TowerCo of Africa Uganda Secures $40M

TowerCo of Africa (TOA) Uganda has successfully secured US$40 million in financing from European development finance partners as part of a 10-year deal.

The funding, which includes investment from the European Investment Bank, the Development Bank of Austria (OeEB), and the Belgian Investment Company for Developing countries, will be utilized to improve mobile phone network coverage in rural areas of Uganda through the installation of 506 new telecom towers.

The new towers will address coverage gaps in rural areas currently lacking mobile network access or facing oversubscription with existing networks. These towers will also enable rural communities to access essential services such as 4G and 5G data services, mobile money solutions, and promote financial inclusion in the country.

“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 installation of these new towers will happen over the next 2 years, creating an estimated 2,000 jobs for both skilled and unskilled workers during construction. A 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’s dedication to responsible infrastructure development and climate action.

Thomas Östros, Vice President of the European Investment Bank 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.”

“This project aligns with our goal of empowering communities through sustainable development, and we anticipate the transformative effects it will bring to rural areas,” added Nada Shall, Liaison Officer for East Africa at BIO.

The investment is timely, with only 65 percent of Uganda currently having mobile network coverage. This initiative addresses coverage challenges and plays a significant role in advancing the country’s goal of achieving 95 percent coverage.

The project received a total of US$40 million in financing, with the European Investment Bank (EIB) leading the contribution by providing US$16 million, supported by the ACP Trust Fund. Additionally, The Development Bank of Austria (OeEB) and Belgium each contributed US$12 million to the initiative.