In a landmark move towards advancing digital empowerment and economic progress in rural Uganda, TowerCo of Africa Uganda has secured $40 million in long-term financing from prominent European development finance partners
The collaboration involves the European Investment Bank, the Development Bank of Austria (OeEB), and the Belgian Investment Company for Developing countries.
The substantial 10-year financing package is earmarked to fuel new investments specifically geared towards enhancing mobile phone network coverage in underserved rural areas of Uganda. The strategic initiative aims to catalyse digital transformation, providing vital access to 4G and 5G data services, mobile money solutions, and fostering financial inclusion.
Currently, only 65% of Uganda benefits from mobile network coverage, presenting a significant hurdle to the country's connectivity goals. The US$40mn investment will support the installation of 506 new telecom towers, strategically positioned in areas lacking mobile network access or experiencing network saturation. Notably, these towers will primarily rely on renewable energy sources, aligning with sustainable practices and TowerCo of Africa Uganda's commitment to responsible infrastructure development and climate action.
The new towers represent a vital leap towards achieving Uganda's ambitious target of 95% coverage. Shared by multiple mobile network operators, the towers address historical challenges hindering telecom expansion in rural areas, ensuring commercial viability and providing comprehensive network access for diverse communities.
A substantial portion of the new towers will harness solar energy, not only reducing the risk of fuel and generator theft but also emphasizing TowerCo of Africa Uganda's dedication to responsible infrastructure development.
"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," commented Geoffrey Donnels Oketayot, CEO of TowerCo, Africa Uganda.
Thomas Östros, vice-president, European Investment Bank, remarked, "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."
"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," said ambassador Jan Sadek, head of the European Union Delegation to Uganda.
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.
The European Investment Bank, supported by the ACP Trust Fund, has agreed to provide US$16mn and the Development Bank of Austria and Belgium US$12mn 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.
