a key focus of Global Gateway,” at Ambassador Jan Sadek, head of the European Union Delegation to Uganda.
“This visionary new telecom investment by TowerCo of Africa Uganda, backed by European development finance partners, overcomes barriers holding back mobile network investment and will unlock digitalisation and telecommunications opportunities for rural communities across the country.”
The new telecom towers will be built over the next two years and the project is expected to create jobs for local communities during construction.
