UGANDA – TowerCo of Africa Uganda, a tower infrastructure company, has secured US$40 million in long-term financing from European development finance partners to improve phone network coverage in rural areas of Uganda.
The European development finance partners included the European Investment Bank, the Development Bank of Austria (OeEB) and the Belgian Investment Company for Developing Countries.
The new investment is aimed at significantly improving mobile phone network coverage in rural areas of Uganda while unlocking digital empowerment and economic advancement.
The 10-year financing will support the installation of 506 new telecom towers, strategically positioned in rural areas that currently lack mobile network access or where existing mobile networks are saturated.
“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,” Geoffrey Donnels Oketayot, CEO of TowerCo of Africa Uganda, said.
“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 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.
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.
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’s dedication to responsible infrastructure development and climate action.
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.
“Increasing access to digital infrastructure is a key focus of Global Gateway,” Ambassador Jan Sadek, Head of the European Union Delegation to Uganda said.
“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 digitalization and telecommunications opportunities for rural communities across the country.”
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 toward a connected and inclusive future.
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