Skip to main content

USD 40 M European Backing for Uganda Rural Telecom Expansion

USD 40 M European Backing for Uganda Rural Telecom Expansion
  • TowerCo of Africa Uganda to install 506 new telecom towers to transform access to telecom services in rural Uganda.
  • European Investment Bank, Development Bank of Austria and Belgian Investment Company for Developing Countries (BIO) confirm US$ 40 million support for new initiative.
  • Improved telecom infrastructure to transform access to 5G data, mobile money services and financial inclusion.

TowerCo of Africa Uganda has secured US$40 million long-term financing from European development finance partners, including the European Investment Bank, the Development Bank of Austria (OeEB) and Belgian Investment Company for Developing countries, to support new investment aimed at significantly improving mobile phone network coverage in rural areas of Uganda, unlocking digital empowerment and economic advancement.

USD 40 M European Backing for Uganda Rural Telecom Expansion

Belgium is delighted to contribute to expanding mobile coverage in Uganda.

Nada Shall, Liaison Officer East-Africa for BIO

The 10-year financing will support installation of 506 new telecom towers, strategically positioned in rural areas that currently lack mobile network access or where existing mobile networks are saturated. The new telecom towers will be mainly powered by renewable energy and enable rural communities to access 4G and 5G data services, mobile money solutions, and foster financial inclusion.

USD 40 M European Backing for Uganda Rural Telecom Expansion

This new financing is a testament to our shared vision of connecting communities and fostering economic growth here in the heart of Africa.

Geoffrey Donnels Oketayot, CEO of TowerCo of Africa Uganda

At present, only 65% of Uganda has mobile network coverage. The new investment reinforces the imperative to address coverage challenges and will play a significant role in advancing the country’s 95% coverage goal.

The European backed network investment by TowerCo of Africa Uganda will overcome a key barrier holding back telecom access in rural Africa. The 506 new towers will be shared by multiple mobile network operators, addressing challenges that have historically hindered telecom expansion in rural areas, ensuring commercial viability for network expansion and providing more comprehensive and inclusive network access for rural communities.

USD 40 M European Backing for Uganda Rural Telecom Expansion

Bridging the digital divide is a key focus of the EU Global Gateway initiative and crucial for inclusive development

Thomas Östros, European Investment Bank Vice President

A significant portion of the new towers will be powered by solar energy, reducing the risk of fuel and generator theft, and aligning with TowerCo of Africa Uganda dedication to responsible infrastructure development and climate action.

Geoffrey Donnels Oketayot, CEO of TowerCo of Africa Uganda, said "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. 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."

USD 40 M European Backing for Uganda Rural Telecom Expansion

Providing rural areas with access to modern telecommunication services is essential for economic and social progress.

Sabine Gaber, Member of the Executive Board of OeEB

Thomas Östros, European Investment Bank Vice President said, "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. 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."

Sabine Gaber, Member of the Executive Board of OeEB, said, "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."

Ambassador Jan Sadek, Head of the European Union Delegation to Uganda said: “Increasing access to digital infrastructure is a key focus of Global Gateway. 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 installed over the next two years and the rural telecom expansion initiative is expected to create 2,000 skilled and unskilled jobs for local communities during construction.

USD 40 M European Backing for Uganda Rural Telecom Expansion

This new investment by TowerCo of Africa Uganda will unlock digitalisation and telecommunications opportunities for rural communities across the country.

Ambassador Jan Sadek, Head of the European Union Delegation to Uganda

The European Investment Bank, supported by the ACP Trust Fund, has agreed to provide US$ 16 million and the Development Bank of Austria and Belgium US$ 12 million each for the new investment by TowerCo of Africa Uganda.

This partnership signals a significant step forward in narrowing the digital divide, unlocking new opportunities for rural communities, and fostering sustainable development in Uganda. TowerCo of Africa Uganda looks forward to the positive impact of this collaboration and the shared journey towards a connected and inclusive future.

About TOA

TowerCo of Africa is a fully owned subsidiary of pan-African telecommunications service provider Axian Telecom and is one of Africa’s fastest-growing tower infrastructure companies, with operations in Madagascar, Uganda, the Democratic Republic of Congo and Tanzania. Over the course of the last decade, TowerCo of Africa has steadily expanded its African operations order to meet the growing demand for a better-connected Africa.

About OeEB

OeEB was founded in March 2008 as the development bank of the Republic of Austria. With a public mandate, we work for better living conditions in developing countries.

https://www.oe-eb.at/

About European Investment Bank

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

EIB Global is the EIB Group’s specialised arm dedicated to increasing the impact of international partnerships and development finance. EIB Global is designed to foster strong, focused partnership within Team Europe, alongside fellow development finance institutions, and civil society. EIB Global brings the Group closer to local people, companies and institutions through our offices across the world.

Press contacts

TowerCo of Africa Uganda
Claire Mattei

EIB
Richard Willis

+352 4379 82155
+352 621 555 758

EIB press office
www.eib.org/press
+352 4379 21000

OeEB
Verena Kastner

+43 1 5331200-2993

More news

BIO has invested USD 13.6 M in BRAC International

 News

BIO has invested USD 13.6 M in BRAC International

15-11-2024

The Belgian Investment Company for Developing Countries (BIO) has granted a loan of USD 13.6 M to BRAC International as part of a USD 32.3 M debt financing round together with Proparco, Ceniarth and Global Partnership. USD 20 M of this will be used to support the growth of the microfinance activity in Tanzania, with the remainder of the investment going to other Sub-Saharan African entities in Liberia and, Sierra Leone.

Read more
IFB announces new CEO

 News

IFB announces new CEO

17-10-2024

Impact Finance Belgium (IFB) announced the next CEO to lead and scale-up the organisation to the next level.

Read more
candi solar secures USD 18 M

 News

candi solar secures USD 18 M

10-10-2024

Candi Solar secures an additional USD 18 Million in debt funding from responsAbility and BIO to accelerate solar energy expansion in India and South Africa

Read more