In a landmark initiative, TowerCo of Africa Uganda has secured US$40 million in long-term financing from European development finance partners. The European Investment Bank, the Development Bank of Austria (OeEB), and the Belgian Investment Company for Developing Countries (BIO) have come together to support this venture, aiming to significantly improve mobile phone network coverage in rural areas of Uganda.
The 10-year financing plan is set to facilitate the installation of 506 new telecom towers, strategically positioned in underserved rural areas. These towers will play a crucial role in offering reliable 4G and 5G data services, mobile money solutions, and fostering financial inclusion.
Currently, only 65% of Uganda has mobile network coverage, making the new investment a pivotal move to address coverage challenges. TowerCo’s initiative aligns with Uganda’s goal of achieving 95% coverage across the country.
The European-backed investment by TowerCo of Africa Uganda will overcome a key barrier hampering telecom access in rural Africa. These 506 new towers will be shared by multiple mobile network operators, ensuring commercial viability for network expansion and providing more comprehensive and inclusive network access for rural communities.
A significant portion of the new towers will be powered by solar energy, aligning with TowerCo of Africa Uganda’s commitment to responsible infrastructure development and climate action.
Geoffrey Donnels Oketayot, CEO of TowerCo of Africa Uganda, expressed enthusiasm about the financing backing, stating, “This new financing 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.”
Thomas Östros, European Investment Bank Vice President, highlighted the commitment to tackling the digital divide in Africa, emphasizing the bank’s involvement in both project and development finance. He stated, “Bridging the digital divide is a key focus of the EU Global Gateway initiative and crucial for inclusive development.”
Nada Shall, Liaison Officer East-Africa for BIO, added, “This project aligns with our goal of empowering communities through sustainable development, and we anticipate the transformative effects it will bring to rural areas.”
Sabine Gaber, Member of the Executive Board of OeEB, emphasized the importance of providing rural areas with access to modern telecommunication services for economic and social progress.
Ambassador Jan Sadek, Head of the European Union Delegation to Uganda, praised the visionary telecom investment by TowerCo of Africa Uganda, noting its potential to unlock digitalization and telecommunication opportunities for rural communities across the country.
The new telecom towers are scheduled to be installed over the next two years, with the rural telecom expansion initiative expected to create 2,000 skilled and unskilled jobs for local communities during construction. This partnership signifies a significant step forward in narrowing the digital divide, unlocking new opportunities for rural communities, and fostering sustainable development in Uganda.
